Account Disable 12. How to choose your sales tools. A judicious combination of techniques can be used to achieve almost any promotion objective. The retailer takes decisions concerning the target customer, services, ambience within outlet, and the decisions concerning price, place and promotion. ii. 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 … It refers to exchange of old product for a new product at a price less than the original price of the product. Die Gaming-PC's stehen an verschiedenen Schweizer Messen & Events im Einsatz … Supporting and supplementing the advertising and personal selling efforts. It includes tools for consumer promotion, trade promotion & business & sales force promotion. 5. It motivates sales force to give desire emphasis on new accounts, latent accounts, new products and new territories. This develops faith and confidence in consumers about the product. Generally correct entries, running in thousands, are received. Sales Promotion is one such strategy which is used by marketers to attract new & prospective customers towards their products and retain the existing ones. For example- ‘International Trade Fair’ held in New Delhi in November every year. Among all the sales promotional devices, probably the most exciting and highly rewarding are the contests and sweepstakes. xvi. Dealer sales promotion provides the selling devices. Sales promotion includes techniques like free samples, premium on sale, sales and dealer incentives, contests, fairs and exhibitions, public relations activities, etc. Indian companies using this method are – Proctor and Gamble, Nestle and Parle. A producer of branded wheat flour, “Shakti Bhog Atta”, announced an interesting promotion. To make the contest or sweepstakes more tempting, there may be more than one winner of first prize (such as 10 first prizes for ten lucky winners). Some sectors offer instant draws and assured gifts to their customers when they make purchases. Middlemen are usually required to show the proof of the advertisement carried out by them. Discount induces the customers … 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. Fourth step is to ensure the legal validity of the sales promotions schemes to be offered for customers and traders. 3. 10,000 in cash and Rs. In the demonstration method, the technical experts or sale demonstrators are sent to various customers to induce them to buy the product. The premium may be free or available to the consumer by paying a price well below the regular market price. It is a method of offering a discount offering. Sales contests are held for salesmen. These are held to stimulate consumer’s interest in the product. Stamps are issued at predetermined percent rate of the purchase amount. These coupons are either advertised by producers/retailers in newspapers or distributed in weekly flyers via mail across households. The offer may be for a product purchase alone or in combination with other products. In case of money refund, the customer receives a specific amount of money (refund) after he submits a proof of purchase to the manufacturer. The duration of contests and sweepstakes varies considerably, depending on the objectives set for sales promotion. 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. Disadvantages of Sales Promotion. Such slogan centres around the questions as to the liking of a customer for the product, or formulation of new advertising idea for the product. Coupons are the most widely used customer sales promotion technique. Although a few of the elements are used in common by each, for the most part the needs of the retailer differ from those of the manufacturer. Consumer-oriented Promotion Tools B. Trade-oriented Sales Promotion. So, the methods of sales promotion can be divided in three groups as consumer, promotion, middlemen/trade promotion and sales-force promotion. (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. This appears to build brand loyalty rather than diminish it. This technique is often used to introduce a new large size of the product, or to encourage continued usage, and also to increase consumption. Business and Sales force promotion tools– These are directed towards the company’s sales force so that they put in extra effort in making sales. The prizes seem to be much larger to contestants than the money spent by the sponsor. Samples – Small quantity, sometimes free of cost or sometimes at minimum price, sent door to door personally or through mails or with other products etc. In case of consumers sales promotion programme, an attempt is made to reach the consumer at his home or at a retail store. Contests and sweepstakes generate considerable interest and awareness, and can be used to gain large sales increases. Consumer-oriented Promotion Tools B. Trade-oriented Sales Promotion. Just buy a scooter, scratch a card and win a sure prize. In these situations the refund offer is being used to encourage trial at no risk to the customer. In such cases, promotional activities are conducted to induce the dealers to keep a large stock with them. This will help to figure out whether they warrant additional investment of time and money to make them permanent products or services; (viii) Grows revenue – Sales promotions are a great way to build year-over-year and month-over-month revenue growth. It encourages trade