Lecture 2 - Tools of Sale Promotion | Improve Sales Pitch & PR PDF Download

 Page 1


 
 
 
 
 
 
 
 
 
Lesson: Tools of Sales Promotion 
Course Developer : Astha Kanjlia  
College, Department: Keshav Mahavidyalaya, 
Commerce University of Delhi 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Page 2


 
 
 
 
 
 
 
 
 
Lesson: Tools of Sales Promotion 
Course Developer : Astha Kanjlia  
College, Department: Keshav Mahavidyalaya, 
Commerce University of Delhi 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 Tools of Sales Promotion 
 
Institute of Lifelong Learning, University of Delhi                             2 
 
 
 
Table of Contents: 
 
 Chapter : Tools of Sales Promotion 
1: Learning Outcomes 
2: Introduction 
3: Consumer Promotion 
4: Trade Promotion 
5: Business and Sales-Force Promotion 
6: Advantages and Disadvantages of various tools of  
Promotion 
Summary  
Exercises 
Glossary 
References 
 
 
  
Page 3


 
 
 
 
 
 
 
 
 
Lesson: Tools of Sales Promotion 
Course Developer : Astha Kanjlia  
College, Department: Keshav Mahavidyalaya, 
Commerce University of Delhi 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 Tools of Sales Promotion 
 
Institute of Lifelong Learning, University of Delhi                             2 
 
 
 
Table of Contents: 
 
 Chapter : Tools of Sales Promotion 
1: Learning Outcomes 
2: Introduction 
3: Consumer Promotion 
4: Trade Promotion 
5: Business and Sales-Force Promotion 
6: Advantages and Disadvantages of various tools of  
Promotion 
Summary  
Exercises 
Glossary 
References 
 
 
  
 Tools of Sales Promotion 
 
Institute of Lifelong Learning, University of Delhi                             3 
 
 
1. Learning Outcomes: 
 
After you have read this chapter, you should be able to: 
 
? understand the concept of promotional tools, 
? explain different promotional tools, 
? identify the promotional tools aimed towards a particular type of 
customer group, 
? appreciate the role of each tool in promoting sales, 
? describe the importance of use of sales promotional tools in 
business. 
 
 
 
 
 
 
 
 
 
  
Page 4


 
 
 
 
 
 
 
 
 
Lesson: Tools of Sales Promotion 
Course Developer : Astha Kanjlia  
College, Department: Keshav Mahavidyalaya, 
Commerce University of Delhi 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 Tools of Sales Promotion 
 
Institute of Lifelong Learning, University of Delhi                             2 
 
 
 
Table of Contents: 
 
 Chapter : Tools of Sales Promotion 
1: Learning Outcomes 
2: Introduction 
3: Consumer Promotion 
4: Trade Promotion 
5: Business and Sales-Force Promotion 
6: Advantages and Disadvantages of various tools of  
Promotion 
Summary  
Exercises 
Glossary 
References 
 
 
  
 Tools of Sales Promotion 
 
Institute of Lifelong Learning, University of Delhi                             3 
 
 
1. Learning Outcomes: 
 
After you have read this chapter, you should be able to: 
 
? understand the concept of promotional tools, 
? explain different promotional tools, 
? identify the promotional tools aimed towards a particular type of 
customer group, 
? appreciate the role of each tool in promoting sales, 
? describe the importance of use of sales promotional tools in 
business. 
 
 
 
 
 
 
 
 
 
  
 Tools of Sales Promotion 
 
Institute of Lifelong Learning, University of Delhi                             4 
 
 
 
 
 
 
 
2. Introduction: 
 
Markets today are flooded with offers and schemes. When we visit a departmental 
store to buy Dettol soap, the shopkeeper suggests that it is better to buy 3 soaps. 
This is because the multipiece pack lets you save Rs.12; or that if you buy 3 Nirma 
soap cakes, you will get one more soap cake absolutely free as per the “buy 3 get 4” 
offer. We get tempted by such schemes because they help us save money, moreover 
such products being non-perishable in nature can be stored and used even after a 
long period of time.  
 
