Advertising and Sales Management

BA hinol
1Essay Type Questions
QUESTIONS
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14
What do you mean by sales management?
Explain its objectives and importance.
2. Define sales management. Explain the functions of sales management in detail.
"Sales management is
SALESPROMOTION
3 an important part of business enterpise." Explain this statement.
4. What do you mean by sales management? Explain its fundamental objectives.
5. Examine the importance of a sales manager in a sales organisation. Explain his qualities and 1. Introduction and Meaning
duties. Sales promotion is an important element of promotionmix. Promotion mix is a combination of

6. What are the important functions which a sales manager performs in a sales organisation? What promofional tools used by business
a unit to conmmunicate with target audience. There are six major
qualities are required for performing these functions effectively? promotional tools: aduertising, personal-selling, sales promotion, direct marketing. internet marketing.
publicity. Sales promotion refers to all promotional activities other than advertising, personal selling.
7. Define sales manager. Explain the duties and responsibilities of a sales manager. What position publicity, direct marketing, internet marketing, which are undertaken for the purpose of increasing sales
does a sales manager hold in a sales organisation?
Sales promotion are short term incentives to encourage sale of product or service. Sales promotion isa
8. "Sales management is nothing but mangement of personal selling" Give your comments to the direct inducement which offers an extra value and incentive for the product to the sales force, distributors
statement. ultimate consumers with the primary objedive of creating immediate sales. Sales promotion includes tools
or techniques (i) for consumers viz. samples, coupons, contests, cash-refurnd offers, free-trials,
I1. Short Answer Type Questions price-off,erc.
1. What do you mean by sales management? (i) for dealers viz. display-aids, sales-contest, free ad-materials, free tour, buying allowance,
and other incentives, etc. (i) for salesmen viz. bonus, contests, free tours, gifts, etc.
dealergift.
2. Explain three main differences between sales management and marketing management.
3. Explain main features of sales management.
2 . Definitions of Sales-Promotion
Following are the main definitions of sales promotion:
4. What is the importance of sales management?
(i) According to American Marketing Association, "Sales promotion refers to marketing
5. Explain policy formulation functions of sales manager. activities other than personal selling, aduertising and publicity, that stimulate consumer purchasing and
6. What are the responsibilities of sales manager? dealer effectiveness, such as displays, shous and demonstrations, and various seling efforts which are not
7. What is the responsibility of sales manager towards organisation? taken in ordinary routine."
(i) According to Philip Kotler, "Sales promotion consists of collection of diverse incentive tools
8. What do you mean by equipping sales force?
mostly short term, designed to stimulate quicker andor greater purchase of a particular product by
9. Explain sales management as an integral part of total management.
consumers and traders."
(ii) According to WJ. Stanton, We define sales promotion as those promotional activities (other
than aduertising, personal selling and pubhcity) that are intended to stimulate customers' demand and to
improve middlemen's maketing performmance"

(iv) According to A.H.R. Delens, "Sales promotion means any steps that are taken for the purpose
of obtaining or increasing sales Ofien this term refers to selling eforts that are designed to supplement
personal selling and advertising and by coordination, help them to become more efective"

()According to George W. Hopkins, "Sales promotion is an organised effort applied

