Free door-to-door samples – This technique however is costly. 1. 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. 3. xii. Tools Of Sales PromotionTo increase the sales of a product, theproducers or manufacturers use variousmeasures like free samples, bonus, etc. Sales promotions are a marketing communication tool for stimulating revenue or providing incentives or extra value to distributers, sales staff, or customers over a short time period. 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. e. Samples given to professionals to recommended product; e.g., doctors by pharma Cos. 2. Price Deals (Price-off, Price cut, Cents off). It is very stimulating short-term sales, especially when the discount provided is genuine one. 1. Among all the sales promotional devices, probably the most exciting and highly rewarding are the contests and sweepstakes. Unlike, price cut off or discounts, rebates are provided after the full payment of full invoice amount. The offer consisted of Philips TV, two-in-one, iron, mixer-grinder, and rice cooker at an attractive price. Out of these correct entries, depending on the number of prizes to be given, some are picked up on a random basis to declare the winners. Guide: Business to Consumer MarketingFor what kind of consumer is B2C marketing effective?How is an effective B2C marketing campaign developed?What career titles work with B2C marketing strategies?How can a marketing school help you in this field?It all comes down to size, speed, and need. ADVERTISEMENTS: Everything you need to know about the tools and techniques of sales promotion. These tools and programmes are divided under two heads: 1. Sales promotion letters and catalogues. Special Rebate 9. Free Gifts 6. Before publishing your Articles on this site, please read the following pages: 1. Some authors have considered more elements, too. As the product is primarily targeted at kids, these premiums had great appeal to them. The duration of contests and sweepstakes varies considerably, depending on the objectives set for sales promotion. The prizes may be gold or silver jewellery, hefty sums of money, cars, two-wheeler autos, colour televisions, computers, music systems, free air tickets, stay in five star hotels, holiday in health resorts, and anything else depending on the imagination of the marketer. 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. The factor of chance limited only to what one gets, no losers, all winners. Example – if an E-commerce website gives 10% discount on its products, then it wants the consumers to make the best of this deal. Promotion for industrial customers – These promotions are used for such purposes as generating business leads, stimulating purchase, rewarding customers, and motivating sales people. Some firms may institute a special trophy to the highest-performing dealer in a particular period of time. It can also be used to reinforce advertising for the good or service. Coupons generally attract older, better educated, urban, middle-income families. ix. Promotional activities can include: advertising — you can advertise your product, service or brand in newspapers, radio, television, magazines, outdoor signage and online. Advertising: Advertising is defined as any paid form of non-personal presentation and promotion of […] Consumer Promo­tion Methods are those which directly encourage consumers to buy product in more and more quantity. However, by doing this your promotional strategy will never talk specifically to any one group, and you will most likely turn many potential customers off. Such premiums are attached either to the product, enclosed with the product, or otherwise available with the product when the consumer buys the product. This is a fairly popular technique in cases of footwear, shirts, jeans, towels, and many other varieties of products. A contest requires the participants to perform some task. For example- milkshake along with Nescafe, toothbrush along with a toothpaste. Coupons originating from the manufacturers are redeemable at any retail shop that carries the promoted product. When consumers increase purchase quantity, they carry more stocks of the product and stay out of markets. Trade incentive could be price off, free goods and allowances. 7. The motivation to purchase and continue purchasing the product gets shifted to the incentive of premium as the purchase situation is one of total low-involvement as far as the product category is concerned. 3. 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. It is common during festival season or during off-season period. Discounts 1. They are typically designed to be measurable using one of the following techniques. A very tempting promotion, and simple too. Brand image and profit can be hurt by over use of price related sales promotion tools. A premium (gift) is a reward given to the consumer for performing a particular act, generally purchasing a product or service. In other words, prizes are awarded on the basis of chance”. Sales promotion activities include special offers, displays, demonstrations, and other nonrecurring selling efforts that aren’t part of the ordinary routine. Computer magazines often include a compact disc with each issue. 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. 