INTRODUCTION

Marketing is a social and managerial process by which individuals and groups obtain
what they need and want, through creating, offering and exchanging products of value
with others.
- Philip Kotler.
Marketing includes all those activities having to do with effecting changes in the
ownership and possession of goods and services. t is that part of economics which
deals with the creation of time, place and possession utilities and that phase of
business activity through which human wants are satisfied, by the exchange of goods
and services for some valuable consideration.
- !merican Marketing !ssociation.
Marketing is the process of discovering and translating consumer wants into product
and service specifications and then in turn helping to make it possible for more and
more of consumers to en"oy more and more of these products and services.
Marketing consists of analy#ing marketing opportunities, researching and selecting
target markets, designing marketing strategies, planning marketing programs and
organi#ing, implementing and controlling marketing effort.
$ompanies have to identify long and short term marketing opportunities and research
the selected market by measuring and forecasting attractiveness of the given market.
%aving selected the market, the companies need to develop a differentiating and
positioning strategy for the target market. &he marketing strategy must be transformed
into marketing programs by deciding on marketing expenditures and the marketing
mix. &he final step is organi#ing the marketing resources and implementing and
controlling the marketing plan.
Marketing Mix
Marketing mix is the set of marketing tools that a firm uses to pursue its marketing
ob"ectives in the target market.
Mc$arthy has populari#ed a four factor classification of marketing tools known as the
'P(s of the marketing mix. &hey are)
Product
Price
Place
Promotion
Product:
Product stands for the firm(s tangible offer to the market, including the product
*uality, design, features, branding and packing. t deals with new product
development, product life cycle, product mix, product lines, branding and associated
services to a product. +rom the customer(s point of view, it helps in satisfying the
customer(s needs and wants.
Price:
Price is the monetary value of the product. Price deals with selecting the pricing
ob"ectives, setting the price, discounts, allowances, payment policies and credit terms.
t is very important to the customers as it decides the cost the customer has to pay to
gain the product value.
Place:
&his marketing tool stands for the various activities the company undertakes to make
the product accessible and available to the customer. t involves market si#e, channel
selection and management, storage and physical distribution with the ultimate purpose
of efficiently supplying the company(s offer to the target market. &o the customer, this
marketing tool refers to convenience.
Promotion:
Promotion stands for various activities the company undertakes to communicate and
promote its products to the target market. t involves communication programs i.e.
direct marketing, advertising, sales promotions, public relations and motivation of
sales force. &o the customer this tool provides knowledge and information.
&he Promotion Mix of a company includes the following tools,
Advertising:
t is any paid form of non-personal presentation and promotion of ideas, goods or
services by an identified sponsor.
Direct Marketing:
t refers to the use of mail, telephone and other non-personal contact tools to
communicate with or solicit a response from specific customers and prospects.
Personal Selling:
+ace to face interaction with one or more prospective purchasers for the purpose of
making a sale refers to personal selling.
Pulic Relations and Pulicit!:
t refers to the variety of programs designed to promote and or protect a company(s
image or its individual products.
Sales Promotions:
&he short-term incentive to encourage trial or purchase of a product or service
refers to sales promotion. .hereas advertising offers a reason to buy, sales promotion
offers an incentive to buy. /ince sales promotion directly push up the sales, increasing
number of companies are undertaking sales promotion activities.
/ales promotion refers to the short-term incentives to encourage sales of a product or
service. t consists of a diverse collection of incentive tools, mostly short-term,
designed to stimulate *uicker and greater purchase of products or services by
consumers.
/ales promotion describes promotional methods using special short-term techni*ues
to persuade members of a target market to respond or undertake certain activity. !s a
reward, marketers offer something of value to those responding generally in the form
of lower cost of ownership for a purchased product 0e.g., lower purchase price, money
back1 or the inclusion of additional value-added material 0e.g., something more for the
same price1.
/ales promotions are often confused with advertising. +or instance, a television
advertisement mentioning a contest awarding winners with a free trip to a $aribbean
island may give the contest the appearance of advertising. .hile the delivery of the
marketer(s message through television media is certainly labeled as advertising, what
is contained in the message, namely the contest, is considered a sales promotion. &he
factors that distinguish between the two promotional approaches are)
2. whether the promotion involves a short-term value proposition 0e.g., the
contest is only offered for a limited period of time1, and
3. the customer must perform some activity in order to be eligible to receive the
value proposition 0e.g., customer must enter contest1.
&he inclusion of a timing constraint and an activity re*uirement are hallmarks of
sales promotion.
/ales promotions are used by a wide range of organi#ations in both the consumer and
business markets, though the fre*uency and spending levels are much greater for
consumer products marketers. 4ne estimate by the Promotion Marketing !ssociation
suggests that in the 5/ alone spending on sales promotion exceeds that of advertising.
Pur"ose o# Sales Promotion
/ales promotion tools vary in their specific ob"ectives. &hey may be used to attract
new customers, to reward loyal customers and to increase the repurchase rates of
occasional users. /ales promotion usually targets brand switchers because non-users
and users of other brands do not always notice a promotion. /ales promotions are thus
also seen as a tool for breaking down loyalty to other products.
/ales promotions also let manufacturers ad"ust to short term changes in supply and
demand and differences in customer segments. &hey also let manufacturers to
experiment by varying prices. /ales promotions also lead to greater consumer
awareness of prices.
&o use sales promotion, a company must set ob"ectives, select the right tools, develop
the best program and implement it and evaluate the results.
Classification of Sales Promotion

/ales promotion can be classified based on the primary target audience to whom the
promotion is directed. &hese include)
Consumer Market Directed - Possibly the most well-known methods of
sales promotion are those intended to appeal to the final consumer. $onsumers are
exposed to sales promotions nearly everyday, and as discussed later, many buyers
are conditioned to look for sales promotions prior to making purchase decisions.
Trade Market Directed 6 Marketers use sales promotions to target all
customers including partners within their channel of distribution. &rade
promotions are initially used to entice channel members to carry a marketer(s
products and, once products are stocked, marketers utili#e promotions to
strengthen the channel relationship.
