discuss the internal and external factors affecting the change in attitudes towards bank marketing

 Every organization has to work within a framework of certain environmental forces and there is a continuous interaction between the organization and its environment. The interaction suggests a relationship between the two. This relationship can be analyzed in three ways.

First, the organization can be thought of as an input-output system. It takes various inputs-human, capital, technical-from the environment. These inputs are transformed to produce outputs-goods, services, profits-which are given back to the environment. Thus, the organization merely performs the function of input-output mediator. In this process, the environment in its interaction with the internal factors of the organization will determine what kind of inputs should be taken or outputs given.

Second, the organization can be taken as the central focus for realizing the contributions of many groups, both within and outside the organization. When these groups contribute to the well being of the organization, they must have a legitimate share in organizational outputs. These groups may be employees, consumers, suppliers, shareholders, movement, and the society in general. Thus, the organizational functioning will be affected by the expectations of these groups and the organization has to take these factors into account.

Third, the organization can be treated as operating in environment presenting opportunities and threats to it. Thus, how an organization can make the best use of the opportunities provided or threats imposed is a matter of prime concern for it. Any single approach by itself is insufficient to explain the complex relationship between the organizations and its environment Moreover, these approaches are not inconsistent to each other; they are complementary. Thus, an organization will be affected by the environment in which it works.

 The environment-organization interaction has a number of implications from strategic management point of view.

1. The environmental forces may affect different parts of the organization in different ways because different parts interact with their relevant external environment. For example, the technological environment may affect the organization’s R & D department. Further, these forces of the environment may have direct effect on some parts but indirect effect on others. For example, any change in the fiscal policy of government may affect the finance department directly but it may affect production and marketing indirectly because their program may be recasted in the light of new situation, though not necessarily.

2. The environmental influence process is quite complex because most things influence all other things. For example, many of the environmental forces may be interacting among themselves and making the impact on the organization quite complex. Moreover, the impact of these forces on the organization may not be quite deterministic because of interaction of several forces. For example, the organization structure will be determined on the basis of management philosophy and employee attitudes. But the organization structure becomes the source for determining the employee attitudes. Thus, there cannot be direct and simple cause-effect relationship rather much complexity is expected.

3. The organizational response to the environmental forces may not be quite obvious and identical for different organizations but these are subject to different internal forces. Thus, there is not only the different perception of the environmental forces but also their impact on the organization. Key factors determining responses to environmental impact may be managerial philosophy, life cycle of the organization, profitability, etc.

4. The impact of environmental forces on the organizations is not unilateral but the organizations may also affect the environment. However, since the individual organizations may not be able to put pressure on the environment, they often put the pressure collectively. Various associations of the organizations are generally formed to protect the interest of their members. The protection of interest certainly signifies the way to overcome unilateral impact of the environment on the organizations. The nature of organization-environment interaction is such that organizations, like human species or animals, must either adjust to the environment or perish.

Why consumers are placed at the Centre of marketing mix?

 Place is used to ensure that the product is relatively easy to purchase and is made available to consumers. And finally price should deliver “fair value” to consumers, based upon the array of benefits that they receive from purchasing the product.

Putting the customer first, in simple terms, means that a business puts the needs and requirements of a customer ahead of anything and everything else. They are oriented towards serving the client's needs, and measure customer-satisfaction levels in order to determine the success of their business.

Elements of Marketing, marketing approaches in financial services

 Elements of Marketing:

Marketing encompasses a number of different activities such as product design, pricing, strategies, advertising and others. However these are just activities which have to be done in the process of marketing. There are also some crucial elements of marketing which are very necessary for the success of marketing and they form the backbone of marketing. There four elements are as follows.

1) Research –  If you want to launch your own company or a product what will you do? The first thing that you will do will be market research. You will like to determine what the market actually wants. Similarly, during marketing too, market research is needed to determine what message should the company adopt and which medium will be best, what positioning needs to be achieved to target the right segment. By doing market research, we can gather data which can help us in analysis and action.

2) Strategy –  Once you have your data ready, you know where your product stands and also the standing of your company in the market in terms of strengths and weaknesses. You also have an idea of what strategies will need to be implemented and what factors will need to be adopted by the company to beat competitors and succeed in the market. Thus, after research, strategies decide the vision of the company, its goal, its mission and in general where the company wants to be. The strategic plan needs to be well thought of by realistically considering all possibilities.

