Sales Promotion is one of the elements of the promotional mix.. Sales promotion uses both media and non-media marketing communications for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include contests, freebies, loss leaders, point of purchase displays, prizes, product samples, rebates. Sales promotions can be directed at either the customer, sales staff, or distribution channel members. Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, retailers, or other organizational customers to stimulate immediate sales; these efforts can attempt to stimulate trial, or purchase. Examples of devices used in sales promotion include coupons, premiums, point-of-purchase displays, contests and sweepstakes.
Sales promotion is implemented to attract new customers, to hold present customers, to counteract competition, to take advantage of opportunities that are revealed by market research. It is made up of activities, both outside and inside activities. Outside sales promotion activities include advertising, public relations activities, special sales events. Inside sales promotion activities include window displays and promotional material display and promotional programs such as premium awards and contests. Sale promotions come in the form of discounts. Discounts impact the way consumers behave when shopping; the type of savings and its location can affect the way consumers view a product and affect their purchase decision. The two most common discounts are price discounts and bonus packs. Price discounts are the reduction of an original sale by a certain percentage while bonus packs are deals in which the consumer receives more for the original price. Many companies present different forms of discounts in advertisements, hoping to convince consumers to buy their products.
Sales promotion represents a variety of techniques used to stimulate the purchase of a product or brand. Sales promotion has a tactical, rather than strategic role in marketing communications and brand strategy, it is a form of advertisement used within a short period of time. Researchers Farhangmehr and Brito, reviewed the definitions of sales promotions in marketing texts and journals and identified a set of common characteristics of sales promotion, including: Short-term effects and duration. Retailer-sponsored sales promotions are directed at consumers. Manufacturers use two types of sales promotion, namely: 1. Consumer sales promotions: Sales promotions targeted at consumers or end-users and designed to stimulate the actual purchase 2. Trade promotions: Sales promotions targeted at trade retailers, designed to increase sales to retailers, to carry the product or brand or to support the retailer in consumer-oriented promotions Consumer sales promotions are short term techniques designed to achieve short term objectives, such as to stimulate a purchase, encourage store traffic or to build excitement for a product or brand.
Traditional sales promotions techniques include: Price deal: A temporary reduction in the price, such as 50% off. Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. Price-pack/Bonus packs deal: The packaging offers a consumer a certain percentage more of the product for the same price; this is another type of deal “in which customers are offered more of the product for the same price”. For example, a sales company may offer their consumers a bonus pack in which they can receive two products for the price of one. In these scenarios, this bonus pack is framed as a gain because buyers believe that they are obtaining a free product; the purchase of a bonus pack, however, is not always beneficial for the consumer. Sometimes consumers will end up spending money on an item they would not buy had it not been in a bonus pack; as a result, items bought in a bonus pack are wasted and is viewed as a “loss” for the consumer.
Coupons: coupons have become a standard mechanism for sales promotions. Loss leader: the price of a popular product is temporarily reduced below cost in order to stimulate other profitable sales Free-standing insert: A coupon booklet is inserted into the local newspaper for delivery. Checkout dispensers: On checkout the customer is given a coupon based on products purchased. Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption. Online interactive promotion game: Consumers play an interactive game associated with the promoted product. Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer. Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product. Point-of-sale displays:- Aisle inter
Marketing is the study and management of exchange relationships. Marketing is the business process of satisfying customers. With its focus on the customer, marketing is one of the premier components of business management. Marketing is defined by the American Marketing Association as "the activity, set of institutions, processes for creating, communicating and exchanging offerings that have value for customers, clients and society at large." The term developed from the original meaning which referred to going to market with goods for sale. From a sales process engineering perspective, marketing is "a set of processes that are interconnected and interdependent with other functions" of a business aimed at achieving customer interest and satisfaction. Philip Kotler defines marketing as Satisfying wants through an exchange process; the Chartered Institute of Marketing defines marketing as "the management process responsible for identifying and satisfying customer requirements profitably." A similar concept is the value-based marketing which states the role of marketing to contribute to increasing shareholder value.