$usiness%to%$usiness Market Directed 6 ! small, but important, sub-set of
sales promotions are targeted to the business-to-business market. .hile these
promotions may not carry the glamour associated with consumer or trade
promotions, 7-to-7 promotions are used in many industries.
!n extensive discussion of different types of promotions for each classification can be
found in our &ypes of /ales Promotion tutorial.
Sales Promotion Trends: Customers Expectations
Marketers who employ sales promotion as a key component in their promotional
strategy should be aware of how the climate for these types of promotions is
changing. +or instance, the onslaught of sales promotion activity over the last several
decades has eroded the value of the short-term re*uirement to act on sales promotions.
Many customers are conditioned to expect a promotion at the time of purchase
otherwise they may withhold or even alter their purchase if a promotion is not present.
+or instance, food shoppers are inundated on a weekly basis with such a wide variety
of sales promotions that their loyalty to certain products has been replaced by their
loyalty to current value items 0i.e., products with a sales promotion1. +or marketers
the challenge is to balance the advantages short-term promotions offer versus the
potential to erode loyalty to the product.
Sales Promotion Trends: Electronic Delivery

/ales promotions are delivered to customers in many ways such as by mail, in-person
or within print media. %owever, the nternet and mobile technologies, such as
cellphones, present marketers with a number of new delivery options. +or examples,
the combination of mobile devices and geographic positioning technology will soon
permit marketers to target promotions to a customer(s physical location. &his will
allow retailers and other businesses to issue sales promotions, such as electronic
coupons, to a customer(s mobile device when they are near the location where the
coupon can be used.
Sales Promotion Trends: Tracking

!s we discussed in our coverage of advertising, tracking customer(s response to
marketers( promotional activity is critical for measuring success of an advertisement.
n sales promotion, tracking is also used. +or instance, grocery retailers, whose
customers are in possession of loyalty cards, have the ability to match customer sales
data to coupon use. &his information can then be sold to coupon marketers who may
use the information to get a better picture of the buying patterns of those responding
to the coupon
Sales Promotion Trends: Internet Communication

+or many years consumers typically became aware of sales promotions in passive
ways. &hat is, most customers obtained promotions not through an active search but
by being a recipient of a marketer(s promotion activity 0e.g., received coupons in the
mail1. &he nternet is changing how customers obtain promotions. n addition to
websites that offer access to coupons, there are a large number of community forum
sites where members share details about how to obtain good deals which often include
information on how or where to find a sales promotion. Monitoring these sites may
offer marketers insight into how customers feel about certain promotions and may
even suggest ideas for future sales promotions.
Sales Promotion Trends: Clutter

n the same way an advertisement competes with other ads for customers( attention,
so to do sales promotions. &his is particularly an issue with inserted coupon
promotions that may be included in mailing or printed media along with numerous
other offerings. &he challenge facing marketers is to find creative ways to separate
their promotions from those offered by their competitors.
O&ectives o# Sales Promotion
/ales promotion is a tool used to achieve most of the five ma"or promotional
ob"ectives discussed in the Promotion 8ecisions tutorial)
$uilding Product A'areness 6 /everal sales promotion techni*ues are highly
effective in exposing customers to products for the first time and can serve as key
promotional components in the early stages of new product introduction.
!dditionally, as part of the effort to build product awareness, several sales
promotion techni*ues possess the added advantage of capturing customer
information at the time of exposure to the promotion. n this way sales promotion
can act as an effective customer information gathering tool 0i.e., sales lead
generation1, which can then be used as part of follow-up marketing efforts.
Creating Interest 6 Marketers find that sales promotions are very effective in
creating interest in a product. n fact, creating interest is often considered the most
important use of sales promotion. n the retail industry an appealing sales
promotions can significantly increase customer traffic to retail outlets. nternet
marketers can use similar approaches to bolster the number of website visitors.
!nother important way to create interest is to move customers to experience a
product. /everal sales promotion techni*ues offer the opportunity for customers to
try products for free or at low cost.
Providing In#ormation 6 9enerally sales promotion techni*ues are designed
to move customers to some action and are rarely simply informational in nature.
%owever, some sales promotions do offer customers access to product
information. +or instance, a promotion may allow customers to try a fee-based
online service for free for several days. &his free access may include receiving
product information via email.
Stimulating Demand 6 :ext to building initial product awareness, the most
important use of sales promotion is to build demand by convincing customers to
make a purchase. /pecial promotions, especially those that lower the cost of
ownership to the customer 0e.g., price reduction1, can be employed to stimulate
sales.
Rein#orcing t(e $rand 6 4nce customers have made a purchase sales
promotion can be used to both encourage additional purchasing and also as a
reward for purchase loyalty 0see loyalty programs below1. Many companies,
including airlines and retail stores, reward good or preferred customers with
special promotions, such as email special deals and surprise price reductions at
the cash register.
Sales Promotion Tools
Many tools can be used to accomplish sales promotion ob"ectives. 8escriptions of
the main promotional tools are as follows,
Consumer Promotion Tools
&he main consumer promotion tools are as follows,
Sam"les:
&hey are offers of a trial amount of a product. t consists of inviting
prospective purchasers to try the product without cost or at a lower cost in the
hope that they will buy the product. /amples may be free or discounted.
Cou"ons:
$oupons are certificates that give buyers a saving when they purchase a
specified product. $oupons can be mailed, placed in advertisements or included with
other products.
Reates:
;ebate is also known as cash refund offers. ;ebates are offers to refund part
of the purchase price of a product to its customers who send a proof of
purchase to the manufacturer. &hese are like coupons except that the price
reduction occurs after the purchase and not at the point of sale.
Price Packs:
$ents-off deals or price packs offer consumers savings by way of reducing
prices that are marked by the producer directly on the package.
Premiums:
&hese are the goods offered either free or at a low cost as an incentive to
buy a product. Premiums may be in-pack or on-pack 0outside the pack1.
Pri)es:
&hey are offers of chance to win something such as cash, trips or goods 6 by luck
or through extra efforts. $ontests of talent and sweepstakes or draws the most
popular pri#e offering promotions.
Tie%in Promotions:
&ie-in promotions involve two or more brands or companies that team up on
coupons, refunds or contests to increase their pulling powers.
