SIGNIFICANSE AND CARACTERISTISC OF EFECTIVE SALES PROMOTION MANAGEMENT IN CONTEMPORARY MARKET

Abstract

This paper is based on the facts that today’s market is very concentrated and saturated, especially consumer goods market, and that companies are forced to invest significant assets in marketing activities in order to increase sales volume and profit. Investments in media are becoming very expensive, so in the last couple of decades, the ratio of marketing investments in media is shifting towards promotion activities at the point of sale, that is, in favor of sales promotions. The paper lists the main types of promotional activities and their characteristics. Also, it describes sales promotion mechanisms and their effects. It defines the phases management goes through in creating, implementing and evaluating promotional strategy and emphasizes the need for good, clear and effective communication between marketing and sales departments. In this paper a special attention is dedicated to evaluation of promotional results, as well as to models used for that purpose. This paper, through classification and description of sales promotion elements, has to create a platform for better understanding of promotion activities. The main goal of this paper is to emphasize importance of the leading sales promotion drivers, such as increase of the sales volume and profit.