In a bundle, one product works as an effective awareness builder and a trial inducer for the other product. (i) The trade is motivated to carry the brand. Sales turnover of special packs or self-liquidators. Account Disable 12. The manufacturer or wholesaler may have a good product, reasonable price, attractive package, etc. Producers of new brands or innovative products are introduced by holding fairs and exhibitions. Marketers must be on the lookout for ways to rise above the clutter. It should also take into confidence the trade channels. Promos have certain limitations. Major Sales Promotion Techniques Companies use various sales promotion techniques to promote their products. Creating talking points for salespersons. A freebie is allowed only when the company bears its cost. Coupons are used to attract new customers. move to levy excise duty on the maximum retail price of consumer durables may affect the discounts and promotional schemes. Healthy customers, Healthy sales (more profits per customer), etc. (c) When there is intensive competition on consumer sales promotions. Coupons are used for consumer convenience goods. Every achievement must be rated in terms of points. Promotion and Promos 14. To develop favourable consumer experience with the product. A promo should remind the consumer the core values of the brand. 3. There are certain inherent conflicts. But because it pays rich dividends, sellers have accepted it as an important item in the marketing-mix. (c) When we want to amplify the results of the advertising, (d) When we want to increase the number of retail stores to sell our products, and. Says that the sales gain would have to be large enough to compensate for the reduction in revenue necessary to fund the promotion. Indeed the contest is brickmanship! While advertising explains the logic behind buying, sales promotion offers us an incentive to do so. 2. Samples are one of the most important tools of sales promotion. Essays, Research Papers and Articles on Business Management, Sales Promotion: Objectives, Importance, Techniques, Examples, Methods, Types and Tools, Top 8 Tools of Sales Promotion (With Advantages and Disadvantages), Sales Promotion: Meaning, Merits, Limitations and Methods, Advantages and Disadvantages of Franchising. Later, the announcement of a few more prizes, writing of reminders, etc., generate an air of expectancy. In TV market, the introduction of S-band and hyper-band sets led to the replacement of old 12-channel sets, thus giving rise to exchange offers. 9 Types of Consumer Sales Promotion Tools, Aggressive Selling | Meaning | Aggressive vs Defensive | Circumstance | Methods, Different Approaches to study of Marketing, Terms of Sale | Different types of Quotations in International Trade, Factors to be considered in export packaging design, Top 10 Differences between Wholesalers and Retailers, Chain Stores | Meaning | Advantages | Disadvantages, Weaknesses of Trade Union Movement in India and Suggestion to Strengthen, Audit Planning & Developing an Active Audit Plan – Considerations, Advantages, Good and evil effects of Inflation on Economy, Vouching of Cash Receipts | General Guidelines to Auditors, Audit of Clubs, Hotels & Cinemas in India | Guidelines to Auditors, Depreciation – Meaning, Characteristics, Causes, Objectives, Factors Affecting Depreciation Calculation, Inequality of Income – Causes, Evils or Consequences, Accountlearning | Contents for Management Studies |, a product that is not superior in some way to competing products, a product with a narrow margin of profit, or. Sales promotion is defined by the Institute of Sales Promotion (ISP) as “comprising a range of tactical marketing techniques within a strategic marketing framework to add value to a product or service in order to achieve specific sales and marketing objectives”. Components 4. (h) POP material and its display need supervision. Sales Promotion Strategies. Benefits 10. The Basis of Consideration in Trade Promotion are: (a) The capabilities of the parties. But it has now come to be used strategically also. The programme thus developed should be pretested in order to check the effectiveness of the programme. Rebate is a partial refund to someone who has paid more or extra on purchase of a specified quantity or value of goods within a specified period. These rewards can be given for individual performances and for special achievements. 7. Communication of the team of judges, and criteria of judging. Prize on zonal basis. There is no consumer empathy with the brand. With more and more brands flooding the market, the pressure to occupy display space at retail outlets is more. All these will help avoid hard and bitter feelings later. Meaning 4. 