Cross Promotions:
$ross promotions involve using one brand to advertise non-competing brand.
Advertising S"ecialties:
&hese are useful articles imprinted with an advertiser(s name, given as gifts to
consumers.
Patronage Re'ards:
&hey are cash or other awards for the regular use of company(s products or
services. &hey are values 0in cash otherwise1 that are proportional to one(s
patronage of a certain vendor or a group of vendors. &hey aim at building brand
loyalty.
PoP Promotions:
Point of purchase 0PoP1 includes displays and demonstrations that take place at
the point of purchase or sale.
Trade Promotion Tools
More money is spent by companies on trade promotion 0<=>1 than on consumer
promotions 0'3>1. &he ma"or trade promotion tools are as follows,
Discounts:
t is also known as price-off or off-invoice or off-list. 8iscounts price cut off the
list price on a particular *uantity purchased during a stated time.
Allo'ances:
&hey are the amount offered in return for an agreement by the retailer to feature
the manufacturer(s products in some way, displays, advertising or otherwise.
*ree +oods:
+ree goods are the extra merchandise offered to middlemen who buy a specific
amount of a product.
$ompanies also offer push money and specialty advertising items to the
middlemen.
$usiness Promotion Tools
$ompanies spend huge amount on promotions focused on industrial consumers.
&he ma"or business promotion tools are as follows,
&rade /hows and $onventions.
/ales $ontests.
$learly, sales promotions play an important role in the total promotion mix. &o use it
well, the marketer must define the sales promotion ob"ectives, select the best tools,
design the sales promotion program, pretest and implement the program and evaluate
its results.
Promotion and Selling
T(e term "romotion is ver! o#ten used as a s!non!m #or selling, $ut selling is a
narro' term '(ic( includes onl! trans#er o# title or "ersonal selling, Promotion
on t(e ot(er (and is roader in its outlook and includes a variet! o# activities
used ultimatel! #or increasing sales volume,

Promotion and Sales Promotion
/imilarly the terms sales promotion can not be taken to mean what is commonly does.
/ales promotion, is only a part of the promotion. 7asically promotion is an ?exercise?
in information persecution and influence. Promotion has come to mean the over all
co-ordination of advertising selling, publicity and public relations. Promotion is a
helping function designed to make all other marketing activities more effective and
efficient. 7ut sales promotion as such helps only the selling activity still, there exit
same difference of opinion on the real connection of the term sales promotion.

Acc, to A,-,R, Delons :%
?/ales promotion means any step that are taken for the purpose of obtaining or
increasing sales?.

Acc, to .,/, 0ell! O"ines :%
?Muddled misused misunderstood that is sales promotion !cc. to him the field of
sales promotion as a marketing activity is still vaguely defined and organi#ed.
Sales Promotion and Advertising
&here is no universally accepted distribution between these two terms. &o same
advertising includes all forms of mass media communication directed towards
influencing the end consumer. /ales promotion on the other hand, includes the form
of mass communication directed towards information and influencing the channel of
distribution 0e.g. distributors, retailers etc.1. %ence a price of product literature
distributed by retailers in sales promotion. &hese sales promotion merges on one side
in to advertising and on the other in to personal salesman ship. t is concerned with
the dissemination of information to whole salers, retailers, customers 0both actual and
potential, and to the salesman1.
/ales promotion is concerned with the creation. !pplication and dissemination of
material and techni*ues that supplement advertising and personal selling. /ales
promotion makes use of direct mail, catalogues, trade shows, sales contests,
premiums, samples, windows displays and other aids. ts purpose is to increase the
desire of salesman, distributors and dealers to sell a certain brand to make consumers
more eager to buy that brand. Personal selling and advertising do include prospects to
make these decisions. /ale promotion provides an extra stimulus.
Sales Promotional at di##erent levels
1, Sales "romotion at Dealers 2evel :%
t may include various schemes some of which are discussed here.
3i4 Advertising Materials :%
&he advertising material prepared by the company such as store signs, banners, shelf
signs, board etc. are distributed to sub dealer for display purposes this is in fact a
method of advertising.
3ii4 Store Demonstration :%
n the promises of the whole saler or the retailer the products sales personnel will
conduct special demonstration for the companies product. ! personal demonstration is
good to introduce a new product at its peculiar advantage can be high lightened and
the consumer(s doubt clear. t can be used to restimulate an old product. ! good
demonstration with a great dealer of action will draw heavy crowds in to the store and
will attract attention to the product.
3iii4 S"ecial Dis"la! and S(o's :%
&hese are in seasonal in character but could be arranged in an elaborate manner and
for all the products of an company. 5sually these are arranged along with trade fair
and exhibition. 7esides effecting sales these shows impress the company(s name
generally on the public.
Sales "romotion at consumer5s level
&he various schemes of sale promotion at $onsumer(s @evel may include.
1, Cou"ons 3A C(it o# Stated 6alue4 :%
&hese are given directly to the consumer these coupons are in most cases kept inside
the package. &he consumers many receive a price reduction of the stated values of the
coupon at the time of purchase. &he retailer receives reimbursement for the value of
the coupon form the manufacturer. $oupons act as a short run stimulus to the sale of
the product, since they are directly tied with the purchase of the item. &hey encourage
the retailer to stock the product.
.hat is important is that a coupon offer does not spoil the named price of the brand
nor does it un pair the margin of the dealers. 7ut it is not easy to measure the
effectiveness of a coupon offer. 4ne over knows how many customer would have
bought the product without the incentive. t is also difficult to find out how many
customers were held after the coupon offer expired.
7, Price%o##%o##er 3Also kno'n as argain o##er "rice "acks4 :%
&his offer is intended to stimulate the sales during a slump season. n this method the
customer is offered a reduction from the printed price list. t is also used when a
substitute for competing product enters the market.
Many experts on sales promotion fed that A4ff /chemes( are among the weaker and
less desirable methods of promotion. &hese can be trade resentment particularly when
the retailer raises the price to retain his margin. /econdly that is not conductive to
building up brand loyalty. $onsumers may simply shift to the products that offer this
scheme.