selling job to secure the greatest effedtivenessfor advertising and for dealer's help."
to the
 Advertising and Sales Management Sales Promotion
inducement that offers a n
"Sales promotion is defined a s a direct 4. 229
(vi) According to Louis J. Haugh, ultimate c o n s u m e r s with the Objectives of Sales Promotion
to the salesforce, distributors or
value or incentive for the product i) To increase immediate sales.
immediate sales."
ary objective of creating (i) To motivate existing customers
to buy in
. Nature/Characteristics of Sales Promotion (ii) To motivate the sales-staff to large quantity
c o n s u m e r s to buy
put in extra selling efforts.
is motivational in nature. It motivates (iv) To motivate the dealers to
(1) Motivational: Sales promotion to in extra selling ettorts put in more selling efforts.
dealers and sales persons put (v) To attract new customers.
keter' s product in large quantity. It also
motivates
buyers/dealers/salesmen.
ll marketer's products. It provides extra incentive to (vi) To launch new products.
other promotional tools like advertising, (vii) To capture new market area.
(2) Supplementary: Sales promotion supplements
onal Publicity
selling. etc. It does not include advertising. personal selling, publicity, public relations, (vii) To increase sales in off season
toois give better results if supplemented by period.
ct marketing, internet marketing. The other promotional (ix) To support other
promotional tools.
s promotion (x) To face competition.
(3) Personal and Impersonal: Sales promotion includes both personal and impersonal (xi) educate customers, dealers, salesTnen
To
free after sales about method of
ities. Some of sales promotional tools are personal in nature such as free samples, (xii) To improve brand image and using the product.
ices, free gifts, etc. Some of the sales promotional tools are impersonal
in nature like trade fairs, goodwill of business unit
(xii) To increase market share.
ibitions, sales-contests, sales meetings and conferences, etc.
(xiv) To reduce consumer's and dealer's
(4) Irregular: Sales promotion is irregular effort to increase the sales. It is used
in special dissonance towads company's
(xv) To support dealers and salesmen in product.
amstances like when competition is very acute, to launch new product, to capture new market, when selling the goods.
5.
s are declining, during festival season, off-season, etc. ImportancelAdvantages of
Sales Promotion
(5) Universal: Sales promotion is universal in nature. It is used for increasing sales everywhere in Importance of sales promotion may be grouped as follows:
1.
world. Importance for Consumers
(6) Short Term Effect: Sales promotion promotes sales in the short period. When sales Extra-Value: Sales promotion provides extra value to
(i)
free the
motion schemes are offered, sales increase. But the moment, these are withdrawn, sales volume of the gifts, quantity, free after-sales-services, free samples, etc. consumers. For example, they get
extra
pany dedines. Thus, sales promotion schemes do not promote sales in the long run. (i) Increased Product
add to knowledge of consumer Knowledge:
Sales promotion methods like
regarding availability of new products, methoddemonstration,
(7) Tripartite: Sales promotion schemes are targeted at three parties, i.e. consumers, dealers and free trials,
s persons. of using the product.
(iii) Availability of Product at Reduced
Price:
(8) An Element of Promotion Mix: Sales promotiorn is of the elements of promotion mix.
one (price off), money-refund-offer, off-season-discounts, etc. Sales promotion schemes like reduction-sales
other reduce the price of product
elements of promotion mix advertising, personal seling, publicity, direct marketing and
net marketing.
are
(iv) Increase in Standard of
Living: Sales promotion schemes motivaie the consumers to buy
more goods. Consumers
(9) A Marketing Communication Tool: Sales promotion is one of the marketing may not purchase these goods in the absence of
sales promotion schemes
help to increase standard of living of consumers.sales-promotton-schemes. Thus,
nmunication tools. It helps the marketer to communicate with
target customers, sales persons and (v) Other Benefits:
lers.
(10) Variety of Marketing Activities: The scope of sales (a Gives opportunity to consumers to win prizes in sales-contests, hucky draws.
promotion is very wide. It includes (b) Increases confidence of customers.
iety of seling efforts like free samples, coupons, after sales
services, sales-contests, free trial and 2.
nonstration, sales meetings and conferences; bonus to sales persons, free tours for
dealers and sales Importance for Manufacturers
sons, buying allowance, sales display allowance, buy back (1) Immediate Increase in Sales: Sales
allowance,
etc. promotion schemes motivate the consumers and dealers
(11) Investment: Money spent sales
to buy in large quantity, leading to immediate increase in sales
on
promotion efforts is an investment. It promotes the
dwill of marketer. () Stimulate Middlemen: Sales promotion schemes aimed at dealers stimulate themto buy in
(12) It aims at immediate increase in sales. large quantities and to make extra selling efforts to promote sales
 Sales Promotion 231
Advertising and Sales Management
(ii) It helps to increase standard of living of people. Induced by sales promotion schemes
(iii) Promote Demand even during Off-Season: Generally demand for seasonal goods falls people buy more goods which leads to increase in their standard of living
uring off-season-days. Sales promotion schemes given in off-season-period help to maintain demand of (ii) Sales promotion schemes lead to increase in saes which helps the economy to come out of
easonal products during off-season also.
depression stage of trade cycle.
(iv) Motivate Salesmen: Sales promotion schemes aimed at salesmen motivate them to make (iv) Sales promotion schemes promote saes which helps in expansion of service areas like
xtra selling efforts to promote sales.
transportation, warehousing, banking, insurance, etc
(v) Help to Face Competition: Sales promotion schemes play very important role in facing 6 . Methods/Tools/Types of Sales Promotion
ompetition, maintaining and increasing market share. Tools of Sales promotion can be grouped in three categories. These are discussed below