4. The target market area is to be carefully selected and should include the neighbourhood satellite markets to avoid leakage, given the fact that the tax structure is not uniform over the states. Sales promotion tools used to boost short-term customer buying and engagement or enhance long-term customer relationships. To stimulate replacement demand, a company gives a certain amount of the price of a new product in exchange of the old product. They are non-recurring in their use. Sales promotion is designed to be used as a short-term tactic to boost sales – it is rarely suitable as a method of building long-term customer loyalty. The reusable package itself serves as a premium. There are tools like Sales Meetings, Sales manuals , sales contests, incentives and many more. Plagiarism Prevention 5. Sales Promotion Objectives: Increase in Sales Volume, Encourage Repeat Purchase and To Block Competitor Moves Sales Promotion Objectives – Top 7 Objectives: Launch New Products and Increase Trail, Encourage Dealers to Participate in Display and a Few Other Objectives. Establishing the Sales-Promotion Objectives, 3. It is also used to keep customers away from the competitive products. Rewards may be in cash or in kind or a mix of the two. It involves making use of marketing communication and initiatives like seasonal discounts, financial schemes, etc. This can be done by asking the consumers to rate or rank different possible or trial tests that can be run in limited geographical areas. Sales force is linking between companies and customer. Therefore, companies have to be careful in designing and structuring sales force. 500. The discount period should not be less than 10 days. “Working in sales” can refer to a number of different types of sales roles; you may be surprised by the variety of options available. There are instances where coupons of free products are inserted in for new products. It can arouse enthusiasm, create a buying mood or spark an immediate reaction from consumers, dealers and the firm’s sales­person. The importance of sales promotion is the unique role it plays in the marketing mix. Concept and Nature of Sales Promotion 2. Such a shift has several reasons. There are three kinds of sales promotion. a highly fragile, perishable or bulky product. Sales promotions have temporary and short life not exceeding three months. Explain how sales promotion campaigns are developed and implemented. Here are many tools that are used in order to facilitate sales force promotion effectively. An important area that concerns sales promotion objectives is directly related to the specific promotional techniques to be used. Consumer level sales promotional tools are: (d) Self-liquidating premium (item sold below its normal retail price). Demonstration of products induces customers to buy. Short purchase cycles mean short-term effects. 4. Above are all the different types of sales promotions. Too much of it affects the long-term brand equity. These are redeemable at the stamp redemption centres. Such co-promotions create tremendous awareness for the new en­trant. 5. (xi) Point-of-purchase (POP) display and demonstrations. 4. In-pack premiums are separately given, where the retailer has to extend cooperation. Sales promotion is often thought as special selling effort to accelerate sales. Increasing, usage rate by present customers. It also assesses the most preferred terms on which to offer a scheme. Point-of-purchase displays give a real payoff, sales rising by 25 to 50 % or even more. Samples are defined as offers to consumers of a small amount of a product for trial. Two products which are related or unrelated can be bundled together, and either product may induce a buyer to buy the product. User 6. Lakme uses couponing for its premium Orchid range. 7. Some basic reasons for their extensive use are: 2. Premium may be of several kinds — direct premium, reusable container free in mail premium, a self liquidating premium, trading stamps, etc. The four philosophies are production, sales, marketing and societal marketing orientations. Contents: Concept and Nature of Sales Promotion Objectives of […] Sales promotion tools for consumers … Samples. Sales promotion tries to complement the other means of promotion given above. Such salesman are sales-force. Disclaimer 8. Limitations. (2) Dealer Promotion- Activities to increase the interest and enthusiasm of dealers and distributors. Therefore, it is necessary to classify sales promotions into two broad categories – sales promotions aimed at consumers and sales promotions aimed at distribution channels (which is more commonly referred to … Retailers thus demand more S.P efforts from their suppliers. The intention is to increase sales, make a large customer base, encourage trial, encourage repeat purchases to stimulate consumers' purchase. Promos should be integrated to products and advertising. In this age of intense competition, where the bottom line is quick sales, marketers are beginning to rely more and more on short term tactics to win the battle for consumer’s minds and wallets. Between February 26th and 28th CII has organised the International Engineering & Technology Fair (IETF) for businesses in engineering and manufacturing industry to promote Business-2-Business (B2B) networking (CII, 2014). Zip Sip brand of flavoured milk? 1. of the total promotional budget. They should be small enough to fit in the package. Today, sales promotion is attracting more and more of the promotional budget. (ii) Allowances like advertising allowance or display allowance. Those who look at SP tools in a store setting are very good prospects, or else they would not have been in-store in the first place. 