A diverse collection of incentive tools, mostly short term, designed to stimulate quicker &/or grater purchase of particular products/services by consumers or the trade. The retailer takes decisions concerning the target customer, services, ambience within outlet, and the decisions concerning price, place and promotion. This is a method to “load” the consumer up with the product. Much depends on the ingenuity of promotion planner. Coupons are particularly attractive to consumers who are price sensitive. 3000 and the next lesser model is priced at Rs. It uses many tools as used in trade promotion and consumer promotion. Sales Promotion Contest: – Sales force contests are announced to stimulate company salesman to redouble their interest and efforts over a stated period with prizes to be the top performer. Among all the sales promotional devices, probably the most exciting and highly rewarding are the contests and sweepstakes. Sales promotion tools are used to support the sales personnel and to back advertisement process. Tools and programmes for dealer/distributor sales promotion. Companies can offer a car or consumer durables for generating a certain percentage sales in a particular month or quarter. All types of promotional activities are currently used by retailers in order to be differentiated in the market. The duration of contests and sweepstakes varies considerably, depending on the objectives set for sales promotion. All these sales promotion schemes work on the principle that few people can resist a free gift, price reduction or special offer. This is making the scheme attractive and challenging form the view point of this target group segment. The winners are decided in two stages. Contests and sweepstakes generate considerable interest and awareness, and can be used to gain large sales increases. The prizes were around 8000, the top prize being rupees ten million. (iii) Stimulation of Demand of New Product: Promotional activities are used to create interest in the new product and to persuade people to buy the same. (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. A gift for an order is a premium given to the retailer for buying certain quantities of goods or for special display done by the retailer. They are known as techniques of sales promotion. For examples, Big Bazaar issues coupons for selected items in their weekly flyers that are distributed via mail or along with newspapers. Similarly, sales promotion activities remind the people of the message advertised by the business firm. Refunds and Rebate – An offer by manufacturer to give back certain amount of money to consumer. These two examples present the use of the same method of sales promotion. 29. For this purpose, an entry form is designed and the consumer is asked to forward the entry form along with the cash memo of the product or wrappers, foils, etc. Experience shows that everyone concerned, consumers, trades people, and sales force, get a share of excitement when the contest or sweepstakes is well planned and executed. Supporting and supplementing the advertising and personal selling efforts. Sales promotion essentials : the 10 basic sales promotion techniques-- and how to use them. It includes every relationship which established among the people. The sales promotional devices at the point-of-purchase stimulate the customers to make purchase promptly on the spot. Dealers promotion methods are those which encourage dealers and distributors to buy and resell more and more quantity of the product. Important techniques of sales promotion are as follows: (1) Rebate: Under it in order to clear the excess stock, products are offered at some reduced price. Whenever the store-traffic increases, customers visiting the store not only buy promoted product, but some of them buy other products as well. Effective sales promotion techniques involve a lot of methods mixed together such as advertising, personal selling, direct marketing and public relations. Under this method, the product is sold and money is received on installment basis at 0% or without interest rate. Some sectors offer instant draws and assured gifts to their customers when they make purchases. The basic purpose is to stimulate on the spot buying by prospective customers through short-term incentives. 3-4 Marks Questions: Q.1 (Hots): Identify the Sales Promotion Technique in Following Situations: (I) Rs. A promotion of offering refund or rebate by a marketer is a promise to give back a certain amount of money after the purchase. Such contests are held through radio, T.V., newspapers, magazines, etc. 