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SALES PROMOTION
Sales promotion is one level or type of marketing aimed either at the consumer or at the
distribution channel (in the form of sales-incentives). It is used to introduce new product,
clear out inventories, attract traffic, and to lift sales temporarily. It is more closely associated
with the marketing of products than of services. The American Marketing Association
(AMA), in its Web-based "Dictionary of Marketing Terms," defines sales promotion as
"media and nonmedia marketing pressure applied for a predetermined, limited period of time
in order to stimulate trial, increase consumer demand, or improve product availability."
Business pundits and academic students of business have developed almost fancifully
sophisticated views of sales promotion. In down-to-earth terms it is a way of lifting sales
temporarily by appealing to economic motives and impulse-buying behavior. The chief tools
of sales promotion are discounts ("sales"), distribution of samples and coupons, the holding
of sweepstakes and contests, special store displays, and offering premiums and rebates. All of
these techniques require some kind of communication. Thus sales promotion and advertising
are difficult to distinguish.
The need for promotion arises from the intensity of competition. Sellers must somehow
attract customers' attention. In the open markets of old (and farmers markets of today), sellers
did and do this by shouting, joking with customers, and sometimes by holding up a squealing
piglet for everyone to see. PriyaRaghubir and his coauthors, writing in California
Management Review, identify "three faces" of consumer promotions: these are information,
economic incentive, and emotional appeal. Information may take the form of advertising the
availability of something, incentives are offered in the form of discounts, and emotional
appeals are made by displays and, of course, by the low price itself.
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PROMOTIONAL STRATEGIES
The promotion strategies of marketing is concerned with activities that are undertaken to
communicate with customers and distribution channels to enhance the sales of the firm.
The promotional strategy aims at informing and persuading the customer to buy the product
and informing him about the merits of the products.
It refers to all the decisions related to promotion of sales of products and services. The
important decisions of promotion mix are selecting advertising media, selecting promotional
techniques, using publicity measures and public relations etc.
There are various tools and elements available for promotion. These are adopted by firms to
carry on its promotional activities. The marketer generally chooses a combination of these
promotional tools.
Following are the tools or elements of promotion. They are also called elements of promotion
mix:
1. Advertising
2. Sales promotion
3. Personal selling
4. Public relation
1. Advertising:
Advertisement can be defined as the “paid form of non-personal presentation and promotion
of idea, goods or services by an identified sponsor”.
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advertisement builds pull effect as advertising tries to pull the product by directly appealing
to customer to buy it.
2. Sales Promotion:
Sales promotion refers to short term use of incentives or other promotional activities that
stimulate the customer to buy the product. Sales promotion techniques are very useful
because they bring:
3. Personal Selling:
Personal selling means selling personally. This involves face to face interaction between
seller and buyer for the purpose of sale.
The personal selling does not mean getting the prospects to desire what seller wants but the
concept of personal selling is also based on customer satisfaction.
4. Public Relations:
Apart from four major elements of marketing mix, another important tool of marketing is
maintaining Public Relations. In simple words, a public relations means maintaining public
relations with public. By maintaining public relations, companies create goodwill.
Public relations evaluate public attitudes; identify the policies and procedures of an
Organization with the public interest to earn public understanding and acceptance.
Public does not mean only customers, but it includes shareholders, suppliers, intermediaries,
customers etc. The firm’s success and achievement depends upon the support of these parties
for example, firm needs active support of middle men to survive in market, it must have good
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relations with existing shareholders who provide capital. The consumers’ group is the most
important part of public as success of business depends upon the support and demand of
customers only.
Promotion Strategies
A successful product or service means nothing unless the benefit of such a service can
be communicated clearly to the target market. An organizations promotional strategy can
consist of several aspects as follows.
Advertising: Is any non-personal paid form of communication using any form of mass
media.
Public relations: Involves developing positive relationships with the organization media
public. The art of good public relations is not only to obtain favorable publicity within the
media, but it is also involves being able to handle successfully negative attention.
Sales promotion: Commonly used to obtain an increase in sales short term. Could involve
using money off coupons or special offers.
Direct Mail: Is the sending of publicity material to a named person within an organization.
There has been a massive growth in direct mail campaigns over the last 5 years. Spending on
direct mail now amounts to £18 bn a year representing 11.8% of advertising expenditure
(Source: Royal Mail 2000). Organizations can pay thousands of pounds for databases,
which contain names and addresses of potential customers.
Direct mail allows an organization to use their resources more effectively by allowing them
to send publicity material to a named person within their target segment. By personalizing
advertising, response rates increase thus increasing the chance of improving sales.
Listed below are links to organization who's business involves direct mail.