3) Planning –  Now that you know, Where you want to be, naturally you have to plan How you are going to reach there. That is the job of the marketing planning department. The marketing plan involves sales forecasting, financial planning, communications strategy and many such benchmarks which define how the company is going to achieve its strategic goals in the future. The planning department also keeps a track of the timeline so that time to time we can determine whether we are on track with the strategic plan or not.

4) Tactics –  Where planning happens at the topmost level, tactics are the street smart, short term plans you implement to attract customers, beat your competitors, increase sales, provide a better value for your customers or for any other short term objective which needs to be achieved. Giving an offer such as “Buy 1, get 1 free” is a sales tactic. Lessening the price of your product during festival time is a promotional tactic. Several such tactics can be implemented by the company to make sure that it is inline with the planning done in the earlier stage. Some industries, such as FMCG and consumer durable, mainly survive on time to time tactics that the implement. Due to the competitive nature of these industries, smart tactics ar absolutely necessary to achieve good revenues and for customer acquisition.

Thus overall, there may be 100′s of marketing activities such as branding, advertising etc. But all these marketing activities are a part of the four key elements of marketing. Using these four key elements as base, you can compare where you stand currently, which department are you weak in and then plan your future accordingly

Customer Managers

 In the new customer department, customer and segment managers identify customers’ product needs. Brand managers, under the customer managers’ direction, then supply the products that fulfill those needs. This requires shifting resources—principally people and budgets—and authority from product managers to customer managers. (See the sidebar “What Makes a Customer Manager?”) This structure is common in the B2B world. In its B2B activities, Procter & Gamble, for instance, has key account managers for major retailers like Wal-Mart. They are less interested in selling, say, Swiffers than in maximizing the value of the customer relationship over the long term. Some B2C companies use this structure as well, foremost among them retail financial institutions that put managers in charge of segments—wealthy customers, college kids, retirees, and so forth—rather than products.

What Makes a Customer Manager?

IN A SENSE, THE ROLE of customer manager is the ultimate expression of marketing (find out what the customer wants and fulfill the need) while the product manager is more aligned with the traditional selling mind-set (have product, find customer).

Jim Spohrer, the director of Global University Programs at IBM, hires what UCal Berkeley professor Morten Hansen calls “T-shaped” people, who have broad expertise with depth in some areas. Customer managers will be most effective when they’re T-shaped, combining deep knowledge of particular customers or segments with broad knowledge of the firm and its products. These managers must also be sophisticated data interpreters, able to extract insights from the increasing amount of information about customers’ attitudes and activities acquired by mining blogs and other customer forums, monitoring online purchasing behavior, tracking retail sales, and using other types of analytics. While brand managers may be satisfied with examining the media usage statistics associated with their product, brand usage behavior, and brand chat in communities, customer managers will take a broader and more integrative view of the customer. For instance, when P&G managers responsible for the Max Factor and Cover Girl brands spent a week living on the budget of a low-end consumer, they were acting like customer managers. The experience gave these managers important insights into what P&G, not just the specific brands, could do to improve the lives of these customers.

We’d expect the most effective customer managers to have broad training in the social sciences—psychology, anthropology, sociology, and economics—in addition to an understanding of marketing. They’d approach the customer as behavioral scientists rather than as marketing specialists, observing and collecting information about them, interacting with and learning from them, and synthesizing and disseminating what they learned. For business schools to stay relevant in training customer managers, the curriculum needs to shift its emphasis from marketing products to cultivating customers.

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In a customer-cultivating company, a consumer-goods segment manager might offer customers incentives to switch from less-profitable Brand A to more-profitable Brand B. This wouldn’t happen in the conventional system, where brand and product managers call the shots. Brand A’s manager isn’t going to encourage customers to defect—even if that would benefit the company—because he’s rewarded for brand performance, not for improving CLV or some other long-term customer metric. This is no small change: It means that product managers must stop focusing on maximizing their products’ or brands’ profits and become responsible for helping customer and segment managers maximize theirs.

The 3Ps of Marketing Communications Strategy:

 •         Pull strategies: used to communicate with end-user customers. These may be consumers but they might also be other organisations within a business-to-business context. 

 •         Push strategies:  used to communicate with channel intermediaries, such as dealers, distributors and retailers, otherwise referred to as the ‘trade’ or channel buyers.