8, Sam"les :%
n the hope of converting a prospect into a customer a sample 0/ome *uantity of the
product1 may be given. &his helps the consumer to verify the real *uality of the
product. Barious pair manufacturing companies offer this method. +or developing
brand loyalty this method is *uite useful. /ampling is a fast method of demand
creation because one knows the result as soon as the consumer has had time to use the
sample and buy the brand.
Disadvantage o# Sam"ler :%
4ffering sample in *uit expensive. &here is the cost of producing samples. &he
distribution costs are also high. /ample have to be mailed to potential customers or to
be distributed through retail shops. &here are also problems when the real product
does not resemble the sample supplied.
9, Mone! Re#und O##er :%
!n offer usually stated on the package is that manufacturers will return with in a
stated period part or all of the purchaser(s money if he is not completely satisfied with
the product.
:, Trading Stam"s :%
! premium in the form of stamps is given by the sellers to consumers while selling
goods. &he number and value of stamp that the buyer receives depends on the values
of the purchase. &hese stamps are redeemable through premium catalogues at the
stamp redemption centres.
;, $u!%$ack Allo'ance :
&his an allowance following a previous trade deal not offer a certain amount of
money for new purchases based on the *uantity of purchases on the first trade deal. t
extends the life of a trade deal and helps to prevent part deal sales decline. t greatly
strengthens the buyer(s motivation to co-operate on the first deal.
<, Premium :%
&here are various forms of premiums provided by the manufacturer as sales
promotional devices )-
0a1 $oupons are supplied for effecting price reductions.
0b1 +actory in pack premium these are popular in the case of 7ody food and &in food
items, /poons, $ups, Measuring, 9lass etc. and such other items are packed with the
product in the box itself. +actory in pack premium are particularly goods for product
meant for children. &he 7inaca &oothpaste packs contain animal shape toys. &hese are
very attractive and *utie popular among the children.
3c4 Sel# 2i=uidating Premiums :%
&he cost of the premium is collected from the buyer himself. 7ut when the buyers
pays for it he has to pay only a considerably low price for the premium. &his is
possible for the manufacturer purchases the items in bulk at a premium and his cost
per unit as is substantially low.

Ot(er Ste"s ! Manu#acturer #or Promoting Sales
Dealers can e (el"s in di##erent 'a!s :%
1, Communicating Market Ne's :%
4ften this service is reciprocal the manufacturer may ac*uaint his dealer with the fact
relating to his production and prices while the dealer may familiari#e him in return
with the information bearing on charges in the consumerCs demand, their like and
dislike complaints and criticism, substitutes etc.
7, Inviting to Sales Con#erence and Convention :%
&he gestures of regard and respect pave the way for better relation and co-operation.
8, O##ering Reasonale Terms o# Sale :%
4f all the forms of encouragement, the monetary incentive evokes immediate
response. %ence every producer must offer the most responsible terms of sale such as
longer periods of credit and higher rates of descants.
'. /upplying suitable packages and useful things.
<. 7y taking the return back.
D. 7y furnishing them with sales literature and display materials.

Aggressive Selling
Meaning :%
Goods are produced for market. Manufacturers have to make efforts to sell all they
produce. When the manufacturers uses various sales efforts to obtain increased sales
volume for his product it is called aggressive selling or offensive selling. The sales
efforts which a manufacturer makes to retain his customers i.e. to protect his already
established market against against his competitors is termed as defensive selling. n
contrast to this aggressive selling is concerned with the sales efforts made with the
express ob"ective of selling more by expanding the market for the product of the
selling firm.
Aggressive Selling and De#ensive Selling :%
!ggressive selling is based on the answer to the *uestion how much does the firm
gain 0in term of sales with profit1 by using this method defensive selling is based on
consideration as to how much the firm will lose if it does not use this method increase
of sales can be obtained from two sources)-
2. :ew customers if the market is expending.
3. +rom the competitors i.e. those consumers who were purchasing similar product of
competiting firms, if the market for the product is static.
Acc, to -, .(ite(ead :%
?n case of an expanding market all the firm may stand to gain by following the
methods of aggressive selling but if the market is static manufacturer of a new market
will have to be much more aggressive to capture the established market of
competitors?.
.(en Aggressive selling is resorted >
Usuall! manu#acturer o# a ne' "roduct (as to do aggressive selling :%
2. .hen the product has been improved.
3. .hen the manufacturer(s product is supervisor in *uality to the product of the
established competitor.
E. .hen the total market for the product or line of product to expanding.
'. f the manufacturer(s share of the market is comparatively small.
<. f the manufacturer has unused production capacity with heavy investment in plant
and e*uipment he will like to develop the demand for his product rapidly so that
demand for his product is e*ual to the optimum production capacity of his plant , and
D. .hen primary demand for a product must be created and provision must be made
in the channel of distribution to educate consumers regarding the new product and to
instruct them in its use.
Met(od o# Aggressive Selling :%
/ales promotion efforts use for aggressive selling may be divided in two classes.
2. &rade Promotion.
3. $onsumer Promotion.
1, Trade Promotion :%
5nder trade promotion methods special incentives are offered to the trader to buy
products of the firm. /uch incentive may take one or more of the following firm )-
3a4 Cas( Allo'ance :%
! definite percentage of discount is allowed on the purchase of given unit of a
product.
34 ?xtra Product :%
nstead of giving any cash allowance extra product is given with each unit of product
ordered. +or instance if a box normally contains 3F $akes of /oap, special box
contains 3< cakes may be made and sold at the same price as that of the box of 3F
cakes.
3c4 +i#ts :%
Barious gifts are awarded in return for an order of a particular magnitude.

7, Consumer Promotion :%
5nder consumer promotion method special incentives are offered to the consumers to
buy the firms product. &he more prominent amongst such incentives are as following.
3a4 Cou"ons :%
! coupon of a giving value is sent to the consumer. 7y presenting this coupon to the
retailer consumers can purchase a particular product mentioned on the coupon at a
reduced price. &he retailer sells the products mentioned. n the coupon to such
consumer 0consumers presenting the coupons1 under and agreement with the
manufacturer at a price lower than the user retail price. &hus the consumer get the
benefit of reduced price to the extent of the value of the coupons.
