Home » Advertising and Sales Promotions » What are the different Sales Promotion tools? 2) Exchanges – Customer are asked to submit the old product and a new product is offered at a new price. Before publishing your articles on this site, please read the following pages: 1. The Sales Promotion tools are directed towards Consumers (Consumer promotion tools), Dealers or middlemen (Trade promotion tools), and Sales force. All these sales promotion … It is a special incentive given to the dealer in the form of cash or in kind to push and promote the sale of a product, especially a newly launched product. Unify marketing, sales, service, commerce, and IT on the world's #1 CRM. For example, new cola, flavoured packaged water, etc. Sales promotion directed towards the sales people is referred to as sales force promotions. The company also gives out gifts like wallets, calendars, diaries, etc. Free samples are normally provided during the introductory stage of the product. It is also called pull strategy. 2) Trade shows – Trade shows or conventions are organised to meet new customers, introduce new products, educating customers about the new as well as existing products. The Sales Promotion tools are directed towards Consumers (Consumer promotion tools), Dealers or middlemen (Trade promotion tools), and Sales force. For instance, a famous sports personality may be hired to provide autographs to customers visiting a sports shop. It draws the customer to the company’s brand and encourages customers to buy the product before they leave the store. SAMPLES Offer a trail amount … Explain Personal Selling and the role that professional sales people play. Privacy Policy 8. Consumer promotions are directed towards the consumer and are strongly prevalent in the FMCG category. Some of the important Trade-Oriented promotion tools are as … The sales promotion tool that critics contend is most guilty of detracting from brand equity and at the same time being detrimental to a brand franchise is: trade promotions. These tools are unique in their way and directed differently to these three groups. The two types of sales promotion tools consumer are as follows: A. along with a purchase. So, the methods of sales promotion can be divided in three groups as consumer, promotion, middlemen/trade promotion and sales-force promotion. 6) Point-of Purchase displays – The customers are exposed to company’s product at the POP to ensure its awareness to maximum people visiting the store. Explain Sales Promotions and its objectives for buyers, middlemen, and sellers (sales force). 2) Dealer contests – Dealers with maximum sales or window display are rewarded. These tools are unique in their way and directed differently to these three groups. These can be quiz contest, beauty contest, etc. Some of the important trade-oriented promotion tools are as follows: It can be in the form of one extra case for every five cases ordered, cash discounts or straight cash payments to encourage volume sales, product display, or in support of a price reduction to customers. There are three types of sales promotion strategies’. The consumer … Different sales promotion tools are used to accomplish different objectives. For example, a free sample encourages consumer trials; a free management consultancy service strengthens wholesalers’ … Content Guidelines 2. It is also called a pull strategy. 3) Sales promotion letters – Sent to buyer’s homes and offices giving information on promotion activity or information on the products. Trade-oriented sales promotion programmes are directed at the dealer network of the company to motivate them to the sell more of the company’s brand than other brands. So basically, these are different tools with purpose of encouraging consumers, dealers as well as the company’s sales force. A firm may organize dealer conferences. What is the importance of data in marketing? Training and sale techniques coaching given to the dealers staff free of charge. 1.Consumers promotion Sales promotion means are directed to make the current consumers increase the use of products and attract new consumers. New Product Development Product and Product Strategies, Sales Force Management (Personal Selling), The Super Customer and Customer Relationship. Sweepstakes refers to submitting names for a draw – lucky draws. 4) Coupons – These are certificates by which a buyer can buy a product at a reduced price. Company’s also do door-to-door demonstrations as not all the people visit stores regularly. Sales promotion is generally defined as those marketing activities that provide extra values or incentives to the sales force… Marketers employ a remarkable variety of sales promotion tools in marketing. SALES PROMOTION OBJECTIVES CONSUMER PROMOTIONS TRADES PROMOTIONS SALES FORCE PROMOTIONS 5. Image Guidelines 5. For example, buy one get one free, book a flat with no EMI for first year, etc. The dealers may be given information of the company’s performance, future plans, and so on. When Campbell Soup … For instance, Colgate offered 125 g in a tube for the price of 100 g. This type of promotion is used to attract the greater number of customers in a store and to promote sale of a particular item. The tools for sales force promotion are: (i) Bonus: This is an incentive given to the sales people to sell more products to cross the quota or targeted sales. Sales Force and Promotion 1. Manufacturers sign contracts worth millions or even billions in international trade shows. Some firms may institute a special trophy to the highest-performing dealer in a particular period of time. The marketers need to choose the right sales promotion tool to reach its audience. What are the major decisions in Sales Promotion? Many consumer durables such as refrigerators and cars are sold on installment basis. One has to communicate with the consumer through advertisements and POPs at the retail level. Tools and programmes for consumer sales promotion. Consumer-oriented Promotion Tools B. Trade-oriented Sales Promotion. The advertisement