 •         Profile strategies: used to communicate with a range of stakeholders, such as the local community, trade unions, suppliers, local and national government. 

 

Selection of Media and Factors Responsible for selection of Media

 SELECTION OF MEDIA

• Advertising media are the channels through which a product’s advertising is carried to perspective consumers. A medium may contain a mixture of editorial or entertainment material and advertising. Media are usually classified either in terms of their editorial context or in terms of the way in which the message is delivered. These media could be in written text, symbols, icons, graphs, audio, pictures, video, live audio, live presentation or performance etc. These media requirements are derived from the objectives. The media requirements define what the media programmer must contribute if the objectives are to be realized. These requirements are vary from product to product, because each product has a unique identity.

FACTORS RESPONSIBLE FOR SELECTION OF MEDIA

• The problem of selection of the best medium or media for a particular advertiser will vary greatly, depending on the particular situation, circumstances and different other factors in which a person in conducting individual business. Media selection involves a number of major factors which influence the decision of the advertiser and therefore, the same must be considered while selecting the media. The most significant of these factors are:
• THE OBJECTIVES OF THE CAMPAIGN:     The objectives of the campaign influence media selection from a somewhat different standpoint. An institutional advertising campaign may be run in a different media than would a product advertising campaign for the same company. In the case of product for which the dealer is very important in the ultimate sale to the consumer, and far more significant than the influence of consumer advertising, the advertiser may select media primarily for the effect they will have on dealers. So, the objective of influencing dealers will be the prime factor in the selection of the medium to use.
• THE BUDGET AVAILABLE:  The advertising budget is concerned with two major decisions about how the advertising effort will be carried out. First, how much is to be spent for advertising in the coming period? Second, how much budget is to be allocated to different areas within the company’s total sales territory? And how much budget be allocated for media? Because the budget determines the weight of advertising effort which is an important variable in determining the effectiveness of the entire advertising effort the product might be one for which actual demonstration on TV would be highly desirable. Yet the advertiser would be unable to sponsor (or even cosponsor) such a programme because its cost would exceed the total advertising budget. The advertiser might believe it desirable to use a multi-color advertisement in a magazine not only to reach desired prospects, but also to influence the trade favourably. But if he still find that his budget does not permit even that type of ad in the magazine, then the advertiser must turn to a medium in which he can get sufficient participation or a sufficient schedule of insertions to achieve an effective programme. So the availability of funds must be considered in planning and selection of media.
• RESEARCH CONCERNING THE CLIENTELE:     A factor that has become more significant is the number of people actually reached by a medium. More and more consideration is being given to the concept that the most significant aspect of coverage from the advertiser’s viewpoint is in terms of the total audience potential. This is indicated by the total number of readers of the print medium or total number of sets turned in the case of electronic media. Audience of different types of media cannot be compared directly because of the differences in the kind of advertising message reaching the consumer and somewhat different terms in which audience is measure.
• THE RODUCT:   The characteristics of the product have an important influence on the decisions involving the selection of media which shall carry the advertising message. Most media are becoming extremely liberal in their criteria for accepting advertisements. Certain individual media will not take advertising for certain specific types of products. Restrictions also may prohibit use of certain media by advertisers of specific items. The general characteristics of the product may also strongly influence the type of media used. That is, if the product has a certain personality or image, certain media may be appropriate to maintain or develop the image; whereas other media may tend to diminish or distort this personality or image. After having the understanding of different types of product one can solve the problem of choosing the media best suited for the product. The types of product may generally be expressed as, consumer product, consumer-durable product, mass product, luxury product, industrial or technical product, ethical pharmaceutical product, service product, and public service product.
• TYPE OF MESSAGE OR SELLING APPEAL:  The remarkable thing about advertising is that it can prompt people to buy a specific advertised product. Thus an appeal or advertising appeal is any statement designed to motivate a person to action. In seeking to move a person towards buying a product, the advertiser likewise must appeal to some of the manifold motives i.e., the functional needs and psychological needs of a person, that prompt a man to act as a desire to fulfill a hope, ambition, need, interest or goal. The central premise of the advertising appeal or message is its promise of a benefit the product will render to the buyer.
• RELATIVE COST: The relative cost is another factor which influences the selection of media. The total budget available and the ability to do an effective job of advertising within that budget in a particular type of medium is significant. When the type of media has been determined, then the cost factor becomes a matter of the relative cost of the individual media. In case of newspapers, this relationship is determined as per centimeter per column, and in the case of magazines, the cost per page is worked out.
• CLUTTER: In any medium, the advertiser’s message must compete with other advertisements for the consumer’s attention. Media in which the advertiser must expect a great number of competitive messages are termed as “cluttered”. Most newspapers are highly competitive cluttered media vehicles. In developed countries large departmental stores frequently purchase multiple full pages or, at least an advertisement size that dominants the page.
• MISCELLANEOUS FACTORS: Several other factors which sometimes enter into the selection of media, are not of enough significance to warrant lengthy discussion, although they may be of some importance in specific situation.

