Diffference between sales and marketing
Sales promotion consists of a diverse collection of incentive tolls, mostly short term, designed to stimulate quicker and / or greater purchase of particular products/services by consumers or the trade: Concept of Sales promotion Sales Promotion is an important method of promotion which supplements personal selling and advertising effects. According to American Marketing Association' "Sales promotion includes marketing activities, other than personal selling, advertising such as displays, shows and expositions, demonstrations and various non-recurring selling efforts not in the ordinary routine." Sales promotion includes free samples, premium on sales, sales and dealer incentives, contests, fair and exhibition public relations activities etc. Sales promotion are those activities, other than advertising and personal selling and stimulates market demand for products. The basic purpose is to stimulate on the spot buying by prospective customers through short term incentives. These incentives are essentially temporary and no-recurring in nature. Objectives of Sales Promotion Sales Promotion techniques are used to (1) Introduction of new products to the market through educating people (2) Attractive new customers by offering attractive gifts. (3) Increase Sales through slack season (4) Create goodwill among the present as well as prospective customers. (5) create good public image of the product and the firm. Need and Importance of Sales promotion Sales Promotion acts as a bridge between advertising and personal selling. Due to the diversity of markets, the importance of sales promotion had increased tremendously. Sales promotion helps remove the customers dissatisfaction about a particular product, manufacturer and create brandimage in the minds of consumers and users. The sales promotion devices at the point of purchase stimulate the customers to make purchase promptly on the spot. Benefits of sales promotion (1) Spreads information (2) Stimulates Demand (3) Customer Satisfaction (4) Stabilization of sales volume (5) Create Product identity (6) Performance Appraisal Criticism of Sales promotion Sales promotion activities are often criticized on the following grounds. 1. No real Incentives The incentives offered through sales promotion schemes are fictional and not real. It is said that manufacturer will realize the cost of their incentives by raising the price of goods. 2. Nonmoving products are passed off Only products which are lacking in quality or are not likely to the favored by customers, require sales promotion efforts. 3. Temporary Nature The sales promotion schemes are carried out during particular seasons and not on permanent basis. The results achieved through them are generally short lived. As soon as the incentives offered under such schemes are withdrawn, the benefit in terms of increased sales may also vanish. Types of Sales promotion Sales promotional activities may be broadly classified into the following 1. Consumer sales promotion 2. Trade sales promotion 3. Business Sales promotion
Major Consumer - Promotion Tools 1. Samples: Samples are offers of a free amount of a product or service. The sample might be delivered door to door, sent in the mail, picked up in store, found attached to another product, or featured in an advertising offer. Sampling is the most effective and most expensive way to introduce a new product. 2. Coupons: Coupons are certificates entitling the bearer to a stated saving on the purchase of a specific product. Coupons can be mailed, enclosed in other products or attached to them, or inserted in magazine and newspapers ads. 3. Discount or price off In order to increase sale, many producers introduce price off offer to customers. Under this, the product is offered at a price lower than the normal price. For eg., dining off season (winter), ceiling Fans, Coolers and refrigerators may be offered at 20% or 30% off price. 4. Cash Refund offers...
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