National Conference on Recent innovations in Applied Sciences and Humanities’ NCASH-2015 Volume : 4 | Issue : 10 | Special Issue Oct- 2015

2015 • ISSN No 2277 - 8179

Management
CHANGING DYNAMICS OF CONSUMER-
KEYWORDS: Marketing, Sales Promotion,
ORIENTED SALES PROMOTION TECH- Consumer Goods, Point of Sales etc.
NIQUES ON CUSTOMER PURCHASE

Ranjana katyal World Institute of Technology,Shona road,Gurgaon

Sagar Rai Aravali college of Engineering and Management,Faridabad

ABSTRACT Sales promotion act as a direct inducement, offering added value, or incentive for the product, to resellers, sales
persons or consumers. Sales promotion is a specific item amongst your marketing instruments. Not to be
confused with the positioning you choose within your marketing strategy. Sales promotion has always something temporary in it. You make
special actions, special offers to push your sales over a certain period. If these actions lose their temporary character, they then become part of
your marketing strategy. In this paper we present some examples of these actions and offers. We also consider the role of overhead publicity as
a sales promotion tool. For those of you who are dealing with consumer goods, we emphasize the role of point of sales promotion. We
recommend producers of industrial products or those who are in business-to-business not to use price as a sales promotion tool. Also, for the
purpose of this paper we intend to collect the data of 45-50 salesmen and take their views on the above mentioned topic and analyze the same.

INTRODUCTION duce a new or larger size.

Sales promotion is an important component of a company's market-
ing communication strategy along with advertising, public relations, Refunds and Rebates
and personal selling. At its core, sales promotion is a marketing activ- A refund or rebate promotion is an offer by a marketer to return a cer-
ity that adds to the basic value proposition behind a product (i.e., get- tain amount of money when the product is purchased alone or in
ting more for less) for a limited time in order to stimulate consumer combination with other products. Refunds aim to increase the quan-
purchasing, selling effectiveness, or the effort of the sales force. As tity or frequency of purchase, to encourage customers to load up.
this definition indicates, sales promotion may be directed either at
end consumers or at selling intermediaries such as retailers or sales Coupons
crews. Coupons are legal certificates offered by manufacturers and retailers.
ey grant specified savings on selected products when presented
Sales promotion stems from the premise that any brand or service for redemption at the point of purchase. Manufacturers sustain the
has an established perceived price or value, the "regular" price or cost of advertising and distributing their coupons, redeeming their
some other reference value. Sales promotion is believed to change face values, and paying retailers a handling fee.
this accepted price-value relationship by increasing the value and/or
lowering the price. Familiar examples of consumer sales promotion Contests and Sweepstakes
tools include contests and sweepstakes, branded give-away mer- Historically, a great deal of confusion about the terms contests and
chandise, bonus-size packaging, limited-time discounts, rebates, sweepstakes has existed. Simply, a contest requires the entrant, in
coupons, free trials, demonstrations, and point-accumulation sys- order to be deemed a winner, to perform a task ( for example, draw a
tems. picture, write a poem) that is then judged.

TECHNIQUES OF CONSUMER PROMOTIONS Special Events

Consumer sales promotions are steered toward the ultimate product Several good reasons explain why so many marketers have jumped
users—typically individuals—especially shoppers in the local super- on the special events bandwagon. First, events tend to attract a homo-
market. Some of the same general techniques may be used to pro- geneous audience very appreciative of the sponsors. erefore, if a
mote business-to business sales, although they tend to be imple- product fits with the event in terms of the expected stereotypical
mented in different ways given the contrasts between the consumer homogeneity of the audience, the impact of the sales promotion dol-
and the corporate markets. lars will be quite high.

Price Deals Premiums

A consumer price deal saves the buyer money when a product is pur- A premium is tangible compensation, an incentive, given for render-
chased. e price deal hopes to encourage trial use of a new product ing a particular deed, usually buying a product. e premium may be
or line extension, to recruit new buyers for a mature product, or to free, or, if not, the cost is well below the usual price. Getting a bonus
reinforce existing customers' continuing their purchasing, increas- amount of the product is a premium, as is receiving the prize in a
ing their purchases, accelerating their use, or purchasing of multiple cereal box, a free glass with a purchase of detergent, or a free atlas
units of an existing brand. with a purchase of insurance.