What are some fundamental marketing concept

 The various fundamental concepts are :-

 (1) Exchange Concept : The Exchange concept holds that the exchange of a product between seller & buyer is the central idea of marketing Exchange is an important part of marketing, but marketing is a much wider concept.

 (2) Production Concept : The production concept is one of the oldest concepts in business. It holds that consumers will prefer products that are widely available & expensive. Manager of production oriented business concentrate on achieving high production efficiency low cost & mass distribution. Eg. Haier in China take advantage of the country’s huge inexpensive labor pool to dominate the market, to manufacture PC & domestic appliances.

 (3) Product Concept : This concept holds that consumers will prefer those products that are high in quality, performance or innovative features.

Managers in these organization focus on making superior products & improving them. Sometimes, this concept leads to marketing myopia, Marketing myopia is a short sightedness about business. Excessive attention to production or the product or selling aspects at the cost of customer & his actual needs creates this myopia.

 (4) Selling Concepts : This concept focuses on aggressively promoting & pushing its products, it cannot expect its products to get picked up automatically by the customer. The purpose is basically to sell more stuff to more people, in order to make more profits. Eg. Coca Cola

 (5) Marketing Concept : The marketing concept emerged in the mid 1950’s. The business generally shifted from a product – centered, make & sell philosophy, to a customer centered, sense & respond philosophy. The job is not to find the right customers for your product, but to find right products for your customers. The marketing concept holds that the key to achieving organizational goals consist of the company being more effective than competitors in creating, delivering & communicating superior customers value. This concept puts the customers at both the beginning & the end of the business cycle. Every department & every worker should think customer & act customer.

 Distinguishing Features of the Marketing Concept :

 (i) Consumer Orientation : The purpose of any business is to create a customer. It is the customer who determines what a business is-

 (ii) Integrated Management with Marketing as the Fulcrum : Integrated management means that all the different functions of a business must be tightly integrated with one another. This is essential because every function has a bearing on the consumers & the aim is to see that all the functions make a favourable impact on the consumer.

 (iii) Consumers Satisfaction : The marketing concept emphasizes that it is not enough if a firm has consumer orientation, it is essential that with such an orientation, it should lead to consumer satisfaction.

 (iv) Realization of all Organizational Goals, Including Profits : The firm should not forget its own interests. It treats consumer satisfaction as the pathway to the attainment of goals of the organization. 

 In short the marketing concept essentially represents a shift in orientation.

From production orientation to marketing orientation.

From product orientation to customers orientation.

From supply orientation to demand orientation.

From sales orientation to satisfaction orientation

From internal orientation to external orientation.

 (6) Social Marketing Concept : This concept holds understanding broader concerns & the ethical, environmental & legal & social context of marketing activities & programs. The cause & effects of marketing extend beyond the company & the consumes to society as a whole. Social responsibility also requires that marketers carefully consider the role that they are playing & could play in terms of social welfare.

 (7) Holistic Marketing Concept : This concept is based on the development, design & implementation of marketing programs, processes & activities that recognizes their breadth. Holistic concept realizes that “everything matters” with marketing. 

Role of Marketing of Financial services in the Economic Development Like Bangladesh 

• Increase in agricultural production
•  Development of foreign trade
•  Market development and expansion
•  Proper distribution
•  Increase in national income
•  Creating employment opportunity
•  Facilitating competition
•  Increase export
•  Increasing industrial production
•  Creation of new utility of product
•  Maintenance of economic stability
•  Service marketing
•   Development of standard of living

What is the nature & scope of marketing & why is marketing important

Nature & Scope of Marketing: Marketing is an ancient art & is everywhere. Formally or informally, people & organizations engage in a vast numbers of activities that could be called marketing. Good marketing has become an increasingly vital ingredient for business success. It is embedded in everything we do- from the clothes we wear, to the web sites we click on, to the ads we see.

