Lecture 1 - Introduction to Sales and Promotion | Improve Sales Pitch & PR PDF Download

 Page 1


Introduction to Sales Promotion 
 
1 
 
Institute of Lifelong Learning, University of Delhi. 
 
 
 
 
 
 
 
Lesson: Introduction to sales Promotion 
Course Developer : Astha Kanjlia 
College/ Department : Keshav Mahavidyalaya, Business Studies 
 
 
 
 
 
 
 
 
 
 
 
  
Page 2


Introduction to Sales Promotion 
 
1 
 
Institute of Lifelong Learning, University of Delhi. 
 
 
 
 
 
 
 
Lesson: Introduction to sales Promotion 
Course Developer : Astha Kanjlia 
College/ Department : Keshav Mahavidyalaya, Business Studies 
 
 
 
 
 
 
 
 
 
 
 
  
Introduction to Sales Promotion 
 
2 
 
Institute of Lifelong Learning, University of Delhi. 
 
 
 
 
Table of Contents: 
 
Chapter: Introduction to Sales Promotion 
 
1: Learning Outcomes 
2: Introduction 
3: Difference between Advertising and Sales Promotion 
4: Nature, Importance and Objectives of Sales Promotion 
4.1: Nature 
4.2: Importance 
4.3: Objectives 
     5: Functions of Sales Promotion 
    6: Forms of Sales Promotions 
6.1: Consumer Promotion 
6.2: Trade Promotion 
6.3: Sales-Force Promotion 
Summary  
Exercises 
Glossary 
References 
  
Page 3


Introduction to Sales Promotion 
 
1 
 
Institute of Lifelong Learning, University of Delhi. 
 
 
 
 
 
 
 
Lesson: Introduction to sales Promotion 
Course Developer : Astha Kanjlia 
College/ Department : Keshav Mahavidyalaya, Business Studies 
 
 
 
 
 
 
 
 
 
 
 
  
Introduction to Sales Promotion 
 
2 
 
Institute of Lifelong Learning, University of Delhi. 
 
 
 
 
Table of Contents: 
 
Chapter: Introduction to Sales Promotion 
 
1: Learning Outcomes 
2: Introduction 
3: Difference between Advertising and Sales Promotion 
4: Nature, Importance and Objectives of Sales Promotion 
4.1: Nature 
4.2: Importance 
4.3: Objectives 
     5: Functions of Sales Promotion 
    6: Forms of Sales Promotions 
6.1: Consumer Promotion 
6.2: Trade Promotion 
6.3: Sales-Force Promotion 
Summary  
Exercises 
Glossary 
References 
  
Introduction to Sales Promotion 
 
3 
 
Institute of Lifelong Learning, University of Delhi. 
 
1. Learning Outcomes 
 
After you have read this chapter, you should be able to: 
 
? understand the concept of sales promotion, 
? differentiate between sales promotion and advertising, 
? comprehend the importance of sales promotion, 
? understand the objectives of sales promotion, 
? describe the functions of sales promotion, 
? appreciate various forms of sales promotion. 
 
 
 
 
 
 
 
 
 
 
 
  
Page 4


Introduction to Sales Promotion 
 
1 
 
Institute of Lifelong Learning, University of Delhi. 
 
 
 
 
 
 
 
Lesson: Introduction to sales Promotion 
Course Developer : Astha Kanjlia 
College/ Department : Keshav Mahavidyalaya, Business Studies 
 
 
 
 
 
 
 
 
 
 
 
  
Introduction to Sales Promotion 
 
2 
 
Institute of Lifelong Learning, University of Delhi. 
 
 
 
 
Table of Contents: 
 
Chapter: Introduction to Sales Promotion 
 
1: Learning Outcomes 
2: Introduction 
3: Difference between Advertising and Sales Promotion 
4: Nature, Importance and Objectives of Sales Promotion 
4.1: Nature 
4.2: Importance 
4.3: Objectives 
     5: Functions of Sales Promotion 
    6: Forms of Sales Promotions 
6.1: Consumer Promotion 
6.2: Trade Promotion 
6.3: Sales-Force Promotion 
Summary  
Exercises 
Glossary 
References 
  
Introduction to Sales Promotion 
 
3 
 
Institute of Lifelong Learning, University of Delhi. 
 
1. Learning Outcomes 
 
After you have read this chapter, you should be able to: 
 
? understand the concept of sales promotion, 
? differentiate between sales promotion and advertising, 
? comprehend the importance of sales promotion, 
? understand the objectives of sales promotion, 
? describe the functions of sales promotion, 
? appreciate various forms of sales promotion. 
 
 
 
 
 
 
 
 
 
 
 
  
Introduction to Sales Promotion 
 
4 
 
Institute of Lifelong Learning, University of Delhi. 
 