4. 3. The product manager type organisational structure in which product managers are constantly goaded to sell more has given a boost to SP. It is an offer to refund part of the purchase price of a product to consumers who send a proof of purchase to the manufacturer. SP tools at the point-of- purchase remind the buyer of the ad or otherwise provoke him to purchase. Companies adopt one of four philosophies when deciding on how to create an organizational marketing process. In direct marketing, couponing also helps to evaluate the effectiveness of the campaign based upon the response rate. To illustrate, National offers Rs.500 off on its grinder mixer if a consumer brings his own old grinder mixer. The most common objectives under pro-active category are: 1. Need and Importance 5. A coupon with a sample is twice as effective as a coupon alone. It has flexibility and it can be used at any stage of a new product introduction. Companies usually, therefore, pay additional handling charges to the retailers per coupon handled. Direct marketing is used to send coupons to a selected list of users. The company’s marketing objectives and strategies influence the development of sales promotion objectives and strategies. 1. IFB is offering a gas stove and a gas lighter on two of its washing machine models. The direct inducements cover a whole package of coupons, price-offs, premiums, larger quantity trading stamps, free gifts, displays, shows, expositions and demonstrations. Meaning and Definitions of Sales Promotion: Sales promotion is said to be a key ingredient in the international marketing campaign. As soon as the promo is advertised, there should be action in the marketplace. The contest is called ‘the world’s greatest salesperson’. The product to be sold is a common, everyday red brick. The seller determines the number of installments in which the price of the product will be recovered from the customer. 4. Couponing works betters for premium products because price-offs give genuine value to the customers. Reduction in prices stimulates sale of goods. Types 10. One maxim is, do promote, but not at the cost of brand equity. Agencies must sell a generic concept of BTL to clients. Sales-force promotion Manufacturers appoint salespersons to sell or distribute their products. 2. The accountability of redemption of coupons or refunds and rebates should be properly fixed. If you can sell it, probably you can sell anything. They are not as affective in promoting brand loyalty as they are in inducing product trial and brand switching. Here, performance is measured with respect to: 5. A marketing man today wants a short-term increase in sales of the current year, rather than waiting to build the brand over a period of five years, by which time he may or may not be in the organisation. We'll cover promotions to increase sales, to encourage repeat business, and to boost brand awareness. The Govt. Push, Pull or a combination of the two. Sales promotion was so far treated just as a tactical tool. Here, sales representatives are made to compete amongst them to motivate them to achieve higher goals and benefit the organisation. The following are some of the most commonly used sales promotional techniques: Coupons are issued by producers of packaged goods or by retailers that could be used in retail shops that can be redeemed at discounted prices when purchasing products/services. To stimulate a stagnant demand and to move accumulated inventories blocking high cost finance, companies offer freebies, especially in the consumer durable sector. It is an integral part of the marketing effort. Personal selling is an integral part of the firm’s communication mix which is made up of non personal communication tools. The contest will be held on a branded channel on Youtube and will use other social media like Facebook and Twitter. These tools are unique in their way and directed differently to these three groups. Advertising has reached the target audience when they were away from the store. An ongoing promotion, e.g., low prices everyday becomes a part of the brand property or normal trade practice. Everything must be specific. Free in mail premium means a premium item will be sent by mail to consumers who present proof of purchase to the manufacturer. The rest forms another category, e.g., price-off packs, trade allowances, etc., gifts not related to product. 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