These are known as tools or techniques or methods of sales promotion. i. Trade Promotion Techniques include the following: Off-Invoice Allowances,Buying allowance,Display and advertising allowance,Buy back allowance ,Bill back allowance,Slotting allowance,Merchandise allowance ix. Times of India offered Vox Room Heaters saying – “Buy 1 Get 1 Free”. When a buyer gives a coupon to the dealer or retailer he gets the product at lower price. In case of consumers sales promotion programme, an attempt is made to reach the consumer at his home or at a retail store. ii. 4 Free trials. Disclaimer Copyright, Share Your Knowledge 8. 4. Sales promotion essentials : the 10 basic sales promotion techniques-- and how to use them. Periodical training programmes are conducted by dealers and distributors for salesmen to give them a better knowledge of a product and its usage. This type of refund policy builds store loyalty among consumers who continue the patronage. These samples may be distributed door-to-door (through personal selling) or retail stores. A free sample stimulates consumer trial, while a free management advisory service cements a long-term relationship with a retailer. In-mail premiums do not provide an immediate reward at the time of purchase. If advertising support has been effective, or prior to offering price discount, there has been a sample drop of the product, then even first time buyers may purchase the product. The customer does not get any benefit at the time of purchase, rather he gets it through mail. There may be consumers’ contests, salesman’s contests and dealers’ contests. Such promotions work very well in gaining the attention of consumers, particularly at the point-of-purchase (POP) among similar brands, and may also encourage unplanned or impulse buying. These are at the heart of sales promotion. A few examples of coupon distribution can be coupon pasted on a package, or placed inside a package to encourage repeat purchase. For example, the regular price of a standard pack of a product is Rs. Comparatively, coupons seem not to be so popular with young, less educated, unmarried individuals. Refunds and rebates (both terms are used interchangeably), a. In-packs, on-packs, near packs and container premiums. A coupon is a certificate that offers a price reduction for some specified items to the holder. The prizes seem to be much larger to contestants than the money spent by the sponsor. Trade Sales Promotion Techniques Push Policy emphasizes promotions focused on the next intermediary. Middlemen are usually required to show the proof of the advertisement carried out by them. Sales promotion is one level or type of marketing aimed either at the consumer or at the distribution channel (in the form of sales-incentives). Effective sales promotion tools are tailored to presentations at events or trade shows, door-to-door sales, retail sales, direct mail advertising, telemarketing or Internet-based marketing. This type of deal is often seen in case of laundry products, food products, and personal care products, etc. Full Finance @ 0% 10. There are occasions when the company decides to move in new geographic markets, such refund promotion may prove to be quite effective in motivating high-risk perceivers to decide in favour of the promoted product as the perceived risk is likely to appear as manageable. These are more than one type of tools used to promote sales. Research has shown that the tendency to use coupons rises under certain conditions: (a) When consumers perceive that there is need to control the budget, (b) Consumers are inclined to experiment with new products or services. Sales promotions are those activities, other than advertising and personal selling that stimulate market demand for products. 3. The sales promotion tools can be seen from the angles of dealers and consumers and salesmen who are baited by the manufacturers by using dealer, consumer and sale force promotions to have the rich dividends of aggressive selling. Sales contests are held for salesmen. This Topic is part of topic Promotion of chapter - Marketing Management of class 12 Business Studies. Exchange Schemes. There is a subtle difference between these two terms. The refund offer may sway the decision in favour of the promoted product. If the premium is particularly attractive, there would be a number of consumers who would want the premium in a hurry and make the required number of purchases. For that, company provides extra commission, buy back guarantee, price offs, allowances, gifts, free goods to them. The premiums can be used to solve a competitive price advantage or to counter the competitor’s coupon promotion. Promotion looks to communicate the company’s message across to the consumer. If you run sales, you need to promote them properly in order to get the word out to your target audience. are examples of this type of sales promotion. Often a combination of contest and sweepstakes is employed in some promotions. Planning 6. Efforts must also be put into perfect the measurement, the methodology for evaluation and documentation of corporate experiences on sales promotion the errors in the existing system, corrections in procedures and the mishaps that occurred ultimately to help in improving the skills of managing the sales promotion function. 