In this context, marketing can be defined as "the management process that seeks to maximise returns to shareholders by developing relationships with valued customers and creating a competitive advantage."Marketing practice tended to be seen as a creative industry in the past, which included advertising and selling. However, because the academic study of marketing makes extensive use of social sciences, sociology, economics and neuroscience, the profession is now recognized as a science, allowing numerous universities to offer Master-of-Science programs; the process of marketing is that of bringing a product to market, which includes these steps: broad market research. Many parts of the marketing process involve use of the creative arts. The'marketing concept' proposes that in order to satisfy the organizational objectives, an organization should anticipate the needs and wants of potential consumers and satisfy them more than its competitors; this concept originated from Adam Smith's book The Wealth of Nations, but would not become used until nearly 200 years later.
Marketing and Marketing Concepts are directly related. Given the centrality of customer needs and wants in marketing, a rich understanding of these concepts is essential: Needs: Something necessary for people to live a healthy and safe life; when needs remain unfulfilled, there is a clear adverse outcome: death. Needs can be objective and physical, such as the need for food and shelter. Wants: Something, desired, wished for or aspired to. Wants are not essential for basic survival and are shaped by culture or peer-groups. Demands: When needs and wants are backed by the ability to pay, they have the potential to become economic demands. Marketing research, conducted for the purpose of new product development or product improvement, is concerned with identifying the consumer's unmet needs. Customer needs are central to market segmentation, concerned with dividing markets into distinct groups of buyers on the basis of "distinct needs, characteristics, or behaviors who might require separate products or marketing mixes."
Needs-based segmentation "places the customers' desires at the forefront of how a company designs and markets products or services." Although needs-based segmentation is difficult to do in practice, it has been proved to be one of the most effective ways to segment a market. In addition, a great deal of advertising and promotion is designed to show how a given product's benefits meet the customer's needs, wants or expectations in a unique way. A marketing orientation has been defined as a "philosophy of business management." Or "a corporate state of mind" or as an "organisation culture" Although scholars continue to debate the precise nature of specific orientations that inform marketing practice, the most cited orientations are as follows: A firm employing a product orientation is concerned with the quality of its own product. A product orientation is based on the assumption that, all things being equal, consumers will purchase products of a superior quality; the approach is most effective when the firm has deep insights into customers and their needs and desires derived from research and intuition and understands consumers' quality expectations and price they are willing to pay.
For example, Sony Walkman and Apple iPod were innovative product designs that addressed consumers' unmet needs. Although the product orientation has been supplanted by the marketing orientation, firms practicing a product orientation can still be found in haute couture and in arts marketing. A firm using a sales orientation focuses on the selling/promotion of the firm's existing products, rather than determining new or unmet consumer needs or desires; this entails selling existing products, using promotion and direct sales techniques to attain the highest sales possible. The sales orientation "is practiced with unsought goods." One study found that industrial companies are more to hold a sales orientation than consumer goods companies. The approach may suit scenarios in wh
In marketing, a product demonstration is a promotion where a product is demonstrated to potential customers. The goal of such a demonstration is to introduce customers to the product in hopes of getting them to purchase that item. Products offered as samples during these demonstrations may include new products, new versions of existing products or products that have been introduced to a new commercial marketplace. In-store demonstrations are performed at large retail locations, such as supermarkets, department or discount stores, or in shopping malls; the products that are promoted at in-store demonstrations may be food and beverages, food preparation equipment, housekeeping products, personal care items, or other types of goods. The samples that are distributed may either be in readymade packets pre-assembled for the demonstration, or are prepared on site by the demonstrator; some demonstrations involve the distribution of prepared food, requiring the demonstrator to bring equipment such as a microwave oven or hot plate to the location.
Coupons for the product are distributed as part of the demonstration. Some demonstrations consist of coupon distribution only. Demonstrators may be employees of the store where the demonstration is being performed, employees or the manufacturer of the product, or independent contractors who work for a temp agency. Most are not trained to seek out customers to buy the product. In-store demonstrations allow potential customers to taste a product before they buy. By the mid-1950s Ron Popeil states that "I was working in the Woolworth's store in Chicago selling the Chop-O-Matic, standing eight or 10 hours a day. I would do six demonstrations an hour. My vocal cords were so strained that I wouldn't want to talk to anybody when the day was over." The concept of the in-store demonstration started to boom in the 1980s. Door-to-door, by-appointment salespeople demonstrate such products as Tupperware, encyclopedias and carpet stain removers. Prototypes are demonstrated in trade shows, are called "tech demos".