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Message & Media Strategy
Media strategy refers to how the organization is going to deliver their message. What
aspects of the promotional mix will the company use to deliver their message strategy. Where
will they promote? Clearly the company must take into account the readership and general
behavior of their target audience before they select their media strategy. What newspapers do
their target market read? What TV programmes do they Biscuit? Effective targeting of their
media campaign could save the company on valuable financial resources.
A push strategy
A pull strategy or
A combination of the two
A 'push' sales promotion strategy involves 'pushing' distributors and retailers to sell your
products and services to the consumer by offering various kinds of promotions and personal
selling efforts. What happens here is that a company promotes their product/services to a
reseller who in turn promotes it to another reseller or to the consumer. The basic objective of
this strategy is to persuade retailers, wholesalers and distributors to carry your brand, give it
shelf space, promote it by advertising, and ultimately 'push' it forward to the consumer.
Typical push sales promotion strategies include; buy-back guarantees, free trials, contests,
discounts, and specialty advertising items.
A 'pull' sales promotion strategy focuses more on the consumer instead of the reseller or
distributor. This strategy involves getting the consumer to 'pull' or purchase the
product/services directly from the company itself. This strategy targets its marketing efforts
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directly on the consumers with the hope that it will stimulate interest and demand for the
product. This pull strategy is often used when distributors are reluctant to carry or distribute a
product. Typical pull sales promotion strategies include; samples, coupons, cash refunds or
rebates, loyalty programs and rewards, contests, sweepstakes, games, and point-of-purchase
displays.
Communication Model
AIDA is a communication model, which can be used by firms to aid them in selling
their product or services. AIDA is an Acronym for Attention, Interest, Desire, Action.. When
a product is launched the first goal is to grab attention. Think, how can an organization use
it skills to do this? Use well-known personalities to sell products? Once you grab attention
how can you hold Interest, through promoting features, clearly stating the benefit the
product has to offer? The third stage is desire, how can you make the product desirable to
the consumer? By demonstrating it? The final stage is the purchase action, if the company
has been successful with its strategy then the target customer should purchase the product.
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Promotion through the Product life cycle
As products move through the four stages of the product lifecycle different
promotional strategies should be employed at these stages to ensure the healthy success and
life of the product .
Introduction
When a product is new the organizations objective will be to inform the target audience of its
entry. Television, radio, magazine, coupons etc may be used to push the product through the
introduction stage of the lifecycle. Push and Pull Strategies will be used at this crucial stage.
Growth
As the product becomes accepted by the target market the organization at this stage of the
lifecycle the organization works on the strategy of further increasing brand awareness to
encourage loyalty.
Maturity
At this stage with increased competition the organization take persuasive tactics to encourage
the consumers to purchase their product over their rivals. Any differential advantage will be
clearly communicated to the target audience to inform of their benefit over their competitors.
Decline
As the product reaches the decline stage the organization will use the strategy of reminding
people of the product to slow the inevitable
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FACTORS AFFECTUNG SALES PROMOTION
Type of product plays an important role in deciding on promotion mix. Product can be
categorized in terms of branded products, non-branded products, necessity products, luxury
products, new products, etc. All these types of products need different promotional tools. For
example, advertising is suitable for the branded and popular products. Personal selling may
be fit for non-branded products. Advertising, personal selling, sales promotion and publicity
– all four tools – are used for a newly launched product to get a rapid consumer acceptance.
Use of Product:
Product may be industrial product, consumable and necessity product, or may be luxurious
product that affects selection of promotion tools and media. For example, advertising and
sales promotion techniques are widely used for consumer goods while personal selling is
used for industrial goods.
Complexity of Product:
Product complexity affects selection of promotional tools. Personal selling is more effective
for complex, technical, risky, and newly developed products as they need personal
explanation and observation. On the other end, advertising is more suitable for simple and
easy-handled products.
Company should also consider purchase frequency and purchase quantity while deciding on
promotion mix. Generally, for frequently purchase product, advertising is used, and for
infrequently purchase product, personal selling and sales promotion are preferred. Personal
selling and advertising are used for heavy users and light users respectively.
Financial capacity of company is a vital factor affecting promotion mix. Advertising through
television, radio, newspapers and magazines is too costly to bear by financially poor
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companies while personal selling and sales promotion are comparatively cheaper tools. Even,
the company may opt for publicity by highlighting certain commercially significant events.
Type of Market:
Type of market or consumer characteristics determine the form of promotion mix. Education,
location, income, personality characteristics, knowledge, bargaining capacity, profession,
age, sex, etc., are the important factors that affect company’s promotion strategy.
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COMPANY PROFILE
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COMPANY PROFILE
For more than a decade, MuscleTech has been a brand name synonymous
with premium-quality and top-of-the-line sports supplement products.