34 Sel# 2i=uidating O##ers :%
5nder this system, the firm offers an article at an attracting price if the consumer send
a given sum of money accompanied by a given number of box tops from the packages
of a particular product the benefit to the consumer is that he receives the articles at a
bargain price.
3c4 $argain Packs :%
5nder this system a product is sold at a reduced price for a short period 7argain pack
method encourages new consumers to try the product. t is also helpful in obtaining
large displays in the shops.
3d4 Sam"ling :%
&he method involves giving the product or a small *uantity of the product to a
consumer free with the hope that the customer will be favourable impressed with its
actual use and will eventually become a regular purchaser of the product.
! firm selling new product or an extensively improved product finds this methods
useful. !lso a firm whose market is hold by competitors whose free sampling almost
expensive.
&he above mentioned methods may be reinforced by adopting.
0i1 8irect method of selling through.
0ii1 4ffer of door to door selling.
0iii1 %ire purchase and installment payment methods of selling and by forming
combination.
Ot(er Met(ods o# Aggressive Selling :%
0i1 Gmployment of AMissionary /alesman also known as Promotional /alesman(.
&hese salesman call upon retailers and aggressively promote a product.
0ii1 nstead of using wholesalers, the firm may develop its own sales force to call
directly on retailers.
0iii1 &he firm may follow a compromise method by employing a manufacturer(s agent
and giving him a large enough commission to encourage him to sell product
intensively and aggressively.
0iv1 :ew territory exploitation sales promotion has a particularly important role in
developing the company(s product in new territories.
0v1 ncrement and promotions.
0vi1 @etters to dealer and $ustomer.
n fact, an ingenious sales manager can devise any number of incentives schemes for
promoting the sales volume.
Sales Promotion Sc(emes
4ne of the most difficult marketing decisions facing companies is how much to spend
on promotional Hohn .anamaker, the departmental - store maga#ine, said, ? know
that half of my advertising is wasted but donCt know which half.?
&hus it is not surprising that industries and companies vary considerably in how much
they spend on promotion. Promotional expenditures might amount to EF-<F> of sales
in case in cosmetics industry and only 2F-3F> in the industrial e*uipment industry.
.ithin a industry, a low and high spending companies can be found.
%ow do companies decide on
their promotion budgetI &here
are mainly four methods of
sales promotion )
@ A##ordale Met(od :
Many companies set the
promotion budget at what they
think the company can afford.
4ne executive explained this
Advertising ?##ectiveness Pro&ect Re"ort
Internal Customer Satis#action Pro&ect Re"ort
method as follows ) ?.hy, it(s
simple. +irst go upstairs to the
controller and how much they
can afford to give us this year.
%e says a million and half.
@ater, the boss comes to me
and asks how much we should
spend and say A4h about a
million and half.?
t is a method which is
uncertain one and makes long
term planning difficult.
@ Percentage o# Sales
Met(od :
Many companies set their
promotion expenditures at a
specified percentage of sales.
!ccordingly the sales is set on
the basis of sales.
n this a specified sales percentage is decided for the promotional budget !dvantages
of this method )
+irst, its use means that promotional budget vary with what a company can afford.
/econd, it encourages the management to think in terms of the relationship among
promotion costs, selling price, and profit per unit,
&hird, it encourages the competitive stability to the extent that competing firms spend
approximately the same > of their sales on promotion.
nspite of the advantages, the > sales method has little to "ustify it. ts reasoning is
circular ) t views sales as the determiner of the promotion rather than as a result. t
leads to budget setting by availability of funds rather than by marketing opportunities.
@ Com"etitive Parit! Met(od :
/ome companies set their promotional budget to achieve share-of-voice parity with
other competitors. &wo arguments are made in support of competitive parity method.
4ne is that the competitors expenditure represents the collective wisdom of the
industry. &he other is that maintaining a competitive parity helps prevent promotional
wars.
:either argument is valid. &here are no grounds for believing that competition knows
better what should be spent on promotion.
@ O&ective and Task Met(od :
&he ob"ective J task method calls upon marketers to develop their promotion budgets
by defining their specific ob"ectives, determining the task that must be performed to
achieve these ob"ectives, and estimating the cost of performing these tasks.
Deciding on t(e "romotion mix :
$ompanies face the task of distributing the total promotion budget over the five
promotional tools )
Advertising
Sales romotion
ublic !elations and ublicity
Sales "orce
#irect Marketing.
.hatever method a company adopt for promoting its product it must be from above
mentioned method.
INDUSTRA PRO*I2?
A 2ook into t(e Indian ?conom! and *urniture Industr!
ndia is the fourth largest economy in the world and it(s the largest democracy with
second largest 98P among emerging economies. .orld 7ank(s President Hames 8.
.olfensohn confirmed that ndia is not the world(s '
th
largest economy after 5/!,
$hina and Hapan in PPP 0Purchasing Power Parity1. t is also one of the ten fastest
growing economies in the world.
.ith 2 billion populations, ndia remains on the fastest growing economies and
even in the present worldwide economic slowdown, has maintained 98P 9rowth rate
of nearly D>.
ndia today is K
th
most attractive destination for foreign direct investments, after
5/, $hina, 7ra#il, Mexico and 9ermany. 7esides, ndia offers higher rate of returns
and profitability than anywhere else in the world.
4ut of 2 billion population the upper and middle class constitutes 3F> or 3FF
million people 0or EF to 'F million houses1. 7y rent per capita)
3 percent of ndian has a per capita income in excess of 2',<FF Guros, which
means 3F million people.
= percent of ndians have a per capita income of more than E,LFF Guros, which
means =F million people.
2F percent of ndians have a per capita income in excess of E,3FF Guros, this is
about 2FF million people
Overall ?conomic Scenario
2. &he ndian market has been enormous with a large base.
3. @evels of affluence are high- with the number of individuals in the high) income
demographic group doubling each year, according to :$!G; statistics.
E. &he actual disposable income at the disposal of the affluent ndian is as high as
three to five times higher as the official statistics, on account of the very large
proportion of unaccounted 0black1 money income.
