Under this scheme, a customer scratches a specific marked area on the package of the product and gets the benefit according to the message written therein. Advertising Novelties, that is, small, interesting or personally useful items, low cost, and eye catching can be used for sales promotion. xi. Rebate offer is given for a limited period only, for example, Coca cola offered 2 litre bottle at Rs. Premiums are generally given in the case of customer convenience goods such as packed tea leaves, blades, tooth-pastes and toilet soaps. One of the most crucial challenges for any type of business is to collect an in-depth understanding of the market. It means exchange of an old product with the new one after payment of the exchange price fixed by the manufacturer. It improves the performance of middlemen and acts as a supplement to advertising and personal selling. For example – a silver tray to display a product. 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. Sales promotions are those activities, other than advertising and personal selling that stimulate market demand for products. These items attract the attention of a customer and inform him about the product. 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. Sales promotion essentials : the 10 basic sales promotion techniques-- and how to use them. (iv) Drives customer decision making – Limited availability offers can create a sense of scarcity in your customers that get them to act. 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. 50 and the quantity contained in the pack is 100 gms. 5 Free training. POP material is often tied in with television or print messages to increase effectiveness. Producers/retailers may promise free service to consumers for a specified period of time after sales. Making consumers to switch brands in favour of firm. CODES (12 days ago) trade sales promotion examples - My Best Coupon Codes. Displays, Trade Fairs, Melas and Exhibitions in different parts of country. Plagiarism Prevention 5. Second step deals with the identification of the alternative schemes, and the selection of the most appropriate sales promotional schemes, these schemes should match with the budget. Sales contest – It involves salesmen or dealers to motivate them to increase their sales performance during a given period, with prizes going to those who did best. Sales Promotion Techniques Targeted To Traders. These measures are called the tools or techniques of sales promotion. For example, woolens are put on discount at January-end each year, the end of the winter season. Hence, firms offer incentive schemes to reward their loyal customers. Retailer-originated coupons are redeemable only at a particular store or a group of stores (for example, a chain store having many outlets). Middlemen are usually required to show the proof of the advertisement carried out by them. If advertising is related to “buy our product” then sales promotion is the representation of “buy the product now”. When consumers increase purchase quantity, they carry more stocks of the product and stay out of markets. In this method there is temporary price reduction and reimbursement of expenses incurred by the dealers in full or in part. It also tells them how the concerned products will be helpful in satisfying their specific demands. Advertisement Allowances/Materials, encouraging dealers and distributors to advertise products. 3. The prizes, depending on the announced number of prizes, are declared. (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. It includes tools for consumer promotion, trade promotion & business & sales force promotion. 4. x. These techniques are discounts and deals, increasing industry visibility, price– based consumer sales promotion and attention– getting consumer sales promotion. Sellers give buying allowance of a certain amount of money for a product bought. (Iii) Free Mug With Horlicks. Free samples are small and packaged portion of the (main) merchandise distributed for free. Concept and Nature of Sales Promotion 2. Demonstration at retail stores, fairs and exhibitions or (Demo) even door-to-door. Discussion in the tutorial on sales promotion looks at how contests, sweepstakes and games can be effective short-term consumer promotion. (ii) Sweepstakes – Calls for consumers to submit their names for draws. iii. 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. Full Finance @ 0% 10. These are all different approaches to offer immediate reward to the consumer at the time of purchase. are made available in special containers which could be reused in kitchens after the product has been consumed. Sales Promotion is one such strategy which is used by marketers to attract new & prospective customers towards their products and retain the existing ones. Under this, the product is offered at a price lower than the normal price. From company’s point of view, shelf space is so important that if it is provided by the wholesaler or retailer to a particular product or company the consumer will buy it. These two examples present the use of the same method of sales promotion. It increases sales and makes sales of slow moving products faster and stabilize fluctuating sales pattern. It is also possible that the retailer bought excessive stocks when the manufacturer offered trade deal and to clear this excess inventory the retailer offers a price discount to consumers. Where multiple purchases are involved as proof of purchase, generally the usual inter-purchase interval is more, and consumers are more likely to stay with the brand. 