Q.Explain the objectives of sales promotion.

The broad aim of sales promotion is to raise sales by giving an extra reason to act now; its specific objectives differ according to whether it targets consumers, dealers or the firm's own salesmen.

The broad object of all sales promotion is to increase sales by giving buyers and sellers an extra reason to act at once. The specific objectives are grouped by target.

A. Consumer-directed objectives

• To introduce a new product — samples, introductory offers and "try-it" schemes win first trial.
• To attract new customers — coupons, gifts and price-off offers draw buyers from rival brands.
• To increase the rate of use — bonus packs and "buy more, save more" offers make customers buy and use more.
• To clear surplus or seasonal stock — clearance and end-of-season sales move slow goods.
• To meet competition — a timely offer answers a rival's move and holds market share.
• To even out seasonal sales — off-season concessions steady the flow of business.

B. Dealer-directed objectives

• To gain dealer support — trade discounts and display allowances persuade dealers to stock, display and push the product.
• To build up dealer inventories — bulk offers load the dealer with stock, crowding out rivals.
• To win new dealers and strengthen distribution.

C. Sales-force-directed objectives

• To motivate salesmen — contests, prizes and bonuses spur greater effort.
• To encourage selling of new or slow-moving lines carrying extra incentives.

A common error is to list only consumer objectives and forget that sales promotion is also aimed at dealers and at the firm's own salesmen. State objectives for all three targets to earn full marks.