Explain the Methods of Sales Promotions
Mar 29, · Sales promotion is a type of Pull marketing technique. If you have a product which is new in the market or which is not receiving a lot of attention, then you can promote this product to customers via sales promotion. You can use various techniques like giving discounts on the product, offering 1 + 1 free schemes, etc etc. Methods of Sales Promotion – 2 Main Methods: Word-of-Mouth Promotion and Telemarketing. Gift, contests, discount and commission, entertainment, travel and tours, additional allowances, fairs and shows are some of the important tools of sales promotion offered to .
Sales promotion can be effected in several ways. The following are some of them. Personal selling is highly essential in marketing.
To make personal selling highly effective, sales force promotion is essential. The tools of sales force promotion are bonus, sales force contests, and sales meetings and conferences. Bonus is usually offered to salesmen who sell in excess of the quota. Similarly, sales 3d art pen how to use contests are arranged to stimulate the efforts of the salesmen.
The sales promotion department usually arranges such contests to increase the efforts, and energies of the sales force. Sales meetings and conferences are also arranged for the purpose of educating and inspiring the sales force. In such conventions and conferences, the sales promotion department exposes the salesmen to the latest sales techniques and latest methods of promotion of goods. The sales promotion department assists the salesmen to contact the prospective customers.
Sometimes, it prepares the ground for the salesmen to meet the prospects by sending them circular letters and sales literature. This helps the salesmen a lot while selling. There is need for a cordial relationship between how to use an incubator for chicken eggs manufacturer and the dealers i. It is highly essential because it is only through dealers that a manufacturer sells his goods.
The sales promotion department is responsible for maintaining what will my success criteria be a cordial relationship with dealers so that the goods move quickly along the channel of distribution. Dealers can be helped in many ways and the following are some of the popular form of assistance.
Modern manufacturers offer a variety of management aids to dealers. Management aids include technical guidance and assistance like scientific layout of the storesarrangement of goods in the stores, lighting arrangement, etc. The main idea of such assistance is to help the retailers to sell more goods and buy more from manufacturer. Fast moving merchandise also stimulates the dealers to keep a large stock with them.
The manufacturer sometimes conveys all information about a product to the dealers, such as information relating to production processes, etc. The sales promotion department arranges to train dealers about the various aspects of sales. The dealers are also given detailed information what are the methods of sales promotion the process of manufacture so that they can answer customer queries more efficiently.
The dealers are supplied with sales literature by the manufacturers. Their sales literature includes literature of all aspects of sales that assist dealers in making a sale. Pamphlets, circulars, booklets, etc. In case of bulky and costly goods which cannot be displayed physically, display materials, posters, show cards act as promotion materials. The manufacturer offers a number of attractive terms to dealers in order to induce them to buy an article.
In case of new products, the producer may offer some buying allowance to the dealers. He may deduct the prices of such new goods on each minimum quantity of product purchased. This may induce dealers to buy products introduced by the manufacturer. Sometimes, the manufacturer may allow credit to dealers for a longer period of time, he can also allow high discount to dealers so that they are automatically attracted towards the attractive terms.
In some cases, the manufacturer and the dealer may undertake cooperative advertising campaign. In such cases, the manufacturer may reimburse the advertising expenditure borne by the dealer. Sometimes, the manufacturer promise the dealer to take back goods if they remain unsold.
Old stocks and old models are also taken back by the manufacturers. These kinds pf incentives inspire the dealers to stock and sell goods more vigorously and enthusiastically. Consumer promotion includes samples, coupons, money-refund offers, price-off, premiums, contests, demonstrations and trading stamps.
Samples are freely distributed with the product purchased for the purpose of obtaining consumer acceptance. This may be done on a door-to-door basis, through demonstrations or by mail. Consumer Promotion is useful for promoting new product.
Coupons offer a discount on new purchases of a product. They are certificates entitling the bearer to a discount on the purchase of a specific product. Money-refund overs are granted to purchasers. Sometimes, customers are given the product at a price below the normal rate. Premiums are merchandise offered at relatively low prices. Firms may offer contests to attract customers by offering substantial cash or merchandise price cuts.
Demonstrations are conducted to inform the public or consumers in the target market about the what are the methods of sales promotion and utilities of the product. Trading stamps are a special type of premium received by customers, which can be redeemed for merchandise through stamp redemption. Also Read : 9 types of Consumer Sales Promotion tools.
Generally, sales promotion plays a pivotal role in consumer marketing but the same is not always true for industrial marketing. However, industrial marketing may not use advertising so much as consumer marketing, but sales promotion efforts are present in what channel is the game show network marketing also.
