explain the different sales force oriented sales promotion tools
Jan 12 2021 4:42 AM

Coupons have four advantages- (1) Regular buyers are limited to one reduced price pack, so that the subsidy to existing buyers is reduced, (2) Coupons do not dilute the brand value, (3) The customer tends to resist paying the normal price again with normal rebates. (f) The gifts should be of good quality and useful. Agencies like Trikaya-Grey, Ad Avenues and Maa Bozell have set up separate divisions to handle events. Everything must be specific. It is not so with coupons and (4) Competition retaliation is not so sharp. Conventionally, the glamour in promotion is stolen by advertising. These are cost-effective motivators and improve representative’s productivity. Promos should be integrated to products and advertising. User 6. “Marketing Management” Sales Force and Promotion Prepared by: Jonah C. Pardillo 2. They have seldom reuse values. Promotion and Promos 14. We have to use sales promotion sparingly. It also builds a top-of-the-mind awareness. They experience a larger decline in revenue from advertising. Sales promotion is often thought as special selling effort to accelerate sales. All these will help avoid hard and bitter feelings later. One maxim is, do promote, but not at the cost of brand equity. A reusable container can be reused after the product is reused. Types 10. For example- The Confederation of Indian Industry (CII) organises several business and trade fairs on specific industries. The manufacturer or wholesaler may have a good product, reasonable price, attractive package, etc. But it has now come to be used strategically also. ABCL and Plus events also operate in this field. Price-offs in off-season fridge sales does not help much to stimulate off-season sales. When new products are launched, the ads may carry coupons of price-offs to induce trials. To increase buying response by ultimate consumer, and 2. Samples are delivered at the doors of consumers. What has succeeded may not necessarily succeed in future too. Major Decisions and Other Details. It is an integral part of the marketing effort. Between February 26th and 28th CII has organised the International Engineering & Technology Fair (IETF) for businesses in engineering and manufacturing industry to promote Business-2-Business (B2B) networking (CII, 2014). The first difference is Personal Selling is an element of promotional mix, where salesman visits the customer and displays the goods in order to initiate purchase. The focus of advertising to create reason for purchase the focus of promotion is to create an incentive to buy. 5. Pre-testing ascertains cost-effectiveness of various alternatives. Then only they can ensure wider participation. Here are many tools that are used in order to facilitate sales force promotion effectively. Similarly, Videocon offered Rs.7,000 off on its No-frost model of refrigerator against an old fridge. To build goodwill by sharing the gay spirit. Sales Promotion Schemes. The effective execution of sales strategies requires constant monitoring and analysis. Promos no longer generate excitement. Samples are one of the most important tools of sales promotion. It aims at stimulating consumers. Sales Promotion – Options of Promotion Objectives, The company made Ogilvy writes a manual for other salesmen. The direct inducements cover a whole package of coupons, price-offs, premiums, larger quantity trading stamps, free gifts, displays, shows, expositions and demonstrations. 9 Types of Consumer Sales Promotion Tools, Aggressive Selling | Meaning | Aggressive vs Defensive | Circumstance | Methods, Different Approaches to study of Marketing, Terms of Sale | Different types of Quotations in International Trade, Factors to be considered in export packaging design, Top 10 Differences between Wholesalers and Retailers, Chain Stores | Meaning | Advantages | Disadvantages, Weaknesses of Trade Union Movement in India and Suggestion to Strengthen, Audit Planning & Developing an Active Audit Plan – Considerations, Advantages, Good and evil effects of Inflation on Economy, Vouching of Cash Receipts | General Guidelines to Auditors, Audit of Clubs, Hotels & Cinemas in India | Guidelines to Auditors, Depreciation – Meaning, Characteristics, Causes, Objectives, Factors Affecting Depreciation Calculation, Inequality of Income – Causes, Evils or Consequences, Accountlearning | Contents for Management Studies |, a product that is not superior in some way to competing products, a product with a narrow margin of profit, or. Increase sales on average per account. Promotion is a comprehensive term and covers the entire gamut of advertising, publicity, public relations, personal selling and sales promotions. Themes must be measurable objectively and be relevant to the company’s sales curve. Both products reap the benefits of the promo. Large sales force with a hierarchical order calls for contests for different groups, and eligibility criteria restrict the participation to each group. In case of low-involvement products, we can in-pack premiums. 3. Pre-Testing the Sales-Promotion Programme, 5. Each and every business is different and therefore, the type of sales promotion used by each business needs to be different. Each programme should have its individual implementation and control. Sales promotion tools used to boost short-term customer buying and engagement or enhance long-term customer relationships. Soon, thereafter, further activities are planned to avoid dipping sales later after the closure of the contest. Demonstration of products induces customers to buy. Therefore, companies have to be careful in designing and structuring sales force. 5. Even price-off may tell upon the quality, because the manufacturer is likely to cut corners somewhere. Success of couponing exercise is based upon retailer cooperation. Promos support mainline advertising. Content Filtration 6. On the contrary, such promotion delays further repurchases. Some activities like event associations do enhance the brands. Binaca used to give those animal replicas. 8. In particular, it enables the marketer to add time urgency and other behavioral influences to the promotion campaign. Calling attention to new products and product improvements. Let’s hunt for the hidden treasure (find new customers). Same prizes for each contest are to be avoided. In other words, buy back allowances are given for new purchases, based on the quantity of goods bought previously. 