All kinds of manufacturers want to experience a great surge in the level of their 
product’s sales. This can be done by using several techniques that are there at his 
disposal. Every day in the newspapers, television, e-mails, radio etc. We get to hear 
things like: “Win a trip to Malaysia”, “Jeeto lakhon ke inaam”, “200 grams extra in a 
pack of 2 kgs’, “Scratch the card and you could win a Car” etc. We also come across 
gifts like pen, pencil, toothbrush, soap etc. being offered free of cost if you buy 
certain products. There are exchange offers like; “Get your old washing machine and 
get a new model at a reduced price”, during festive seasons, “Buy new Gas Stove in 
exchange for your old stove, at a reduced price”. Many a times we notice the 
markets with banners and posters of “Winter sale”, “Summer sale”, “Trade fairs”, 
“Discount up to 50%” etc. with an aim to attract customers to make purchases. 
 
Such offerings are made by manufacturers, dealers, retailers in order to increase 
their sales. These offers may be in any of the following forms: Premiums, price off, 
coupons, sampling, refunds and rebates, contests, games and lotteries, point of 
purchase, displays and demonstrations, use of logo, gifts, patronage, price packs, 
traffic builders, cyber-marketing, convention, conferences, trade fairs, exhibitions 
and fashion shows, specialties and novelties. 
 
Figure 1: Click on the link below to view an example of ‘Scratch & Win’ as a tool of 
Sales Promotion. 
Source:  
http://1.bp.blogspot.com/_YQDD3k5TDIs/TKts3ncapSI/AAAAAAAACCY/nnpv4DTSQ7
A/s1600/image872934343.JPG 
 
The figure above shows a promotional program launched by “Next”, the electronics 
giant. It says that on every product you purchase from “Next”, you are entitled to 
get a scratch card. The scratch card may make you the winner of a “Hyundai 
Santro”, a CTV or even a semi auto washing machine. Such promotional programs 
have always been successful in attracting customers to make purchases from a 
particular retailer/ wholesaler/ dealer who then experience huge sales turnover in a 
short time period. 
 
Figure 2: Free Gifts 
Page 5


 
 
 
 
 
 
 
 
 
Lesson: Tools of Sales Promotion 
Course Developer : Astha Kanjlia  
College, Department: Keshav Mahavidyalaya, 
Commerce University of Delhi 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 Tools of Sales Promotion 
 
Institute of Lifelong Learning, University of Delhi                             2 
 
 
 
Table of Contents: 
 
 Chapter : Tools of Sales Promotion 
1: Learning Outcomes 
2: Introduction 
3: Consumer Promotion 
4: Trade Promotion 
5: Business and Sales-Force Promotion 
6: Advantages and Disadvantages of various tools of  
Promotion 
Summary  
Exercises 
Glossary 
References 
 
 
  
 Tools of Sales Promotion 
 
Institute of Lifelong Learning, University of Delhi                             3 
 
 
1. Learning Outcomes: 
 
After you have read this chapter, you should be able to: 
 
? understand the concept of promotional tools, 
? explain different promotional tools, 
? identify the promotional tools aimed towards a particular type of 
customer group, 
? appreciate the role of each tool in promoting sales, 
? describe the importance of use of sales promotional tools in 
business. 
 
 
 
 
 
 
 
 
 
  
 Tools of Sales Promotion 
 
Institute of Lifelong Learning, University of Delhi                             4 
 
 
 
 
 
 
 
2. Introduction: 
 
Markets today are flooded with offers and schemes. When we visit a departmental 
store to buy Dettol soap, the shopkeeper suggests that it is better to buy 3 soaps. 
This is because the multipiece pack lets you save Rs.12; or that if you buy 3 Nirma 
soap cakes, you will get one more soap cake absolutely free as per the “buy 3 get 4” 
offer. We get tempted by such schemes because they help us save money, moreover 
such products being non-perishable in nature can be stored and used even after a 
long period of time.  
 