Consequently, purchasing products from unauthorized sellers at prices that are
"too good to be true" may result in the consumption of counterfeit products
which contain poor ingredients, are of a lower quality, and are likely untested
products that could potentially be harmful to you.
PRODUCT :-
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meal replacements such as Meso-Tech Hardcore, pre-workout supplements
(such as naNO Vapor) and various "muscle stacks".
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on real consumers to help us formulate a first-in-class taste profile that's second
to none.
India, MusclePro Nutrition.
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OBJECTIVES OF THE
STUDY
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OBJECTIVES
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HYPOTHESIS
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HYPOTHESIS
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
Most marketer are for removed from their ultimate customer the
torch bear who will be the ultimate decision maker to determine the
success or failure of the product. Yet these managers must be
knowledgeable and well informed about their market, customer and
competitor so as to make good marketing decision. This is where the
concept of the marketing research facilities by providing information to aid
the decision making process.
At the end of the day, for the marketing decision makers, marketing
research is group of method and technique to provide relevant information
that can support analysis and decision to do with the creation and
management of marketing communication.
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This mean that the presence of a problem or query or question
implies research is to be undertaken.
For year together, the Indian industry has always relied on entry barrier to
protect it from competition. During this period, the success of the firm
depended upon political patronage rather than operational efficiency and
performance. From the customer side there was a forced loyalty and
grudging acceptance of high tariff.
However, now the integration of the Indian industry with the global
economy the customer are also becoming more aware, demanding and
sophisticated, with the advent of e-commerce and the disappearence of
trade barriers, marketing firms need to stretch themselves in order to
reach out the customer. Some of the significant influences of globalization
seen by the marketer are :
MAREKTING RESEARCH
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important to carry out research. It concluded research design. research
approach and research instrument and sampling.
SOURCEOF DATA
All marketing research can tap two sources of data for investigation
that are:
1) Internal sources
2) External source
Fact and figure are the raw materials with which the research work .
Internal sources are the companies own record register, documents, sales
record invoices provide valuable information regarding sales by product
territories, customers, Research starts with internal data and it is
irrespective . Preliminary or the explanative phase of research usually taps
the internal source initially. All other sources and information are the
external source of data.
1. PRIMARY DATA
2. SECONDARY DATA
A research plan was followed for gathering primary data, secondary
data or both.
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PRIMARY DATA
SECONDARY DATA
The secondary data are collected from Nagpur city Authorized dealer,
from broachers, from website of the company, news papers, magazines,
Company websites and search engines.
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DATA ANALYSIS
&
INTERPRETATION
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DATA ANALYSIS& INTERPRETATION
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Male
Female
60
INTERPRETATION:
Male respondents are in majority in my sample constituting 60%. They are the
one‘s who take initiative to purchase products for their family & themselves.
Female generally don’t take initiative to answer. It was difficult to catch them to fill
the questionnaire. Still they showed good amount of interest & constituted 40% of total
respondents.
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2) WHICH AGE GROUP YOU BELONG TO?
45%
40%
40%
35%
30%
25%
20% 20% 20%
20%
15%
10%
5%
0%
AGE OF GROUP AGE OF GROUP AGE OF GROUP AGE OF GROUP
10-20 20-30 30-40 40 & ABOVE
INTERPRETATION:
There were total 100 people in a sample. Out of 100 people 20% people belong
to age group 10 – 20 years, 40% people belong to age group 20 – 30 years, 20% people
belongs to age group 30 – 40 years & 20% people belongs to age group 40 & above.
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3) OCCUPATION OF THE RESPONDENTS.
40
40 35
35
30 25
25
20
15
10
5
0
Service Business Others
INTERPRETATION :-
The following chart shows the graphical picture of the above table. We see that
40% respondents were various services, 35% respondents from business sector. Rest
25% respondents came from others sector.
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4) INCOME LEVEL OF THE RESPONDENTS.
48
50
45
40
35
30
22 20
25
20
15 10
10
5
0
10000 - 20000 - 30000 - Above
19000 29000 39000 40000
INTERPRETATION :-
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5) REASON TO PURCHASE THE FMCG PRODUCT.
No. of user
Good service
20%
Status
8%
Quality
Low cost 48%
24%
Interpretation
It is seen that 48% of user buy their mobile because of good quality, 24% of user
buy their Muscle Tech Product because of low cost, 20% of user buy their Muscle
Tech Product because of good service and 8% of user buy their Muscle Tech
Product because of status.
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6) ARE YOU COMPLETELY SATISFACTED WITH THE PRODUCT OF MUSCLE
TECH ?