(vi) Help to Launch New Products: Sales promotion schemes like free samples help
the

usiness units to place n e w products in the market.

Tools: Sales schemes make Types of Sales Promotion
promotion
(vii) Improve Effectiveness of other Promotional
personal selling more effective in increasing the sales.
other promotional tools like advertising.
schemes help the business unit to capture new
(vii) Help to Capture New Market: These in the new market.
incentives to dealers, salesmen and c o n s u m e r s
markets, by offering various Consumers Middiemen
Production Cost: These schemes stimulate sales. Increased sales help to Onented
Oriented
Salesmen
Oriented
(ix) Reduce Per Unit unit production cost.
Sales
Sales Sales
scale production which reduces per
get economies of large tools promotes brand-inmage and
brand
Promotion Promotion Promotion
ofsales promotion
(x) Promote Goodwill: Repeated of manufacturer.
use

goodwill
popularity. It gradually promotes
3 . Importance for Dealers dealers to attract more customers
and
These schemes help the
(i) Help to Attract Customers:
with them.
establish better relations increase in sales which in Tools of Sales Promotion
schemes result in immediate
in Sales and Profits: These duringoff-season period.
(ii) Increase dealers can increase sales
Even in c a s e ofseasonal goods,
t u r n m e a n s m o r e profits.
attractive sales promotion
schemes, dealers find it easier
Efforts: Because of
(ii) Reduce Selling
interest in buying the product.
Thus, dealer can sell the Consumers-oriented Salesmen-oriented
as consumers,
at their o w n show
Sales Promotion
Middlemen/Dealers Sales Promobon
to sell the goods, oriented Sales Promoton
lesser selling efforts. dealers c a n clear their piled up
goods with offering stock
clearance schemes,
Stock: By
(iv) Help in Clearing
win
stocks. to dealers help them to 1. Free Samples Buying Alowance Bonus
promotion schemes targeted 2. Coupons
to Win Prizes: Sales veSing Albwance Merchandise Prize
(v) Opportunity 3. Price Reduction Offer 3. Free Travels
yAOence
etc. 4. Premium or Gifns Providing Window Display 4. Honour or Recogniton
free tours, gifts, .More Quantity Offer Material
Sales Meetings and Conferences
(vi) Other Benefits:
extra-allowance for displaying
the product. (c) Dealers 6. Contests 5. Dealer Contests
6. Sales Literature
Dealers get 7. Refund Offer 6. Dealer PremiumGis
ad-material. (b) if goods remain unsold, the 7.Demonstration Kils
free back guarantee, i.e. 8. After Sales Services 7.Dealer's Meetngs ad 8.Extra Commission
(a) Dealers get (d) They get buy 9. Free Trials and Demonstrations
to buy the goods. attend conferences and meetings and Conmerenoes 9.Sales Contests
allowance opportunity to 10. Trade shows and Exhibitions 10. Training of Salesmen.
get buying the goods
back. (e) They get 8. Buy Back Guarantee
m a n u f a c t u r e r will buy dealers.
11. Finance Facility 9. Promotion of Dealers' Lis
from the experience
of other 12. Reusable Containers
| 13. Free Training for Consumers
there by gain
Importance for Society in the economy, resulting
in more
4.
the d e m a n d for goods
schemes increase income, etc. All this promotes
Sales promotion per capita
(i) increase in n a t i o n a l income,
employment,
production, m o r e
economic growth.
 Advertising and Sales Management Sales Promotion