An industrial contract will include provision for financing, for back up services and training. These are generally separated from the supply of the main product but becomes an integral part of the contract.
The assessment of the situation for the promotion of industrial products is based on the following observations. Identify the extra benefits your competitors are offering and assess whether you can offer all or some of these benefits. Consider all extra benefits and make priority of these benefits with a view to offering these to customers depending upon a particular sales situation.
The importance of the service sector and more importantly the role of marketing inputs in services has been seen only in the last 20 years. Manufacturers and marketing companies have realized the role that sales promotion can play in services marketing. Promotion based on price creativity, where additional benefits are informed through price adjustments as used in restaurants, clinics and hospitals. The use of premiums in the direct mailing and selling of financial offers or financial services.
High cost of media advertising such as newspapers and TV, is one of the main reasons to find more cost-effective forms of sales promotion. The growth of huge supermarkets necessitated the need for aggressive selling. On-the-shelf promotion is another reason for what is florida historically known for growth. By inducing more sales through sales promotion, inflow, of cash increases — This could be one of the objectives of the firm.
To main the high production capacity, a company may go for sales promotion to accelerate sales. Media advertising tends to be impersonal whereas sales promotion is more personal, linking the manufacturer with the customer. The introduction of a certain amount of fun and excitement into promotions which customers can enjoy as participants.
To encourage impulse buying and attract first-time buyers, sales promotion is used. Table of Contents Methods of Sales Promotion 1. Sales Force Promotion 2. Sales Promotion of Dealers 1. By provision of management aids 2. Sharing of information 3. Training of dealers 4. Furnishing dealers with sales literature and display materials 5.
Attractive terms of sale 6. Taking the goods back 3. Consumer Promotion 4. Sales Promotion of Industrial Products 5. Sales What are the methods of sales promotion — Methods, Growth. Related How to software download website. Tags: advertisingsales promotion.
Jun 06, · A formal and comprehensive definition of Sales Promotions is one given by the American Marketing Association- namely that sales promotions consists of “those marketing activities other than the personal selling, advertising, direct marketing and public relations, that stimulate consumer purchasing and dealer effectiveness”. There are many methods of sales promotion, including: Money off coupons – customers receive coupons, or cut coupons out of newspapers or a products packaging that enables them to buy the product next time at a reduced price Competitions – buying the product will allow the customer to take part in a chance to win a prize. Jun 29, · Methods of Sales Promotion Incentives used to stimulate purchasing such as coupons, product placements, and buyer programs are some of the methods we use in sales promotion to promote our products and services and encourage purchasing. .
Everything you need to know about the methods of sales promotion. Sales promotion is needed to attract new customers, to hold present customers, to counteract competition, and to take advantage of opportunities that are revealed by market research.
Methods used in sales promotion include coupons, samples, premiums, point-of-purchase POP displays, contests, rebates, and sweepstakes. For a marketer resorting to sales promotion, a variety of tools and techniques are available. Sales promotion letters, catalogues, point of purchase displays, customer service programmes, demonstrations, free samples, discounts, contests, sweepstakes, premiums and coupons are the commonly employed methods of sales promotion.
Trade Promotion Method 3. Combined Promotion Method 4. Sales Force Promotion Method 5. Rebate 6. Discount 7. Partial Refund 8. Free Samples. Quantity Gifts Packaged Premium Prize Contest Lucky Draw Trade Fairs and Exhibitions Word — of — Mouth Promotion Telemarketing and a Few Others.
Free Sampling — Consumer gets one sample free, after their trial and then could decide whether to buy or not, this helps in boosting sales. Money back and Rebates — Consumers are offered money back if the receipt and barcode are mailed to the producer.
Loyal customers Reward Points — Consumers collect points, miles, or credits for purchases, and redeem them for rewards, gifts or money. In yet another type of deal a customer is offered two products for the price of one. Gift Coupons or cash back coupons — coupons have become a standard mechanism for sales promotions.
Many times the discount coupon issued can be redeemed on the next purchase only. Mobile couponing — Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption. Loss leader policy — the price of a popular product is temporarily reduced below cost in order to stimulate other profitable sales.
Free-standing insert FSI — A coupon booklet is inserted into the local newspaper for delivery, though it may not give the real benefit as mostly customers do not carefully see the pamphlets or stickers in the newspaper. Attaching a small sample in the leading newspapers — especially on weekends or holidays, many companies stick their free samples such as a shampoo pouch as a sales promotion gimmick.
