For example- milkshake along with Nescafe, toothbrush along with a toothpaste. To make the contest or sweepstakes more tempting, there may be more than one winner of first prize (such as 10 first prizes for ten lucky winners). Akai offered a 14″ colour television on purchase of 21″ colour television. The first example presents the use of ‘chance’ in case of a consumer non-durable, which is a low-involvement category product and there is hardly anything like brand loyalty. Here the focus is more on the wholesalers and retailers as compared to the consumers, i.e. The promotion named “Crorepati Hungama” lasting one month (1st December to 31st December 1999). Content Guidelines 2. Regardless of what your company sells or does, it’s important to learn about who your consumer is so you can effectively target them with your promotion strategy. Plagiarism Prevention 4. All these sales promotion schemes work on the principle that few people can resist a free gift, price reduction or special offer. Promotional activities can include: advertising — you can advertise your product, service or brand in newspapers, radio, television, magazines, outdoor signage and online. Another factor that may contribute to brand switching is the attractiveness and value of the premium as perceived by the consumers. In the Sales Promotion Tutorial, we saw that promotions can be classified into three main areas:. This is a consumer focused promotional activity and hence can be called as consumer sales promotions. Various tools of sales promotion, also known as methods of sales promotion may be divided into two parts – (i) Consumers Pro­motion Methods (ii) Dealer Promotion Methods. A contest requires the participants to perform some task. Television and/or Movies 1. What is Consumer Sales Promotion? Sales promotion. Promotional objectives are goals of marketing communications such as advertising. Various promotional tools are at the ... enhances the probability that the audience will identify with the character and find the advertising message trustworthy. 350 on sending one- year subscription, which the customer can use to purchase special issues of the magazine. For instance, a car worth Rs. It is a natural instinct to want to target as many people and groups as possible. xiv. The two types of sales promotion tools consumer are as follows: A. 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. Companies can offer a car or consumer durables for generating a certain percentage sales in a particular month or quarter. Competitions or Contests. 2640, and the customer may buy the higher end model. There are many types of consumer promotions to boost sales and keep the customer coming back. materials may be Diaries, calendars, Literature, Sign Boards, Packing Bags, Posters, etc. Contests; 5. Tools and programmes for dealer/distributor sales promotion . Similar discounts are often advertised by retailers in local media (called feature advertising) and by manufactures in national print and audio-visual media. More often discounts are offered to match or beat the competitor’s prices. 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. Advertisement Allowances/Materials, encouraging dealers and distributors to advertise products. This is useful for drawing attention to product improvement. Its main focus is on conventions, trade shows and sales contests. Free Gifts 6. 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. 1,30,000 as a loyalty reward on purchase of a Maruti Esteem car, if the family already owned any other Maruti car. xvi. 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. 5. A premium (gift) is a reward given to the consumer for performing a particular act, generally purchasing a product or service. Coupons 1. Sales Promotion 4. Direct premiums are used to reward the customers immediately at the time of purchase, and mail premiums require the customers to take some action, such as mailing the proof of multiple purchases to the marketer. Special credit terms may provide to encourage bulk orders from retailers or dealers. Cheap Bargain – To get another product at a very cheap rate while buying a product; e.g., A bucket of plastic of 5 litres only at Rs.6 with every pack of ‘SURF’ of 1 kg. Producers can organise competitions or contests among salespersons to encourage them to generate more sales from new customers. There were no first of second prizes, the top prize was a Santro car, besides many other prizes. Grocery stores owners informed the consumers regarding the possibility of prizes that consumers can win with continued use of the brand. As the use of sales promotion techniques continues to increase, companies must consider what they hope to accomplish through their consumer promotions and how they interact with other promotional activities such as advertising, direct marketing, and personal selling.When marketers implement sales promotion programs without considering their long-term cumulative effect on the … A computer magazine, “Chip”, offered a refund of Rs. 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). Specialised correspondence (through specialised corres­pondence section) with prospects, potential customers, and established customers. A quick response is generated by using this promotion tool for sales promotion. 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 promotion activities include special offers, displays, demonstrations, and other nonrecurring selling efforts that aren’t part of the ordinary routine. Convention – By this the company gets many benefits like finding new sales leads, contacting customers, introducing new products, meeting new customers, selling more to present customers, and educating customers with publication and audio-visual materials. Before publishing your Articles on this site, please read the following pages: 1. iii. Consider your unique selling points. Sales promotion tend to orient toward short term. 55.50. ix. Privacy Policy3. CONSUMER PROMOTION TOOLS Sreepathy R Naik M140401me IEM 2014-16 2. iv. Advertising specialities – They are useful articles imprinted with an advertisers name given as gifts to consumers, e.g. Some authors have considered more elements, too. The offer may be for a product purchase alone or in combination with other products. Price discounts (also called cents-off deals) are communicated to the consumers through advertising, at the point-of-purchase by listing the reduced price on the package or signs near the product or window display, or by the sales people. Research has shown that the tendency to use coupons rises under certain conditions: (a) When consumers perceive that there is need to control the budget, (b) Consumers are inclined to experiment with new products or services. No final date of promotion closing was announced. 6. The factor of chance limited only to what one gets, no losers, all winners. Economy pricing is set for a certain time where the company does not spend more on promoting the product and service. Such displays act as last minute inducement to buy. Content Guidelines 2. HubSpot CRM is free for contacts up to 1,000,000. Trade Association Meetings, Conferences and. For example, if the price of a more expensive wristwatch is Rs. The same agency says. Advertising: It is a paid form of non-personal mass communication by an identified sponsor. Copyright 10. It uses many tools as used in trade promotion and consumer promotion. There is no precise answer, however, experts generally agree that discount should be at least 5% to 20% of the normal price. Disclaimer 9. 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. It is common during festival season or during off-season period. For example, Maruti announced a gift cheque of Rs. xii. This is an example of a very clever sales promotion of a product, which is considered a commodity. How to measure marketing promotion. 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. This dampens the competition for a while. Prohibited Content 3. Customers are motivated, stimulated, and influenced to respond in a predictable manner to sales promotions. When consumers do not perceive any meaningful persuasive differentiation between brands and the market is competitive, such promotions work very well. Price discount generally do not stimulate consumers to buy a product in large quantities if the unit value is low, product is not bulky, and the holding cost is not high. xiii. Advertising Novelties, that is, small, interesting or personally useful items, low cost, and eye catching can be used for sales promotion. Convincing a customer that your product will meet and exceed their needs is the main objective of marketing. 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. (ii) Sweepstakes – Calls for consumers to submit their names for draws. Determining the quantum of discount depends on the consumers’ price perceptions and may be difficult to decide. e. Samples given to professionals to recommended product; e.g., doctors by pharma Cos. 2. Basically, there are five elements involved in promotional mix. Sales Promotion Tools and Programmes: Sales promotion techniques are known as promotion tools and the mode of their application is known as sales programme. b. 8. Some firms may institute a special trophy to the highest-performing dealer in a particular period of time. 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