i.1 Consumers-Oriented Sales Promotion (9) Free Trials and 233

the Demonstrations: Some companies invite
These schemes are targeted to ultimate consumers and are designed to induce the
consumers to product in the hope that they may purchase the the prospective customers to
hase marketer's product. Main consumers-oriented sales promotion schemes are discussed below: salesmen demonstrate the product to product. In case of technical
products, the
try
offered free of cost. using the product. For example, prospective customers and explain technical features andcompany s
(1) Free Samples: Small quantity of product is offered to customer for trial. t is prospective buyers.
automobile dealers method of
arrange free test drives to stimulate interest ot
objective of this scheme is to make consumer try the product. This tool is used when quality of product
od. The sample should be offered in attractive pack. The words 'Not for Sale' should
be written on the (10) Trade Shows and Exhibitions:
Products are displayed in these exhibitions. These are organised
tets. These provide an
by producers to attract customerTS.
(2) Coupons: Some companies offer free ooupons to customers while purchasing
the products. prospective buyers and know their likings, dislikings about opportunity to the rnarketer to interact with
the product.
be redeemed discount or reduction in price on future purchase by the consumer. (11) Finance Facility: For selling
secoupons can to get costly products, full or
pons encourage consumers for repeat purchase
as in case of repeat purchase, consumers can redeem per cent
or at very nominal rate
of interest. This facility stimulatespartial finance facility is
provided at zero
ata lower price. who do not have ready cash. those persons to buy marketers goods,
coupons and can purchase the products
(3) Price Reduction Offer: It means offering the product at lower price than normal price. Under (12) Reusable Containers: Sometimes
nethod. the customers are offered products on less than thelistedprice. For example. givingadiscount which can be used by the buyer. For product is packed in attractive and reusable
example, containers of ghee, tea, toffees, container
3% on the sale of Liberty Shoes; similarly. giving a discount of 50%+ 40% by the KOUTONS. It reusable. These reusable containers attract the buyers towards the health drinks, etc. are
to clear inventory of sales. It is more often used in containers are free of cost for buyer. marketers products. Usually, these
urages immediate sales, attracts non-users and helps
eason periods and during festival seasons. (13) Free Training for Consumers: In case of
technical
(4) Premiums or Gifts: It is a merchandise product which is offered as a prize e gift or a programmes for potential buyers of their products so as to products, producers arange training
manufacturer's product. It increases the confidence of acquaint them with method of
potential consumers. They feel motivated tousing
paratively lower price to the buyers. On purchase of costly products like durables, some low price
luct is offered free of cost. Sometimes, buyers are asked to scratch a card on the purchase of a product company's product. buy
the name of the product is inscribed thereupon which is immediately offered to the customer as a gift. 6.2 Middlemen/Dealers-Oriented
2xample, on buying a car when the card is scratched, some gifts are offered viz. TV, refrigerator,
Such sales promotion schemes are
Sales Promotion
puter, mixer, dinner set, wrist watch, Tshirt, electric iron, etc. targeted to dealers,
objective is to encourage middlemen to stock marketer's goods, wholesalers, retailers, stockists, etc. Its
(5) More Quantity Offer: It means offering more quantity of same product at no extra price or
new items introduced
buy in large quantity, to buy early, to stock
a very nominal increase in price. For example, 20% extra quantity or 100 grams extra at same price. by dealers. When middlemen are more
middlemen-oriented sales promotion is very effective. Main popular than manufacturers, then
larly, some companies offer schemes like Buy one Get one Free. techniques of middlemen-oriented sales
promotion are discussed below:
(6) Contests: It refers to promotional events which give consumers chance to win cash trips or
is by luck or through extra efforts. By luck means winner of contest is decided by draw of lots. While (1) Buying Allowance or Invoice Allowance: In
buying allowance, discount in the form of
hasing the product the customer is given a coupon with a specific number printed on it. By draw of lot, price reduction is offered during a fixed period. Sometimes the rate of discount increases with
the quantity
are selected. of lucky draw get some prize. The contest which is decided on the i.e. on purchase of large quantity, discount rate
numbers The winners
iof task tobe performed by buyers is decided by experts after examining the task done by contestants.
increases. It encourages the dealers to
purchase in large
quantity.
xample,tothe participants maybybe required to write a slogan suggest
or branda name.The contestants
(2) Advertising Allowance: In this technique, the advertising expenses incurred by the dealers
equired send their entriesAmerican
a specific date. Then panel of experts examines these entries and
a
are partly or fully reimbursed by the producer. Dealers spend money in advertising manufacturer's
iestheresult. According to
draw and do nat
Marketing Association, "The contests which decided
are on
products with the consent of manufacturer. By giving the proof of advertisement the dealer can get
asis oflucky
ep stakes."
require theparticipants perform any taskapply any skill are called
to
ad-expenses reimbursed partly or fully.
(7) Refund Offer: It means refund of part of price of an article to the consumer on showing
some (3) Display Allowance: In this method, retailers display manufacturer's products at their premises
of
fof purchase company'sproduct. For example,
refundingan amount of Rs. 10/- on
showing the and for this, they are given display allowance by the manufacthurer. The
display allowance is paid on the
of buyers that company will refund
packet company's product. In some cases, producers
assure
vhole price of the product to the buyer if he is not satisfied with the the basis of space provided by retailer to display the manufacturer
product at ther premises
product. Such refund can be
ed with in a specific time period from the date of
purchase (4) Providing Window Display Material: Soiaetimes free storage and window display materials
like racks, baskets, refrigerator, cabinets, posters, stickers, wal hangings, etc. are provided by producers to
(8) After Sales Services: It refers to providing free after sales services to the buyer for a specified
d of time. These are often provided on automobiles, domestic
dealers. Such materials not only provide storage facility to dealers but also attract customers towards
durables, industrial products. etc. In company's products. Such display materials act as point of purchase (P-O-P) adverising.
services, product is maintained free of cost in the guaranteed period. It includes free repairs, free
cement of certain parts, etc.
 235
Advertising and Sales Management
Sales Promotion conferences for
and
sales meetings
Producers organise
(5) Dealer Contests: Sales-contests organised for dealers so as to encourage the dealers to
are
(5) Sales Meetings and
Conferences:
to discuss
their sales-related
problems.
to salesmen
mpany's product. In such contests, sales targets are fixed for dealers. On achieving these sales-targets salesmen.These
neeiings provide opportunity touch with the custoners.
These meetings
are in direct
These prizes can be merchandise goods, free trips, appreciation salesmen are also sought
as they
2alers are offered attractive prizes. Suggestions from