Total 50 100%
20
Yes
No
12
Not Exactly
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INTERPRETATION :-
From the above table we see over 65% people are aware from Muscle Tech
Product and 35% people are neat aware from Muscle Tech Product in India.
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7) AVAILABILITY OF THE PRODUCTS IS IMPORTANT FOR RESPONDENTS.
Respondents Percent
Strongly Agree 78 78
Agree 22 22
Total 100 100
90
78
80
70
60
50
40
30 22
20
10
0
Strongly Agree Agree
INTERPRETATION :-
78% respondent thinks that the products should be available within their reach.
The need the demanded products right after they feel the need of the products where
ever the stay. Whereas only 22% respondent thinks they would give extra effort to get
their desire product if that is not that available surround them. Because they will not
accept any alternative of that products.
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8) EMPHASIS ON QUALITY OF BRANDED PROTEIN.
100
89
90
80
70
60
50
40
30
20
9
10 2
0
Strongly Agree Agree Disagree
INTERPRETATION :-
Among the respondent, 89% is not agreed to compromise with the quality of the
branded Product. They need the quality products at any cost. They strongly agreed that
quality issue is most important factor where 9% only agreed with them. Rest 2%
disagrees with this opinion. They think branded Muscle Tech usually quality products.
So they really don’t think about quality issue regarding branded Protein.
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9) IF YES WHY?
67
70
60
50
40
30
17
20
9 7
10
0
High Margin Quality Relationship No Reason
INTERPRETATION
In above graph and table it is clear that for margin and of better relations with
consumers and too provide quality product to consumers they suggest consumers too
bye particular brand. For the company it may be helpful to target such retailers to sell
their product in the market easily.
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10) DO CUSTOMERS LOOK FOR VARIOUS SCHEMES IN THE PRODUCT?
92
100
80
60
40
20 8
0
Yes No
INTERPRETATION
This gives a real helpful data for checking the effect of sales promotions in the
market and how seriously consumers follow the promotions before they go for
purchase particular brand.
The above result shows that only 8 out 0f 100 didn’t go for the promotion
otherwise all are looking for any type of the promotions on the product.
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11) IF YES WHICH SCHEMES?
Coupons 11 11%
Price Off 82 82%
Freebies 35 35%
Scratch Cards 2 2%
Lucky Draws 19 19%
Bundling Offer 65 65%
Extra Quantity 79 79%
Total 100 100%
90 82 79
80 65
70
60
50 35
40
30 19
20 11
10 2
0
INTERPRETATION
The above stated results show the demand of various types of promotional
schemes in the market by the consumers. Almost all types of schemes are being
demanded by the consumers in the market but there are three major schemes which
consumers generally look at the time of purchase or before that.
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SUGGESTION
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SUGGESTIONS
Muscle Tech Pvt. Ltd. should start the selling of its products not only in the above
mentioned countries, but also all over the world.
Right now, the company is producing many brands of Muscle Tech Pvt. Ltd. in
future it should go for such type of products which suits above and over the all
company’s product connected with production and confectioners.
All the advertising campaign of the company is limited to television and wall
painting, etc. The company should start advertising through other media which
suits the product. No doubt the company is also giving sales promotion once in a
year, but the company should adopt new and modern technique of attracting
kids for Product conducting competitions, quiz, etc. and gifting like participated
with Muscle Tech Pvt. Ltd.
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CONCLUSION
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CONCLUSION
The study reflects that the use of Marketing undeniably has increased
over the Talwarkar Gym. Future holds lot of promise for such schemes
We have noted that these kind of promotional tools are useful for
short term increase in sales and to induce first trial. These types of
promotional schemes should be consistent and changed from time to time
depending upon season and competitor’s schemes.
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BIBLIOGRAPHY
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BIBLIOGRAPHY
BOOKS :
1. Business world.
2. Economics Times
Websites:
www.wikipedia.com,
www.google.co.in,
www.scribd.com
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ANNEXURE
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ANNEXURE
Male
Female
10 – 20
20 – 30
30 – 40
40 & above
3) OCCUPATION OF THE RESPONDENTS.
Service
Business
Others
4) INCOME LEVEL OF THE RESPONDENTS.
10000 – 19000
20000 – 29000
30000 – 39000
Above 40000
Quality
Low cost
Status
Good service
Yes
No
Not Exactly
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7) AVAILABILITY OF THE PRODUCTS IS IMPORTANT FOR RESPONDENTS.
Strongly Agree
Agree
8) EMPHASIS ON QUALITY OF BRANDED PROTEIN.
Strongly Agree
Agree
Disagree
9) IF YES WHY?
High margin
Quality
Relationship
No reason
Yes
No
Coupons
Price Off
Freebies
Scratch Cards
Lucky Draws
Bundling Offer
Extra Quantity
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