  Marketing deals with identifying & meeting human & social needs or it can be defined as “meeting needs profitably”.

 The American Marketing Association has defined marketing as “an organizational function & a set of processes for creating, communicating & delivering value to the customers & for managing customer’s relations in ways that benefit the organization & the stake holders.

 Or

 Marketing management is the art & science of choosing target markets & getting, keeping & growing customers through creating, delivering & communicating superior customer value.

 Or

 “Delivering a higher standard of living”

 For a managerial definition, marketing has been defined as “the art of selling products” but people are surprised when they hear that the most important part of marketing is not selling. Selling is only the tip of marketing iceberg.

 Peter Drucker says it this way that the aim of marketing is to know & understand the customer so well that the product or service fits him & sells itself. All that should be needed is to make the product or the service available.

  Eg. The success of Indica, the first indigenously designed car by Tata Motors. Backed by strong customers delight, the company designed a vehicle with luggage space & legroom & offered it a price easily available & affordable to middle class.

 (2) Gillette launched its March III razor.

Marketing people are involved in marketing 10 types of entities: goods services, events, experiences, persons, places, properties, organizations, information & ideas.

Therefore ideal marketing should result in a customer who is ready to buy.

 Importance of Marketing: Financial success of any organization depends upon marketing ability of that organization. There should be sufficient demand for products & services so the company can make profit. Therefore many companies created chief marketing officer (CMO) position to put marketing on a more equal footing with other e-level executives.

 Marketing is tricky & large well known business such as Levi’s, Kodak, Xerox etc. had to rethink their business models, Even Microsoft, Wal-Mart, Nike who are market leaders cannot relax.

 Thus, we can say that making the right decision is not easy & marketing managers must take major decisions about the features of the product prices & design of the product, where to sell products & expenditure on sales & advertising. Good marketing is no accident but a result of careful planning & execution. Marketing practices are continuously being refined to increase the chances of success. But marketing excellence is rare & difficult to achieve & is a never ending task

 Eg. NIRMA – The brand icon of the young girl has adorned the package of Nirma washing powder. The jingle has become one of the enduring times in Bangladeshi advertising.

Define sales forecasting? Discuss the produce & the methods of sales forecasting

 Sales forecast is the basis of corporate planning forecasting is a systematic attempt to Product/ Service the future on the basis of known facts. It is the result of numerous assumption made about the external and internal environment of firms.

 Sales forecasting is the estimate level of the company sales based on chosen marketing plan and assumed marketing environment. 

OR

Sales forecasting is the climate of sales during some specific future period time & under a pre determined marketing plan of the firm.

 Important –

 1. it is the foundation of planning.

2. Companies uses the sales forecast to allocate resource across different functional areas.

3. It is the key factor in all operational planning throughout the company.

4. It serves as a base for sales force planning.

5. It plays a major role in the success of the organization.

6. It is the key to sales management.

7. It helps in profitability of the firm

8. It helps in facilitating Product/ Service ion planning

9. It helps in better financial planning.

10. It is developing sales strategies and promotional plans

11. It helps in suggesting R & D.

12. Also helps in better inventory control & sales quota determination.

 Process of sales forecasting :-

 Determination of goals – The sales manager should decide the goals for sales forecasting. The objectives may include determination of sales publicity program, marketing methods, sales quota determination, estimation of working capital etc. Determining the factors affecting sales – The controllable factors are like marketing & advertising policy, organization structure etc. & the non controllable factors like political & social systems, seasonal fluctuations etc. must be determined. Selection of techniques – Suitable methods for sales forecasting must be selected keeping in view the objective time intervals resources and nature of the firm. Correction of data – This is the step of collecting various kinds of information’s & data related with future demands of Product/ Services. Analysis of market potential –

The next step is to analyze the data of market potential. Analysis requires two steps>>

 a) Select the market associated with Product/ Service demand.

b) Eliminate those market segments that do not contain prospective business.

 Forecasting of future sales:- 

 Sales projection should be made for an entire Product/ Service line or for an individual Product/ Service or for companies total market or individual market segment. 