Sometimes free trips are arranged for the family

of winning dealer. team-spirit and moraie of salesmen. literature such as brochures,
etc. promote sales
loyalty
as to promote dealer's Literature: Salesmen
provided with printed
are the potential
Producers offer various gifts to dealer so Sales in convincing
(6) Dealer Premium/Gifts: (6) etc. It helps the salesmen
wrist watches, kitchen appliances, etc.
ustomers.
These gifts can be clock, television, fridge, leatlets, price-lists, lists of reputed
ds producer.
and conferences of Customers to buy the goods. demonstration kits. These
Dealers' Meetings and Conferences: Producers arrange meetings salesmen are provided with
(7) their suggestions are invited. Kits: Sometimes,
parts and
features of
faced by dealers are sorted out and (7)
Demonstration
dernonstrate different
rs. in these meetings, problems the salesmen to
enables
these nieetings. All expenses of these meetings and conferences are contain model of product which
2rs feel honoured on attending sales
at tourist place which customers.
for achieving higher
these conferences and meetings are arranged product to prospective commission
by producers. Sometimes, Commission: Business units offer higher rate of
marketers.
ide further incentive to dealers. (8) Extra salesmen to promote the
sales of
to dealers, i.e. unsold salesmen. It motivates the motivate them to
to
Sometimes producers offer buy back guarantee level by the for salesmen so a s

(8) Buy Back Guarantee: Sometimes buy back guarantee Company may
launch sales contest
contests like-free trips,
within a specific time period. (9) Sales Contests: winners of these
of dealer c a n be returned to producer even then the
unsold stock of the attractive prizes are
offered to the
It i n e a n s if the producer
reduces the price, boost the sales. Various etc.
includes price guarantee. appreciation letters,
merchandise prize, cash prize, arrange training
at original price. technical products, producers
e r will be
taken back by the producer c a s e of
es list of dealers,
stockists, Salesmen: In and develop their
Dealers' List: Sometimes,
the manufacturer (10) Training of them with
technicalities of the product