55.50. Contests and sweepstakes generate considerable interest and awareness, and can be used to gain large sales increases. The pricing Strategies of these products are considered as no frill low prices where the promotion and the marketing cost of a product are kept to a minimum. Different combinations of prizes are evolving. Personal selling is also one of the most effective tools for integrated marketing communication. Price packs (cents-off deals) – Offers consumers saving off the regular price of the product, directly cuts price on the label, or combination of two products (tooth paste and tooth brush). Consumer promotion tools 1. The coupons may be mailed or enclosed along with other products, or inserted in a magazine or newspaper advertisement. SALES PROMOTION By SUMANA 2. Every imaginable prize or reward is used to excite and attract customers to participate. Effective sales promotion tools are tailored to presentations at events or trade shows, door-to-door sales, retail sales, direct mail advertising, telemarketing or Internet-based marketing. Prohibited Content 3. 2. These coupons are either advertised by producers/retailers in newspapers or distributed in weekly flyers via mail across households. Consumer promotions are used by retailers to induce customers to buy products or services. When used as an offensive weapon, the objective is to generate additional sales and increase market share and long run profits. Tools Of Sales PromotionTo increase the sales of a product, theproducers or manufacturers use variousmeasures like free samples, bonus, etc. The tools of sales promotion are employed primarily by two of the principals of marketing – the manufacturer and the retailer. Many sales promotions are not effective brand building tools. The premium may be free or available to the consumer by paying a price well below the regular market price. How to measure marketing promotion. Often a combination of contest and sweepstakes is employed in some promotions. xi. Basically, there are five elements involved in promotional mix. Each pack of flour contained a coupon with certain half-word or one-third word printed on it. The customer has to send back the product within a specified period of time. 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. The ways you promote your organization will largely determine whether you successfully plant the right messages in the minds of your target audience. the sales process occurs at home, work, or at another non-store location). Image Guidelines 5. Tools and programmes for dealer/distributor sales promotion . Retailer-originated coupons are redeemable only at a particular store or a group of stores (for example, a chain store having many outlets). of Nescafe coffee. This is a way to reward the present consumers and may not have any impact on the users of competitive brands. A customer was required to buy a pack of & 7 O’clock P II for Rs. Various promotional tools are at the ... enhances the probability that the audience will identify with the character and find the advertising message trustworthy. 5. Coupons – A certificate that gives buyers a saving when they purchase specified products. It uses many tools as used in trade promotion and consumer promotion. The Promotion Mix is the integration of Advertising, Personal Selling, Sales Promotion, Public Relations and Direct Marketing. 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. Refund offer is limited only by the imagination of the promotion planner and the budget allocation. Advertising specialities – They are useful articles imprinted with an advertisers name given as gifts to consumers, e.g. The offer was valid for a month only. These are all different approaches to offer immediate reward to the consumer at the time of purchase. These two examples present the use of the same method of sales promotion. Disadvantages of Sales Promotion: 1. In-mail premiums do not provide an immediate reward at the time of purchase. The same agency says. The prizes were around 8000, the top prize being rupees ten million. c. Coop Sampling in which several different products are delivered in same container or at same time and distribution costs are shared by various manufacturers. Indian companies using this method are – Proctor and Gamble, Nestle and Parle. roughly a ratio of 60:40 is maintained in dealing both of them. x. They are known as techniques of sales promotion. There is no precise answer, however, experts generally agree that discount should be at least 5% to 20% of the normal price. These tools increase sales, introduce a new product to the market or meet competition challenges. In case of consumer durable products, Bajaj Auto announced a promotion to encourage the purchase of any Bajaj Scooter. (c) Consumers use coupons for products which are consumed regularly, such as tea, coffee, laundry products, etc. 8. The tools of sales promotion are applied to boost sagging sales by attracting the customers and offerings of distinct incentives of purchase. 1. No final date of promotion closing was announced. The offer may be for a product purchase alone or in combination with other products. In this case, the customer exchanges the old product for a new one. 2. These must be of small size but adequate quantity. iii. Marketing, Products, Sales Promotion, Sales Promotion Tools and Techniques. 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