These are at the heart of sales promotion. Bonus packs are generally limited to low bulk, low-price products, however, of late exceptions, such as Akai offer have been observed. We’ve grouped them into three categories (based on three types of consumer sales promotions): rebate management software, sweepstakes or giveaway tools, and more trade promotion software solutions. A self liquidating premium is the extra quantity offered at the normal price. less list of sales promotion tools exists to reach the end consumer. Personal Selling is used when the product value is high, and it is difficult to understand, whereas Sales Promotion the product value is comparatively low and easy to use. These promotions can be developed for durable as well as non-durable goods. Getting a printer free with the purchase of a computer, or getting a bar of detergent free with the purchase of four cakes of toilet soap, or getting a Swiss knife well below the market when the consumer purchases a microwave oven, are typical examples of premium. These Promotional tools include sales promotion which further contains a broad assortment of elements like. Premium offers provide a point of difference, more so when the product category is fairly crowded. Premium may be of several kinds — direct premium, reusable container free in mail premium, a self liquidating premium, trading stamps, etc. Coupons 2. POP can be very effective if done properly i.e., using better quality POP materials instead of cheap paper signs or ill- conceived displays. It is also possible that the retailer bought excessive stocks when the manufacturer offered trade deal and to clear this excess inventory the retailer offers a price discount to consumers. Disclaimer Copyright, Share Your Knowledge The main objective of sales promotion is to bring about a change in the demand pattern of products and services. For example, Maruti announced a gift cheque of Rs. Privacy Policy3. The lots are drawn and the winners get prizes. If there are three different models of a product and because of the discount offer the price of the higher end model appears not too high to the consumer, compared to the lesser- priced model, then consumer may buy the higher end model. For effective promotion, it is important to have an effective platform to ensure that the advertising campaign is directed to your target market (you do have one of those, don't you? Tools Of Sales PromotionTo increase the sales of a product, theproducers or manufacturers use variousmeasures like free samples, bonus, etc. 2. Refunds are quite effective in competitive situation where consumers perceive little or no differentiation among brands. For instance, in case the manufacturer plans to distribute free samples of a product, it can cost far more than the total money spent by the manufacturer for the prizes. There is a subtle difference between these two terms. Rebate management software Patronage reward – Cash or gift, for the regular use of a particular product of the company like privilege card membership given by the company to the regular user of the products. In this article, I will be focusing on “Promotional Mix” and how businesses can use promotional tools to increase their sales. Price deals are probably the most commonly used promotional techniques. Computer magazines often include a compact disc with each issue. 3. Sales Promotion Tools and Techniques – 12 Commonly Used Tools: Coupons, Free Samples, Price-Off Offer, Fairs, Exhibition, Free Gifts, Competitions and a Few Others. Price Reductions on some specific occasions e.g., 20% to 30% discount on all products of Gandhi Ashram on Gandhi Jayanti. Free door-to-door samples – This technique however is costly. A. Or, there may be some flexibility in conditions, such as the consumers may have the option to send one, two, or more proofs of purchase along with a specified sum of money to obtain the premium quickly. Sales contest – It involves salesmen or dealers to motivate them to increase their sales performance during a given period, with prizes going to those who did best. 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. This dampens the competition for a while. A free sample stimulates consumer trial, while a free management advisory service cements a long-term relationship with a retailer. When consumers do not perceive any meaningful persuasive differentiation between brands and the market is competitive, such promotions work very well. Consumers who are strongly loyal to brands, or those who consider that collecting coupons is not worth the effort, are least likely to use coupons. Consumer incentives could be samples, coupons, free trial and demonstration. b. In certain case all those who furnish the proof-of-purchase are given some specified premium. Hundred prizes of Rs. The premium is likely to offer a reason and an incentive to buy the product. For examples, Big Bazaar issues coupons for selected items in their weekly flyers that are distributed via mail or along with newspapers. Consumer promo­tion methods are those which directly encourage consumers to buy product in more and more quantity. This also offers consumers the satisfaction of being “smart shopper”. Determining the quantum of discount depends on the consumers’ price perceptions and may be difficult to