(9) Promotion of of LG. in print media gives salesmen so a s to acquaint motivated to promote sales.
programmes for
advertisemelii
m a n u f a c t u r e r ' s product. For example,
the sales-staff and they feel
can buy the product
confidence of
lers who stock the numbers. The c o n s u m e r s salesmanship skills. It
increases the
addresses and phone
of its dealers alongwith their induces the dealers to stock Promotion
list
of these listed dealers. Promotion dealers'
of list by manufacturer
7 . Limitations of Sales promotion very frequently,
it sendsa wrong signal
anyone
Reflects Crisis: Ifa company adopts sales is perhaps not selling
in
manufacturer's products. (1) product of the company
the impression that this particular of the
Sales Promotion in the market. It gives Consequently, the reputation
salesmen to find different new schemes.
it is coming up with
Salesmen-Oriented
to motivate
6.3 company's sales-force, the market and that is why
m e s are
sch also aimed at
sales, etc. Various
increase a decline. The
company suffers effective results in short run only.
to
Sales promotion m o r e pleasantly,
to attend the austomerS them to increase
sales. Main techniques show
to sell n e w products, motivate
Short Term Device: Sales promotion build brand loyalty
customers,
incentives are given
to sales force to (2) sales level comes
down. It does not

incial and
non-financial
below: schemes are withdrawn,
m o m e n t sales promotion
promotion techniques are
discussed sales beyond a
2 s m e n - o r i e n t e d sales for achieving
to sales force in the long run. mind of
financial reward sales quota. It is about the product in the
Bonus: It is
additional achieving this
Image: This conveys a wrong impression the
(1) Bonus is paid on (3) Spoils Product's
of a n inferior quality
and that is why
Salesmen are assigned sales-quota. that the product must be
determined level. the consumers. They start thinking not buy such products.
offered this fear, the consumers may
all such efforts. Because of
are
the salesmen. specified target company is making
en in cash to
who achieve sales beyond a
winners creates extra financial
burden o n
It
Sales-promotion involves huge
as cost.
better than cash prize
Salesmen
Prize:
(2)
Merchandise
product for prize.
It is treated a s whenever (4) Financial Burden:
some Salesmen feel pride
m e a n s giving
r c h a n d i s e prize.
It evidence of their
achievement.
value the producer.
choice a m o n g equal is not a n independent promotion
will have permanent asked about their Without Advertising: Sales promotion
m e r c h a n d i s e prize
Winners of this prize
a r e often
(5) Cannot be Used advertise about sales-promotion-schemes.
as company has to
needs/requirements.
u s e such product.
their
y see or the product
a s per offered tool. It cannot be used without adverising if the
c a n be provided Travel awards are scheme will not be much effective
that they efficient salesmen. Products: Sales promotion
oducts, s o usually
offered to also include free (6) Not Effective for Weak
resorts, etc. It may
are
Travel awards luxury
(3) Free Travels:
places of historical
importance, product is basically of inferior qualiy. weaknesses in marketing
hill stations, is Weak: If there a r e certain
free travel to
stay at tourist place.
the form of appreciation (7) Not Effective if Marketing Strategy to give desired results.
and lodging during recognition in alone wil not be able
salesmen are given sales sales promotion
arding Recognition:
Efficient
sales-meetings, photo in company's strategy or marketing efforts then c o n s u m e r oriented
sales
offers
(4) Honour or
or national
of needs and Near uture Period Sale: When company
honour in regional are higher levels (8) Effect on customers do not
from top
management,
etc. Honour and recognition
in large quantities to avail extra incentives. So, such
ter
free club membership, promotion schemes then people buy
achievers, xeutives.
erature as sales
motivating
higher level
used more for
e
 Sales Promotion
Advertising and Sales Management
237
(5) Target Group |Sales promotion
their future purchases. So be can

the same goods in near future period.