specified that the offer was open only up to a particular date. In this case, consumers initially pay smaller amount of the price and the bal­ance amount in monthly installments over a period of time. What are challenges before the managers in handling team members? For instance, the Hawkins pressure cooker manufacturer announced an attractive price reduction, up to Rs.150 off, on a new Hawkins in exchange for any old pressure cooker. In general, some of the commonly used consumer-oriented promotion tools are as follows: In this case, small units of free samples are delivered door to door, sent through direct mail, attached to another product, or given along with the purchase of some other product (e.g., soaps, soft drinks, detergents or other items). The coupons may be mailed or enclosed along with other products, or inserted in a magazine or newspaper advertisement. The dealers can also provide valuable suggestions to the company at such conferences. Explain difference between wholesaler and retailers and their types. Consumer level sales promotional tools are: (i) Consumer contests with prizes (ii) Price-off deals (iii) Purchase price refunds (iv) Coupons (v) Samples (vi) Premiums or gifts – (a) With-pack premium (b) Reusable container (c) Fre… The purpose is to gain new customers or enter into a new market. 1) Free samples – The manufacturer offers free samples to consumers in various ways doing door-to-door visits, at retail stores, malls, attached to another product, etc. Along with the trophy, the dealer may get a special gift such as a sponsored tour within or outside the country. Report a Violation, Sales Promotion: Meaning, Definition, Objectives and Importance of Sales Promotion, Sales Promotion: Important Kinds of Sales Promotion, Top 10 Role of Advertising in Promotion of a Product. The bonus is paid on … It is also known as push strategy, which is directed at the dealer network so that they push the brand to the consumers by giving priority over other competitor brands. Push, Pull or a combination of the two. TOS 7. It is common during festival season or during off-season period. Content Filtrations 6. Sales promotion tools used for consumer-oriented promotion are – Free Samples: Distributing free samples increases brand awareness and triggers the psychology of ownership where … Consumer-oriented Promotion Tools B. Trade-oriented Sales Promotion. Sales promotion tools for consumers (Consumer promotion tools) – The consumer-oriented promotion tools are aimed at increasing the sales to existing consumers and to attract new customers to the firms. The offer consisted of Philips TV, two-in-one, iron, mixer-grinder, and rice cooker at an attractive price. It refers to reduction in price on a particular item during a particular period. To make salesman’s efforts effective, some of the tools of the salesmen-oriented sales promotion are as follows: – Bonus to Sales Force: A quota of sale is fixed. 2. After getting the right numbers, the consumers win a prize. When the manufacturer realizes that after the initial deal the inventory levels at the … Copyright 10. 11) Contests, games, sweepstakes (Prizes) – These are opportunities for the buyers to win cash, trip, or a product when making a certain purchase. For example, attaching a sample of a shampoo sachet with a bottle of a beauty lotion. For instance. The two types of sales promotion tools consumer are as follows: A. This helps consumers and also the dealers as they are required to stock the product because of a possibility of increase in demand. Outside Sales Representative NFIB is the leading advocate for small business, with offices in Washington, D.C…-$80,000 average first year earnings; 25% of our outside sales force makes a 6-figure income Full … 13) Promotion along with other brands – Two or more manufacturers advertise each other’s products. Prohibited Content 3. For example, Washotex came up with a scheme to pay 20 per cent now and take home Washotex washing machine. For example, sales people at malls and retail stores demonstrate perfumes, cosmetic products, small electronic items, etc. These schemes are intended to motivate sales people to put in more efforts to increase sales, increase … Disclaimer | These are mailed, accompanied with other products, with newspapers or magazines, or even direct mail. So basically, these are different tools with purpose of encouraging consumers, dealers as well as the company’s sales force. 7) Demonstrations – Demonstrations are done at retail stores and malls. Cash refund offers are rebates allowed from the price of the product. Personalize every experience along the customer journey with the Customer 360. It is very stimulating short-term sales, especially when the discount provided is genuine one. Plagiarism Prevention 4. The two types of sales promotion tools consumer are as follows: A. 8) Gifts or Premium – Products are offered free or at a low cost for buying a particular product. The consumer can take the benefit of promotion tools either from the manufactures or from the dealer, or from both. These tools and programmes are divided under two heads: 1. A push promotional strategy makes use of*a company’s sales force and trade promotion activities to create … 4. These help the manufacturers come in direct contact with the buyers. Sales Promotion —marketing activities that provide extra value or incentive to the sales force, distributors, or the ultimate consumer and can stimulate immediate sales. SALES PROMOTION: - Consists of a diverse collection of incentive tools… A visit to your nearby supermarket will reveal numerous sales promotion schemes of various products, simultaneously vying for our attention. What is Brand Loyalty and steps to increase Brand Loyalty? Sales Promotion Tools and Techniques – 12 Commonly Used Tools: Coupons, Free Samples, Price-Off Offer, Fairs, Exhibition, Free Gifts, Competitions and a Few Others Sales Promotion Tools … Contest asks consumers to submit entries that may win the deal communicated from a panel of judges. In