decide. Sales promotion aimed at consumers is called ‘consumer sales promotion‘. Incentive to Salesmen e.g., some prize of salesmen achieve their predetermined targets. The retailers serve as the agents of manufacturer in accepting and redeeming the coupons and send the collected to the concerned manufacturer along with their claims of reimbursement. A contest requires the participants to perform some task. b. Sometimes premium are costlier than the product it is sold with, (brass tray free with a product). Consumer Promo­tion Methods are those which directly encourage consumers to buy product in more and more quantity. Premium – extra gift with product like balls, stickers, pens, cards, diaries, calendars, manuals, and other literature. Self-liquidating premium offers; 4. Though sampling is effective, producing numerous samples of a product is quite expensive. Sales promotions can be announced over free channels like social media, email, or your website; or they can be the focal point of your paid advertising campaigns such as with LinkedIn ads or Google Ads. Consumers have to take some action to claim the premium, such as sending the proof of a single or multiple purchases and wait for some period of time for the delivery of the premium through mail or courier. Displays, trade fairs, exhibitions, and event sponsorship. ii. 7. When retailers offer coupons of their own, they have to bear all the above mentioned costs themselves. Meaning and Definitions of Sales Promotion: Sales promotion is said to be a key ingredient in the international marketing campaign. These tools and programmes are divided under two heads: 1. This means a refund is repayment of total money paid for purchase, while the rebate represents repayment of only of part of the money paid for purchase. Such sales promotion tools stimulates their buying behavior and induces them to buy the product. Gift coupons; 8. 3. Free Goods – An attractive coffee mug free with a pack of 200 gms. Discuss various sales promotion tools in international marketing to enthuse consumers, middlemen and own sales force to buy/promote the product. 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. Cash refund offers or rebates – Are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet. However, the technique proved to be extremely effective in retaining the customers and motivating them to continue using the same brand for an extended period of time. This activity aims at attracting consumers to other or newer brands, seasonal and unseasonal goods. Goods are sold at reduced prices during slump season. materials may be Diaries, calendars, Literature, Sign Boards, Packing Bags, Posters, etc. The buyer purchases the product and submits the evidence of purchase with entry form for contest. There are no BOGO campaigns either. Sales promotion letters and catalogues. Event Sponsorship e.g., Sponsorship of sporting events. A discount coupon is a certificate enabling a consumer to get discount on buying a particular product. They are also sent by mail or given to customers in the retail store itself. Demonstration is required when products are complex and of a technical nature. A very tempting promotion, and simple too. The offer was valid for a month only. This too may or may not involve the purchase of any product or service. In these situations the refund offer is being used to encourage trial at no risk to the customer. 62 only. For example, if the price of a more expensive wristwatch is Rs. A sweepstakes calls for consumers to submit their names for a draw. vi. Promotions directed at the ultimate consumers are called consumer promotions. To decide which entries are first second, or third, etc., an expert or a panel of experts examines the entries and judges the winning ones. Promotion can be launched directed at consumer or trade. Competitions or Contests. In case the movement of […] POP displays – (Point of purchase promotion) Right display at right place to attract consumers. When all similar products in a certain price range are perceived as basically alike, a premium offer with the purchase of the product is quite an effective method to gain shelf space or even display. The focus of advertising to create reason for purchase the focus of promotion is to create an incentive to buy. To increase sales of any product, producers adopt different measures like distributing samples, gifts, coupons, bonus, etc. Depending on the objectives, refund offers are used to encourage trial of a new product, purchase of increased quantity, or increasing the frequency of purchase, or to encourage the customers to purchase those products whose purchases can be postponed, such as refrigerators, microwave ovens, air-conditioners, and other consumer durable products. Same techniques, which are used for consumer promotions are also used to promote products to business users, such as stationary, computer systems and consumables, machinery, automobiles, and many other products. (c) Consumers use coupons for products which are consumed regularly, such as tea, coffee, laundry products, etc. The manufacturer of Sensodyne has been reaching out to local dentists of Mumbai who have been distributing free sample of these toothpastes to create awareness among their patients. 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