Product demonstrations have been a staple of state fairs for many years. The first product demonstration in a format that would be called an infomercial is attributed to a 1949 demonstration of the Vitamix blender. Many countries around the world do not place legal restrictions on outdoor product marketing and demonstrations. Salespeople set up temporary sites to demonstrate their wares. A wide variety of products are demonstrated roadside throughout the China; such products include frying pans, induction cookers, rubber gloves, vegetable peelers and slicers, stain removers, knives. Though uncommon today, the street demonstration was ubiquitous in such places as the Boardwalk in Atlantic City. Included with a purchase, a video on a DVD disc may be provided demonstrating the product's use. Video product demonstrations can be found on the Internet at the homepages of companies or on web hosting sites such as YouTube. One notable example is the viral video Will It Blend? Demonstrating Blendtec blenders.
Product demonstration videos have become important for the sale of music equipment. With the increase of online shopping, there are fewer opportunities to try a product prior to purchase; this has a particular problem for music equipment which, unlike other technology, the quality of the sound produced may come down to a more personal preference and may not be as related to the specifications of a particular product. YouTube is one of the main hosts of music equipment videos, channels may be run by retailers, musicians or manufacturers themselves. With decreases in music sales, demonstration videos have become an additional source of revenue for full-time musicians, with artists such as Rob Chapman having over 400,000 subscribers. Hawker Freebie marketing Wine tasting
Influencer marketing is a form of marketing in which focus is placed on influential people rather than the target market as a whole on social media. It identifies the individuals who have influence over potential customers, orients marketing activities around these influencers. Influencer content may be framed as testimonial advertising where they play the role of a potential buyer themselves, or they may be third parties; these third parties may be so-called value-added influencers. In the United States, influence marketing is treated by the Federal Trade Commission as a form of paid endorsement, governed under the rules for native advertising. Other countries' media-regulatory bodies, such as Australia's, have created guidelines around influencer marketing following the decision of the FTC. In the United Kingdom a voluntary agreement was announced in January 2019 between the country's Competition and Markets Authority and high-profile social media influencers to ensure that they comply with consumer law.
Most countries have not created a regulatory framework for influencer marketing. Most discussion on the generic topic of social influence centres on compliance and persuasion in a social environment. In the context of influencer marketing, influence is less about argument and coercion to a particular point of view and more about loose interactions between various parties in a community. Influence is equated to advocacy, but may be negative, is thus related to concepts of promoters and detractors; the idea of a "two-step flow of communication" was introduced in "The People's Choice". This idea was further developed in "Personal Influence" and "The Effects of Mass Communication". Influencer marketing tends to be broken into two sub-practices: earned influencer marketing and paid influencer marketing. Earned marketing stems from unpaid or preexisting relationships with influencers or third party content, promoted by the influencer to further their own personal social growth. Paid influencer marketing campaigns can take the form of sponsorship, pre-roll advertising or testimonial messaging and can appear at any point in the content.
Influencer compensation can be based on a flat rate fee per piece of content, earned as affiliate income resulting from sales or click-throughs generated by the influencer's content, or might be a combination of the two where influencers are paid a fee as well as earning affiliate income from their content. Budgets vary and are based on audience reach. Most influencers are paid upfront before a marketing campaign while others are paid after the execution of the marketing campaign; some influencers accept gifted services as compensation in exchange for posting. However, these gifts are subject to IRS rules & regulations and in many cases their value is considered taxable income; as a company's brands evolve in terms of marketing, the cost in relation to the possible benefits it can receive is important. The airing of a television spot has a high cost. If an influencer has 200,000 followers on their social media site, a company gives them a product as a marketing tool, which they are to expose to their audience, the company's financial outlay, by comparison, would be negligible.
The company will have spent less, but exposed their product to a more focused group of followers of the public figure. As more people use the internet, more are making purchases online; this forces some companies to invest more resources in their general advertising - on the internet, on social networks in particular. Marketing through social networks allows for an instantaneous purchase process; this decrease between lag time - from seeing the promoted item and being redirected to the product - is more effective for spontaneous purchases. Many influencers' social media presence is on both Twitter; the rise in popularity of video content means a growing number of influencers can be found on YouTube. Web services can be used to trawl social media sites for users who exert influence in their respective communities; the social influencer marketing firm asks those influencers to try products or services and discuss them on their respective social networks. Clients can observe an enhanced digital dashboard, with metrics that measure the dissemination of brand mentions across numerous web platforms.
