Companies use different sales promotion techniques to attract customers to buy their products and increase their sales Myhrconnection. Two main types of techniques generally used are consumer sales promotion techniques which are directed towards consumers and trade sales promotion techniques that are directed towards traders.
Consumer Sales Promotion Techniques
Coupons
Customers can exchange their coupons for a financial discount when buying a product. The advertising cost and coupons distribution cost is borne by the manufacturer. Retailers are responsible for paying the face value of retail coupons. These coupons can be delivered to customers by mail. Customers can get these coupons from shopping malls. Retail coupons are distributed at the point of sale or through print advertising. These coupons can also be distributed by direct mail.
Price Discounts
Companies publish their discount schemes in newspapers, magazines, television ads, and other media. The announcement of price discounts can be made by a distributor, manufacturer or retailer. The purpose of such discounts is to tempt people to buy products in large quantities. This sales promotion technique requires the support of retailers, manufacturers, and distributors. Besides price discounts, the other things required to retain customers are product sampling and mass media ad sampling.
Price Pack Deals
A bonus pack and a banded pack come under price pack deals. In the bonus pack, customers are given more quantity of the product at the same price. This type of promotion vumoo is used in food products, health products, beauty products, and cleaning products. In the banded pack, customers get two or more units of the product at the price of a single unit of that product.
Refunds And Rebates
When a consumer buys a product in combination with other products, he or she gets a portion of his or her money back. The aim of a company to introduce rebate promotion is to coax customers to buy products in large quantities. This type of promotion helps in building brand loyalty.
Premiums
Premium is a bonus amount of the product. The incentives that are given free when a customer purchases a product are known as direct premiums. Referral premiums, traffic builders and door openers are the other types of direct premiums.
Contests And Sweepstakes
In contests, a person is judged based on his or her skills while in sweepstakes customers have to fulfill certain conditions to take part in it. The cost of organizing the contest can be more than sweepstakes. Customers like to participate more in sweepstakes than in contests.
Special Events
Companies sponsor events, festivals, and tournaments to promote their products. Sponsoring an event is a good way of making a product visible to a large number of people.
Sampling
The sampling strategy is adopted by marketers mostly when they are planning to introduce a new product in the market. In this technique, marketers give a sample of their product to the customers for free. The features of products should be useful to the customers. These samples can be distributed to customers through the mail. Some companies deliver samples to specific consumer groups such as new parents, newly married couples, tourists, students, etc.
Continuity Programs
Companies introduce continuity programs to retain their customers for a long period by giving them incentives. In this program, customers are required to keep on saving if they want to get the premium in the future. The time duration of these programs is longer than any other form of sales promotion. Continuity programs reward customers who do not switch to other brands and remain loyal to a particular brand.
Trade Sales Promotion
The responsibility of designing a trade sale promotion lies with the product manager. This type of promotion is organized for wholesalers and retailers. The two factors that are greatly affected by trade sales promotion are the resulting profitability and pricing strategy. The main purpose of trade sale promotion is to control inventory, develop in-store merchandising support, motivate channel members and expand distribution.
Types Of Trade Sales Promotion
Trade Shows
There are many benefits of trade shows for manufacturers such as manufacturers get the golden chance to take orders for their products, they can directly compare their products with their competitor’s products and they can give a demonstration of their products and provide relevant information to the interested party. Buyers can compare prices, features, quality, and technology of different products. Customers have the opportunity to choose the best one. With the help of trade shows, manufacturers come to know about their weak areas and strong areas.
Sales Contests
A company plans sales contests for its salespeople to motivate them to give their best performance. In this type of promotion, a salesperson is rewarded handsomely if he or she makes sincere efforts to exceed the sales quota by the highest percentage.
Push Money
Salespeople are given extra payments to try their level best to meet the targets set by their company. Though it is not considered a good practice still manufacturers follow this technique to achieve desired results.
Sales Meetings
Sales meetings are conducted by wholesalers or manufacturers to discuss the promotional campaign, details about the product or queries of the salespeople.
Deal Loaders
Retailers are given premiums by the manufacturers to order a specific quantity of a product. A buying loader and a display loader are the two types of deal loaders, Visit here Pubg pc. In buying loader, retailers are given gifts if they order a certain quantity of a product. In-display loader, retailers are gifted with the display after the completion of the promotional campaign.
Trade Deals
Buying allowances and display/ advertising allowances are the two types of trade deals. In buying allowance, a bonus is paid to a retailer by the manufacturer if he or she purchases a certain amount of product during a specified period. In buyback allowance, a specified bonus is given to a retailer if he or she repurchase products immediately after the delivery of the first consignment. In an advertising allowance, a retailer receives a dividend for advertising products of the manufacturer while in display allowance, he or she is paid to display the manufacturer’s products every week.
Point Of Purchase Displays
Retailers are given a point of purchase display units free to promote the products of manufacturers. Display cartons, banners, price cards, signs, and special racks are some of the forms of point of purchase displays.