Question 1.How does sales promotion differ from marketing promotion?

Briefly explain the common tools used in sales promotion? MARKETING PROMOTION: Marketing promotion includes activities designed to communicate the value of the product and persuade customers to buy it. The marketer can communicate the value of product with the customer using such means as advertising, sales promotion and public relation. SALES PROMOTION: sales promotion consists of the short term incentives to encourage sales of a product or service. Difference between marketing promotion and sales promotion: From the above definition of marketing promotion and sales promotion may be pointed as bellow Marketing promotion 1. All the activity to communicate the value of product. 2. Long term activity. 3. pert of total marketing activity. 4. Its a wide sense. 5. Its provide customer all related information. 6. Tools may be : (a) Advertising ( b) personal selling (c) sales promotion (d) Direct marketing ( e) Public relations (f) Internet marketing Sales promotion 1. All the short-term incentives to encourage sales. 2. short-term activity. 3. pert of marketing promotion. 4. Its short sense than marketing promotion. 5. Its provide only sales incentives related information. 6. Tools may be: (a) Contests (b) Prizes (c) Free items (d) Coupons (e) Rebates (f) Discount (g) Allowances (h) Trade shows 7. May be categories as: a. Incentives b. promotional pricing c. Informational activities

7. Here is no category

SALES PROMOTION TOOLS Every businessman wants to increase the sale of goods that he deals in. He can adopt several ways for that purpose. We have heard about lakhpati bano, win a tour to Singapore,30% extra in a pack of one kg, scratch the card and win a prize etc. We also have seen gifts like lunch box, pencil box, pen, shampoo pouch etc. offered free with some products. There are also exchange offers, like in exchange of existing model of television you can get a new model at a reduced price. We have also observed in our neighboring markets notices of winter sale, summer sale, trade fairs, sdiscount up to 50% and many other schemes to attract customers to buy certain products. All these are incentives offered by manufacturers or dealers to increase the sale of their goods. These incentives may be in the form of free samples, gifts, discount coupons, demonstrations, shows, contests etc. All these measures normally motivate the customers to buy more and thus, it increases sales of the product. This approach of selling goods is known as Sales Promotion. Sales promotion adopts short term, non-recurring methods to boost up sales in different ways. These offers are not available to the customers throughout the year. During festivals, end of the seasons, year ending and some other occasions these schemes are generally found in the market. Thus, sales promotion consists of all activities other than advertising and personal selling that help to increase sales of a particular commodity. Tools of sales promotion to various groups and by various ways may be categories as below Sales promotion is provided to the group of 1. Customer buyers 2. Industrial buyers 3. Channel members 4. sales people And sales promotion may categories as bellow: 1. Incentives 2. Promotional pricing 3. Informational activities

Sales promotion tools to various groups may be at once. Sales promotion tools Customer Buyers Incentives: Contest Trips Bonuses prizes Advertising support Free items Recognition Promotional pricing: Coupons Allowance Rebates Cash Informational activity: Display Demonstration Selling aids Trade shows Targeted to Industrial Channel Buyers members Sales people

BRIEF EXPLANATION OF COMMON TOOLS OF SALES PROMOTION COSUMER PROMOTION TOOLS: Samples: sample is a small amount of product offered to the customer for trial. By getting a sample a customer can test or examine the product before buying. Samples are normally distributed as free, sometimes with few price .For example KEYA COSMATICS LTD. Distribute 20 grams KEYA SUPPER BEAUTY SOAP as sample among the customer. If the customer be satisfied by using this sample one he can take further steps to buy this product. Coupons: Coupons are very familiar sales promotion used to encourage sales. In coupon the customer get a certain rate of discount or can get a prize. Normally coupon is a certificate that gives buyers saving when they purchase a specified product. Coupon may provide through post or with the product package. Cash Refund Offer: Its like as coupon After buying the product if the customer show the recite he can get return a portion of his purchase price. Price Pack: Because of using price pack tools the customer can get the product at ales price than its usual price. For example if the marketer sales product at TK. 20 instead of its actual price of TK.25 its normally known as price pack. Prizes: A marketer can use prizes tools as a sales promotion tools successfully. For buying a certain amount if product a customer can get a prize. Such as if the customer buy the product of tk. 5000 he will get a plastic mug as a prize. For example any one can get a LCD TV as prize by giving a PLOT booking of Boshundhara . Extra product: The company can provide extra product facilities. This extra facilities may be the excess of same product or another product. For example PEPSODENT TOOTH PASTE some time provides 10%or 20% extra or a tooth brush with the paste. Bonuses: Bonuses normally provide to distributor and sales people. If he able to sale a certain amount of product he will get certain amount of Taka as bonuses. Such as if he sale 100 box he will get 100 Taka bonus. Frequency program: Because of frequent use of product company can provide a prize. For example GRAMEENPHONE provide 50 paisa call rate facilities to any other operators to their customer if he makes a call for 30 minutes at a time. Patronage rewards: Patronage reward is cash or other award for the regular use of a certain companys product. For example the bus company of long route provide a ticket free if he buy 10 ticket at a time. Rebates: The cash rebate offers a return of money based on proof of purchase. TRADE PROMOTION TOOLS: Price off: price off is a straight of list price on each purchase during a stated time. Like as 10% discount on listed price. For price-off facilities the dealers are impressed to buy more products. Allowance: Allowance normally provided to wholesaler or retailers. Allowance is the promotional money paid by the manufacturers to retailers in return for an agreement feature the manufacturers product in some way. Such as advertising allowance to the distributor.