 Making operational program & the budget:-

 The firm determines the requirements for various operational activities such as Product/ Service ion purchasing marketing capital assets. On the basis of forecast the related plans such as sales budget sales quotes sales publicity and material acquirement are formulated Derivation of a sales volume objectives:-

A sales volume objectives for the coming operative period is hoped for the outcome of a company’s short range sales forecasting procedure, The sales volume should be consistent with managements profit  aspirations and the companies market capabilities.

 Evaluation & revision of forecasts:-

 The sales executives should evaluate the forecasts carefully. The company should examine all the assumption on which it is based. The company should the forecasting process periodically. The first step in the review is to determine the accuracy of past forecasts to learn if changes are needed in the way forecasts are made if the company finds that sales forecasts are significantly different from actual sales in the period it should undertake a review of the sales forecasting process.

 Techniques of sales forecasting:-

 I. Survey methods:-

a) Executive opinion

b) Prudent manager forecasting

c) Delphi method

d) Sales force composite

e) Detecting differences in figures

f) Survey of buyer intention

g) Product/ Service testing and test marketing.

 a) Executive opinion – It consists of obtaining the views of top executives regarding future sales. The forecasts made by executives are arranged to yield one forecast for all executives or the differences are reconciled through discussion.

 b) Product/ Service manager forecasting – In this method the company personnel are asked to assume the position of purchasers in customer companies. They must then look at company sales from a customer’s view point & prudently evaluate sales.

 c) Delphi method – This method begins with a group of knowledgeable individuals estimating future sales. Each person makes a prediction without knowing others in the group have responded. these estimates are summarized. Now knowing how the group responded. They are asked to make another Product/ Service ion on the same issue. This process of estimates & feedback is continued for several rounds. In final round involves face to face discussions among the participants.

 d) Sales force composite – This method is based on collecting an estimates from each salesperson of the Product/ Services they expect to sell in the sale forecast period. The estimate may be made in consultation with sales executives and customer BDT

 e) Detecting differences in figures method – In this method the sales person produces figures broken down by Product/ Service & customers and the area manager produces figures for the sales persons territory. They then meet & must reconcile any differences in figures. the process proceeds with the area manager producing territory by figures.

 f) Surveys of buyer’s intentions – This method consist of contacting potential customers & questioning them about whether or not they would purchase the Product/ Service at the price asked.

 g) Product/ Service testing & test marketing – This technique is of value for new or modified Product/ Services for which no previous sales figures exists & where it is difficult to estimate. Likely demand. It involves placing the pre Product/ Serviceion model with a sample of potential users beforehand & noting their reactions to the Product/ Service. Test marketing involves the limited launch of a Product/ Service in a closely defined geographical test area.

 II. Mathematical methods :-

 a) Moving average technique – Simplest way to forecast sales is to predict that sales in the coming period will be equal to sales in the best period. This forecasts assumes that conditions in the last period will be same as the conditions in the coming period.

 SALES t+1 salest + salest-1 + sales + s………………… salest-n

 SALESt+1 = Forecasted sales

 SALESt = Sales in the present period.SALESt+1 = Sales in the period immediately past.

 b) Exponential smoothing models – It is a type of moving average that represents a weighted some of all past numbers in a time series. with the heaviest weight placed on the most recent data.

 c) Regression analysis – This technique is used to project sales trends in the future. The sales plotted are for each past time period. It determines and measures the associations between the sales & other variables.

 d) Projection of past sales – It takes a variety of forms. · To set the sales forecasts for the coming year at the same figure. May be moving average of the sales figures for several past yea BDT

 e) Time series analysis – It is a statistical procedure for studying historical sales data this process involves measuring 4 types of sales variations – long term trends, cyclical changes, seasonal variations & regular fluctuations. Then a mathematical model about the past behavior of the series is selected assumed values for each types of sale variation are insisted and sale forecast is made. 

 f) Market factor analysis – Market factor analysis determines market factors & measures their relationships to sales activity.

 g) Correlation analysis – This method takes in to account the association between potential sales of the Product/ Service and market factor affecting its sales. 

 h) E-charts – this technique is furtherance of moving average technique. It also shows the monthly sales & cumulative sales.

What are the needs for evaluation of sales promotion program

 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.