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). Display reaches consumers when they are buying and actually spending their money. For example- a 15 to 60 percent off on clothes before some festive season in retail shops are examples of sales or sales promotion. If more correct entries are received, the second stage then involves a draw of chance to decide the winners. A sweepstakes is a random drawing and is sometimes called a chance contest. Fourth step is to ensure the legal validity of the sales promotions schemes to be offered for customers and traders. How to choose your sales tools. The retailers are reimbursed by the manufacturer for the value of coupon redeemed and also paid a small percentage to cover handling cost. After the receipt of the proof, the marketer sends the premium to the consumer. These are known as tools or techniques or methods of sales promotion. Under these promotions… A price deal for customers means a reduction in the price of promoted product and the customer saves money on purchase. Sales promotional devices are the only promotional devices available at the point-of-purchase. Displays, trade fairs, exhibitions, and event sponsorship. A contest requires the participants to perform some task. 2640, and the customer may buy the higher end model. Free Samples 3. POP displays – (Point of purchase promotion) Right display at right place to attract consumers. 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. In order to increase sale, many producers introduce price off offer to the customers. Only products which are lacking in quality, or are not likely to be favoured by consumers, require sales promotion efforts. Promotion looks to communicate the company’s message across to the consumer. Sales promotion tools vary in their specific objectives. A firm can also use data revealing how its product compares with the other products. 6 Credit facilities. Sales promotion has a capability to complement and supplement the advertising functions of the marketing. Another variation of this technique is “buy-one-take-one-free”, or some similar offer (it could be “same for less” or “more for the same”). e. Samples given to professionals to recommended product; e.g., doctors by pharma Cos. 2. Full Finance @ 0% 10. 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). These are temporary price reductions, which appeal to bargain instinct. There is no precise answer, however, experts generally agree that discount should be at least 5% to 20% of the normal price. For example, if the price of a more expensive wristwatch is Rs. d. ‘Trial-size’ Salable Samples e.g., mini bottles or cartons of a product such as shampoo, offered at nominal prices at stores, Both retailers and consumers like this kind of promotion, Retailers like because they keep the profit while to consumers, it reduces the risk of trying new products. 8. Sales promotion acts as a bridge between advertising and personal selling. A variation of this offer, and more commonly observed, is when the marketer develops special packs of the product containing more quantity, but the price is proportionately low. Sales promotion shifts demand from one brand to another. Refunds are quite effective in competitive situation where consumers perceive little or no differentiation among brands. 10,000 in cash and Rs. Sales promotion techniques are known as promotion tools and the mode of their application is known as sales programme. 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 activity aims at attracting consumers to other or newer brands, seasonal and unseasonal goods. 2. In these contests, participants compete for prizes on the basis of their skill or creative ideas. The prizes seem to be much larger to contestants than the money spent by the sponsor. CODES (3 days ago) trade sales promotion examples - My Best Coupon Codes (6 days ago) (2 days ago) In a nutshell, trade promotion is a marketing tactic aimed at retailers by manufacturers, with the goal of increasing the demand for their products. All tools of sales promotion are fairly simple and can be reduce to twelve in number. Price Deals (Price-off, Price cut, Cents off). This benchmark should then be related to the market size and the potential estimated in market. For conducting the research, data was collected through simple random sampling of 100 respondents through descriptive research design technique. 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. For examples, Sensodyne Toothpaste meant for relieving tooth sensitivity is unique product introduced in India. It means offering a small quantity of a product free in order to persuade customer to try the product. These are usually aimed at increasing the performance of the sales persons. If advertising is related to “buy our product” then sales promotion is the representation of “buy the product now”. They are also known as Trade Promotion. Convention – By this the company gets many benefits like finding new sales leads, contacting customers, introducing new products, meeting new customers, selling more to present customers, and educating customers with publication and audio-visual materials. Price-Off Offer 4. Using sales promotions maturity stage of the product can be prolonged and the firm can generate more and more revenues. For example, during off season (winter), ceiling fans, coolers and refrigerators may be offered at 20 to 30% off price. Hence, firms offer incentive schemes to reward their loyal customers. The first part involves a contest in terms of skill, or knowledge. This is an example of a very clever sales promotion of a product, which is considered a commodity. viii. Sales promotion activities – effective tool of marketing communication Sales promotion techniques help in increasing the life span of the product during different stages of the product life cycle. It gives expected result. This