What are the needs for evaluation of
sales promotion program? Discuss the methods of evaluations of sales promotion
program.
OR
Discuss the needs for evaluations of
sales promotion program.
OR
Why the need arises for evaluations
of sales promotion program? Explain.
Though almost all companies resort
to sales promotion techniques , only some of them follow it in a planned way.
The conditions for the success of sales promotion program are as follows:-
1. Identify the requirement – The firm needs to find out. It is to bring in substantiate
extra sales immediately. It is to offered accumulated stocks ? It is to regain
loosing consumer interest in the Product/ Service etc.
2. Identifying the right promotion
program-The firm has to select the program
suitable for current need & situation the choice of the firm should be
deducted according to the resources available with the firm.
3. Enlisting the involvement of
salesmen- Often sales promotion program are
conceded & planned at the head office . But for the campaigns to succeed,
it is essential that the salesmen be briefed on the contest & contest of
the program. They have to be informed of their roles in the conduct of the
program.
4. Enlisting the support of the
dealers:- It is also essential to enlist
then support of the dealers in any large scale sales promotion venture. Since
the major part of the activity is around the dealer shop, the pop material and
the Product/ Service under campaign will get the required prominence. Only if
the leader so dialed
5. Enlisting the advertisement
agency’s support:- The advertising agencies support
is also essential for the successful working of a sales promotion campaign.
carrying out a sales promotion campaign is as challenging as conditioning an
advertising campaign. So companies while commenting heavy finds for sales
promotion make it a point ensure that that they benefit from the experience and expertise of their agency.
6. Timing of the campaign:- The sales need of the company is the prime factor that decides the timing. But the firm has to insider factors like seasonality of
purchase of Product/ Service.
Need for evolution:- The need for evaluating the sales promotion programs are-
1. Identifying growth and
development opportunity.
2.Taking correction steps in case of
any draw back.
3.To measure the effectiveness and
achievements of objectives.
4.Facilities for future planning.
5.To encourage for research &
innovations.
6.To motivate the employees into
have contributor.
7. to know the maturity limit of
sales promotion program.
8.To study new & modern tools of
promotion.
9.To get allocated maximum budget
for sales promotion.
Methods of evolution:-
1. Sales data method- This method is a widely a accepted practice. In this
method , sales volume or market share prior to any sales promotion techniques
are measured . Eg. If market share of a Product/ Service before the
introduction of sales promotion is 4% , during the period 10% & immediately
after the program 6% ,Thus giving an increase of 8%. Shows' that new customers
are created by the sales promotion program.
2. Consumer panel data- This technique help to identify that how the customers
have been motivated by the sales promotion technique for longer purchase . How
much quality have the customers purchased & What were the charges of their
buying behavior after the sales promotion program. This technique help to
identify the various classes of customers on new or old customers / women / men
/ industrial / general customers etc.
3. Consumer surveys- This method collects various kinds of information about the
customers so as to analysis the effectiveness of sales promotion. The analysis
of such information help to know following things-
1) The numbers of customers who have
remembered the techniques used.
2) The views opinion about these
techniques.
3)How these technique have been
helpful in influencing the buyer’s behavior & brand chore of customer?
4)Do the customer require any
innovation to be differed in the Product/ Service?
5)Do these techniques improve the
image of the firm?
6)Do they feel like using these
techniques through the year?
4. Experiment methods- The effectiveness of sales promotion technique may be
measured by experimenting them in selected markets. However there can be
certain difficulties. They are as follows-
1) The consumer always looks for
deals customers are interested only in the purchase in the items Which offer
certain additional incentive with that of the Product/ Service.
2) The promotional tools at times
can be very costly as, if the organization does not get expected results. Then
the price of Product/ Service may be increased.
3) The cooperation from middlemen
might not be smooth.