Sales Promotion

There are four promotional tools for the advancement of the venture which is united by the definition of promotional mix of the organization consisting of: advertising, personal-sell-ing, sales promotion, publicity and public relations. (Chunawalla 2008.)

• Advertising is the type of promotion which can be presented in any form of presen-tation the key ideas through different social media channels.

• Personal-selling is performed in a way of the face-to-face or distant presentation with the target to attract the customers’ attention and let them know about the companies’ key operations, mission, and vision in detail.

• Sales promotion is an activity which dynamizes the sellers’ potential customers and drives the efficiency of the sales progress. (Chunawalla 2008.)

Publicity and public relations accomplishes the official successful relationship with the in-ternal and exin-ternal team and at the same time gains the new customers from the social media by submitting the updated information online. (Chunawalla 2008.)

Speaking about the promotion of sales, there are two types of promotional strategies which are practiced in business: push and pull strategies. The main difference between them is identified that pull strategy is targeted for reaching the final consumers but for push strategy it is so important if the end consumers are involved hense it especially fo-cuses on the performance of selling to wholesalers, retailers who in their turn strive to reach the final consumers at the end. (Chunawalla, 2008.) Below Figure 10 illustrates which is called the push strategy.

FIGURE 10 The Push Strategy of Promotion (Leon’s CRM Musings 2012)

Manufacturer Intermediaries End Users

Marketing

Demand

Figure number 11 points out the main information about the Pull Strategy.

FIGURE 11 The Pull Strategy of Promotion (Leon’s CRM Musings 2012)

The promotion in pull strategy also differentiates from the push strategy since there is the promotion which is connected with all the members of the cycle of strategy including be-tween the final consumers and the manufacturers. (Chunawalla 2008, 6.)

Push Strategy is identical to pull strategy but still with some distinctions. The product and service are pushed in the push strategy from one to another with the promotion tool. In push strategy there is no relation with the customer since the manufacturer operates di-rectly only with the wholesalers. The close connection in promotion is noticed between the retailers and end consumers.(Chunawalla 2008, 6.)

Sales promotion is the business action which goal is to generate the sales and gain as many customers as possible. Sales promotion is presented in three levels. By the Institute of Sales Promotion, sales promotion is defined as a temporary valuable addition to the product or service. (Chunawalla 2008, 6-7.)

• Consumer promotion provides the profitable offers to the customers like discounts or additional bonuses

• Trade promotion is operated between the dealers and distributors

• Salesforce promotion concerns the work of the sellers by motivating them with the encouragement. (Chunawalla 2008.)

Manufacturer Intermediaries End users

Demand

Marketing

Sales Promotion includes the following objectives: encouragement, long-term customer loyalty, consumer encouragements, and levels of retail stock, increase in distribution. It is also important to add in sales promotion the advantages for the customers for the design of the customers’ motivation. These advantages are called as premium offers which give extra value to the ordered or offered goods, service. (Jobber& Lancaster 2003, 258-259.) The premium offers are illustrated in the Figure 12 below.

FIGURE 12. The Sales Promotion Premium Offers for the Customers sourced from (Job-ber&Lancaster 2003, 259)

Self-liquidating premiums aims to develop the number of sales, purchased orders by additional selling of the premiums. The premium is offered when the total price of the cus-tomers’ goods cover the costs of promoters. The promoters are able to purchase and send the savings to the customers who will to get some premium.(Jobber&Lancaster 2003, 259.)

On-pack gifts is the gift which is added as an added free value by the sellers to the cus-tomers’ main ordered product.(Jobber&Lancaster 2003, 259.)

Continuities are got from the several or more made purchases (Jobber&Lancaster 2003, 259).

Self-liquidating

premiums On-pack gifts

Continuities Coupon Plans

Free Samples

Coupon plans are the coupons which are collected from every made purchase by the buyers. The buyers have opportunities to exchange coupons to the products, money or service. The coupons are performed in a form of stamps, the amount of which depends on the final price paid by the buyers. (Jobber&Lancaster 2003, 260.)

Free samples are the packages of the products which are delivered together with the or-ders (Jobber&Lancaster 2003, 260).

Service promotion is promoted the same way as the goods but there are still some obsta-cles for the business sellers to look at. Since product is an object which can be touched, seen, analyzed by the customers, which cannot be said about the service. Sellers and service marketers have to provide the customers the necessary quantity of the information about the type of the service, quality, and contacts of the engineers who are responsible for controlling the process over the service. The customers should have a picture of the service as being something tangible. In case if the service is not succeeded in the con-crete explanation to the buyers by sellers, the customers may have a wrong imagination about the provided service and it can influence their decision-making. The sellers can also try to make the service tangible by adding the logo, color, contract, guarantee to it. The key point for the service marketer and seller to make up the strategy of the tangible ser-vice. (Hutt&Speh 2007, 284.)