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. Coupons can be considered as certificates offered by retailers or manufacturers that entitle the owner to some stated savings or claim the specified thing. A contest requires the participants to perform some task. In some cases, this type of programme is also conducted to retaliate against a competitors’ sales activities. 2. There is plenty of variety, flexibility, and motivation to action. Free Samples 3. It is a reward or gift which is offer of useful articles and attractive gift to dealers for personal, family or office use. Free Services 8. 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). The customer does not get any benefit at the time of purchase, rather he gets it through mail. Each pack of flour contained a coupon with certain half-word or one-third word printed on it. 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. It uses many tools as used in trade promotion and consumer promotion. Before publishing your Articles on this site, please read the following pages: 1. Sales promotion techniques help in increasing the life span of the product during different stages of the product life cycle. Fifth step is concerned with primary decision relating to timing and duration of the schemes to be offered locating, selection of dealers and convictions of the trade and sales force about the suitability of the scheme. In the demonstration method, the technical experts or sale demonstrators are sent to various customers to induce them to buy the product. The Sales Promotion tools are directed towards Consumers (Consumer promotion tools), Dealers or middlemen (Trade promotion tools), and Sales force. For examples, Big Bazaar issues coupons for selected items in their weekly flyers that are distributed via mail or along with newspapers. So basically, these are different tools with purpose of encouraging consumers, dealers as well as the company’s sales force. Considerable brand switching is possible if only one proof-of-purchase is to be sent to the marketer. The two types of sales promotion tools consumer are as follows: A. Essays, Research Papers and Articles on Business Management, Sales Promotion: Meaning, Merits, Limitations and Methods, Sales Promotion: Concept, Objectives, Types, Tools, Techniques, Advantages and Disadvantages, Essay on Sales Promotion: Top 4 Essays | Functions | Marketing Management, Advantages and Disadvantages of Franchising. Akai offered a 14″ colour television on purchase of 21″ colour television. The premium is likely to offer a reason and an incentive to buy the product. Under this method, the product is sold and money is received on installment basis at 0% or without interest rate. Privacy Policy 9. Incentive to Salesmen e.g., some prize of salesmen achieve their predetermined targets. We'll cover promotions to increase sales, to encourage repeat business, and to boost brand awareness. The prizes were around 8000, the top prize being rupees ten million. This means a refund is repayment of total money paid for purchase, while the rebate represents repayment of only of part of the money paid for purchase. Consumers kept on buying the same brand and collected many coupons, most not winning anything because in most cases the coupons had the same or different letters, not fit to complete the desired word. The sales promotional devices at the point-of-purchase stimulate the customers to make purchase promptly on the spot. 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. Uploader Agreement. Dealers promotion methods are those which encourage dealers and distributors to buy and resell more and more quantity of the product. This activity aims at attracting consumers to other or newer brands, seasonal and unseasonal goods. To increase sales of any product, producers adopt different measures like distributing samples, gifts, coupons, bonus, etc. It is helpful in the introduction of a new product. Such short-term methods or tools of sales promotion are directed towards consumers, middlemen and even to the sellers appointed by the producers. There are many varieties of premiums and are sometimes referred as direct premiums and mail premiums. This is a powerful method of ensure trial. In this sales promotion technique, an additional amount of the product is offered without any additional cost, as an incentive to purchase a minimum quantity. Customer will buy those products or services that are highly advertised, mostly seen etc. 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. The duration of contests and sweepstakes varies considerably, depending on the objectives set for sales promotion. This type of deal is often seen in case of laundry products, food products, and personal care products, etc. 2. 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. b. A discount coupon is a certificate enabling a consumer to get discount on buying a particular product. materials may be Diaries, calendars, Literature, Sign Boards, Packing Bags, Posters, etc. sales promotion tools and its impact on customers buying behaviour with special reference to Rathi Build Mart, Raipur. Money Back Guarantee – Producers guarantee that if their product does not meet certain standards, consumers can return the product and get their money back. In today data-driven world and crazy competition business environment, you need constantly searching and updating your market knowledge. Despite its recent widespread use as an important element of marketing campaigns, the essence of sales promotion … This also offers consumers the satisfaction of being “smart shopper”.

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