 
 
 
2. Introduction 
 
Figure 1: Marketing Communication Mix 
 
 
 
Marketers have always been looking out for the best possible ways to communicate their 
colorful and aesthetically designed ideas, messages to stimulate a desired response or 
specific perception about their products/ services among the targeted group of customers. 
There are several modes of communicating a message to the targeted audience. The 
process of assembling of the idea, message, design, media, color and form is known as 
“Communication Mix”. In order to gather this communication mix, organizations have a 
variety of tools to choose from as shown in the figure above. The tool could be any one or a 
combination of few. “Communication Mix” is also referred to as “Promotion Mix”. It helps in 
not just spreading awareness about the manufacturer’s product but also stimulating the 
customers to make purchases. 
 
“Sales Promotion” is one such tool; Advertising, Personal Selling, Direct Marketing and 
Public Relations are the rest of them. Each one has a specific purpose to serve, objective to 
accomplish. They are used at different points in time during a product’s life cycle.  
Page 5


Introduction to Sales Promotion 
 
1 
 
Institute of Lifelong Learning, University of Delhi. 
 
 
 
 
 
 
 
Lesson: Introduction to sales Promotion 
Course Developer : Astha Kanjlia 
College/ Department : Keshav Mahavidyalaya, Business Studies 
 
 
 
 
 
 
 
 
 
 
 
  
Introduction to Sales Promotion 
 
2 
 
Institute of Lifelong Learning, University of Delhi. 
 
 
 
 
Table of Contents: 
 
Chapter: Introduction to Sales Promotion 
 
1: Learning Outcomes 
2: Introduction 
3: Difference between Advertising and Sales Promotion 
4: Nature, Importance and Objectives of Sales Promotion 
4.1: Nature 
4.2: Importance 
4.3: Objectives 
     5: Functions of Sales Promotion 
    6: Forms of Sales Promotions 
6.1: Consumer Promotion 
6.2: Trade Promotion 
6.3: Sales-Force Promotion 
Summary  
Exercises 
Glossary 
References 
  
Introduction to Sales Promotion 
 
3 
 
Institute of Lifelong Learning, University of Delhi. 
 
1. Learning Outcomes 
 
After you have read this chapter, you should be able to: 
 
? understand the concept of sales promotion, 
? differentiate between sales promotion and advertising, 
? comprehend the importance of sales promotion, 
? understand the objectives of sales promotion, 
? describe the functions of sales promotion, 
? appreciate various forms of sales promotion. 
 
 
 
 
 
 
 
 
 
 
 
  
Introduction to Sales Promotion 
 
4 
 
Institute of Lifelong Learning, University of Delhi. 
 
 
 
 
2. Introduction 
 
Figure 1: Marketing Communication Mix 
 
 
 
Marketers have always been looking out for the best possible ways to communicate their 
colorful and aesthetically designed ideas, messages to stimulate a desired response or 
specific perception about their products/ services among the targeted group of customers. 
There are several modes of communicating a message to the targeted audience. The 
process of assembling of the idea, message, design, media, color and form is known as 
“Communication Mix”. In order to gather this communication mix, organizations have a 
variety of tools to choose from as shown in the figure above. The tool could be any one or a 
combination of few. “Communication Mix” is also referred to as “Promotion Mix”. It helps in 
not just spreading awareness about the manufacturer’s product but also stimulating the 
customers to make purchases. 
 
“Sales Promotion” is one such tool; Advertising, Personal Selling, Direct Marketing and 
Public Relations are the rest of them. Each one has a specific purpose to serve, objective to 
accomplish. They are used at different points in time during a product’s life cycle.  
Introduction to Sales Promotion 
 
5 
 
Institute of Lifelong Learning, University of Delhi. 
 
In order to increase their sales, trial or usage of a product or service, organizations make 
use of initiatives such as Sales Promotion. It is essentially an inducement, a direct and 
immediate one that prompts the customer/ dealer to buy the product. It does so by adding 
extra value in the product than what is actually available at its normal price. The offers are 
made at such places and usually at the time when the buying decisions are being made. 
Sales promotion can hence be referred to as activities that offer incentive and create 
interest. Generally, these activities are events that are short-term in nature. Some of the 
objectives of sales promotion are to motivate and influence the customer’s purchase, 
stimulate particular behavioral reactions from them. 
 
With respect to the picture below, sales promotion can be understood as an incentive to 
induce, persuade and motivate the customers to purchase products immediately since such 
offers, promotions and schemes are available only for a short period of time. 
 
Figure 2: Hurry!! Offer Valid till Stocks last 
 
 
 
In the light of the present competitive market conditions, sales promotions are very 
common and are increasing at a very fast pace. In spite of the directness of Sales 
promotion, it is considered to be fairly complicated. It is also known to be a useful tool of 
marketing with numerous possibilities of creativity limited only by the promotion planner’s 
imagination. Some common names by which Sales promotion is often referred to are ‘extra 
purchase value’ and ‘below-the-line selling’. In other words, Sales Promotion can also be