'. &he market has, due to exposure to overseas products and lifestyles, displayed the
willingness and ability to purchase overseas brands and products at high prices.
<. $ustoms duties and tariffs have been drastically reduced, in keeping with
government policy to open up the economy 6 a policy which has stayed constant
despite changes in government. !ll the products in the :8GM product range are
now permitted for import into ndia under 49@ or the 4pen 9eneral @icense,
which implies that no special import license is re*uired for import.
D. 8espite the cut in duties, the rate of customs duties is fairly substantial which
makes the prices of products higher in ndia. &here is a huge demand for furniture,
hardware and fittings, 8N e*uipment, lighting and consumer non-durable and
appliances.
K. .hile the ndian middle class still does not have as high a rate of obsolescence as
the 5/, and tend to use their furniture for several years before changing or
upgrading, the actual si#e of this segment makes investment in this market more
than worthwhile. &he affluent classes however, do have high rate of obsolescence
of interior decoration products and redecorate constantly.
=. !ll the above factors put together make manufacturers and retailers of a wide
range of consumer durables. /everal overseas companies have already entered the
market and have been extremely well received by the market.
Indian *urniture Industr!
&he furniture sector in ndia only makes a marginal contribution to the formation
of 98P, representing "ust a small percent 0about F.<>1, which indicates a huge
potential for growth. t is estimated that the furniture industry comprises 3<> of the
construction industry and hardware comprises 'F> of total furniture industry, out of
this 3F> is replacement and 3F> is new.
.ood and wooden products, furniture and fixtures carry a weight of 3K.F2> in the
total manufacturing sector.
&he furniture industry employs a total of around EF,FFF workers. &he future on the
furniture sector in ndia seems positive. &alking about production, several agreements
have been signed between local producers looking for technology and Guropean and
!sian companies trying to reach a potential opportunity in costs.
+rom the commercial point of view, ndia shows good perspective to sell furniture
in the following years. +irst of all, because its si#e and secondly due to the newly
ac*uired taste as a result of exposure to western furniture style.
ndia is one of the largest consumers of wood in /outh Gast !sia. 5ntil a few years
ago the county had considerable *uantities of available tropical woods. &he most
common species in ndian forests are teak, rosewood, ebony, laurel, pine, cedar and
rubber trees. /upply of these ready to uses species became scarcer due to
unconditional and inappropriate exploitation and also due to growing concern about
the environment.
n ndia, natural rubber plantations covers <3F,FFF hectares with another D,FFF
hectares replanted almost every year since 2LL'. Kerala state 0/outh ndia1 produces
L<> of the total supply of rubber wood in ndia.
ndia imports wood 0logs1 especially from Malaysia, ndonesia, Myanmar, vory
$ost, $ameroon, :igeria, 9hana, /outh !frica and :ew Oealand and to some extend
from /outh !merica.
Most soft and hard woods are imported from ;ussia, /candinavia and other /outh
Gast !sian counties. M8+ is imported from Gurope, and there is also a small local
production. Beneered panel are becoming more popular in ndia and are imported
from the Guropean 5nion and the 5/!.
&he total si#e of ndian furniture industry is estimated at ;s. E<F thousand million
but almost =<> of this is unorgani#ed. &he remaining 2<> is organi#ed and is
believed to be growing at a steady pace of 23> to 2<> per annum.
&he share of the wooden furniture market is estimated at ;s. DFF million.
.oodworking industry of ndia is one of the fastest growing in the county(s economy.
Much of this growth has been fuelled by the increasing access to modern machinery
and technology through easier import policies as a result of ndia(s entry into the
.&4 in the year 2LLFs. &here is a noticeable shift in the preference towards
mechani#ed mass production and the up gradation of technology.
T(e ?merging Trend
&hough technology has made inroads in the industry with increasing stress on the
use of machines, overall scenario reveals that almost =F> of the products supplied in
local markets by indigenous manufacturers are labor intensive and handmade.
;esidential or household furniture accounts for over DF> of the overall domestic
and leading manufacturers have begun to reali#e the necessity of proper distribution
system in this area.
!mong other sectors where the demand is spiraling upwards is office furniture.
9rowth of & an &- enabled sector such as 7P4(s has created a huge demand in
metros and $lass cities all over ndia. &he old economy businesses are also
undergoing a makeover and this is reflected through changing looks of the offices.
Metal and plastic furniture production is gaining wider prominence but wood still
remains to be the most favored medium.
R?AS?ARC- D?SI+N
Title o# t(e Stud!
&he title of the study is 6 ! /&58N 4: /!@G/ P;4M4&4: 4+ %4MG
+5;:/%:9/ !& *error Dek Pvt, 2tdB,
Statement o# t(e Prolem
&he pro"ect is mainly undertaken to study the sales promotional strategies at +error
8ek Pvt. @td. &he intention of the study is to find what attributes needs further
improvement in order to make the product more preferable in the market.
&he main aim of the study is to uncover new relationship and identify any problem
that may arise in future. %ence, exploratory research is been conducted. Gxploratory
research as its name implies endeavors of exploring the possibility of doing research
on a sub"ect where due to lack of existing knowledge framing and testing the
hypotheses is difficult. n today(s crowed marketplace where products and services
are touting themselves to be the best, it is vital to stand out in the crowd. &he study
was undertaken to explore how a company or brand can ensure a store that stands out
and not get lost in the crowd.
O&ectives o# t(e Stud!
2. &o study the various promotional strategy adopted by +error 8ek Pvt. @td.
3. &o find out the footage of +error 8ek Pvt. @td. .ith respect to other players in the
market.
E. &o observe and understand the practice followed by +error 8ek Pvt. @td.
'. &o find out the communication linkages and de-linkages in the organi#ation.
<. &o study the activities of each and every department of the organi#ation.
Sco"e o# t(e Stud!
&his pro"ect was undertaken for a specific period in +error 8ek Pvt. @td., :ew
7G@ ;oad, ;MB /tage, 7angalore. t is an exercise that is well planned into the
curriculum giving the researcher a valuable opportunity to understand the working
dynamics of the organi#ation and to experiment and exhibit the recently ac*uired
management and administration skills.
