Question

Explain Sales Promotion , it's nature and Characteristics and the advantages of it to consumers middlemen and producers in about 800 words

Answer 1

Meaning of Sales Promotion:- Roger A Strang gives a simple definition of sales promotion. According to him" sales promotion is short _ term incentive to encourage purchase or sale of a product or service".According to American marketing association, " sales promotion is those marketing activities other than personal selling, advertisement and publicity that stimulate consumer purchasing and dealer effectiveness such as display shows, exhibitions, demonstrations and various non_ recurrent selling effort in the ordinary routine".Thus sales promotion includes all those activities which are directed towards promoting sales.

Nature and Characteristics :-

1. Short run impact :- Sales promotion is short term in nature. When the sales promotion activities are withdrawn, the benefits disappear.

2. Diversity :- Sales promotion tools are varied and diverse in their forms and features. Example, discount, sample, premium etc.

3. Incentive :- It provides some inducement and concession. This gives immediate and direct benefits to consumers. In the same time, it helps to increase sales.

4. Strong appeal :- It catches attention and gives information which direct the people to the product or service.

5. Quick response :- It creates quick response from people it generates immediate sales

6. Supportive role:- It is only a supplementary tool to promote sales. It supports advertising and personal selling.

Advantages :- sales promotion is the plus element in the marketing mix .It makes an immediate effect on sales. It is an indispensable element. It is not an expenditure, but it is an investment. It is an investment in the sense that it yields returns continuously. Today it is not a luxury, but a necessity. It benefits the manufacturers, middlemen and consumers . The advantages are summarised as below.

A. Advantages to Producers:-

1. It promotes sales.

2. It helps in creating the demand for new products.

3. It helps in getting new customers.

4. It helps in retaining existing customers.

5. It leads to large scale production which results in cost reduction.

6. It helps in encouraging and stimulating the middlemen to take more and more interest in the sale of product.

7. It helps in facing the competition successfully.

8. It helps in enhancing the Goodwill of the firm.

B. Advantages to Middlemen :-

1. It helps in selling the product.

2. It helps in increasing the sales middlemen.

3. It enhances the goodwill of middlemen.

4. It helps in increasing the profits of middlemen.

5. It simplifies the work of middlemen.

C. Advantages to Consumers :-

1. It gives the knowledge of new products available in the market.

2. It gives information relating to the new uses of existing products.

3. It improves the standard of living of consumers.

4. It offers a number of cash and non _ cash incentives to consumers.

5. It provides an opportunity to consumers to participate in the competitions.

6. It is a source of education to consumers.