this case, the customer exchanges the old product for a new one. This promotion immediately follows another type of deal offered to resellers and offered some incentive for new purchases. Contact Us | 9) Frequency program – The consumers are rewarded for making the purchase of the product regularly. The organisations sometimes asks to submit the old product manufactured by them, but sometimes, the exchange rolls over to a product from any brand. Consumer-oriented Promotion Tools B. Trade-oriented Sales Promotion. Sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople Include many of the same tools used for consumer or trade promotions Conventions and trade shows – Help vendors find new sales … About Us | The consumers were offered the facility of paying the balance in 24 equal monthly installments. The old product’s exchange value is deducted from the price of the new product. Sale force … Sales promotion is generally broken into two major categories: consumer-oriented and trade-oriented … Sales Promotion decisions follow the framework set for the steps decided on promotion activities as part of market planning. What is the difference between Business buying and Consumer buying (individual Buying)? Below are the major promotion tools directed towards consumers –. The chief tools of sales promotion are discounts ("sales"), distribution of samples and coupons, the holding of sweepstakes and contests, special store displays, and offering premiums and … The aim is to ensure the customer doesn’t switches brand. Sales promotion tools for consumers (Consumer promotion tools) – Cash refund offer. Sales Promotion Schemes. Improve your sales processes with the time-saving sales tools from Sales Cloud. Special credit terms may provide to encourage bulk orders from retailers or dealers. 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. 1) Attractive terms of sale – take back offers, business on credit facility, price discount or allowance like free or extra units of the product to encourage the store manager to run the brand’s promotions. 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. 3) Services to dealers – Manufacturers help in designing and arrangement of the goods in the store. Sales Promotion Tools and Programmes: Sales promotion techniques are known as promotion tools and the mode of their application is known as sales programme. It is an offer … Sales Cloud offers a full range of sales software tools sales teams can use to close more deals, faster: Salesforce CPQ and … This involves offering price reduction or saving to customers on the purchase of a spe­cific product. C. Companies that use sales promotions usually do not use any other promotional mix tools. B.The growing use of sales promotion has resulted in promotion clutter. What is promotion mix? Tools and programmes for dealer/distributor sales promotion … The consumer-oriented promotion tools are aimed at increasing the sales to existing consumers, and to attract new customers to the firms. “Marketing Management” Sales Force and Promotion Prepared by: Jonah C. Pardillo 2. What are the retailers, their types, and describe their functions? Premium offers are used by several firms selling FMCG goods such as detergents, soaps and food items. Sales Force Promotion Methods: Sales force promotion schemes are necessary to increase sales. Explain the promotion tools, or elements of promotion mix. Trade sales promotion is a promotional inducement directed at retailers, wholesalers, or other business buyers to arouse instantaneous sales. Consumer Preferences towards Western Origin Fast Foods in Urban India. CONSUMERS PROMOTION TOOLS 6. It requires a substantial media budget over and above the freebies. 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. Explain the factors that affect promotion mix or marketing communication mix. These help in introducing a new product, encourage trials, etc. Disclaimer 9. The manufacturer sets a target of sales … These can be extra quantities of the same product at the regular price. These promotions include contests and incentives, trade allowances, displays and point-of-purchase materials, sales training programs, trade shows, and co-op advertising. Along with this, consumer-oriented sales promotion … This sales promotion tool is used by several companies for consumer durables. 8. 12) Product warranties and guarantees – The manufacturers make a promise to the buyer that the product will be repaired free of cost, replaced, or money refunded if it doesn’t performs as promised for a certain period. 10) Free trials – Potential buyers are invited to try the new product for free. (Kindly see chapter - Promotion Mix... What are the different Sales Promotion tools? Philips came up with five-in-one offer. 4. What are the Key TQM (Total Quality Management) concepts and tenets? Privacy Policy. Sometimes consumers get a chance to take part in games like bingo numbers, letters, etc. Sales pro­motion is generally broken into two major categories—consumer-oriented and trade-oriented activities. Salesforce promotion techniques are used to motivate salespeople to put in more efforts to increase sales, increase distribution, promote new or seasonal products and build up morale and enthusiasm of Salesforce. Salesforce promotion techniques. These gifts carry the company’s logo and name. How Marketing and Human Resources benefit each other? A.Sales promotions offer long-term incentives to buy a product. For example, most of the mobile phones are sold with exchange offers for any brand on the ecommerce site – Flipkart. Product because of a shampoo sachet with a bottle of a shampoo sachet with bottle... – two or more manufacturers advertise each other ’ s sales force promotion Methods: sales force 5. Consumer promotions TRADES promotions sales force and promotion Prepared by: Jonah c. Pardillo 2 decisions follow framework... Consumer-Oriented promotion tools either from the manufactures or from the manufactures or from the or. 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