At least 70 companies offer online influence measurement. Advocates of this online-only approach claim that online activity reflects the trends in offline transactions. For example, Razorfish released one of the first social influencer marketing reports, titled Fluent; the report discusses many theories surrounding social marketing, including the importance of the push/pull dynamic and online consumer empowerment and importance of buzz marketing. Online activity can be a core part of offline decision-making, as consumers research products and review sites. Critics of this online-only approach argue that only researching online sources misses critical influential individuals and inputs, they note that much influential exchange
A brand is an overall experience of a customer that distinguishes an organization or product from its rivals in the eyes of the customer. Brands are used in business and advertising. Name brands are sometimes distinguished from generic or store brands; the practice of branding is thought to have begun with the ancient Egyptians, who were known to have engaged in livestock branding as early as 2,700 BCE. Branding was used to differentiate one person’s cattle from another's by means of a distinctive symbol burned into the animal’s skin with a hot branding iron. If a person stole any of the cattle, anyone else who saw the symbol could deduce the actual owner. However, the term has been extended to mean a strategic personality for a product or company, so that ‘brand’ now suggests the values and promises that a consumer may perceive and buy into. Over time, the practice of branding objects extended to a broader range of packaging and goods offered for sale including oil, wine and fish sauce. Branding in terms of painting a cow with symbols or colors at flea markets was considered to be one of the oldest forms of the practice.
Branding is a set of marketing and communication methods that help to distinguish a company or products from competitors, aiming to create a lasting impression in the minds of customers. The key components that form a brand's toolbox include a brand’s identity, brand communication, brand awareness, brand loyalty, various branding strategies. Many companies believe that there is little to differentiate between several types of products in the 21st century, therefore branding is one of a few remaining forms of product differentiation. Brand equity is the measurable totality of a brand's worth and is validated by assessing the effectiveness of these branding components; as markets become dynamic and fluctuating, brand equity is a marketing technique to increase customer satisfaction and customer loyalty, with side effects like reduced price sensitivity. A brand is, in essence, a promise to its customers of what they can expect from products and may include emotional as well as functional benefits.
When a customer is familiar with a brand, or favours it incomparably to its competitors, this is when a corporation has reached a high level of brand equity. Special accounting standards have been devised to assess brand equity. In accounting, a brand defined as an intangible asset, is the most valuable asset on a corporation’s balance sheet. Brand owners manage their brands to create shareholder value, brand valuation is an important management technique that ascribes a monetary value to a brand, allows marketing investment to be managed to maximize shareholder value. Although only acquired brands appear on a company's balance sheet, the notion of putting a value on a brand forces marketing leaders to be focused on long term stewardship of the brand and managing for value; the word ‘brand’ is used as a metonym referring to the company, identified with a brand. Marque or make are used to denote a brand of motor vehicle, which may be distinguished from a car model. A concept brand is a brand, associated with an abstract concept, like breast cancer awareness or environmentalism, rather than a specific product, service, or business.
A commodity brand is a brand associated with a commodity. The word, derives from its original and current meaning as a firebrand, a burning piece of wood; that word comes from the Old High German and Old English byrnan and brinnan via Middle English as birnan and brond. Torches were used to indelibly mark items such as furniture and pottery, to permanently burn identifying marks into the skin of slaves and livestock; the firebrands were replaced with branding irons. The marks themselves took on the term and came to be associated with craftsmen's products. Through that association, the term acquired its current meaning. Branding and labelling have an ancient history. Branding began with the practice of branding livestock in order to deter theft. Images of the branding of cattle occur in ancient Egyptian tombs dating to around 2,700 BCE. Over time, purchasers realised that the brand provided information about origin as well as about ownership, could serve as a guide to quality. Branding was adapted by farmers and traders for use on other types of goods such as pottery and ceramics.