It m e a n s customers simply prepone |different specitic groups viz.targeted tolAdvertising is generally targeted to ultimate|
sales promotion schemes, sales
volume comes below the normal level. oriented sales promotion, dealer-consumer- consumers. It is not for specific groupP
a

offers sales promotion scheme,

other rival sales promotion, salesmen- oriented oriented
(9) Sales Promotion War: When one company
promotion. sales|
result in sales-promotion-war.
panies follow the suit which may (6) Frequency Sales promotion schemes are
launched
. Sales Promotion and Advertising frequently. These are repeated less Advertising is more frequent and repetitive|
Advertising and sales promotion
both areimportant tools of promotion
mix of a business unit.
|frequently in comparison to advertising,less|than sales-promotion.
efforts. If sales promotion and (7) Cost
enhanced through sales promotion Sales promotion is costly method as some
ctiveness of ad-campaign can be a
effect on sales. Announcement of
ertising programmes are
well-coordinated, they can have significant economic incentive s grven in the form Advertising is very cost effective for
advertisement-copy helpsto make
it m o r e eye-catching and helps to break free gifts, free sample, extra discounts of|communicating message to large audience.
promotion schemes in
ad-copies in the media, the ad-copy giving
information about off-season discount, festival discount, viz. Here, per audience
lia-dutter, ie. even if there are many etc. gets immediate attention. Advertising etc.communication
cost is low, as it is ameans of
viz free-gift, off-season discount, mass communication.
s promotion scheme, brand get (8) Feedback
brand-popularity. The sales promotion
schemes of a popular In case of
personal sales
elops brand-awareness and schemes of unpopular brands do not get much attention. schemes, immediate feedback promotion|Immediate feedback from target audience is
omer attention easily
while sales promotion
both should be used in combination. However, taken. If the
can
belnot possible as it is always non-personal in|
prospective customer has nature.
Ice advertising supplements
sales-promotion, i.e. The target audience cannot enquire
some doubts about sales |
s-promotion should not be used as a long term measure to increase sales,
because it is very costly promotion-jabout
scheme then he can inquire about it from
their doubts/queries.
the main differences between sales promotion and advertising: |the dealer/salesman, etc.
1sure. Following are

Sales Promotion Advertising 9. Suitability of Sales Promotion

Basis
is a non-personal of|
means Sales promotion is more suitable under following situations:
Personal, Sales promotion can tbe both personal and|Advertising
Some of the sales-lcommunication. Here, non-personal means| (i) When middlemen
Non-Personal Inon-personal. involves media for transmitting
are more popular than manufacturers, then middlemen-oriented sales
promotion schemes may involveladvertisingto the promotion is very effective.
between dealer and message target audience. There is no|
face-to-face contact communication between sender|
customers hile some sales promotionlface-to-face (ii) In case of seasonal goods, to sell the
product in off season, consumer-oriented sales
face and receiver.
schemes ma not involve face to promotion is very effective.
contact. ii) In case of unbranded product, retailers are to be
given considerable importance, as they can
is to|Objective of advertising is to inform,
Objective Main objective of sales promotion and remind the target customers
better convince the potential buyers. Here, retailer-oriented sales
promotion is very effective.
promote the sales. It is directly related to|persuade,
about the product of advertiser. The ads (iv) When old stock is to be cleared.
promoting sales.
communicate the message and persuade the (v) For immediate increase in sales.
audience to buy advertiser's product. Thus|
advertising indirectly promotes sales through
communication. QUESTIONS
) Short Term, Sales promotion has short tem effect on Advertising has both short term and long
Long Term sales. Sales promotion schemes areterm effect on sales. Advertising creates
for immediate increase in sales.|brand-awareness and brand-preference|
I Essay Type Questions
designed
has effect in the short run as well as in 1. What do you mean by sales promotion? Explain objectives and imporlance ofsales promotion.
When these
sales decline.
schemes are withdrawn, the which
the long run. 2. Define sales promotion. Explain different methods used for sales promotion.
) Extra Value Sales promotion offers extra economic Advertising may or may not offer any extra| the limitations of sales
3. Explain main consumer oriented sales promotion schemes. What are

value or incentive to the customers,leconomic value or incentive. promotion schemes?

dealers, salesforce mix. How is sales promotion
4. Explain the role of sales promotion as an element of promotion
different from advertising?