The offer consisted of Philips TV, two-in-one, iron, mixer-grinder, and rice cooker at an attractive price. Disclaimer 9. This promotion immediately follows another type of deal offered to resellers and offered some incentive for new purchases. Sales Promotion Tools and Programmes: Sales promotion techniques are known as promotion tools and the mode of their application is known as sales programme. Sales Force Promotion Methods: Sales force promotion schemes are necessary to increase sales. This helps consumers and also the dealers as they are required to stock the product because of a possibility of increase in demand. Training and sale techniques coaching given to the dealers staff free of charge. (Kindly see chapter - Promotion Mix... What are the different Sales Promotion tools? The advertisement specified that the offer was open only up to a particular date. Explain difference between wholesaler and retailers and their types. Content Filtrations 6. CONSUMERS PROMOTION TOOLS 6. Sales Promotion Schemes. 6) Point-of Purchase displays – The customers are exposed to company’s product at the POP to ensure its awareness to maximum people visiting the store. 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 … When the manufacturer realizes that after the initial deal the inventory levels at the … C. Companies that use sales promotions usually do not use any other promotional mix tools. B.The growing use of sales promotion has resulted in promotion clutter. Salesforce promotion techniques. 8. Sales promotion is generally defined as those marketing activities that provide extra values or incentives to the sales force… In general, some of the commonly used consumer-oriented promotion tools are as follows: In this case, small units of free samples are delivered door to door, sent through direct mail, attached to another product, or given along with the purchase of some other product (e.g., soaps, soft drinks, detergents or other items). The company also gives out gifts like wallets, calendars, diaries, etc. Manufacturers sign contracts worth millions or even billions in international trade shows. Along with the trophy, the dealer may get a special gift such as a sponsored tour within or outside the country. 2. These promotions include contests and incentives, trade allowances, displays and point-of-purchase materials, sales training programs, trade shows, and co-op advertising. Unify marketing, sales, service, commerce, and IT on the world's #1 CRM. 9) Frequency program – The consumers are rewarded for making the purchase of the product regularly. Sales promotion is generally defined as those marketing activities that provide extra values or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales. The consumer-oriented promotion tools are aimed at increasing the sales to existing consumers and to attract new customers to the firms. The tools for sales force promotion are: (i) Bonus: This is an incentive given to the sales people to sell more products to cross the quota or targeted sales. For example, Washotex came up with a scheme to pay 20 per cent now and take home Washotex washing machine. Some of the important trade-oriented promotion tools are as follows: It can be in the form of one extra case for every five cases ordered, cash discounts or straight cash payments to encourage volume sales, product display, or in support of a price reduction to customers. SAMPLES Offer a trail amount … Philips came up with five-in-one offer. “Marketing Management” Sales Force and Promotion Prepared by: Jonah C. Pardillo 2. These tools are unique in their way and directed differently to these three groups. The sales promotion tool that critics contend is most guilty of detracting from brand equity and at the same time being detrimental to a brand franchise is: trade promotions. It is common during festival season or during off-season period. Free samples are normally provided during the introductory stage of the product. Improve your sales processes with the time-saving sales tools from Sales Cloud. For example, attaching a sample of a shampoo sachet with a bottle of a beauty lotion. 11) Contests, games, sweepstakes (Prizes) – These are opportunities for the buyers to win cash, trip, or a product when making a certain purchase. Image Guidelines 5. The old product’s exchange value is deducted from the price of the new product. Trade-oriented sales promotion programmes are directed at the dealer network of the company to motivate them to the sell more of the company’s brand than other brands. Content Guidelines 2. Contact Us | along with a purchase. Copyright 10. 2) Dealer contests – Dealers with maximum sales or window display are rewarded. A firm may organize dealer conferences. Some firms take back partly or wholly the unsold stocks lying with the retailers, and distribute it to other dealers, where there is a demand for such stocks. These tools and programmes are divided under two heads: 1. This sales promotion tool is used by several companies for consumer durables. Consumer promotions are directed towards the consumer and are strongly prevalent in the FMCG category. What are the Key TQM (Total Quality Management) concepts and tenets? Explain Sales Promotions and its objectives for buyers, middlemen, and sellers (sales force). 