Forms of branding or proto-branding emerged spontaneously and independently throughout Africa and Europe at different times, depending on local conditions. Seals, which acted as quasi-brands, have been found on early Chinese products of the Qin Dynasty. Identity marks, such as stamps on ceramics, were used in ancient Egypt. Diana Twede has argued that the "consumer packaging functions of protection and communication have been necessary whenever packages were the object of transactions", she has shown that amphorae used in Mediterranean trade between 1,500 and 500 BCE exhibited a wide variety of shapes and markings, which consumers used to glean information about the type of goods and the quality. Systematic use of stamped labels dates from around the fourth century BCE. In a pre-literate society, the shape of the amphora and its pictorial markings conveyed information about the contents, region of o
Distribution is one of the four elements of the marketing mix. Distribution is the process of making a product or service available for the consumer or business user who needs it; this can be done directly by the producer or service provider, or using indirect channels with distributors or intermediaries. The other three elements of the marketing mix are product and promotion. Decisions about distribution need to be taken in line with a company's overall strategic vision and mission. Developing a coherent distribution plan is a central component of strategic planning. At the strategic level, there are three broad approaches to distribution, namely mass, selective or exclusive distribution; the number and type of intermediaries selected depends on the strategic approach. The overall distribution channel should add value to the consumer. Distribution is fundamentally concerned with ensuring that products reach target customers in the most direct and cost efficient manner. In the case of services, distribution is principally concerned with access.
Although distribution, as a concept, is simple, in practice distribution management may involve a diverse range of activities and disciplines including: detailed logistics, warehousing, inventory management as well as channel management including selection of channel members and rewarding distributors. Prior to designing a distribution system, the planner needs to determine what the distribution channel is to achieve in broad terms; the overall approach to distributing products or services depends on a number of factors including the type of product perishability. The process of setting out a broad statement of the aims and objectives of a distribution channel is a strategic level decision. Strategically, there are three approaches to distribution: Mass distribution: When products are destined for a mass market, the marketer will seek out intermediaries that appeal to a broad market base. For example, snack foods and drinks are sold via a wide variety of outlets including supermarkets, convenience stores, vending machines and others.
The choice of distribution outlet is skewed towards those than can deliver mass markets in a cost efficient manner. Selective distribution: A manufacturer may choose to restrict the number of outlets handling a product. For example, a manufacturer of premium electrical goods may choose to deal with department stores and independent outlets that can provide added value service level required to support the product. Dr Scholl orthopedic sandals, for example, only sell their product through pharmacies because this type of intermediary supports the desired therapeutic positioning of the product; some of the prestige brands of cosmetics and skincare, such as Estee Lauder and Clinique, insist that sales staff are trained to use the product range. The manufacturer will only allow trained clinicians to sell their products. Exclusive distribution: In an exclusive distribution approach, a manufacturer chooses to deal with one intermediary or one type of intermediary; the advantage of an exclusive approach is that the manufacturer retains greater control over the distribution process.
In exclusive arrangements, the distributor is expected to work with the manufacturer and add value to the product through service level, after sales care or client support services. Another definition of exclusive arrangement is an agreement between a supplier and a retailer granting the retailer exclusive rights within a specific geographic area to carry the supplier's product. Summary of strategic approaches to distribution In consumer markets, another key strategic level decision is whether to use a push or pull strategy. In a push strategy, the marketer uses intensive advertising and incentives aimed at distributors retailers and wholesalers, with the expectation that they will stock the product or brand, that consumers will purchase it when they see it in stores. In contrast, in a pull strategy, the marketer promotes the product directly to consumers hoping that they will pressure retailers to stock the product or brand, thereby pulling it through the distribution channel; the choice of a push or pull strategy has important implications for promotion.
In a push strategy the promotional mix would consist of trade advertising and sales calls while the advertising media would be weighted towards trade magazines and trade shows while a pull strategy would make more extensive use consumer advertising and sales promotions while the media mix would be weighted towards mass-market media such as newspapers, magazines and radio. Distribution of products takes place by means of a marketing channel known as a distribution channel. A marketing channel is the people and activities necessary to transfer the ownership of goods from the point of production to the point of consumption, it is the way products get to the consumer. This is accomplished through merchant retailers or wholesalers or, in the international context, by importers. In certain specialist markets, agents or brokers may become involved in the marketing channel. Typical intermediaries involved in distribution include: Wholesaler: A merchant intermediary who sells chiefly to retailers, other merchants, or industrial and commercial users for resale or business use.
Wholesalers sell in large quantities.. Retailer: A merchant intermediary who sells direct to the public. There are many different types of retail outlet - from hypermarts and supermarkets