Discuss the promotional tools aimed at internal organization

 Promotional of internal organization concern with the steps to be taken for a sound promotional programs. The elements of internal promotion are as follows-

 1) Approval of promotional philosophy:- The success of a promotional program depends on the attitude of the top management. There for a promotional program requires the approval of the top management. The manager has to make a cost profit analyses so that top management appraise him about the profitability of program.

 2) Product/ Service department for marketing:- Quality of a Product/ Service is responsible for the success of sales promotion program. As the customers are quality conscious and he always makes a comparison with that of competitors Product/ Service before taking the final decision of purchase. Therefore the Product/ Service manager should continuously work on improving the features of the Product/ Service.

 3) Coordination with advertising department:-It is the advertising department that make the ground for the sales by giving Product/ Service knowledge among the distributors as well as potential customer BDT When the frequency of the advertisement is reduced then the sales promotion’s frequency start increasing. Therefore a coordination has to be made with the advertising department.

 4) Coordination with sales department:- Sales promotion program can be successful if a proper exhibition is established with the sales department. Its includes arranging and organizing sales meetings and conferences, organizing contest, sales exhibition, traveling to sales personal etc.

What are the different tools of sales promotion for consumer promotion?

 This sales promotion is aimed at final consumer or use BDT Consumer sales promotion used by retailers are aimed at attracting customers to specific locations. The consumer promotion tools are-

 1) Sample-Samples are offer of a trial amount of a Product/ Service generally 84% consumer package goods marketers use sampling as part of their promotion strategy. By offering free samples, a company gains entry into that market, soaps, detergents, toothpastes, shampoos, conditioners are examples of few Product/ Services that are normally popularized through free samples. Free samples are distributed for several reasons: To stimulate trail of a Product/ Service to increase sales volume in the early stages of PLC, to obtain desirable distribution. The samples can be distributed through in store sampling (food Product/ Services and cosmetics), door to door sampling, mail sampling, (through postal service), news paper sampling, mobile sampling, on package sampling, professional sampling(drugs).

 2) Premiums:- Premiums are goods offered either free or at low cost or an incentive to buy the Product/ Service. Premiums are offered as bonus, prize, gifts or other free offer BDT Premium can be used to boost sales to attract competitor’s customers, introduces different Product/ Services.

E.g.:- Aquafresh toothpaste- At the launching of Aquafresh toothpaste offered two tubes at the price of one.

Colgate offered 125gm. tube for the price of 100 gm. Santro- book year santro today & take home a world space Hitachi digital radio receiver worth BDT 4990/- free.

Pepe- Buy Product/ Services worth BDT 4000/- & get a bag worth BDT 888/- free.

Adidas- Buy Product/ Service worth BDT 2800/- and get a Adidas bag free.

 3) Contests: - Contests of various kinds constitute widely used sales promotion tools. There are consumer contest which are open for all, consumer contest are given wide publicity to attract the participation of the widely scattered consumer base. Consumer contest take a variety of forms- Quiz contests, beauty contest, car rallies, scooter rallies, suggesting a logo etc. Contests can be divided in to 2 broad categories- Skill competition & sweepstakes. One form of sweepstakes is a game & scratch off cards with instant winners & prizes are an important promotional tool. E.g.:

 (i) Nescafe shake contest – Nescafe shake contest offered BDT 5 lacks as total prize money with BDT 1 lack for the first prize. The total number of prizes ran to 21000. The contest had a specific objective to make consumers aware of Nescafe as a cool summer drunk in addition to this traditional image of a hot beverage.

 (ii) Cadbury’s family contest- Cadbury announced fabulous prizes round the world, economy class are ticket for two adults & two children plus BDT 1 lack in prize money. The participant has to submit a minimum no. of Cadbury’s wrappers & coin a jingle to participate in the contest. The campaign helped to increase the sales.

 (iii)Lakme – Create your own shade contest – Lakme lever held the to elle 18, Create your own shade contest for the target audience of elle 18 range of colors cosmetics & fragnances. The participants were required to create own shades. The winner created a sparkling blue shade & later Lakme launched the new shade in the market.

 (iv) Pepsi contest for children – Pepsi ran a contest among children to promote its potato chips brand ruffles. Nearly 500 children from a school were collected 30 of them were picked to speak for a minute the winners were given ruffles. Pepsi had covered 250 schools and 125000 students across the country spending BDT 2 lacks only.