10) Free trials – Potential buyers are invited to try the new product for free. New Product Development Product and Product Strategies, Sales Force Management (Personal Selling), The Super Customer and Customer Relationship. There are three types of sales promotion strategies’. Sweepstakes refers to submitting names for a draw – lucky draws. Sales Cloud offers a full range of sales software tools sales teams can use to close more deals, faster: Salesforce CPQ and … After getting the right numbers, the consumers win a prize. When Campbell Soup … Plagiarism Prevention 4. Home » Advertising and Sales Promotions » What are the different Sales Promotion tools? It is also called a pull strategy. Company’s also do door-to-door demonstrations as not all the people visit stores regularly. Tools and programmes for consumer sales promotion. Different sales promotion tools are used to accomplish different objectives. TOS 7. Salesforce promotion techniques are used to motivate salespeople to put in more efforts to increase sales, increase distribution, promote new or seasonal products and build up morale and enthusiasm of Salesforce. 4. What are the retailers, their types, and describe their functions? Consumer-oriented Promotion Tools B. Trade-oriented Sales Promotion. A.Sales promotions offer long-term incentives to buy a product. 7) Demonstrations – Demonstrations are done at retail stores and malls. Sales Promotion decisions follow the framework set for the steps decided on promotion activities as part of market planning. What is the importance of data in marketing? Sales Force and Promotion 1. For example, a free sample encourages consumer trials; a free management consultancy service strengthens wholesalers’ … What is promotion mix? The dealers can also provide valuable suggestions to the company at such conferences. The Sales Promotion tools are directed towards Consumers (Consumer promotion tools), Dealers or middlemen (Trade promotion tools), and Sales force. 1) Free samples – The manufacturer offers free samples to consumers in various ways doing door-to-door visits, at retail stores, malls, attached to another product, etc. Marketers employ a remarkable variety of sales promotion tools in marketing. Push, Pull or a combination of the two. To make salesman’s efforts effective, some of the tools of the salesmen-oriented sales promotion are as follows: – Bonus to Sales Force: A quota of sale is fixed. For example, buy one get one free, book a flat with no EMI for first year, etc. Tools and programmes for dealer/distributor sales promotion … What is the difference between Business buying and Consumer buying (individual Buying)? Sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople Include many of the same tools used for consumer or trade promotions Conventions and trade shows – Help vendors find new sales … Report a Violation, Sales Promotion: Meaning, Definition, Objectives and Importance of Sales Promotion, Sales Promotion: Important Kinds of Sales Promotion, Top 10 Role of Advertising in Promotion of a Product. Privacy Policy 8. 3) Sales promotion letters – Sent to buyer’s homes and offices giving information on promotion activity or information on the products. The chief tools of sales promotion are discounts ("sales"), distribution of samples and coupons, the holding of sweepstakes and contests, special store displays, and offering premiums and … It is also known as push strategy, which is directed at the dealer network so that they push the brand to the consumers by giving priority over other competitor brands. The aim is to ensure the customer doesn’t switches brand. One has to communicate with the consumer through advertisements and POPs at the retail level. Sales promotion is generally defined as those marketing activities that provide extra values or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales. Consumer level sales promotional tools are: (i) Consumer contests with prizes (ii) Price-off deals (iii) Purchase price refunds (iv) Coupons (v) Samples (vi) Premiums or gifts – (a) With-pack premium (b) Reusable container (c) Fre… In this case, the customer exchanges the old product for a new one. Consumer Preferences towards Western Origin Fast Foods in Urban India. 13) Promotion along with other brands – Two or more manufacturers advertise each other’s products. 4. These can be quiz contest, beauty contest, etc. The organisations sometimes asks to submit the old product manufactured by them, but sometimes, the exchange rolls over to a product from any brand. How Marketing and Human Resources benefit each other? Sales Promotion —marketing activities that provide extra value or incentive to the sales force, distributors, or the ultimate consumer and can stimulate immediate sales. The consumers were offered the facility of paying the balance in 24 equal monthly installments. The coupons may be mailed or enclosed along with other products, or inserted in a magazine or newspaper advertisement. Explain the factors that affect promotion mix or marketing communication mix. For instance, the Hawkins pressure cooker manufacturer announced an attractive price reduction, up to Rs.150 off, on a new Hawkins in exchange for any old pressure cooker. It requires a substantial media budget over and above the freebies. Privacy Policy. These help in introducing a new product, encourage trials, etc. Outside Sales Representative NFIB is the leading advocate for small business, with offices in Washington, D.C…-$80,000 average first year earnings; 25% of our outside sales force makes a 6-figure income Full … Sales pro­motion is generally broken into two major categories—consumer-oriented and trade-oriented activities. What is Brand Loyalty and steps to increase Brand Loyalty? 