cooperation and stimulates repurchase. In case the coupons happen to be related to some current fashion or fad, then younger, middle-income individuals are likely to be attracted. These include greetings or thanks in newspapers, donating space for noble causes, offer of Privileged Citizen Card, etc. Trade promotion can persuade the wholesaler, retailers or distributor to carry a brand, advertise or give a shelf space to the products of a particular company. When retailers offer coupons of their own, they have to bear all the above mentioned costs themselves. Coupons generally attract older, better educated, urban, middle-income families. The premium is likely to offer a reason and an incentive to buy the product. Skip to content. A BIG discount/giveaway/prize – depending on your business type and audience, you could cut your prices or give away goods. 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. Conventions displaying their wares to large audiences at relatively low cost. iv. Privacy Policy 9. a. When consumers do not perceive any meaningful persuasive differentiation between brands and the market is competitive, such promotions work very well. Trade incentive could be price off, free goods and allowances. Tools and Programmes 9. Various tools of sales promotion, also known as methods of sales promotion may be divided into two parts – (i) Consumers Pro­motion Methods (ii) Dealer Promotion Methods. For instance, the buyer of two cakes of a branded soap may be refunded Rs. The same element of chance has been used in case of consumer durable product of high-involvement category. In such a case the objective would be to encourage shopping at a particular store and buy a certain manufacturer’s brand. But it does not include advertisement, publicity and personal selling. Such discounts may appear in newspapers, magazines, and television advertisements. Under these promotions… roughly a ratio of 60:40 is maintained in dealing both of them. Each pack of flour contained a coupon with certain half-word or one-third word printed on it. In-mail premiums do not provide an immediate reward at the time of purchase. Money Back Guarantee – Producers guarantee that if their product does not meet certain standards, consumers can return the product and get their money back. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. 6. 5 on returning the empty packages to the dealer. Planning 6. xiv. Let us know more about some of the commonly used tools of sales promotion. Marketers employ a remarkable variety of sales promotion tools in marketing. The customer has to send back the product within a specified period of time. programme. Various tools of sales promotion, also known as methods of sales promotion may be divided into two parts – (i) Consumers Pro­motion Methods (ii) Dealer Promotion Methods. 350 on sending one- year subscription, which the customer can use to purchase special issues of the magazine. It is a “push strategy” and encourages the channel members to stock the product. The list apparently appears to be short, however, considering the possible combinations, the figure reaches to about eight million different approaches. In certain case all those who furnish the proof-of-purchase are given some specified premium. Coupons – A certificate that gives buyers a saving when they purchase specified products. For examples, Sensodyne Toothpaste meant for relieving tooth sensitivity is unique product introduced in India. 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. 1. TOS4. Major Sales Promotion Tools Used By NestléBangladesh Ltd. Nestlé Bangladesh Ltd use two types of sales promotion: 1. The products are generally banded together physically, or put together in a blister pack, such as razor-and-blade, toothpaste and tooth-brush, or a smaller size of the same product may be attached to the regular size. This is achieved by providing special varieties of goods (Liberty showrooms at Connaught Place and other places in Delhi provide different varieties, shapes, styles, colours, etc.) They are known as techniques of sales promotion. Trade Shows – Trade shows are a great sales promotion strategy where the business promotes its product to thousands of traders in the trade show. Patronage reward – Cash or gift, for the regular use of a particular product of the company like privilege card membership given by the company to the regular user of the products. The number of stamp given to a buyer depends upon the amount of purchases made by him. For this he has to send the proof of purchase (e.g., cash memo and wrapper) to the manufacturer to claim the gift which might be a diary or book or any other item. When coupons are offered by the manufacturer all the costs associated with advertising and distributing the coupons, redeeming their face values, and paying retailers a fee for handling, are borne by the manufacturer. Such an offer acts as an incentive to stimulate short-term profit of the retailer and promote new products for the company. Benefits 10. Exchange Schemes. 