c. Coop Sampling in which several different products are delivered in same container or at same time and distribution costs are shared by various manufacturers. Price deals (price-off, price-cut, cents-off, denote the same thing), iii. This is a method to “load” the consumer up with the product. Coupons can be considered as certificates offered by retailers or manufacturers that entitle the owner to some stated savings or claim the specified thing. Depending on the consumers’ value perception of the premium, the consumers may even be agreeable to purchase the product at a slightly high total price for the combination of the product and the premium. 8. Example—”Exchange your black and white television with a colour television.”. v. Sales Contests and Sweepstakes – Three kind of contest prizes are – (a) Cash awards, (b) Merchandise Prizes, (c) Special Honour viz., winner to appear in a TV show. The main consumer promotion tools include samples, coupons, demonstration, contests, cash refund offer, premium, etc. Such a deal is designed to stimulate customers to try a new product, to encourage new users to try an existing product, or to encourage customers to continue product patronage, increase purchase quantity, purchase multiple units, and accelerate usage rate, etc., such deals are suitable when the brand loyalty is low, product category is considered a commodity, and price is the primary consideration by the customers. There is plenty of variety, flexibility, and motivation to action. When the product is good but the brand share is low, a refund seems to work very well. A customer was required to buy a pack of & 7 O’clock P II for Rs. Displays, trade fairs, exhibitions, and event sponsorship. Consumer incentives could be samples, coupons, free trial and demonstration. A self liquidating premium is the extra quantity offered at the normal price. Free Gifts 6. Often a combination of contest and sweepstakes is employed in some promotions. 6. These are part of Interest promotions because such sales promotions create not only interest but also produce excitement and enthusiasm in consumers. Several types of coupons are in use viz., (a) Coupon with a rub-off spot, (b) Instant coupons, easily detachable to buy immediate package, and (c) Special Price Coupons. A premium may be inside the package, outside it or received through mail. 1,30,000 as a loyalty reward on purchase of a Maruti Esteem car, if the family already owned any other Maruti car. Trade Association Meetings, Conferences and. Money-Back Offer 12. Sales promotion tools used for consumer-oriented promotion are – Free Samples: Distributing free samples increases brand awareness and triggers the psychology of ownership where the person chooses the promoted product if he liked the sample. Sales promotion is a type of Pull marketing technique. Anyone can send the answers to the questions on a postcard. The reusable package itself serves as a premium. The promotion planning shows how effective the sweepstakes can be in increasing the sales, and block competition. Dealers promotion methods are those which encourage dealers and distributors to buy and resell more and more quantity of the product. Trade promotion can persuade the wholesaler, retailers or distributor to carry a brand, advertise or give a shelf space to the products of a particular company. Though sampling is effective, producing numerous samples of a product is quite expensive. ). 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. 3. This also offers consumers the satisfaction of being “smart shopper”. Much depends on the ingenuity of promotion planner. An effective sales promotion uses imagery, effective copy, and logic to appeal to the needs, values, and emotions of your target audience, and invites them to purchase your products or … Ans: Sales promotion is a part of the promotional mix. It is also called pull strategy. ‘Readers Digest’ regularly makes this offer. The range covers low as well as high-involvement products. Adv. pen, dairy, calendars, key etc. Premiums – Goods offered either free or at low cost as an incentive to buy a product. Cash refund offers or rebates – Are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet. Self-liquidating premium offers; 4. Yet another reason can be that when retailer feels threatened, then the only way to respond to competitive situation is to offer a price discount to consumers to move the product off the shelves. This is a way to reward the present consumers and may not have any impact on the users of competitive brands. 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. The terms refund and rebate are used as meaning the same thing/Long ago, the term rebate was popular by the automobile industry in the developed countries. This type of refund policy builds store loyalty among consumers who continue the patronage. These coupons are either advertised by producers/retailers in newspapers or distributed in weekly flyers via mail across households. Moreover, distributing samples to customers also involves expenditure. iii. This dampens the competition for a while. viii. 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. These are all different approaches to offer immediate reward to the consumer at the time of purchase. Rebate is a partial refund to someone who has paid more or extra on purchase of a specified quantity or value of goods within a specified period. Experience shows that everyone concerned, consumers, trades people, and sales force, get a share of excitement when the contest or sweepstakes is well planned and executed. For example- milkshake along with Nescafe, toothbrush along with a toothpaste. Price-Off Offer 4. For example, the regular price of a standard pack of a product is Rs. 7. 