&he prospect of the furniture sector in ndia seems positive. &he ndian furniture
industry has awakened to interesting timesP &he last ten years have seen changes in
the shop windows of furniture retailers. $onsumers today no longer look for mere
practicality in furniture, instead, they look for theme furnishing, i.e. lifestyle living.
;eali#ing the tremendous market potential and to make the most of it, the study was
undertaken.
2imitations o# t(e Stud!
Gvery study is bound by limitations and as such this is no exceptions.
2. $hange is $onstant rule of nature. %ence, the study undertaken may not
hold good for longer duration.
3. &he study was conducted under the assumption that the information given by
the respondents is authentic.
E. &he analysis and suggestion are given only with respect to marketing aspects
as technical suggestion with respect to the product could not be given.
'. $onfidential matters were not disclosed by the company.
<. &here were time constraints.
Met(odolog! o# t(e Stud!
! variety of methods of study have been adopted by the researcher to fulfill the
ob"ectives of the study.
n order to have a better grasp of the study, the researcher chose to become
a keen observer, studying the various aspects of the organi#ation.
&o have a broader perspective of the study, the researcher attended the
@ifestyle Gxhibition at Palace 9rounds wherein the products of +error 8ek
Pvt. @td. were displayed.
n order to fund out the market realities, the researcher visited the
showrooms of certain companies having almost similar product profile as
that of +error 8ek Pvt. @td. &o name a few Que#el, Beneto $osines,
&rident nter .ood, etc.
.ith a view to understand the crunch of the matter and to find out the
ground realities, the researcher formed a schedule specifically for the set of
respondents. &he researcher met the respondents personally, interviewed
them and made them to fill the *uestionnaire.
&he researcher has done the research in the following manner,
a1 &ype of the research undertaken is analytical.
b1 &echni*ue used is random sampling.
c1 /ample si#e taken is EF.
d1 /ources of data used include both primary as well as secondary data.
e1 &ool used for the research is *uestionnaire.
f1 Plan of analysis are tables and graphs.
Data Collection Met(ods
n this study, the foremost data collection instrument used is the *uestionnaire
method. &he *uestionnaire has been designed with both open ended and closed ended
*uestions. !part from this, the research instrument consists of primary and secondary
data collected for the study.
Primar! Data:
%ere first hand information is obtained by distributing printed *uestionnaire to the
marketing executives of the company. 8ata was also obtained from the observation
and interview techni*ue adopted by the researcher. Moreover, information was
disseminated by the departmental heads.
Secondar! Data:
%ere the information is obtained from the brochure of +error 8ek, books, websites,
newsletter, "ournals, maga#ines, newspapers, etc.
COMPANA PRO*I2?
/hri ;am Marketing have been importing varied components from .orld(s several
best organi#ations and also distributing products from renowned ndian firms. !lso,
we keep enough stocks in order to meet the re*uirements of different manufacturers,
and supply components that are difficult to source, which counts as our ma"or
strength.
.e are an /4 LFF2)3FFF certified company engaged in ensuring complete customer
satisfaction. 4ur uncompromising attitude towards *uality of our products has
enabled us in establishing a strong foothold in this domain. &o ensure high *uality of
our products, we have employed strict *uality control personnel, who strive hard to
guarantee our productCs compliance with the set international standards. .e have
associated ourselves with reputed vendors to obtain utmost customer satisfaction and
meet the growing expectations of the industry. 4ur associations with well known
vendors allow us to source best grade of chemicals that are well known for their high
*uality standards.4wing to our authentic vendor base, we have been able to reach our
clients with *ualitative range within stipulated time frame. $onstant market research
by our procurement agents helps us to analyse various vendors and choose the best
amongst them. 4ur diligent efforts in holding cordial relations with our vendors assist
us to offer optimal satisfaction to our clients.
$apacitors, ;esistors, etc are important components that are widely used in almost all
electronic device to simultaneously after current and voltage. &o cater to the
re*uirements of these distributors, we, /hri ;am Marketing were incorporated in
2LLK. .e are one of the reputed importers and distributors of variety of electronic
components like $eramic $apacitors, /afety ;ecogni#ed !$ ;ated $ermic
$apacitors, Metal 4xide Baristors, Pie#o $eramic 7u##ers, Pie#o $eramic ;ingers,
etc. /erving our clients across the country. 4ur products are widely demanded in
industries like electronic industry, telecom industry, & ndustry, @ightning, Gnergy
Meters, Power Glectronics, nverters etc. some of our esteemed clients include /u-
Kam, @uminous, 8eltron, 7harti &elecom, etc
8riven by a passion to serve our customers with a premium range of products, we
stock our products while keeping in mind consumerCs convenience and re*uirements.
Procuring the best range of electronic components from the market and by assuring
their optimum *uality, we have been able to register a phenomenal growth in this
industry. 7acked by a rich and efficient vendor base along with diligent team of
employees, we strive to maintain our consistency by matching our productCs *uality
with the global standards. 5nshaken by difficulties and challenges, we believe to stay
ahead by offering impeccable *uality products whilst meeting customerCs
re*uirements.
.ith the commitment to provide the most *ualitative products to our clients, we strive
to build our stance in the market. 4ur distinctive *ualities give us a competitive edge
over our competitors, some of the *ualities are)
Gfficient logistic support system
Prompt delivery of the consignments
;eliable and efficient vendor base
.ide distribution network.
MANU*ACTURIN+ *ACI2ITI?S:
$apacitors, ;esistors, $eramic $apacitors, /afety ;ecogni#ed !$ ;ated $ermic
$apacitors, Metal 4xide Baristors, Pie#o $eramic 7u##ers, Pie#o $eramic ;ingers,
D?PARTM?NTS
1, TD0% ?PC 7, Samtec( 2td,C -ong 0ong
8, .att ?lectronics Pvt, 2td, 9, .ied! ?lectronic Industrial
:, C?DICOM ?2?CTRONIC ;, A6D Cor"oration Co,
<, D?SAI ?2?CTRONICS P6T, 2TD, E, Murata
F, CTR Manu#acturing Industries 2td, 1G, NDP
11, INCAP 2td, 17, ST
18, Cinetec( 19, *airc(ild
1:, -ot Tec( 1;, Matronic 2td,
1<, Cermet 1E, ?PCOS
ACCOUNTS AND ADMINISTRATION D?PARTM?NT
&his department is headed by Mr. Nesudas. &wo executives assist him.