4) Coupons – These are certificates by which a buyer can buy a product at a reduced price. For instance. Sales promotion directed towards the sales people is referred to as sales force promotions. SALES PROMOTION OBJECTIVES CONSUMER PROMOTIONS TRADES PROMOTIONS SALES FORCE PROMOTIONS 5. These tools are unique in their way and directed differently to these three groups. These schemes are intended to motivate sales people to put in more efforts to increase sales, increase … Sales promotion tools used for consumer-oriented promotion are – Free Samples: Distributing free samples increases brand awareness and triggers the psychology of ownership where … Disclaimer | The dealers may be given information of the company’s performance, future plans, and so on. This involves offering price reduction or saving to customers on the purchase of a spe­cific product. The bonus is paid on … The purpose is to gain new customers or enter into a new market. Sales promotion tools for consumers (Consumer promotion tools) – These gifts carry the company’s logo and name. Sales promotion is generally broken into two major categories: consumer-oriented and trade-oriented … 1.Consumers promotion Sales promotion means are directed to make the current consumers increase the use of products and attract new consumers. It draws the customer to the company’s brand and encourages customers to buy the product before they leave the store. So basically, these are different tools with purpose of encouraging consumers, dealers as well as the company’s sales force. 2) Exchanges – Customer are asked to submit the old product and a new product is offered at a new price. 3) Services to dealers – Manufacturers help in designing and arrangement of the goods in the store. These help the manufacturers come in direct contact with the buyers. For instance, a famous sports personality may be hired to provide autographs to customers visiting a sports shop. 1) Attractive terms of sale – take back offers, business on credit facility, price discount or allowance like free or extra units of the product to encourage the store manager to run the brand’s promotions. It is very stimulating short-term sales, especially when the discount provided is genuine one. What are challenges before the managers in handling team members? The Sales Promotion tools are directed towards Consumers (Consumer promotion tools), Dealers or middlemen (Trade promotion tools), and Sales force. The two types of sales promotion tools consumer are as follows: A. Cash refund offers are rebates allowed from the price of the product. Trade sales promotion is a promotional inducement directed at retailers, wholesalers, or other business buyers to arouse instantaneous sales. The consumer can take the benefit of promotion tools either from the manufactures or from the dealer, or from both. SALES PROMOTION: - Consists of a diverse collection of incentive tools… Cash refund offer. It is also called pull strategy. The consumer-oriented promotion tools are aimed at increasing the sales to existing consumers, and to attract new customers to the firms. Premium offers are used by several firms selling FMCG goods such as detergents, soaps and food items. It is a special incentive given to the dealer in the form of cash or in kind to push and promote the sale of a product, especially a newly launched product. It refers to reduction in price on a particular item during a particular period. 12) Product warranties and guarantees – The manufacturers make a promise to the buyer that the product will be repaired free of cost, replaced, or money refunded if it doesn’t performs as promised for a certain period. 8) Gifts or Premium – Products are offered free or at a low cost for buying a particular product. Along with this, consumer-oriented sales promotion … Before publishing your articles on this site, please read the following pages: 1. All these sales promotion … Consumer-oriented Promotion Tools B. Trade-oriented Sales Promotion. Consumer-oriented Promotion Tools B. Trade-oriented Sales Promotion. Many consumer durables such as refrigerators and cars are sold on installment basis. Some of the important Trade-Oriented promotion tools are as … For example, sales people at malls and retail stores demonstrate perfumes, cosmetic products, small electronic items, etc. So basically, these are different tools with purpose of encouraging consumers, dealers as well as the company’s sales force. These can be extra quantities of the same product at the regular price. Prohibited Content 3. The marketers need to choose the right sales promotion tool to reach its audience. For example, new cola, flavoured packaged water, etc. Some firms may institute a special trophy to the highest-performing dealer in a particular period of time. Below are the major promotion tools directed towards consumers –. Sometimes consumers get a chance to take part in games like bingo numbers, letters, etc. The two types of sales promotion tools consumer are as follows: A. Explain Personal Selling and the role that professional sales people play. These are mailed, accompanied with other products, with newspapers or magazines, or even direct mail. So, the methods of sales promotion can be divided in three groups as consumer, promotion, middlemen/trade promotion and sales-force promotion. Sales promotion tools for consumers (Consumer promotion tools) – In this case, consumers initially pay smaller amount of the price and the bal­ance amount in monthly installments over a period of time. A push promotional strategy makes use of*a company’s sales force and trade promotion activities to create … For example, most of the mobile phones are sold with exchange offers for any brand on the ecommerce site – Flipkart. The two types of sales promotion tools consumer are as follows: A. Explain the promotion tools, or elements of promotion mix. For instance, Colgate offered 125 g in a tube for the price of 100 g. This type of promotion is used to attract the greater number of customers in a store and to promote sale of a particular item. 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