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. The Random House Dictionary defines a refund as repayment of money, and a rebate as a return of part of the original payment for some service or merchandise. When coupons are offered by the manufacturer all the costs associated with advertising and distributing the coupons, redeeming their face values, and paying retailers a fee for handling, are borne by the manufacturer. Coupon Redemption schemes; 11. W hile samplings and tast- ings, price discounts, value added promotions or sweepstakes aim at boosting short t erm s ales, 300,000 or more, or jewellery of the same value, then a number of prizes in the immediate value range, a large number of prizes of small value, and a larger number of consolation prizes. The pack contained four cakes of soap at the price of three). The prizes seem to be much larger to contestants than the money spent by the sponsor. Most of these techniques can be used both for consumer as well as trade promotions. 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. Share Your PDF File There seems to be quite a bit of confusion in understanding these terms. You can use various techniques like giving discounts on the product, offering 1 + 1 free schemes, etc etc. The major tool of sales promotion is the incentive schemes and offers, but these tools are not used in case of personal selling. By announcing a price discount on some popular consumer item, the retailer’s intention is to increase store-traffic. 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. Tastings are given to introduce a new food product to customers in an effort to get them to purchase that product. Bonus packs are generally limited to low bulk, low-price products, however, of late exceptions, such as Akai offer have been observed. Samples – Small quantity, sometimes free of cost or sometimes at minimum price, sent door to door personally or through mails or with other products etc. For example, Maruti announced a gift cheque of Rs. of Nescafe coffee. vi. The tools of sales promotion are employed primarily by two of the principals of marketing – the manufacturer and the retailer. Refunds and rebates (both terms are used interchangeably), a. In-packs, on-packs, near packs and container premiums. When retailers offer coupons of their own, they have to bear all the above mentioned costs themselves. Advertising Novelties, that is, small, interesting or personally useful items, low cost, and eye catching can be used for sales promotion. 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. 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. The first part involves a contest in terms of skill, or knowledge. Premium refers to goods offered either free or at low cost as an incentive to buy a product. Demonstrations are provided free of cost. Planning a presence at a trade show requires that you h… Senior Project Manager & Head of Experiential Activation +41 44 360 84 71 msc*at*promotion-tools*dot*ch Ralph Imper Logistics Operations 079 438 25 62 rim@promotion-tools.ch 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. Free door-to-door samples – This technique however is costly. One has to communicate with the consumer through advertisements and POPs at the retail level. Sales promotion is one of the best tools to attract new customers and retain old ones, including marketing activities by adding more value to the products for a … Offering company-manufactured products for free for a specified period like a few days or months, could be one of the finest tools of sales promotion. There's no way around it – promotion is an integral element of sales and marketing. Gift coupons; 8. This is a powerful method of ensure trial. It aims at stimulating consumers. Samples help consumers verify the quality of the product. The prizes, depending on the announced number of prizes, are declared. This may take any of the two forms, bonus pack and banded pack. Coupons bear a date of expiry and cannot be redeemed after the cutoff date. After sale service free of cost during certain period. POP can be very effective if done properly i.e., using better quality POP materials instead of cheap paper signs or ill- conceived displays. xvi. Entry forms are duly filled by the buyers. Sales promotion tools vary in their specific objectives. Picture cards; 7. They may be distributed door to door, by mail or they may be inserted in packages. To increase sales of any product, producers adopt different measures like distributing samples, gifts, coupons, bonus, etc. Names of consumers are included in a list of prize winning contest. e. Samples given to professionals to recommended product; e.g., doctors by pharma Cos. 2. This involves offering products to consumers at discounted or reduced prices by a certain percentage from the regular price of the product. When used as an offensive weapon, the objective is to generate additional sales and increase market share and long run profits. Packing; 14. In case of consumer durable products, Bajaj Auto announced a promotion to encourage the purchase of any Bajaj Scooter. The success or otherwise of a contest or sweepstakes depends largely on the selection of prizes and prize structure. COUPON (2 days ago) sales promotion tools and Techniques – 12 Commonly Used Tools: Coupons, Free Samples, Price-Off Offer, Fairs, Exhibition, Free Gifts, Competitions and a Few Others To increase sales of any product, producers adopt different measures like distributing samples, gifts, coupons, bonus, etc. If advertising support has been effective, or prior to offering price discount, there has been a sample drop of the product, then even first time buyers may purchase the product. If you have a product which is new in the market or which is not receiving a lot of attention, then you can promote this product to customers via sales promotion. 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