 4) Demonstration:- Companies resort to Product/ Service demonstration for sales promotion especially when they are coming up. With a Product/ Service new to the market. In Bangladesh Product/ Services like beverages, washing powders, electronic Product/ Service have utilized Product/ Service demonstration as a tool of sales promotion. it may be-

 (i) Demonstration at retail store.

 (ii) School demonstration.

 (iii)Door to door demonstration.

 (iv)Demonstrations to key people.

 5) Coupons: - Coupons are certificates which offer reductions to consumers for specified items. Coupons distributed through newspaper, magazine advertisement or by direct mail. Coupons enchoose the customer to exploit the bargain and them also serve as an inducement to the trade for stocking the items.

 Types of coupons-

 (i) Instant redemption coupon- Consumers can immediately redeem the coupon.

 (ii) Bonus back coupon- Coupons can be placed inside packages so that customer can’t redeem them quickly.

 (iii) Scanner delivered coupon- Firm can issue coupons at the cash register. These are triggered by an item being scanned.

 (iv) Cross ruffling- It is the placement of a coupon for one Product/ Service on another Product/ Service. E.g. a coupon for an onion sauce placed on a package of potato chips is a cross scuffling coupon.

 (v)Free standing inserts coupons can be delivered to consumers through news paper.

 (vi) In store couponing- Coupons are distributed in a retail environment.

 6) Trade fairs and exhibitions:- They form one of the oldest practices of sales promotion. Trade fair & exhibition provide companies with the opportunity for introducing and displaying their Product/ Services. This brings the company’s Product/ Service and the consumer’s direct contact with each other. Trade fairs have become a handy and effective tool of sales promotion. Orders and enquiries worth billions get generated at international trade fair BDT

 7) Discounts and price of E.g. 20% off on levis 10% on Tanishq

 8) Free gifts/Gift cards- Companies also give gifts to consumers, dealers and key people. These gifts include pens, diaries, table, decoration. Gifts normally carry the company’s name and logo. The gifts are intended to create goodwill towards the company.

 9) Exchange schemes/Money back offers- This is the latest sales promotion tool in consumer disables market. E.g. Akai exchange scheme- Bring in your old color TV with remote. Videocon money back offer.

Philips- 5 in 1 offer.- Philips TV, 2 in 1, Mixer, grinder, rice cooker at an attractive price. Sponsoring the games and teams- Many companies like reliance, Pepsi, Pentaloons, Maruti sponsor different games and sports in the country and abroad.

 Q. What are the tools of sales promotion used for business and industrial goals?

 Ans. Sales promotion is targeted for business and industrial goods also Industrial Product/ Services differ with that of consumer goods. The tools which are used are-

 1) Trade shows: - The industrial Product/ Services are displayed and demonstrated to the members of trade and industry. The representatives explain about the Product/ Services.

The trade shows can be useful for smaller firms which can’t much in advertising and also salesman can make for more contacts. Trade shows are important rules for reaching potential wholesalers & distributors for a company’s brand.

 2) Business gifts:- These gifts are given as a part of building and maintaining a close working relationship with suppliers business gifts may include small items of jewellary, watch, electronic items, expensive trips.

 3) Trial offers:- Trial offers are particularly well suited to the business and industrial market. Trial offers provide a way for buyers to lower the risks of making a commitment to one brand over another. Trial offer is a good way to attract new customers who need a reason to try something new.

 4) Frequency program: - high degree of travel associated with many business professionals make frequency programs and an ideal form of sales promotion for the business and industrial markets. This can be used in airline, hotel and other industries.

 5) Coupons:- Coupons are used in business to business sector. Coupons must reach the hands of a purchasing against or someone who has the authority to make decision.

 6) Contest and sweepstakes:- As like in consumer promotional methods. Customer methods. Business buyers are also interested in winning prizes as are customers in other situations.

 7) Sampling:- Sampling is an excellent method to encourage a business to buy a Product/ Service. E.g. producing a sample in the area of process materials has the advantage of giving the engineers an opportunity to analyze the materials to see if it meets their standards. Through analysis they may find that the material is actually superior to the Product/ Service they currently use.

 8) Bonus picks:- offering a prospective a bonus pack may attract new users as price is a negotiated item in our B2B sector price of discount can be offered by vendors seeking to obtain a new business contract.

 9) Other tools:- They may include demonstrations, free training, warranties, credit faculties maintenance services, films, publicities and audio visual aids.