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. But food products do show category growth by such promotion, e.g., biscuits. Types of Consumer Sales Promotion tools 1. 6. Sales volume can also be increased through effective mobilization and encouragement to the sales-force. Lakme uses couponing for its premium Orchid range. For retailers, objectives include inducing retailers to take up new items, encouraging higher stock levels, etc. Apart from inducing trials, coupons are used to retain the existing customers. To improve a product’s visibility on the shelf. The sponsors, therefore, should carry-out these tasks. Sales is a very fulfilling profession, when you choose the right type of position. There are three types of sales promotion strategies’. SALES PROMOTION: - Consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. Sales promotions are short-term incentives to buy products. 1. Sales promotion aimed at consumers is called ‘consumer sales promotion‘. The basic aim is to increase consumption and usage. Marketing managers use sales promotions to stimulate buying and increase consumer interest in a product. What succeeds for one product may not succeed for other products. Samples are one of the most important tools of sales promotion. We should pre-empt competition in using the promos. A panel of judges selects the best and buyers are given prizes. (c) When there is intensive competition on consumer sales promotions. Similarly, traders should be responsive in terms of performance. A coupon is a certificate that fetches buyers a saving when they purchase a specified product. Say, a cheap ice cream cone offered at McDonald’s attracts people inside and then they can try the other items on the menu. At the point of purchase, the only promotional device is SP. In sales promotion, the following arithmetic is taken into account: Cost of Promotion = Actual Price of the Gifts + Cost of Promoting and Promotion (Point of Purchase Material + Media ads, etc.,) < Additional Sales Revenue. The Sales Promotion tools are directed towards Consumers (Consumer promotion tools), Dealers or middlemen (Trade promotion tools), and Sales force. Securing additional shelf-space and added display. For the sales force, objectives include encouraging support of a new product or model, encouraging more prospecting, and stimulating off-season sales. But with companies becoming more market oriented, a customer-focused sales force also works to produce both customer satisfaction and company profit. 4. Concept and Nature of Sales Promotion 2. One has to communicate with the consumer through advertisements and POPs at the retail level. Revenues from activities like direct marketing promotions, PR and research are on the rise. Perhaps, the most difficult part in managing sales promotion is to decide which particular sales promotion tools should be used for achieving the specific objectives; which of these tools can be and should be combined to produce a synergistic effect, and how can these be delivered to the target audiences, that is, consumers, resellers, or the sales force. It should also take into confidence the trade channels. 4. ADVERTISEMENTS: In this article we will discuss about sales promotion. It also assesses the most preferred terms on which to offer a scheme. It is not the BTL that weakens the brand, but below-the-belt does, e.g., price promotion where two pieces are offered for the price of one. Mostly, the schemes are purchase- linked. Free samples are given to consumers to generate their interest in the product. Prohibited Content 3. Samples. To make slow moving products fast moving ones. The buyer purchases the product and submits the evidence of purchase with entry form for contest. Without reducing the retail price, a marketer provides consumer promotion when raw material prices are reduced. Producers of new brands or innovative products are introduced by holding fairs and exhibitions. Separate sales forces may be set up for different industries, Sometimes, staffers other than sales representatives should be included in the contest. Establishing the Sales-Promotion Objectives, 3. Contest prizes are becoming attractive. Even mass media coupons can help advertisers to know the effect by considering the redemption rate. What constitutes a new order? The most prominent reason is an emphasis on quarterly results expected of senior management. Another reason for the rise in BTL is the lead given by the market leader such as HUL who would like to battle the slowdown of their top-line. Thus, they will get the benefit of additional business. Two products which are related or unrelated can be bundled together, and either product may induce a buyer to buy the product. The campaign should be directed to the consumers for whom it is meant. It is chosen as it is ubiquitous and will not cost much when contestants buy it for their video submissions. Increase units sold per representative. Pre-testing is done by panel method, or by mail survey or by a field-study. Retailers thus demand more S.P efforts from their suppliers. The rest forms another category, e.g., price-off packs, trade allowances, etc., gifts not related to product. The product to be sold is a common, everyday red brick. The original price and the bargain price must be stated. SP is to be measured by pre-testing it, monitoring it during implementation and by post-testing. To increase selling efforts and intensity by dealers as well as by sales personnel. Premium refers to goods offered either free or at low cost as an incentive to buy a product. To reduce post-purchase dissonance, promos can be used. They introduce new product by asking the prospects to state the reasons for the purchase of the product. Temporary – What length of time would qualify for being temporary? Perhaps, there is no effect of advertising now. (xi) Point-of-purchase (POP) display and demonstrations. In direct marketing, couponing also helps to evaluate the effectiveness of the campaign based upon the response rate. The marketer must make further decisions to define the full promotion programme. Generally offered for consumer goods such as soap, toothpaste, etc is and... S marketing objectives customers in the marketing-mix just as value-add-ons rebates should be in... 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