Price Discounts Continuity Programs

Buyers learn about price discounts and cents-off deals either at the Continuity programs retain brand users over a long period by offer-
point of sale or through advertising. At the point of sale, price reduc- ing on-going motivations; in this sense, long-term continuity pro-
tions may be posted on the package or signs near the product or in grams differ somewhat from most other forms of sales promotions
storefront windows. Ads that notify consumers of upcoming dis- since they are relatively permanent.
counts include fliers, newspaper and television ads, and other media.
Sampaling method
Price Pack Deals A sign of a successful marketer is getting the product into the hands
A price pack deal may be either a bonus pack or a banded pack. When of the consumer. Sometimes, particularly when a product is new or is
a bonus pack is offered, an extra amount of the product is free when not a market leader, an effective strategy involves giving a sample
the product is bought at the regular price. is technique is routinely product to the consumer either free or for a small fee. e first rule is
used for cleaning products, food, and health and beauty aids to intro- to use sampling only when a product can virtually sell itself.

Research Paper IJSR - INTERNATIONAL JOURNAL OF SCIENTIFIC RESEARCH 13

Volume : 4 | Issue : 10 | Special Issue Oct- 2015 • ISSN No 2277 - 8179 National Conference on Recent innovations in Applied Sciences and Humanities’ NCASH-2015
TRADE PROMOTIONS Deal Loaders
A trade sales promotion is pointed toward resellers who distribute A deal loader is a premium given by a manufacturer to a retailer for
products to ultimate consumers. e term "trade" traditionally refers ordering a certain quantity of product. Two types of deal loaders are
to wholesalers and retailers who handle or distribute marketers' most typical. e first is a buying loader which typically is a gift given
products. Other terms for wholesalers and retailers include "resell- for making a specified order size. e second is a display loader which
ers" and "dealers." Commonly, a senior marketing officer or product means the display is given to the retailer after the campaign...
manager is responsible for planning a trade promotion.
Trade Deals
e objectives of sales promotions aimed at the trade are different Money spent on trade deals is considerable. In many industries, trade
from those directed to consumers. Trade sales promotions hope to deals are the primary expectation for retail support. ere are two
accomplish four overall goals: main types of trade deals: buying allowances and advertising/display
allowances. A buying allowance is a bonus paid by a manufacturer to
Ÿ Develop in-store merchandising support or other trade support. a reseller when a certain amount of product is purchased during a
Strong retail support at the store level is the key to closing the specific time.
loop between the customer and the sale.
Ÿ Control inventory. Sales promotions are used to increase or HYPOTHESES
deplete inventory levels and to eliminate seasonal peaks and val- Ÿ Sales promotion techniques are distinct from most other forms
leys. of marketing in that they directly link the strategy and execution
Ÿ Expand or improve distribution. Sales promotions can open up of a marketing campaign.
new areas or classes. Ÿ Sales promotion geared toward creating an immediate boost in
Ÿ Motivate channel members. Sales promotions can generate sales volume in response to a substantive offer in the promotion
excitement about the product among those responsible for sell- (discount, premium, etc.)
ing it. Ÿ Sales promotion is considered an efficient and effective vehicle
for marketing communications.
Ÿ For consumers, sales promotion provides a direct and often
TYPES OF TRADE SALES PROMOTIONS rational motivation to purchase the product or service being pro-
POP Displays moted.
Manufacturers provide point-of-purchase (POP) display units free to
retailers in order to promote a particular brand or group of products. METHODOLOGY
e forms of POP displays include special racks, display cartons, ban- e study is based on primary and secondary data. For primary data
ners, signs, price cards, and mechanical product dispensers. Proba- views of 45-50 salesmen will be taken by us for the analysis of sales pro-
bly the most effective way to ensure that a reseller will use a POP dis- motion technique and their impact on customer purchase. e sec-
play is to design it to generate sales for the retailer. High product visi- ondary data has been collected from various journals, articles and
bility is the basic goal of POP displays. websites. e study covers the role of Sales promotion on customer
purchase and its effectiveness in marketing strategy of different orga-
Sales Contests nization. Different techniques of sales promotion elaborated with
For salespeople, sales contests can be an effective motivation. Typi- their benefits. Study analysis of primary and secondary data col-
cally, a prize is awarded to the organization or person who exceeds a lected for the same topic.
quota by the largest percentage. For example, Cepacol Mouthwash
offered supermarket managers cash prizes matched to the percent- DATA ANALYSIS
ages by which they exceeded the sales quota, plus a vacation to Ber- Ÿ 50 % of the responders are agreed and 44 % are strongly agreed
muda for the manager who achieved the highest percentage. Often with the statement:sales promotion creates an immediate boost
such programs must be customized for particular reseller groups. in sales volume.
Ÿ 58% of the responders said that sales promotion attract audience
Trade Shows whereas 32% said that sales promotion acts as an advertisement.
ousands of manufacturers display their wares and take orders at Ÿ 76% of the responders agreed with the statement: Consumers
trade shows. In the United States companies were spending some $13 accepted sales promotion as part of buying decision criteria.
billion each year on trade shows as of the late 1990s. For many com- Ÿ 46% of the responders are agreed and 46% is strongly agreed with
panies, maximum planning effort and much of the marketing budget the statement: New technology like on-line shopping/ e-
are directed at the trade show. Success for an entire year may hinge commerce helps in increasing the sales volume.
on how well a company performs there. Trade shows provide unique Ÿ 86% of the responders said that sales promotion technique like
opportunities. First, trade shows provide a major opportunity to Price Deals (E.g.: price discounts, coupons, refunds, etc.) helps
write orders for products. them in convincing the customer to buy the product.
Ÿ 50% of the responders said that Primary objective of Trade Sales
Sales Meetings Promotion (*Trade Sales Promotion is pointed toward resellers
Related to trade shows but less elaborate are sales meetings spon- who distribute products to ultimate consumers) is to expand and
sored by manufacturers or wholesalers. Whereas trade shows are improve distribution whereas 34 % said that the primary objec-
open to potential customers, sales meetings are targeted to the com- tive of TSP is to motivate channel sales.
pany sales force and/or independent sales agents. ese meetings Ÿ 48% of the responders said that the best Trade Sales Promotion
are usually conducted regionally and directed by sales managers and technique which increases sales volume isPOP displays (E.g. dis-
their field force.. play of cartons, banners, signs, price cards, etc.) whereas 30 %
said that the best technique is Sales Contest for salesman (E.g.
Push Money Prize Reward, Incentives, Vacations, etc.)
An extra payment given to salespeople for meeting a specified sales
goal is called push money; it is also known as spiffs or PM. For exam- FINDINGS
ple, a manufacturer of refrigerators might pay a Rs.30 bonus for sales Ÿ For marketing communication, in sales promotions companies
of model A, a Rs.25 bonus for model B, and a Rs.20 bonus for model C must be careful not to violate their brand image with the promo-
between March 1 and September 1. At the end of that period, the tion.
salesperson would send evidence of these sales to the manufacturer Ÿ Sales promotion voluntarily plays a significant role in marketing
and receive a check in return. communication and attract customer for purchase.
Ÿ Trade Sales promotion motivates channel members and can gen-

