Sixth step cover the development and evolution criteria in relation to sales to be achieved cost effectiveness and turnover of promotion. These encourage the customers to use the product or service and make them brand loyal. In the modern age of competition, it is an important purpose of promotion to help in stabilising sales volume by reassuring the customers about the quality and price of the product. A quick response is generated by using this promotion tool for sales promotion. They may not, therefore, prefer to buy such products. Under this, the seller offers premium to the buyer by way of supplying a gift along with the product or inside the product package. In case of money refund, the customer receives a specific amount of money (refund) after he submits a proof of purchase to the manufacturer. All types of promotional activities are currently used by retailers in order to be differentiated in the market. Sales Promotion Techniques Targeted To Consumers. Customers are invited to compete on the basis of creative skill, such contests create brand awareness and stimulate interest in the brand, and it acquaints consumers with brand usage and benefit. Price packs (cents-off deals) – Offers consumers saving off the regular price of the product, directly cuts price on the label, or combination of two products (tooth paste and tooth brush). For example- few car retailers offer free servicing for the first 6 months if certain car components are damaged or are under performing. This offer is given to clear off excess inventory (stock) or to block competitive moves. 8. This method may be used in products like washing machine. Rebate – It refers to selling of products at a special price which is less than the original price for a limited period of time. For example, to win a Santro car, the consumer was required to collect three coupons that would complete the name of the prize, that is, Santro. Hence, firms offer incentive schemes to reward their loyal customers. Sales contests are conducted to attract new customers or to introduce new products. Travel Agents and Sellers . Point Of Purchase Displays – This includes providing free point of purchase (POP) display units to the retailers to increase their sales. 11. Sales promotional devices are the only promotional devices available at the point-of-purchase. Sometimes, coupons are introduced either through press advertising or through the package of the product itself, which induce the consumer to buy the product at a concessional price. There may be consumers’ contests, salesman’s contests and dealers’ contests. Free-in-mail premiums are unique because the promotion objectives may be quite different. There seems to be quite a bit of confusion in understanding these terms. Contests for salesman and dealers are intended for inducing them to devote greater efforts or for obtaining new sales idea in the task of sales promotion. This type of promotion must be used with care as the increase in sales is gained at the cost of a loss in the profit. xii. Often a combination of contest and sweepstakes is employed in some promotions. It helps marketers to realize a variety of objectives. The promotion named “Crorepati Hungama” lasting one month (1st December to 31st December 1999). Under this method, the product is sold and money is received on installment basis at 0% or without interest rate. A quick response is generated by using this promotion tool for sales promotion. The types of sales promotion techniques used by the company depend upon the sales promotion objectives set by the company. The retailer takes decisions concerning the target customer, services, ambience within outlet, and the decisions concerning price, place and promotion. Major Sales Promotion Tools Used By NestléBangladesh Ltd. Nestlé Bangladesh Ltd use two types of sales promotion: 1. 7. Consumers are often attracted to promotions where the potential benefit obtained is unusually high. This may take any of the two forms, bonus pack and banded pack. Some of the commonly used tools and techniques of sales promotion are:-, 1. According to American Marketing Association, “Sales promotion includes those marketing activities, other than personal selling, advertising, and publicity, that stimulate consumer purchasing and dealer effectiveness, such as displays, shows and expositions, demonstration, and various non-recurrent selling efforts not in the ordinary routine.”. Marketers use this technique when they use new distributors or they want to push products to retailers. Almost all promotions make use of one or more of these tools, alone or in some carefully developed combination. A firm can also use data revealing how its product compares with the other products. (Iii) Free Mug With Horlicks. Supporting and supplementing the advertising and personal selling efforts. The reusable containers for packaging often have special appeal to the consumers who don’t have to pay anything extra for the product. Sales promotion letters and catalogues. Meetings and Seminars by Producers of all dealers/ distributors where all problems of middlemen are discussed and solutions given. 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. Copyright 10. Coupons – A certificate that gives buyers a saving when they purchase specified products. Trade Shows – Trade shows are a great sales promotion strategy where the business promotes its product to thousands of traders in the trade show. Most of these techniques can be used both for consumer as well as trade promotions. (i) Creates differentiation – When you launch a new product or ask customers to engage with your business in a new way, this sets you apart from your competition. Let us know more about some of the commonly used tools of sales promotion. More often discounts are offered to match or beat the competitor’s prices. It improves the performance of middlemen and acts as a supplement to advertising and personal selling. Some of them offer a free trial period, and in case the customer is not satisfied, there would be total refund or money and no questions asked. This is useful for drawing attention to product improvement. xv. Retailer takes many marketing decisions, tries to find new marketing strategies to attract and hold customers. One of the most crucial challenges for any type of business is to collect an in-depth understanding of the market. Disclaimer 8. It is also different from advertising. To get you started with this worthwhile strategy, here are 15 sales promotion ideas, accompanied by real examples, and categorized by the business goals they can help you achieve. 