So basically, these are different tools with purpose of encouraging consumers, dealers as well as the company’s sales force. The seller determines the number of installments in which the price of the product will be recovered from the customer. Objectives 7. Designing of the Sales Force. It should not be easily capable. In-pack premium has a constraint. 9. Sales promotion is that “something extra” (2+2=5). Timely intervention in the form of reminder ads, additional deployment of sales force, additional POP material, etc., may sometimes be necessary. Marketing, Products, Promotion, Techniques, Sales Promotion. The focus of advertising to create reason for purchase the focus of promotion is to create an incentive to buy. The parties should be clear about goals and role of one another. The Basis of Consideration in Trade Promotion are: (a) The capabilities of the parties. 8. Why Use Sales Promotion? For retailers, objectives include inducing retailers to take up new items, encouraging higher stock levels, etc. Limitations. Both products reap the benefits of the promo. It requires a substantial media budget over and above the freebies. Consumer-oriented Promotion Tools B. Trade-oriented Sales Promotion. (b) Competitors arise up their sales promotion. It consists of mostly collection of those short-term incentive tools, which are designed to stimulate purchase of a particular product or service. But used improperly, they demoralise the representatives. When new products are launched, the ads may carry coupons of price-offs to induce trials. The result of an effective total marketing programme is sales success, which entirely depends on positive customer reaction and an intense, well organised selling effort by resellers and salespersons. 1. The techniques could be those where the measurement of results is straightforward, or difficult to measure. 5. Every achievement must be rated in terms of points. A variety of contests / a variety of prizes do help in this direction. What succeeds for one product may not succeed for other products. Sales reps need to close more sales, and they will more readily accept and execute sales strategies that they feel are designed to help them get lead after lead, and meet and exceed sales quotas and goals. The most prominent reason is an emphasis on quarterly results expected of senior management. It is also used to keep customers away from the competitive products. Many sales promotion campaigns involve the use of incentives. Many of these schemes are dealer loaders, e.g., merchandise deals, discounts, buying and selling allowance, premium or push money and POP materials. Terms of Service 7. Couponing works betters for premium products because price-offs give genuine value to the customers. It also affects the brand equity. The four philosophies are production, sales, marketing and societal marketing orientations. 4. Agencies must sell a generic concept of BTL to clients. However, every offer must start by being specific as to what objectives are intended to be achieved. These are – Pull Strategy – The pull strategy attempts to get the customers to ‘pull’ the products from the company. Learn about:- 1. A trade promotion can be easily managed through a company scheme mailer / circular and a one-to-one presentation by the sales force to the distributor and dealers. Consumer incentives could be samples, coupons, free trial and demonstration. One maxim is, do promote, but not at the cost of brand equity. Need and Importance 5. Before uploading and sharing your knowledge on this site, please read the following pages: 1. If we guess the total number of such packets correctly and write a good slogan, we could be winning a Samsung refrigerator worth Rs.70,000. It can be used as a stock clearance scheme. This structure can lead to problems if a single l arge customer buys many different company products. Marketers must be on the lookout for ways to rise above the clutter. (a) When established brands have a declining market. The discount period should not be less than 10 days. In a contest, individuals should not be pitted against each other. Consumer promotion can be offered either by a manufacturer or a retailer. According to John Paul Jones, couponing as a method of promotion is better than other methods. The sponsors, therefore, should carry-out these tasks. Here are many tools that are used in order to facilitate sales force promotion effectively. Price-offs in off-season fridge sales does not help much to stimulate off-season sales. Those who look at SP tools in a store setting are very good prospects, or else they would not have been in-store in the first place. Consumers have started looking for value. Too much of it affects the long-term brand equity. Do you expect slum dwellers to use? Point-of-purchase displays give a real payoff, sales rising by 25 to 50 per cent or even more. There is an effort to integrate promotion with the core brand values. Soon, thereafter, further activities are planned to avoid dipping sales later after the closure of the contest. Opel users are invited to an evening of entertainment, extending interaction beyond purchase. Promos should be integrated to products and advertising. 5. As we know Ogilvy, the founder of an agency went door-to- door to sell the Aga stoves in Scotland in 1930s. Premium may be of several kinds — direct premium, reusable container free in mail premium, a self liquidating premium, trading stamps, etc. Samples are defined as offers to consumers of a small amount of a product for trial. (b) When we have to communicate a major improvement in our product. Promotion is tactical and short-term. Allowances are granted to buyers on the basis of their previous purchases. (ii) Allowances like advertising allowance or display allowance. Retailers use promos to attract customers inside, and then encourage them to buy other products. Pre-testing is done by panel method, or by mail survey or by a field-study. The common problems are non-availability of premium/differing quality of premium item. 4. 3. The consumers become addicted to promotional offers and do not consider the brand unless there is a freebie. Promos should be targeted properly to be effective. IFB is offering a gas stove and a gas lighter on two of its washing machine models. Planting the gold (sell more profitable product mix). 25 per cent budget is dedicated to BTL. Contests and freebies are resented because these distort the competition, and divert the attention of the consumer from the core product. Samples are delivered at the doors of consumers. Increase sales on average per account. (c) Scheme should be properly communicated. Therefore, companies have to be careful in designing and structuring sales force. The consumers might get alienated from the superior benefit it actually offers. Akai, Daewoo, Philips, Samsung, Rayban, Van Heusen and Maruti have come out with exchange offers. He may have a good sales force. The programme thus developed should be pretested in order to check the effectiveness of the programme. Consumer promotions are directed towards the consumer and are strongly prevalent in the FMCG category. The company must make sure that the benefit of the scheme should reach the consumers for whom the scheme is meant. BPL has sought to build value around the brand by offering a package of product on low monthly installments. 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