Write a note on Sales Promotions

ADVANTAGES OF SALES PROMOTIONS

The importance of sales promotions may be grouped as follows: ADVANTAGES TO CONSUMERS

On  the consumers  point of view sales  promotions  methods are beneficial to them in the following way:

a)   Increased   product  knowledge: various consumer promotions methods  such as  demonstration,  training  to  use  the  product  etc  give  sufficient  product’s knowledge to consumers with regard to its operation.

b)  Availability  of  products   at  reduced  prices:  (SP)  tools  like  price  off  deals, premium   offers   discounts   etc   reduce   the   prices   of   the   product   when purchased on notified occasions.

c)   Higher  standard  of  living:  the consumers also get plenty of opportunities in using the new cheaper and durable items to their satisfaction which may help them to maintain a higher standard of living.

IMPORTANCE OR ADVANTAGES TO PRODUCERS/MANUFACTURERS

The producers have a no of advantages:

a)  Increase  in  sales:    (SP) programme attracts  the consumers  and stimulates them for larger purchases leading to increased sales.

b)  Demand   for   product   and   services:   the   (SP)   techniques   have   proved successful  in  introducing  new  products  and  services.  By the  supply of  free samples the new product makes its place in the market.

c)  Capture  of  new  market:    the  (SP)  programme  facilitates  the  producer  to capture new markets for his products easily.

IMPORTANCE OR ADVANTAGE TO DEALERS/MIDDLEMEN

The dealers have the following advantages:

a)  Facilitates   larger  sales:     the  dealer  get  advantages  of  (SP)  techniques  for increasing    their   sales.    (SP)   is   a   co-ordinating   activity   between   sales advertisingand  public  relations  efforts  and  they reduce the  resistance at  the point of sales.

b)  More   facilities  and  assistance:   the  producer  under  the  sales  promotional programme provides various  facilities and assistance to the middlemen such as  assistance to the marketing research, providing with display materials and managerial assistance etc for maintaining regular stock of sales.

c)   Direct  relation  with  customers:  a direct relationship between the dealers and the   customers   are  established   through  the  sales   promotional   techniques which will continue for a long time.

IMPORTANCE TO THE SOCIETY AND THE NATION

The importance of SP to the society and the nation are as follows:

a)  Increase in standard of living of the people.

b)  Increase in employment opportunities.

c)  Increase in GDP and per capita income.