&his department is broadly concerned with the ac*uisition and use of funds by the
company. t also analy#e, plan and control the company(s financial affairs. Moreover,
the in house administration of the company is also taken care of. t includes
maintenance of showroom and a look into the re*uirements and problems of day to
day administration. t also keeps a track of things with regard to civil construction,
architectural services, networking, pro"ect co-ordination, electrical work, etc. t is also
concerned with bank facility availed by the employees. !part from all these, it also
takes into account the installation part at the customer site after the dispatch of the
product. n a nutshell this department deals with the trouble shooting of any problem.
PRODUCT IND?D
+ollowing a *uality and a customer centric approach, we are offering different
electronic components like !luminium electrolytic caps, leaded caps, metalised
polyster, tauxline chip and dip, M4B/ , chip #enar, chip #enar diode, etc. 4btained
from reliable and authori#ed vendors across and outside the country, we strive to
endow our customers with a wide spectrum of *uality tested electronic components.
7anking on the vendorCs expertise and our decade long experience, we have been able
to satisfy our customers by providing our products within the stipulated time frame.
7y supplying our esteemed clients with the supreme *uality electronic components,
we have carved a niche for us in this field. 4ur wide assortment of products include.
Ca"acitors
!$ Motorstart $apacitors
@ug &erminal &ype !luminium Glectrolytic
$apacitors
!luminium Glectrolytic $apacitors Metalli#ed Polyester $apacitor-$hip $apacitor
7ox &ype +ilm $apacitor Motor ;unning $apacitor
$eramic $apacitors Multilayer $hip $apacitors 0M@$$1
$hip &antalum $apacitors
/afety ;ecogni#ed !$ ;ated $eramic
$apacitors
Gxtra %igh Boltage $apacitors B $hip !luminum Gletrolytic $apacitors
?lectronic Products H Com"onents
;esistors Membrane /witch
8iodes Metal 4xide Baristors
&hermistors Pie#o $eramic 7u##ers
G@ Panel J /tring Pie#o $eramic ;ingers
+lexible P$7 $eramic /urge !rresters
+uses /ilicon ;ubber Keypad
$ &ransistors
&4 &ouch /creen
Quality $onformation and Bendor 7ase
.e are an /4 LFF2)3FFF certified company engaged in ensuring complete customer
satisfaction. 4ur uncompromising attitude towards *uality of our products has
enabled us in establishing a strong foothold in this domain. &o ensure high *uality of
our products, we have employed strict *uality control personnel, who strive hard to
guarantee our productCs compliance with the set international standards. .e have
associated ourselves with reputed vendors to obtain utmost customer satisfaction and
meet the growing expectations of the industry. 4ur associations with well known
vendors allow us to source best grade of chemicals that are well known for their high
*uality standards.
4wing to our authentic vendor base, we have been able to reach our clients with
*ualitative range within stipulated time frame. $onstant market research by our
procurement agents helps us to analyse various vendors and choose the best amongst
them. 4ur diligent efforts in holding cordial relations with our vendors assist us to
offer optimal satisfaction to our clients.
.e assess our vendors on the factors such as)
2. Product *uality
3. Market presence
E. Past clients served
'. $ost effectiveness
<. 4n time delivery of ordered products.
.arehouse and Packaging
.e are well e*uipped with a modern and spacious warehouse, which is
technologically paired to store the electronic components like capacitors, resistors, etc
with ease. :ecessary prere*uisites for safety against fire and other ha#ardous effects
are ensured in order to avoid any untoward incident or damage to the products as well
as to the unit and its staff. &he warehouse is properly air sealed and capacious to
accommodate bulk amount of products easily.
.ith technologically-led services and special emphasis on packaging, we use
industry recommended material for the purpose. !lso, various machines are used to
pack and seal our products without any loophole. &his ensures that there is no kind of
damage or any defect, at any given point of time. 4ur executives makes sure to update
our clients for every movement as well as confirm the dispatch of the consignments.
&his helps us in maintaining long lasting partnerships with our esteemed clients.
.hy 5sI
.ith the commitment to provide the most *ualitative products to our clients, we strive
to build our stance in the market. 4ur distinctive *ualities give us a competitive edge
over our competitors, some of the *ualities are)
2. Gfficient logistic support system
3. Prompt delivery of the consignments
E. ;eliable and efficient vendor base
'. .ide distribution network.
-R ASP?CTS
&hough the company does not have a separate %; 8epartment as it is in the
embryonic stage but the %; aspects are taken care of by Mr. Gugene Hoseph.
2eave *acilit! :
!ll employees are entitled to 23 days of casual leave and 3 days of sick
leave 0monthly1. n case of a long leave, say a week or more than that, one needs
to inform it before 2F- 23 days. n case of emergency, a prior intimation before 3
days is sufficient. 4ne can also avail the facility of working on holidays and
taking leave on the week days.
Recruitment :
&he $ompany spells out its re*uirements to the consultancies about the
suitable candidates. 5sually, Mr. Gugene or Mr. ;a"esh or Mr. Nesudas takes the
interview of the candidates.
Training :
! selected candidate is put on training for about 2< days. 8uring this
period, he is not given individual pro"ect.
Io Rotation :
Hob rotation is adopted by the company so that there is development of
multi-faceted skills to fill in vacancies and to cope with increasing work load.
Movement is effected in the same grade
S.OT Anal!sis
Strengt(
$ustomi#ed products
;easonable price
Quality
.eakness
! new entrant in the market
O""ortunit!
9rowth of furniture industry
seems positive
%uge potential
T(reats
! lot many players are existing in
the market
*uture Plans:
&he company has shown excellent growth since inception and is growing at a
rapid pace. !ll these contribute for the company(s future expansion plan.
t is going to open showrooms on Kerala. &he 2
st
one is coming up in $ochin.
t is going to open ' more showrooms in 7angalore.
.ill involve 2F dealers in 7angalore.