Hrm Concepts

• Promotion • Personal/Direct Selling • Designing and managing Sales Force

PGDM (WMG 21): Marketing Management II

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Promotion

Inducement at immediate increase in sales

Trade promotions

• Aimed at the trade

Consumer promotions

• Aimed at the consumers

PGDM (WMG 21): Marketing Management II

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Reasons for promotions

• Volume pressures

– Monthly, qtrly, year end

• Stocks reaching expiry date

– Liquidating stocks

• Stocks on shelf for too long – high inventory carrying

– Cars, mobiles

• Preempting competitor’s launch • Fringe players to gain some quick market share

PGDM (WMG 21): Marketing Management II

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Trade promotions

• Objectives

– – – – – Increase sales in an immediate time period Pushing the product thru the distribution intermediaries Persuading them to stock new products Inducing them to promote the brands Encouraging them to participate in company promotions

• Vehicles

– – – – – Shelf display incentives Inventory building allowance Sales contests/prizes Display contests/prizes Subsidy for promotions

PGDM (WMG 21): Marketing Management II

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Consumer promotions

• Objectives

– Generate interest and induce trails – Build traffic for a brand at the retail point – Increase the occasions of purchase

PGDM (WMG 21): Marketing Management II

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Consumer promotion vehicles

• • Coupons

– Distributed thru leaflets, newspapers, magazines, on pack

Freebees

– Extra quantity (20% extra), – Rs off (Rs 2 off), – Free brush with paste

• • •

Multipacks

– Special price for ‘2 packs’

Limited price offer

– Special price for a limited time.. Year end

Introductory offer

– New launch- special price, free accessories etc

•

‘Tempting price offer’

– MMT – special price offers – tickets at Re 100

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PGDM (WMG 21): Marketing Management II

Consumer promotion vehicles

• Frequent Flier programmes • Credit card points • Free samples

– On pack, in newspapers, across other brands

•...