2. (Ii) 50% Off on All Items During a Stock Clearance Sale. In-mail premiums do not provide an immediate reward at the time of purchase. Let us know more about some of the commonly used tools of sales promotion. Generally, the free gift is related to the product but it is not necessary. While some of the techniques of sales promotion do in fact advertise a product or … These include greetings or thanks in newspapers, donating space for noble causes, offer of Privileged Citizen Card, etc. If you can add sampling of your promotional item to the mix, you can create compelling reasons to buy. Scratch and Win Offer 11. This would help to load-up the consumer. 5. For the purpose of sales promotion the company offers a special pack containing 150 gms, and the price is Rs. If advertising is related to “buy our product” then sales promotion is the representation of “buy the product now”. xii. Refund offers seem to work very well in guaranteeing the trial of a product or service, since there is no risk involved for the customer because of the promise of total refund of the purchase amount. 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. Rebate offer is given for a limited period only, for example, Coca cola offered 2 litre bottle at Rs. Cheap Bargain – To get another product at a very cheap rate while buying a product; e.g., A bucket of plastic of 5 litres only at Rs.6 with every pack of ‘SURF’ of 1 kg. Content Guidelines 2. Discount – This refers to reduction of certain percentage of price from list price for a limited period of time. 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. ‘Readers Digest’ regularly makes this offer. Additional quantity of the same product or additional unit of the product is appreciated as a reward by the consumer. The premium is likely to offer a reason and an incentive to buy the product. This also offers consumers the satisfaction of being “smart shopper”. 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. Advertisement Allowances/Materials, encouraging dealers and distributors to advertise products. Coupons are particularly attractive to consumers who are price sensitive. These are known as tools or techniques or methods of sales promotion. When an additional compensation is offered to trader for pushing additional product in market, this method is used to push a specific product or product line. It also tells them how the concerned products will be helpful in satisfying their specific demands. Trade Promotion Techniques include the following: Off-Invoice Allowances,Buying allowance,Display and advertising allowance,Buy back allowance ,Bill back allowance,Slotting allowance,Merchandise allowance 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. Every imaginable prize or reward is used to excite and attract customers to participate. To get you started with this worthwhile strategy, here are 15 sales promotion ideas, accompanied by real examples, and categorized by the business goals they can help you achieve. When consumers do not perceive any meaningful persuasive differentiation between brands and the market is competitive, such promotions work very well. This form of promotion is usually not advertised, as it is an internal affair between the company and its distribution network partners. 35 only during winter 2009. and may soon be forgotten. Following are the objectives of sales promotion: i. They are interrelated in the sense that they are integral parts of the ‘promotion mix’ of the business. Displays, Trade Fairs, Melas and Exhibitions in different parts of country. The retailer takes decisions concerning the target customer, services, ambience within outlet, and the decisions concerning price, place and promotion. The premium may be free or available to the consumer by paying a price well below the regular market price. 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. As the distribution of samples is very costly, this system is confined to those products of small value which have often repeated sales. Techniques 8. These are arranged by manufactures for preparing and distributing the products as a retail sample, for example, Nescafe Instant Coffee was served to consumers for trying the sample on the spot of demonstration regarding the method of using the product. Counter, top racks, posters, mechanised signs are other point-of purchase displays. 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. Sales promotion tools are used to support the sales personnel and to back advertisement process. Exchange Schemes. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Tools and Programmes 9. Most of these techniques can be used both for consumer as well as trade promotions. Get this from a library! Sales promotion is different from personal selling which is persuasion of customers by the sales persons to buy certain products. Trade promotion is not advertised and publicised it is for the channel members, company’s offers are for dealer, distributors, retailers and agents only main purpose is to increase sales by offering incentives to them. 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. 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