method aims at stimulating the channel members to purchase additional quantities of stock that is over and above the normal stock, as the monetary incentive they receive is proportional to the amount of additional stock they purchase. Depending on the consumers’ value perception of the premium, the consumers may even be agreeable to purchase the product at a slightly high total price for the combination of the product and the premium. The outcome of this exercise will be the availability of desired information to set measurable an attempt and goals. sales promotion tools and its impact on customers buying behaviour with special reference to Rathi Build Mart, Raipur. It is helpful in the introduction of a new product. Some of the commonly used tools and techniques of sales promotion are:-, 1. The flexibility of sales promotion has the potential of being used by small and large companies, selling goods or services, and by profit and non­profit organisations. Promotion is an incentive tool used to drive up short term sales. Search. pen, dairy, calendars, key etc. roughly a ratio of 60:40 is maintained in dealing both of them. This creates confidence among the customers with regard to the quality of the product. We'll cover promotions to increase sales, to encourage repeat business, and to boost brand awareness. 2. Despite its recent widespread use as an important element of marketing campaigns, the essence of sales promotion … Samples are delivered at the doors of consumers. Counter, top racks, posters, mechanised signs are other point-of purchase displays. It refers to exchange of old product for a new product at a price less than the original price of the product. Especially when the concept is new, most people are hesitant to take risks. Advertising is defined as any form of paid communication or promotion for … 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. Usually, sales promotion deals with non-recurring and non-routine methods in contrast to personal selling or advertising. For example, if a customer buys toothpaste, he gets a toothbrush free. Sales Meetings and Conferences: – These are conducted by the manufacturers for the purpose of educating, inspiring and rewarding the salesmen and also to discuss their sales-related problems. 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). Rebate – It refers to selling of products at a special price which is less than the original price for a limited period of time. At the same time, competitiveness among retailers is booming. Henko detergent introduced scratch card scheme in which customers usually received discount coupons so that customers buy the same product (Henko detergent) again. Sales promotion helps remove the consumer’s dissatisfaction about a particular product, manufacturer, and create brand-image in the minds of the consumers and the users. To attract new customers distribute free sachets to households. The tools of sales promotion are employed primarily by two of the principals of marketing – the manufacturer and the retailer. Example—”Exchange your black and white television with a colour television.”. When the product is good but the brand share is low, a refund seems to work very well. Learn about:- 1. Promotion helps in letting the people know about the utility of the new products. Refund offer is limited only by the imagination of the promotion planner and the budget allocation. Tools Of Sales PromotionTo increase the sales of a product, theproducers or manufacturers use variousmeasures like free samples, bonus, etc. Both are components of a company’s marketing scheme will use to promote its products and services. Offer of a coupon is a very versatile technique and can be used to achieve many different sales promotion objectives. Gillette announced a refund offer. Die Gaming-PC's stehen an verschiedenen Schweizer Messen & Events im Einsatz … Samples are one of the most important tools of sales promotion. Tools and programmes for consumer sales promotion. So basically, these are different tools with purpose of encouraging consumers, dealers as well as the company’s sales force. by offering better customer service (take back goods, if not satisfied, free home delivery, order-on-phone, credit facilities, etc.) When retailers offer coupons of their own, they have to bear all the above mentioned costs themselves. A BIG discount/giveaway/prize – depending on your business type and audience, you could cut your prices or give away goods. It does not create new demand. Generally, the free gift is related to the product but it is not necessary. ii. POP material is often tied in with television or print messages to increase effectiveness. This dampens the competition for a while. These tools increase sales, introduce a new product to the market or meet competition challenges. These coupons are either advertised by producers/retailers in newspapers or distributed in weekly flyers via mail across households. A quick response is generated by using this promotion tool for sales promotion. Sales promotion is a type of Pull marketing technique. It increases sales and makes sales of slow moving products faster and stabilize fluctuating sales pattern. Such discounts may appear in newspapers, magazines, and television advertisements. Computer magazines often include a compact disc with each issue. 