14 IJSR - INTERNATIONAL JOURNAL OF SCIENTIFIC RESEARCH Research Paper

National Conference on Recent innovations in Applied Sciences and Humanities’ NCASH-2015 Volume : 4 | Issue : 10 | Special Issue Oct- 2015 • ISSN No 2277 - 8179
erate excitement about the product among those responsible for
selling it.
Ÿ According to primary data collected from marketing people the
best Trade Sales Promotion technique is POP displays (E.g. dis-
play of cartons, banners, signs, price cards, etc.).
Ÿ With the help of collected primary data we came to know that
good number of consumers accepted sales promotion as part of
buying decision criteria.
Ÿ Marketing managers suggested that sales should be on factors of
differentiation rather than based completely on price wars and
factors should be presentable to consumer to justify product
price.

CONCLUSIONS
Sales promotion techniques are distinct from most other forms of
marketing in that they directly link the strategy and execution of a
marketing campaign. ey are geared toward creating an immediate
boost in sales volume in response to a substantive offer in the promo-
tion (discount, premium, etc.). As opposed to advertising to build
brand image or name recognition, sales promotion is nearly always
tied directly to the act of buying the product or service in question. As
such, sales promotion is considered an efficient and effective vehicle
for marketing communications. For consumers, sales promotion pro-
vides a direct and often rational motivation to purchase the product
or service being promoted.

Given the many forms sales promotions may take, marketers must
plan carefully which approach is best for their intended audience and
the intended result of the campaign. In some cases this will be guided
by precedence in particular industries; for example, soft-drink mak-
ers tend to rely on sweepstakes and continuity programs (often fos-
tering accumulation in order to obtain merchandise) rather than
bonus sizing or free samples. In this case, odd-sized beverage con-
tainers may present logistical troubles, and for established soft
drinks, presumably most potential customers already know how they
taste..

A classic example is with luxury or status products. In these catego-

ries discounting and even sweepstakes may send mixed messages to
customers, as the assumption is usually that being able and willing to
pay the full price is an intrinsic component of buying a status prod-
uct. If the company violates its luxury brand by "cheapening" it (sym-
bolically or economically), the promotion may alienate the estab-
lished client base. Instead, the luxury marketer may wish to offer as a
premium another luxury item or establish a continuity program.

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