THE PROBLEM AND ITS BACKGROUND
According to Peter Drucker; the aim of marketing is to acquire more shares of the market and maintain them to increase sales. By considering enormous changes in the economic conditions of the world, it can be seen that every nation tries to create or maintain advantage for itself and with the help of the marketing buying science, increase its enjoyment of the created or maintained competitive advantages. In this respect, organization with better communications with customers through utilization of effective promotional methods along with acquiring better consumer understanding, have able to attract and maintain customer loyalty. The importance of promotional activities is especially evident in industries with competition. These promotional tools or activities can aid organizations in their endeavor to acquire more shares of market and maintain them.
According to Kotler Sales promotion describes incentives and rewards to get customers to buy now rather than later. Where advertising is a long-run tool for shaping the market’s attitude toward a brand, sales promotion is a short-term tool to trigger buyer action. No wonder brand managers increasingly rely on sales promotion, especially when falling behind in achieving sales quotas. Sales promotions work! Sales promotions yield faster and more measurable responses in sales than advertising does. Today the split between advertising and sales promotion may be 30–70, the reverse of what it used to be. Sales promotions in general should be used sparingly. Incessant price-offs, coupons, deals, and premiums can devalue the brand in the consumers’ minds. They can lead customers to wait for the next promotion instead of buying now. Companies are forced to use more sales promotion than they want by the trade. The trade demands discounts and allowances as a condition for putting the product on the shelf. The trade may demand consumer promotions also. So many companies have little choice but to comply. Prefer sales promotions that agree or enhance your brand image and add value. Try to use sales promotions with advertising. Advertising explains why the customer should buy the product, and sales promotion provides the incentive to buy. When used together, ads and sales promotions make a powerful combination. An effective sales promotion gives you a way to attract customers while introducing and building your brand. Sales promotion programs need to be sporadic events so your customers feel as if they’re getting a real deal and need to jump on it immediately. Otherwise, if you put on too many sales events, your customers may decide to just wait until the next sale to buy your company’s offerings, and then you’ll see a decline in your overall profit. Identify Your Target Market
All sales promotion programs start with identifying your primary and secondary target markets. If you sell directly to consumers, take a look at the characteristics of the market to learn about their buying habits, demographics and the media outlets to which they pay attention. Setting Goals
Determine the goals for your promotion, and include actual sales figures you want to reach. Your goals may include introducing your brand to your target market or building your database of customers so you can market to them in the future. Choosing the Mix
Most sales promotion plans require a mix of media to reach the target market. You may need to get announcements into customers' mailboxes, in print publications, or on the radio and television. Plan a social media campaign that includes updating your website with the sales promotion information and postings via Face book and Twitter that get people enthused about the event. Creating the Message
The design of your message needs to appeal to your target market, so use graphics, headlines and copy that grab attention and cause the reader to take action. Offer coupons or discounts to entice prospects to buy....
Please join StudyMode to read the full document