Question

write essay about what is diffrence between sales promotion and direct marketing

Answer 1

Sales promotion:

Sales promotion refers to ‘those marketing activities that stimulate consumer shows and expositions.Purchasing and dealer effectiveness such as displays, demonstration and various non- recurrent selling efforts not in the ordinary routine.” According to A.H.R. Delens: “Sales promotion means any steps that are taken for the purpose of obtaining an increasing sale. Often this term refers specially to selling efforts that are designed to supplement personal selling and advertising and by co-ordination helps them to become more effective.”In the words of Roger A. Strong, “Sales promotion includes all forms of sponsored communication apart from activities associated with personal selling. It, thus includes trade shows and exhibits, combining, sampling, premiums, trade, allowances, sales and dealer incentives, set of packs, consumer education and demonstration activities, rebates, bonus, packs, point of purchase material and direct mail.

The tools used in this method are as under:

• Price off offer
• Free Samples
• Scratch and win offer
• Bonus offer
• Coupons
• Money Back offer
• Exchange offer

Direct marketing:

Direct marketing occurs when businesses address customers through a multitude of channels, including mail, e-mail, phone, and in person. Direct marketing messages involve a specific “call to action,” such as “Call this toll-free-number” or “Click this link to subscribe.” The results of such campaigns are immediately measurable, as a business can track how many customers have responded through a message’s call to action.

Direct marketing tools:

• Text messaging.
• Catalogs.
• Brochures.
• Postcards.
• Flyers.
• Coupons.
• Online display ads.
• Phone calls.
• Difference between direct marketing and sales promotion; Sales promotion includes tools for consumer promotion: samples, coupons, cash refund offers, prices off, premiums, prizes, free trials, warranties. ... Definition Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen .
• Initially a P&L by promotion sounds very simple. Calculate the incremental dollars from a Trade Promotion, apply the margin, subtract the cost and get net profit. But a more careful review shows this will not give a comprehensive answer or be useful for an historical analysis or comparisons across brands, sizes and markets. The following is what I have found can used to analyze the results of trade promotions and why these particular calculations make sense. Not everything is applicable in all situations but it is likely that at some point in any analysis questions will arise which will need these numbers. The builder of a promotion evaluation system has to decide for himself what he needs but most of the numbers I recommend can be done with simple calculations so expanding the P&L to include everything is not too difficult

• profit-and-loss (P&L) statement components of an online direct marketing campaign. The online P&L statement for a direct marketing company differs from a traditional financial business in several ways:

• Sales are measured through a two-step process for online direct marketing companies—tracking events that drive traffic to a website and then measuring conversion sales to website visitors.
• All expenses are separated by category (e.g., cancellations, creative expenses, promotional expenses, overhead expenses). So the marketer can apply benchmark ratios, such as cost to acquire a new client, lifetime value of a client and advertising spend to net sales dollars.
• Gross demand and net demand are used whenever possible for direct marketing online P&L, in order to accurately quantify cancellations.

• The P&L statement is equally useful in measuring the overall financial viability of an online campaign, as well as measuring more traditional quarterly or annual performance ratios.