All kinds of manufacturers want to experience a great surge in the level of their 
product’s sales. This can be done by using several techniques that are there at his 
disposal. Every day in the newspapers, television, e-mails, radio etc. We get to hear 
things like: “Win a trip to Malaysia”, “Jeeto lakhon ke inaam”, “200 grams extra in a 
pack of 2 kgs’, “Scratch the card and you could win a Car” etc. We also come across 
gifts like pen, pencil, toothbrush, soap etc. being offered free of cost if you buy 
certain products. There are exchange offers like; “Get your old washing machine and 
get a new model at a reduced price”, during festive seasons, “Buy new Gas Stove in 
exchange for your old stove, at a reduced price”. Many a times we notice the 
markets with banners and posters of “Winter sale”, “Summer sale”, “Trade fairs”, 
“Discount up to 50%” etc. with an aim to attract customers to make purchases. 
 
Such offerings are made by manufacturers, dealers, retailers in order to increase 
their sales. These offers may be in any of the following forms: Premiums, price off, 
coupons, sampling, refunds and rebates, contests, games and lotteries, point of 
purchase, displays and demonstrations, use of logo, gifts, patronage, price packs, 
traffic builders, cyber-marketing, convention, conferences, trade fairs, exhibitions 
and fashion shows, specialties and novelties. 
 
Figure 1: Click on the link below to view an example of ‘Scratch & Win’ as a tool of 
Sales Promotion. 
Source:  
http://1.bp.blogspot.com/_YQDD3k5TDIs/TKts3ncapSI/AAAAAAAACCY/nnpv4DTSQ7
A/s1600/image872934343.JPG 
 
The figure above shows a promotional program launched by “Next”, the electronics 
giant. It says that on every product you purchase from “Next”, you are entitled to 
get a scratch card. The scratch card may make you the winner of a “Hyundai 
Santro”, a CTV or even a semi auto washing machine. Such promotional programs 
have always been successful in attracting customers to make purchases from a 
particular retailer/ wholesaler/ dealer who then experience huge sales turnover in a 
short time period. 
 
Figure 2: Free Gifts 
 Tools of Sales Promotion 
 
Institute of Lifelong Learning, University of Delhi                             5 
 
 
Source: 
http://www.shoppersgreed.com/images/products/natraj_621_pencils.jpg 
 
The above figure shows how India’s favourite stationery goods manufacturer 
“Nataraj” tries to lure its customers to increase the sales and continue to enjoy its 
market share. It does so by offering a free “Nataraj” sharpener and a free “Nataraj” 
eraser with a pack of 10 “Nataraj” pencils. 
 
Figure 3: Click on the link below to view the ‘50% Off Sale’ as a ‘Discount’ offer by 
Bata. 
 
Source: http://saleraja.com/wp-content/uploads/2012/08/bata1.png  
 
“Adidas” offers up to 50% off on selected items towards the end of every season in 
order to increase the sale of its seasonal products. This kind of a program helps a 
manufacturer to sell its products quickly. 
 
The objective of these tools is to persuade and lure the customers to increase the 
number of purchases, increase the quantity purchased, to purchase immediately. 
This approach of sellinggoods is known as “Sales Promotion”. 
 
You must be aware of the terms personal selling and advertising. Personal sellingis 
referred to as face-to-face communication with customers, while advertising is 
directed towards potential customers. Both these elements of the Marketing 
Communication Mix also help in increasing sale of goods and services. Hence, it can 
be said that advertising communicates the offers that a manufacturer wants to make 
using sales promotion. Advertising or Personal Selling are different from Sales 
Promotion in the light of the techniques used to approach customers. Sales 
promotion makes use of methods that are not repeated; and they are used for a 
short term period. Such offers do not run all through the year for the customers. 
They are generally seen in the markets during festivals, special occasions, end of the 
seasons/ year etc. Therefore, sales promotion consists of all tactics and strategies 
that help in boosting the sales of products and services immediately.