62 only. For that, company provides extra commission, buy back guarantee, price offs, allowances, gifts, free goods to them. 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. Sales promotion may take any or all of the three forms – consumer promotion, trade promotion and sales force promotion. Consumer incentives could be samples, coupons, free trial and demonstration. The price off label is printed on the package that is a certain amount is reduced from the actual price to woo the customers. Premiums are of different types like packed premium, banded premium, personality premium and container premium. This type of sales promotion is targeted at the end consumers. Coupons bear a date of expiry and cannot be redeemed after the cutoff date. The seller determines the number of installments in which the price of the product will be recovered from the customers. For examples, Big Bazaar issues coupons for selected items in their weekly flyers that are distributed via mail or along with newspapers. This is making the scheme attractive and challenging form the view point of this target group segment. It does not create new demand. Thus, retails stores try to focus customer attraction by carrying out sales promotion techniques. 2. Promotion mix is the name given to the combination of techniques used in communicating with customers. Trade promotion 2. To decide which entries are first second, or third, etc., an expert or a panel of experts examines the entries and judges the winning ones. For example, companies distribute free samples of their new product. In local-convenience stores, the shopkeepers recommend certain products of commodity type, such as rice, flour, or cooking oil to consumers. They add to the overall effectiveness of the firm’s promotional activities. It is a “push strategy” and encourages the channel members to stock the product. Tools and Programmes for Dealers/Distributors Sales Promotion: There is provision of free display of material either at the point of purchase (POP) or at the point of sale (POS), depending on one’s view point. For the purpose of sales promotion the company offers a special pack containing 150 gms, and the price is Rs. 1) Manufacturers organise sales contests wherein the winners are rewarded by way of money, incentives, trips, gifts, etc. Tools and programmes for consumer sales promotion. Determining the quantum of discount depends on the consumers’ price perceptions and may be difficult to decide. The prizes may be gold or silver jewellery, hefty sums of money, cars, two-wheeler autos, colour televisions, computers, music systems, free air tickets, stay in five star hotels, holiday in health resorts, and anything else depending on the imagination of the marketer. For example, the participants may be required to write a slogan, choose a name, or create a design, etc. These must be of small size but adequate quantity. 50 and the quantity contained in the pack is 100 gms. 6 Credit facilities. Many offers of this type are seen in consumer non-durable products consumed on daily basis. Sales Promotion Tools and Techniques – 12 Commonly Used Tools: Coupons, Free Samples, Price-Off Offer, Fairs, Exhibition, Free Gifts, Competitions and a Few Others. Offering free gifts or samples is the most expensive form of sales promotion. Making consumers to switch brands in favour of firm. The sales promotional devices at the point-of-purchase stimulate the customers to make purchase promptly on the spot. Discussion in the tutorial on sales promotion looks at how contests, sweepstakes and games can be effective short-term consumer promotion. Trade shows, fashion shows or parades, fairs and exhibitions are important technique/tools of sales promotion. The technique indicates refund of full purchase price if the buyer so wants. POP material is often tied in with television or print messages to increase effectiveness. The tools of sales promotion are applied to boost sagging sales by attracting the customers and offerings of distinct incentives of purchase. These are arranged by manufactures for preparing and distributing the products as a retail sample, for example, Nescafe Instant Coffee was served to consumers for trying the sample on the spot of demonstration regarding the method of using the product. Trade Association Meetings, Conferences and. 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. Additional quantity of the same product or additional unit of the product is appreciated as a reward by the consumer. Important promotion tools in dealer sales promotion. These are offered to encourage retailers to give additional selling support to the product, e.g., tooth paste sold with 30% to 40% margin. Coupons are the most widely used customer sales promotion technique. Under this scheme customers are given assurance that full value of the product will be returned to them if they are not satisfied after using the product. For instance, a car worth Rs. 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. (vii) Performance Appraisal or Marketing Control: The management of a company can keep an effective check on the results achieved through sales promotion schemes, because it is in a position to analyse the costs incurred and the benefits derived. These activities are not aimed at immediate demand creation. They are known as techniques of sales promotion. Refund offer creates additional interest and increases sales considerably. There are four key sales promotion techniques that marketing firm use to build inters in a product or increases the sales of a product over a specific period of time. This develops faith and confidence in consumers about the product. “A sweepstakes does not call for the application of skill on the part of the consumer. Consumers who are strongly loyal to brands, or those who consider that collecting coupons is not worth the effort, are least likely to use coupons. Entertainment of Customers (when standardised product is sold in bulk lots). 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