Sales Promotion Case Study

Sarangi S. (2011e) explained different code & regulation of sales promotion exists and important to focus. According to ICC International Code of Sales Promotion Practice, it continues the well-established policy of the ICC of promoting high standards of ethics in marketing by self-regulation against the background of national and international law. As narrated by Sarangi the Code, which was first issued in 1973, demonstrates that industry and commerce recognize their social responsibilities towards the consumer and the community for day to day shopping.
Sarangi S. (2011c) highlighted that there are twenty three articles included twenty thee articled as general rules. Article- 1 refers to Integrity, Article: 2 refers to Terms of the offer,

Al (2001b) emphasized that there are a number of powerful reasons that are favourable to the growth of sales promotion. Out of the combined budget allocated to advertising and sales promotion, increasingly larger percentage of the budget is being utilized for sale promotion. The major factors influence sale promotion are Increasing Competition, Customers Have Become More Price-Sensitive, Sales Promotions Generally Create An Immediate Positive Impact On Sales, Products have become more standardized, Consumer Acceptance, Expectations of price decrease, Advertising has become more expensive and less effective, Trade has become more powerful, Emphasis on sales volume, Sales Promotions Maximise Profits, Introducing An Element Of Interest, Impulse Buying Is Increasing, Sales Promotion Specialists Are Available, Excess Stocks

All these activities are called sales promotional activities and serve the few objectives viz Increase’ Sales Volume (The main purpose of all Promotional activities is to increase the sales of the product or products of the company i.e., by distributing samples, purchase premium, discount free gifts and giveaways), To Keep The Memory Alive (keep the memory of the product alive in the minds of the present customers in a certain point in time) To Arrest Seasonal Decline (in slack season, the promotional activities help in maintaining the sales of the product) To Induce Middlemen (by offering more facilities such as credit facilities, higher cash and trade discounts, free gifts, quantity discount etc) To Face Competition Effectively (Competition in similar products may be quality competition or price competition, Sales promotional tools are mainly deciding factors).
Panda T K (2007) highlighted that a target market can be in any of the six stages of buying readiness. These stages include awareness, knowledge. Linking, preferences, conviction and purchase, We need to identify what stage the buyer is in and for what purpose we need to design the program i.e. to induce trial, to develop repeat purchase or to try the new product line with existing product. The following box explains buyer’s readiness stage and the task of the marketer in each of these stages.