Free Goods: The marketer can provide free products because of purchasing a certain amount of product. Such as 2 pieces PEPSI COLA free with one case PEPSI COLA. SALES FORCES PROMOTION TOOLS: Display: The marketer can take attractive display tools as same promotion tools. The marketer can display its physical product in various ocation .Can make a billboard in populated places or by using various media. Contest: This tool normally used to middlemen or distributors. In contest tool the marketer provide facility that highest amount seller will get prize. Trade show: Trade shows, fashion shows or parades, fairs and exhibitions are important technique/tools of sales promotion. They provide a forum for the exhibitions or demonstration of products. Free literature can be distributed to introduce the firm and its products to the public. Fairs and exhibitions are organized usually by big firms or trade associations. At these fairs and exhibitions, business firms are allotted stalls wherein they display their products. Fairs and exhibitions have wide appeal as several people visit there. Customer can be attracted through gifts, special concessions and free demonstrations of technical and specialty products. They provide an opportunity to the visitors to observe the competing products and help to promote sales. For instance, the Trade Fair Authority of India organizes Trade Fairs of various types in New Delhi. The National Book Trust organizes World Book Fair, where publishers of all over the world are invited to display their publications. Sometimes sales conventions or conferences of dealers are held. Specialty advertising: Advertising specialty is useful article in printed with an advisers name, given as a gift to customer. like as key ring with companys logo or product picture.

Question 2: Select a product at your choice recall the tools of sales promotion the marketers of that particular product have used in the recent past. Do you think that the tools were effectively used by the marketer? Validate your arguments. SELECTION OF PRODUCT To discuss the Question no. 2, according to our own choice we are selecting KEYA SUPPER BEAUTY SOAP manufactured by KEYA COSMETICS LTD. There are four size of KEYA SUPPER BEAUTY SOAP 20,70,100,200 grams and have four colors. SALES PROMOTION TOOLS Sales promotion tools used by KEYA SUPPER BEAUTY SOAP includes: 1. Consumer promotion tools-includes samples, prices-off, patronage rewards, and display. 2. Trade promotion tools-includes discount, free goods, advertising facilities, conventions and trade shows. 3. Sales forces promotion tools-includes trade shows and conventions, sales contest, specialty advertising. Consumer promotion tools Sample: KEYA COSMETICS LTD. distributes 20 grams KEYA SUPPER BEAUTY SOAP as free as sample in various places among the consumer. By distributing sample at free of cost KEYA COSMATICS LTD encouraging sales, because consumer are getting the opportunity of test the product before buying it. Prices-off: Sometimes KEYA SUPPER BEAUTY SOAP sold at discounted prices. Recently consumer can buy two 100 grams KEYA SUPPER BEAUTY SOAP at TK.30 where price of single one is TK.18 and 70 grams at Tk.12 instead of Tk.14. Patronage reward: If a consumer return 4 empty packet of 100 grams KEYA SUPPER BEAUTY SOAP he will get one 100 grams KEYA SUPPER BEAUTY SOAP free. Display: KEYA COAMETICS LTD arranges attractive display for the customer. Trade promotion tools Discount: KEYA COSMETICS LTD provides discount facilities because of purchasing more KEYA SUPPER BEAUTY SOAP. Recent discount facilities is if a distributor or middlemen buy 10 cartons(72 pieces in a carton) at a time he will get 20 Tk. Discount per carton. Free goods: KEYA COSMETICS LTD provide 2 pieces 70 grams KEYA SUPPER BEAUTY SOAP free per carton and a t-shirt per carton of 100 grams. Advertising facilities: If a distributor expends for advertising KEYA COSMETICS LTD will bear a percentage of cost. Convention and trade shows: KEYA COSMATICS LTD participate in various national and international convention and trade shows that makes KEYA SUPPER BEAUTY SOAP familiar to the customer and encourage sales. Keya cosmetics ltd takes a pavilion in DHAKA INTERNATIONAL TRADE FAIRE.

Sales force promotion tools Sales contest: KEYA COSMETICS LTD provides attractive prize to highest seller of KEYA SUPPER BEAUTY SOAP. Specialty advertising: KEYA COSMETICS LTD provides KEYA SUPPER BEAUTY SOAPs photo printed key rings, T-shirt, pencil, pad to the sales forces men. Convention and trade shows: KEYA COSMATICS LTD participate in various national and international convention and trade shows that makes KEYA SUPPER BEAUTY SOAP familiar to the customer and encourage sales. Keya cosmetics ltd takes a pavilion in DHAKA INTERNATIONAL TRADE FAIRE.

VALIDATE ARGUMENT KEYA COSMETICS LTD used only four sales promotion tools to consumer, four to trade promotion and three tools to sales force men. Samples, price-off, patronage reward tools provides benefits to the consumer and they encouraged to buy KEYA SUPPER BEAUTY SOAP continuously. By getting a sample consumer are getting the opportunity to examine the product before buy it. Discount, free goods, providing benefit directly to the middlemen, conventions and trade shows are helping them to sales more products. so the middlemen are encouraging to buy and sales more KEYA SUPPER BEAUTY SOAP.