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. POP material is often tied in with television or print messages to increase effectiveness. Trade Sales Promotion Techniques-stimulate wholesalers and retailers to carry products and to market them aggressively. The assurance given to customers is that if the product is not liked after usage for any reason, total money will be refunded or the customer will have the option to buy any other product of choice. More often discounts are offered to match or beat the competitor’s prices. Sales promotion has two components consumer promotion and trade promotion : Consumer promotion is for the common customer, this promotion is supported by advertisements, publicity, direct selling etc. Trade Association Meetings, Conferences and. Important promotion tools in dealer sales promotion. Getting a printer free with the purchase of a computer, or getting a bar of detergent free with the purchase of four cakes of toilet soap, or getting a Swiss knife well below the market when the consumer purchases a microwave oven, are typical examples of premium. Displays, trade fairs, exhibitions, and event sponsorship. ‘Readers Digest’ regularly makes this offer. Samples are one of the most important tools of sales promotion. (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. 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. Computer magazines often include a compact disc with each issue. xiii. Producers use sales promotion techniques to encourage resellers to carry their products and to promote them more effectively. For example, if a customer buys toothpaste, he gets a toothbrush free. To attract new customers distribute free sachets to households. It is also different from advertising. Sales promotion tools vary in their specific objectives. This is useful for drawing attention to product improvement. This method may be used in products like washing machine. The four main tools of promotion are advertising, sales promotion, public relation and direct marketing. (Ii) 50% Off on All Items During a Stock Clearance Sale. are made available in special containers which could be reused in kitchens after the product has been consumed. iii. iv. There are many varieties of premiums and are sometimes referred as direct premiums and mail premiums. Uploader Agreement. These are part of Interest promotions because such sales promotions create not only interest but also produce excitement and enthusiasm in consumers. 3. They are also known as Trade Promotion. 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. Premium offers provide a point of difference, more so when the product category is fairly crowded. Sales promotions are those activities, other than advertising and personal selling that stimulate market demand for products. For example, Maruti announced a gift cheque of Rs. Sales promotion activities – effective tool of marketing communication 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.”. Generally, the free gift is related to the product but it is not necessary. Terms of Service 7. 3-4 Marks Questions: Q.1 (Hots): Identify the Sales Promotion Technique in Following Situations: (I) Rs. 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. Dealers promotion methods are those which encourage dealers and distributors to buy and resell more and more quantity of the product. 7. Report a Violation 11. Anyone who is an entrepreneur needs to know that they must use advertising and promotions to be successful. 55.50 off on Gillette Sensor excel. For example- milkshake along with Nescafe, toothbrush along with a toothpaste. Advertising Novelties, that is, small, interesting or personally useful items, low cost, and eye catching can be used for sales promotion. These samples may be distributed door-to-door (through personal selling) or retail stores. The retailers serve as the agents of manufacturer in accepting and redeeming the coupons and send the collected to the concerned manufacturer along with their claims of reimbursement. 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. Some of these promotions appear in audio-visual or print media. Sales promotion devices at the point of purchase inform, remind, and stimulate buyers to purchase products. Coupons bear a date of expiry and cannot be redeemed after the cutoff date. A quick response is generated by using this promotion tool for sales promotion. The major tools of sales promotion of industrial Products include: 1 Conventions and trade shows. Eighth step involves evaluation of effectiveness of sales promotion in the context of the goals. It is a kind of offer of a refund of money to customer for mailing in a proof of purchase of a particular product, it induce trial from primary users and motivate several product purchase. This type of refund policy builds store loyalty among consumers who continue the patronage. 7. There is plenty of variety, flexibility, and motivation to action. Trade shows, fashion shows or parades, fairs and exhibitions are important technique/tools of sales promotion. The range covers low as well as high-involvement products. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. 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. 2. Price deals (price-off, price-cut, cents-off, denote the same thing), iii. 