Awards, prizes, momentous, and certificates, xi. For a marketer resorting to sales promotion, a variety of tools and techniques are available. Recent developments in marketing – Social Marketing, online marketing, direct marketing, services marketing, green marketing, rural marketing; Consumerism. Money back and Rebates – Consumers are offered money back if the receipt and barcode are mailed to the producer. For example, a cellphone manufacturer may offer access to free downloadable ringtones for those purchasing a cellphone. Premiums differ from samples and free product in that these often do not consist of the actual product, though there is often some connection. The professionals serving the organisations bear the responsibility of innovating the tools so that the process of making the buying decisions being influenced by the sales promotion is found effective. Under trade promotion methods, advertising allowance is also given to the dealer. A premium is an article of merchandise or other thing of value offered as an inducement to purchase a product or service. Free samples serve a crucial purpose for businesses. Firms should carefully plan their displays to fit the needs of the dealers. 8. This is the reason we see some products displayed by the store some better products may not be seen. Participation in formulating sales policies and strategies, xiv. The representatives of mass media, social workers, leaders of an organisation or even others having a say in the society can act as opinion leaders. This method is used to increase sales. Through this method, producers train their dealers so that they may make more and more sales of products easily and smoothly. 5. Trade shows – Thousands of manufacturers display their wares and take orders at trade shows. This preview shows page 1 - 3 out of 14 pages. Premium method is also used to attract the consumers towards the product. Word – of – Mouth Promotion 16. Firms that wish to conduct a sales promotion campaign have various methods to choose from point-of-purchase advertising, trade shows, samples, coupons and premiums, contests and trading stamps. Sales promotion is needed to attract new customers, to hold present customers, to counteract competition, and to take advantage of opportunities that are revealed by market research. 6. Premiums are also used to stimulate direct mail purchases. Coupons (same as money) are accepted as cash by retailers. xv. The personal touch often makes all the difference when selling. Free-standing insert (FSI) – A coupon booklet is inserted into the local newspaper for delivery, though it may not give the real benefit as mostly customers do not carefully see the pamphlets or stickers in the newspaper. A fence sitter is a consumer who remains neutral or undecided amongst various alternative products. It is against this background that we find increased temptation for this element of the promotion mix not only in the developed countries but even in the less developed countries like ours. An example is the professional meetings attended by college professors in a given discipline. iii. Price-pack/Bonus packs offers – The packaging offers a consumer a certain percentage more of the product for the same price for instance, ’25 percent extra’, ‘10% extra’, is seen mostly on goods. The consumer can buy products from anyone of the listed dealers. vii. Offering Trade discounts – These are payments to distribution channel members for performing a particular function or achieving a certain target. In the service generating organisations, we find use of different components of the promotion and in this context; we find this element of the promotion mix very effective. • viii. Winners are given some attractive prizes. Methods of Sales Promotion – Free Sampling, Money Back and Rebates, Loyal Customers Reward Point, Bonus Packs Offers, Mobile Couponing and a Few Others, Methods of Sales Promotions – Involving the Store/Outlet, Methods of Sales Promotion – Consumer/Customer Promotion Methods, Trade Promotion Methods, Combined Promotion Methods, Sales Force Promotion Methods, Methods of Sales Promotion – Rebate, Discount, Partial Refund, Free Samples, Quantity Gifts, Product Combination/Bonus Offer, Packages Premium and a Few Others. Sales force conventions (conferences, meetings, seminars, discussion, etc.). Mail magazine, newspaper or package insertions are standard methods of distributing coupons. iii. 2. It is against this background that we find it significant to talk about this component of the promotion mix. Methods used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes. It is not wisdom that you just copy the measures adopted by the competitors. Price discount and rebate or temporary price-cut, xii. Listing dealers is a part of advertising. For instance, the buyer of two packets of a branded soap may be refunded Rs.10 on returning the empty packages to the dealer. Not only the selling processes but albeit advertisement processes find telemarketing instrumental in their desired goals of offering more but taxing less. By offering shoppers samples, companies are placing the product directly in consumers’ hands—free of charge—in hopes they’ll purchase the product after trying it. Sampling gives a change to consumers to compare products with other substitutes. A coupon is a certificate that reduces a price. The first is consumer promotion method which motivates consumers to purchase. Secondly, they serve as an inducement to the channel for stocking the items. Trade promotion methods are also known as dealers’ promotion methods. Training programs – dealer employees are trained in selling the product and usually the training programme is kept at attractive destinations. They are useful for introducing a new product as well as for strengthening the sale of an existing product. TOP: AACSB Reflective Thinking| TB&E Model Promotion 29. Trade allowances – this refers to short term incentive offered to induce a retailer to stock up on a product. Whereas trade shows are open to potential customers, sales meetings are targeted to the company sales force and/or independent sales agents. Such a consumer can be motivated to jump on the side of the marketer through effective advertising. But they have to send the empty packets of the product, cash memo, prescribed entry information form and necessary information. In yet another type of deal a customer is offered two products for the price of one. The in-store promotion of consumer goods is a common example. Popular dealer level sales promotion tools are as below: v. Gifts on special social occasions and festivals, viii. This makes it clear that the instrumentality of sales promotion is substantially influenced by the sensitivity of tools selected for the said purpose. But its main purpose is to induce the old customers of that product. 7. Many big departmental stores keep it as a sales promotion gimmick. Combined Promotion Method 4. We can’t deny the fact that the tools of sales promotion should be for both the parties involved in the process such as the providers or traders who offer the goods or services and the customers who ultimately consume or use. It is expensive, not only to manufacture the product but also to distribute it across the country to consumers. The work of sales promotion can be performed if there is balance between the planning of these two promotions. Partial Refund 8. Product Combination/Bonus Offer 11. Point-of- purchase is also known as dealer hopes, dealer aids, dealer displays, merchandising and point-of-sale material. Trade Promotion Method 3. Tools or Techniques used for sales promotion: i. Since these fairs and exhibitions are visited by a large number of persons, businessmen and manufacturers get a good opportunity for advertising their goods. 10. They are readily redeemable with retailers, who receive a handling fee. Packaged Premium 12. (a) Induce consumers to switch from a competitor’s product to the seller’s. vi. They offer substantial cash or merchandise prizes to call attention to their product.