Sales promotion includes activities of non-routine nature to promote sales, e.g., distribution of samples, discount coupons, contests, display of goods, fairs and exhibitions, etc. It refers to giving a free gift on purchase of a product. Promotion can be launched directed at consumer or trade. Whenever the store-traffic increases, customers visiting the store not only buy promoted product, but some of them buy other products as well. Need and Importance 5. The two types of sales promotion tools consumer are as follows: A. Cheap Bargain – To get another product at a very cheap rate while buying a product; e.g., A bucket of plastic of 5 litres only at Rs.6 with every pack of ‘SURF’ of 1 kg. A well-known television programme in India, “Surabhi”, is an example of this type of promotion. 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.”. It is also different from advertising. For example – a silver tray to display a product. This offer is given to clear off excess inventory (stock) or to block competitive moves. Comparatively, coupons seem not to be so popular with young, less educated, unmarried individuals. The terms refund and rebate are used as meaning the same thing/Long ago, the term rebate was popular by the automobile industry in the developed countries. Such short-term methods or tools of sales promotion are directed towards consumers, middlemen and even to the sellers appointed by the producers. In these contests, participants compete for prizes on the basis of their skill or creative ideas. Plagiarism Prevention 5. 55.50 off on Gillette Sensor excel. Out of these correct entries, depending on the number of prizes to be given, some are picked up on a random basis to declare the winners. Marketers use this technique when they use new distributors or they want to push products to retailers. 2. Where advertising offers a reason to buy, sales promotion offers an incentive to buy. For example, Mug free with Bournvita, Toothbrush free with Toothpaste, DVD free with TV, Vacuum cleaner free Fridge, etc. offer easy financing schemes even at 0% rate of interest e.g., “Pay Rs. Demonstration at retail stores, fairs and exhibitions or (Demo) even door-to-door. 6 Credit facilities. For example, the participants may be required to write a slogan, choose a name, or create a design, etc. A premium (gift) is a reward given to the consumer for performing a particular act, generally purchasing a product or service. Such premiums are attached either to the product, enclosed with the product, or otherwise available with the product when the consumer buys the product. 4 Free trials. 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. Tools and Programmes 9. The techniques of sales promotion used by business houses are discussed below: Many big businessmen distribute free samples of their products to the selected people in order to popularise their products. A great sales technique – pick one from the list below. Copyright 10. 2. Proper planning is essential for the success of promotion plan as it involve high investment on promotion products and execution of promotion activities. Before publishing your Articles on this site, please read the following pages: 1. As the product is primarily targeted at kids, these premiums had great appeal to them. Sales promotion techniques are known as promotion tools and the mode of their application is known as sales programme. As a matter of fact, sales promotion activities aim at supplementing and co-ordinating personal selling and advertising. In this type of sales promotion, prizes are offered in kinds (especially the products of the company) and sometimes a payment is given to the participants. Many people have a misconceived notion that sales promotion is nothing more than advertising. Tools and Programmes for Consumer Sales Promotion: Also known as consumer sample or free samples and given to consumers to introduce a new product or to expand the market. xiv. These activities might include extra cash or trade discount on the basis of orders placed. Free door-to-door samples – This technique however is costly. In certain case all those who furnish the proof-of-purchase are given some specified premium. Advertising, on the other hand, is any paid form of non- personal presentation and promotion of ideas, goods and services. 4. Sales promotion letters and catalogues. 3. Tell tags are informative labels affixed on the product, describing in detail the features of the product and its unique selling points. A discount coupon is a certificate that entitles its holder to a specified saving on the purchase of a specified product. Objectives of Sales Promotion 3. Another free offer can be in the form of free samples to motivate people to try the … The best example of this is the frequent flyer scheme offered by airlines. The same element of chance has been used in case of consumer durable product of high-involvement category. Advertisement Allowances/Materials, encouraging dealers and distributors to advertise products. This technique is often used to introduce a new large size of the product, or to encourage continued usage, and also to increase consumption. With growing competition at the market place and the need to release full benefit of sales promotion, it requires an appropriate approach according to market conditions and nature of product. Same techniques, which are used for consumer promotions are also used to promote products to business users, such as stationary, computer systems and consumables, machinery, automobiles, and many other products. These techniques are discounts and deals, increasing industry visibility, price– based consumer sales promotion and attention– getting consumer sales promotion. There can be more than one community in a society. Under these promotions… The retailers are reimbursed by the manufacturer for the value of coupon redeemed and also paid a small percentage to cover handling cost. xi. To reduce the perception of risk associated with the purchase of a product. Periodical training programmes are conducted by dealers and distributors for salesmen to give them a better knowledge of a product and its usage. Share Your Word File
It is offered to encourage repurchase of a product immediately after another trade deal. This technique induces customer to buy their requirements from the retailers who offer such stamps. Learn about:- 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. For example- few car retailers offer free servicing for the first 6 months if certain car components are damaged or are under performing. 8. It encourages trade cooperation and stimulates repurchase. It increases sales and makes sales of slow moving products faster and stabilize fluctuating sales pattern. In the demonstration method, the technical experts or sale demonstrators are sent to various customers to induce them to buy the product. Sales promotion activities are often criticised on the following grounds: The incentives offered through sales promotion schemes are fictional, and not real. 1. It attracts channel members to participate in manufacturer promotion effort. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Sales promotional activities may broadly be classified into the following: Sales promotion directed towards the consumers may be conducted either to increase the consumer’s knowledge of the product regarding its use or it may be conducted to attract new customers. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Depending on the objectives, refund offers are used to encourage trial of a new product, purchase of increased quantity, or increasing the frequency of purchase, or to encourage the customers to purchase those products whose purchases can be postponed, such as refrigerators, microwave ovens, air-conditioners, and other consumer durable products. A quick response is generated by using this promotion tool for sales promotion. The tools of sales promotion are employed primarily by two of the principals of marketing – the manufacturer and the retailer. Some of the commonly used tools of sales promotion are as follows: Coupons are issued by producers of packaged goods or by retailers that enables customers to buy the product next time at a reduced price. At these fairs and exhibitions, business firms are allotted stalls wherein they display their products and attract the customers through gifts, special concessions and free demonstrations of technical and specialty products. 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