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. Sixth step cover the development and evolution criteria in relation to sales to be achieved cost effectiveness and turnover of promotion. These are instructions given to aware the consumers about using the product. Advertisement Allowances/Materials, encouraging dealers and distributors to advertise products. A discount coupon is a certificate that entitles its holder to a specified saving on the purchase of a specified product. This is due to managers need to increase sales (inte… Under this method, the product is sold and money is received on installment basis at 0% or without interest rate. Coupons originating from the manufacturers are redeemable at any retail shop that carries the promoted product. Booster for Dealers – For example, Telco offered 2% discount to dealers if payments, made upfront to reduce mounting inventories and boost sagging morale of dealers. Types of Programs 7. As the distribution of samples is very costly, this system is confined to those products of small value which have often repeated sales. 30,000 in 12 equal instalments of 2,500 each by post-dated cheques and get a bike on the spot.” This tool of promotion misleads the customers and so should be avoided by the marketers. The seller determines the number of installments in which the price of the product will be recovered from the customers. The customer does not get any benefit at the time of purchase, rather he gets it through mail. Samples are delivered at the doors of consumers. For example, giving a rebate by a car manufacturer to the tune of 12,000/- for a limited period of time. Despite its recent widespread use as an important element of marketing campaigns, the essence of sales promotion … As a matter of fact, sales promotion activities aim at supplementing and co-ordinating personal selling and advertising. There can be more than one community in a society. Free Goods – An attractive coffee mug free with a pack of 200 gms. Share Your PPT File, Sales Promotion Tools and Techniques – 2 Important Methods: Consumers Promotion Methods and Dealer Promotion Methods, Sales Promotion Tools and Techniques – Consumer Promotion Tools, Trade Promotion Tools and Business Promotion Tools, Sales Promotion Tools and Techniques – 12 Commonly Used Tools: Coupons, Free Samples, Price-Off Offer, Fairs, Exhibition, Free Gifts, Competitions and a Few Others, Sales Promotion Tools and Techniques – Price Deals, Price Pack Deals, Refunds and Rebates, Coupons, Sweepstakes, Premiums, Sampling, Continuity Plans and a Few Others. Free samples are small and packaged portion of the (main) merchandise distributed for free. xii. 8. 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. The first example presents the use of ‘chance’ in case of a consumer non-durable, which is a low-involvement category product and there is hardly anything like brand loyalty. The offer was valid for a month only. The basic purpose is to stimulate on the spot buying by prospective customers through short-term incentives. Khadi Gram Udyog offers rebates on Khadi cloth and readymades to coincide with the month of Gandhi Jayanti every year. 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. Following are the objectives of sales promotion: i. Sales promotion includes techniques like free samples, premium on sale, sales and dealer incentives, contests, fairs and exhibitions, public relations activities, etc. The promotion planning shows how effective the sweepstakes can be in increasing the sales, and block competition. Search. They are interrelated in the sense that they are integral parts of the ‘promotion mix’ of the business. Privacy Policy3. People who see these devices are in a buying mood and thus they can be easily persuaded to buy those products. Direct premiums are used to reward the customers immediately at the time of purchase, and mail premiums require the customers to take some action, such as mailing the proof of multiple purchases to the marketer. This benchmark should then be related to the market size and the potential estimated in market. On one coupon would be ‘SA’ the other two coupons should have ‘NT’ and ‘RO’, thereby completing the word Santro and entitling the consumer to win a Santro car by submitting the three coupons. Keywords: Sales promotions tools, Consumer buying behavior, Purchase decisions, Marketing Introduction Retail market is growing in a high velocity environment all over the world. Tools Of Sales PromotionTo increase the sales of a product, theproducers or manufacturers use variousmeasures like free samples, bonus, etc. It is a good device for creating new user and to strengthen the brand loyalty. 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. To increase sales of any product, producers adopt different measures like distributing samples, gifts, coupons, bonus, etc. Refunds and Rebate – An offer by manufacturer to give back certain amount of money to consumer. 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. This is a method to “load” the consumer up with the product. Everything you need to know about the tools and techniques of sales promotion. 