7. Hence, firms offer incentive schemes to reward their loyal customers. Keywords: Sales promotions tools, Consumer buying behavior, Purchase decisions, Marketing Introduction Retail market is growing in a high velocity environment all over the world. These are part of Interest promotions because such sales promotions create not only interest but also produce excitement and enthusiasm in consumers. The offer may be for a product purchase alone or in combination with other products. Sales promotion efforts attempt to attract the attention of customers at the point of sale and enhance sales volume. The same agency says. 5 Free training. All tools of sales promotion are fairly simple and can be reduce to twelve in number. x. This benchmark should then be related to the market size and the potential estimated in market. Discount induces the customers … c. Coop Sampling in which several different products are delivered in same container or at same time and distribution costs are shared by various manufacturers. In such cases, promotional activities are conducted to induce the dealers to keep a large stock with them. 1) Manufacturers organise sales contests wherein the winners are rewarded by way of money, incentives, trips, gifts, etc. When retailers offer coupons of their own, they have to bear all the above mentioned costs themselves. sales promotion tools and its impact on customers buying behaviour with special reference to Rathi Build Mart, Raipur. Khadi Gram Udyog offers rebates on Khadi cloth and readymades to coincide with the month of Gandhi Jayanti every year. In case of Colgate toothbrush, it offered 1 free with the purchase of every two brushes. Fairs and exhibitions may be organised at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products. Offer of a coupon is a very versatile technique and can be used to achieve many different sales promotion objectives. The manufacturer of Sensodyne has been reaching out to local dentists of Mumbai who have been distributing free sample of these toothpastes to create awareness among their patients. Learn about:- 1. In local-convenience stores, the shopkeepers recommend certain products of commodity type, such as rice, flour, or cooking oil to consumers. 4,000 Waive on the New Cng Scooter. Price deals (price-off, price-cut, cents-off, denote the same thing), iii. Sales promotion is one of the best tools to attract new customers and retain old ones, including marketing activities by adding more value to the … A judicious combination of techniques can be used to achieve almost any promotion objective. Refund offers can be used to achieve a variety of promotion objectives, such as to guarantee trial, to reward loyal consumers, to load consumers, to increase purchase frequency, to introduce new products, to enter new markets, to encourage the purchase of related products, etc. 2 Advertising and promotional novelties. Sales promotion is generally defined as those marketing activities that provide extra values or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales. 8. For example- few car retailers offer free servicing for the first 6 months if certain car components are damaged or are under performing. Generally, the free gift is related to the product but it is not necessary. POP displays – (Point of purchase promotion) Right display at right place to attract consumers. 2400. When used as an offensive weapon, the objective is to generate additional sales and increase market share and long run profits. If there are three different models of a product and because of the discount offer the price of the higher end model appears not too high to the consumer, compared to the lesser- priced model, then consumer may buy the higher end model. What is sales/marketing promotion? Supporting and supplementing the advertising and personal selling efforts. These tools are unique in their way and directed differently to these three groups. Or, there may be some flexibility in conditions, such as the consumers may have the option to send one, two, or more proofs of purchase along with a specified sum of money to obtain the premium quickly. Get this from a library! After the receipt of the proof, the marketer sends the premium to the consumer. All types of promotional activities are currently used by retailers in order to be differentiated in the market. xi. “A sweepstakes does not call for the application of skill on the part of the consumer. Free Gifts to Dealers/Distribution; such gifts increase with increase in quantity of purchases. Before uploading and sharing your knowledge on this site, please read the following pages: 1. If you have a product which is new in the market or which is not receiving a lot of attention, then you can promote this product to customers via sales promotion.You can use various techniques like giving discounts on the product, offering 1 + 1 free schemes, etc etc. This would help to load-up the consumer. Because of the nature of the product, consumers did not mind continued purchase of the brand and kept on collect the coupons. Free samples are given to consumers to generate their interest in the product. Seventh step relates to monitoring the offer, collection of the relevant data and for the future use as well as mid period corrections in promotion methods. Sales promotion techniques are known as promotion tools and the mode of their application is known as sales programme. The factor of chance limited only to what one gets, no losers, all winners. Consumer incentives could be samples, coupons, free trial and demonstration. BUY ONE GET ONE, BUY TWO GET ONE FREE are the usual offers made to the customers to appeal them. The scheme may be like – “Scratch a card (or burst a cracker) and instantly win a car, A.C., fridge, T.V., computer or electric iron on the purchase of a T.V.”. Thus, retails stores try to focus customer attraction by carrying out sales promotion techniques. By announcing a price discount on some popular consumer item, the retailer’s intention is to increase store-traffic. In the demonstration method, the technical experts or sale demonstrators are sent to various customers to induce them to buy the product. Techniques 8. This is a method to “load” the consumer up with the product. A group of retailers or manufacturers conduct exhibitions and trade shows to make the customer aware of the products offered by various firms. 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