In fact this gets noticed and the consumer feels happy on receiving a small gift like this. Dump bin — this is a very popular method with big stores or Big Bazarr where bins full of products dumped inside are kept at various strategic places in order to attract attention. Aisle interrupter — A sign is put up which juts into the aisle from the shelf.
Dangler — in order to make a customer take notice, a sign is hanged that sways, every time when a consumer walks by it. Glorifier — A small stage is usually built that elevates a product above other products and glorifies it. Wobbler — it is a sign that jiggles or wobbles and makes the kids, in particular, feel very good about it. Many big departmental stores keep it as a sales promotion gimmick.
Lipstick Board — Aboard is built on which messages are written in crayon. This also is an eye catcher and attracts attention. Trade contest — A contest is organized with an intention to reward retailers who have sold big quantity of the product. Offering Trade discounts — These are payments to distribution channel members for performing a particular function or achieving a certain target.
Trade credit period — a bigger trade credit period is offered to the most loyal and big dealer as an incentive. Training programs — dealer employees are trained in selling the product and usually the training programme is kept at attractive destinations.
Trade allowances — this refers to short term incentive offered to induce a retailer to stock up on a product. Dealer loader — An incentive given to induce a retailer to purchase and display a product. This is the reason we see some products displayed by the store some better products may not be seen.
Trade shows — Thousands of manufacturers display their wares and take orders at trade shows. Trade shows provide unique opportunities. First, trade shows provide a major opportunity to write orders for products.
Second, they are a chance to demonstrate products, provide information, answer questions, and be compared directly with competitors. Sales meetings — Sales meetings are usually sponsored by manufacturers or wholesalers. These meetings are usually conducted regionally and directed by sales managers and their field force, to explain the product or the promotional campaign, or simply to answer questions.
A fence sitter is a consumer who remains neutral or undecided amongst various alternative products. Such a consumer can be motivated to jump on the side of the marketer through effective advertising. Brand switching is also known as brand jumping, brand switching is the process of choosing to switch from routine use of one product or brand to steady usage of a different but similar product.
Much of the advertising process is aimed at encouraging brand switching among consumers, thus helping to grow market share for a given brand or set of brands. The consumer promotion methods of sales promotion are the methods which directly encourage consumers to buy the product in more and more quantity.
Under this method, the producer distributes free samples of the product to consumers. They are also given to introduce a new product and expand the market. It increases the sales volume when the product is new to customers. It is an effective device when the product is purchased often, i. It is a method of demand creation. Sampling gives a change to consumers to compare products with other substitutes.
Samples are given to doctors by medical representatives. The specimen copies of books are given to teachers. The idea behind this is that they recommend these products for use to patients or students. Coupons are supplied along with products. A coupon is a certificate that reduces a price. When a buyer gives a coupon to the dealer, he gets the product at a lower price Regular price is Rs. Coupons same as money are accepted as cash by retailers. Coupons normally perform two specific functions for the manufacturer.
Firstly, they enthuse consumers to exploit the bargain. Secondly, they serve as an inducement to the channel for stocking the items. The manufacturer thus succeeds in attracting consumers as well as in prompting the channel to stock the merchandise by introducing coupons.
They are useful for introducing a new product as well as for strengthening the sale of an existing product. According to John F.
It stimulates sales during a slump season. It gives a temporary discount to the consumers, i. Fans are sold at a reduced rate in rainy and winter seasons. For example, Hawkins pressure cookers have come up with several sales promotion schemes during the last few years. For sales promotion different contests are conducted by producers. Luick and W. In these competitions questions are put to customers. Sometimes pictures are printed to test the general knowledge of customers and they are asked to give the detailed description of these pictures.
No fees are charged from customers for participating in these competitions. But they have to send the empty packets of the product, cash memo, prescribed entry information form and necessary information. The purpose of these competitions is to find prospective customers and to circulate a new product. It is the instruction to educate consumers in the manner of using the product. It is a promotional tool to attract the attention of consumers. When products are complex and of a technical nature, demonstration is necessary, e.
Demonstration is done in front of consumers for mixer, wet grinder in retail shops, etc. Premium method is also used to attract the consumers towards the product. In this method, consumers are provided some other useful product freely along with the purchased product. This is an effective method which is practised today for sales promotion. The purpose of giving premium is to motivate new customers.
But its main purpose is to induce the old customers of that product. The article of premium is packed in that packet and information is written that packet contains some article. Sometimes the information regarding premium item is printed on the packet or customers are directed to collect the premium item from the shopkeeper.
Sometimes, there is a coupon inside the packet which is returned to the shopkeeper and premium item is collected.