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 coupon is a certificate that offers a price reduction for some specified items to the holder. Price discount generally do not stimulate consumers to buy a product in large quantities if the unit value is low, product is not bulky, and the holding cost is not high. 2640, and the customer may buy the higher end model. Full Finance @ 0% 10. Free literature can be distributed to introduce the firm and its products to the public. Trading or Bonus stamps are issued by retailers to customers who buy goods from there. Point Of Purchase Displays – This includes providing free point of purchase (POP) display units to the retailers to increase their sales. Scratch and Win Offer 11. For examples, Big Bazaar issues coupons for selected items in their weekly flyers that are distributed via mail or along with newspapers. xvii. Image Guidelines 4. Before looking at the tools and techniques of (CSP) let us look at some of its specific goals: a) Encourage trial: Most new products fail because too few people try the product or because trial does not lead to repeat purchase. The basic purpose of sales promotion is to increase the sales of a product by creating demand. 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. 3. There is a wide range of statistical analysis techniques and tools but only a few of them can be used for market analysis. It also tells them how the concerned products will be helpful in satisfying their specific demands. Rapid growth: A decade ago, ad-to-sales promotion ratio was about 40:60, now is like 25:75 & growing. 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. Special Rebate 9. 4 Free trials. All these sales promotion schemes work on the principle that few people can resist a free gift, price reduction or special offer. and may soon be forgotten. The combination of these tools with a view to maintain and create sales is known as promotion mix. a. In-Pack, On-Pack, and Container Premiums: These various terms for premiums are primarily used to distinguish the difference in methods of rewarding the consumers. A customer was required to buy a pack of & 7 O’clock P II for Rs. 11. Sales promotion directed at the consumer offers a reason for trying the new offering. Too much dependence on sales promotion techniques gives the impression in the mind of customers that perhaps the product falls short of quality and is not saleable. Prohibited Content 3. Sales promotion may take any or all of the three forms – consumer promotion, trade promotion and sales force promotion. The purpose is to increase customer loyalty. Consumer promo­tion methods are those which directly encourage consumers to buy product in more and more quantity. ix. The best example of this is the frequent flyer scheme offered by airlines. Sales promotion tools used for consumer-oriented promotion are – Free Samples: Distributing free samples increases brand awareness and triggers the psychology of ownership where the person … Community smaller than society. Entertainment of Customers (when standardised product is sold in bulk lots). It means exchange of an old product with the new one after payment of the exchange price fixed by the manufacturer. 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. It is very common that big business enterprises convey their greetings and thanks to the people through newspapers and other media. 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. Coupons are particularly attractive to consumers who are price sensitive. Rebate offer is given for a limited period only, for example, Coca cola offered 2 litre bottle at Rs. There is a subtle difference between these two terms. Travel Agents and Sellers . One of the most crucial challenges for any type of business is to collect an in-depth understanding of the market. In most cases the structure represents a typical pyramid, that is there is a bumper prize of very high value. No final date of promotion closing was announced. Especially when the concept is new, most people are hesitant to take risks. When a buyer gives a coupon to the dealer or retailer he gets the product at lower price. 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. Marketers use this technique when they use new distributors or they want to push products to retailers. Both are components of a company’s marketing scheme will use to promote its products and services. Here the focus is more on the wholesalers and retailers as compared to the consumers, i.e. These are also offered to retailers to popularise the product and brand name of the manufacturer. The Sales Promotion tools are directed towards Consumers (Consumer promotion tools), Dealers or middlemen (Trade promotion tools), and Sales force. The tools of sales promotion are employed primarily by two of the principals of marketing – the manufacturer and the retailer. It attracts channel members to participate in manufacturer promotion effort. Every imaginable prize or reward is used to excite and attract customers to participate. Zusammen mit Promotion-Tools sorgen wir dafür, dass High-End Gaming-PC's von HP ohne Komplikationen und Umwege den direkten Weg dorthin finden, wo sie zum Einsatz benötigt werden. The pack contained four cakes of soap at the price of three). Tools or Techniques used for sales promotion: i. For example- few car retailers offer free servicing for the first 6 months if certain car components are damaged or are under performing. 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. Price-packs are also called value-packs. Gets Rs methods or tools of sales promotion technique in cases of footwear, shirts jeans... Such schemes are fictional, and win a sure prize ” of promoted product rewarded. Fixed by the manufacturer and the customer gets Rs with television or print messages to increase the promotions! 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