Difference Between Advertising and Sales Promotion Part 6

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Table of Difference between Advertising and Sales Promotion
Title: Table of Difference Between Advertising and Sales Promotion

Basis

Advertising

Sales Promotion

Objectives

Objectives of advertising is to create a favourable consideration for the product.

The objective of sales promotion is to stimulate

the consumers to buy the product.

Effect

It has a long-term effect.

It has a short-term effect and useful for increasing immediate sales.

Nature

Advertising is recurring in nature.

It is non-recurring and one-time communication process.

Tools Used in Sales Promotion

Sometimes we get a small pack of tea, shampoo, soap or floor cleaner free from the manufacturer or producers. Have you ever thought why do companies distribute their products free like this? Because, their main intention is to attract the consumers’ attention towards the product and then make them feel tempted to buy the product. This is a tool of sales promotion. Some of such promotional tools are given below:

Tools Used in sales Promotion

Tools Used in Sales Promotion

Tools Used in sales Promotion

Distribution of Free Samples

As mentioned above, distribution of free sample is a commonly used sales promotion tool. It is a good method for introducing a new product or a brand in the market. Such free samples can be distributed at the door step, through fairs, or even through retail stores.

Bonus Offer

At times marketers offer something extra with standard products without any additional charge to the customer. It could be extra quantity of the same product or some other product of the company like toothbrush with toothpaste or any other related items as gift like a bucket with large pack of washing powder, and so on.

Price-Off

To increase sale, or to reduce competition, many business firms cut down prices. Prices may also be cut down during off season to maintain certain volume of sales.

Exchange Offer Under this scheme, companies generally attract the customers by offering a price cut on purchase of new product in exchange for an old product. Recently you must have seen many advertisements talking about such offers on purchase of new refrigerator, television, washing machine, motorbike, cars, etc.

Fairs and Exhibitions

Trade fairs, exhibitions and fashion shows are important tools of sales promotion. They provide a forum for demonstration and exhibition of products. A lot of important information about the product can be communicated to the customers through leaflets, brochures etc. during fairs and exhibitions. Especially in case of technical products like computer and electronic households’ gadgets, live demonstrations are undertaken. This cultivates customers’ interest and boosts their confidence in the product.

Free Offer

Many companies give ‘free’ offers to boost the sales of their products. They offer products of similar or related nature with the purchase of main products. For example, VCR/VCD free with plasma TV is an example of such free offer.

Money Refund Offer

Of late, another method being used by marketeers to boost consumer’s confidence in a product is a promise of total refund of money spent on the product if the buyer is not happy with the product’s performance. Such offer not only arouses the customers’ interest in the product but also motivates them to make a trial.

Discount Coupon

Discount Coupon is a certificate that entitles the holders a specified discount on purchase of a product. Such discount coupon may be issued by the company by mail or through the dealers. They can also be issued through newspapers.

Deferred Payment Plan

During 1980’s, some of the airlines offered deferred payment plans - ‘Travel today pay fare later’ for air journeys for promoting travel. It was quite a success. This plan is quite common now-a-days in case of TVs and air conditioners.

Contests

There may be a contest like quiz related to the product or slogan writing. In case of quizzes, the questions are generally prepared in a way that consumers feel forced to know about the company and the product in the hope of winning a prize. These contests can be held on television, radio and through the magazines.

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