2 Advertising and promotional novelties. Coupons 2. Retailers may announces price discounts for a variety of reasons. Rapid growth: A decade ago, ad-to-sales promotion ratio was about 40:60, now is like 25:75 & growing. Sales Promotion Tools and Techniques – 12 Commonly Used Tools: Coupons, Free Samples, Price-Off Offer, Fairs, Exhibition, Free Gifts, Competitions and a Few Others. Producers/retailers may promise free service to consumers for a specified period of time after sales. xiv. -- Created using PowToon -- Free sign up at http://www.powtoon.com/youtube/ -- Create animated videos and animated presentations for free. Trade Sales Promotion Techniques-stimulate wholesalers and retailers to carry products and to market them aggressively. 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. Privacy Policy3. To add an element of extreme urgency and speed up the response, early bird prizes are announced for the first 25 to 50 or 100 entries. Advertisement Allowances/Materials, encouraging dealers and distributors to advertise products. Different combinations of prizes are evolving. Price discounts (also called cents-off deals) are communicated to the consumers through advertising, at the point-of-purchase by listing the reduced price on the package or signs near the product or window display, or by the sales people. Major Sales Promotion Tools Used By NestléBangladesh Ltd. Nestlé Bangladesh Ltd use two types of sales promotion: 1. xi. Such a deal is designed to stimulate customers to try a new product, to encourage new users to try an existing product, or to encourage customers to continue product patronage, increase purchase quantity, purchase multiple units, and accelerate usage rate, etc., such deals are suitable when the brand loyalty is low, product category is considered a commodity, and price is the primary consideration by the customers. Image Guidelines 4. These stamps are given free of charge and the customers can redeem them to obtain products out of the specified list. The same element of chance has been used in case of consumer durable product of high-involvement category. The two types of sales promotion tools consumer are as follows: A. (iv) Drives customer decision making – Limited availability offers can create a sense of scarcity in your customers that get them to act. 1. Akai offered a 14″ colour television on purchase of 21″ colour television. Such an offer acts as an incentive to stimulate short-term profit of the retailer and promote new products for the company. These tools increase sales, introduce a new product to the market or meet competition challenges. Under this, the seller offers premium to the buyer by way of supplying a gift along with the product or inside the product package. They are designed to create a good image of the firm in the society. 7. Every imaginable prize or reward is used to excite and attract customers to participate. Sales promotion methods include displays, demonstrations, expositions, exhibitions and other non-recurrent selling efforts that aim at impelling spot buying action by prospective customers. Trade Association Meetings, Conferences and. This is a fairly popular technique in cases of footwear, shirts, jeans, towels, and many other varieties of products. The major tools of sales promotion of industrial Products include: 1 Conventions and trade shows. (v) Creates word-of-mouth opportunities – Promotions can often get your regular customers a new reason to be surprised and delighted by your business which gets them to talk about your product to their friends; (vi) Creates training opportunities for staff – Promotions give a chance to train, prepare and re-engage the sales staff in what’s new in the business; (vii) Creates testing opportunities – Promotion gives a limited time window to test new ideas and new products and to measure them. Their interest is not tied up with any brand or manufacturer, unless there has been an agreement with the marketer of some co-operative venture. In local-convenience stores, the shopkeepers recommend certain products of commodity type, such as rice, flour, or cooking oil to consumers. 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. For instance, a car worth Rs. POP displays include window displays, wall displays, display racks, danglers, balloons, outside signs, etc. The intention is to increase sales, make a large customer base, encourage trial, encourage repeat purchases to stimulate consumers' purchase. Travel Agents and Sellers . This is useful for drawing attention to product improvement. As soon as the incentives offered under such schemes are withdrawn, the benefit in terms of increased sales may also vanish. These measures are called the tools or techniques of sales promotion. Making consumers to switch brands in favour of firm. Public relations activities strive for creating a good image of the enterprise in the eyes of the customers and the society. Competitions or Contests. 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. It is an allowance to trader for providing desired sales promotion and product display. 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