It increases sales and makes sales of slow moving products faster and stabilize fluctuating sales pattern. Consumer Sales Promotion Techniques. Privacy Policy3. Sales Promotion includes all activities which promote sales of the company’s product and services. It increases sales and makes sales of slow moving products faster and stabilize fluctuating sales pattern. Additionally, you’ll need to ask yourself questions like, “is this a new product launch or an established brand? The key to a good contest is to offer a prize worth winning and to make the promotion fun and exciting. The techniques may be used which can measure the results easily or may be difficult to measure in a straightforward manner. Sales promotions help in selling and it makes advertisements and personal selling easy and effective. Offering free samples of Fast moving consu… Make sure customers know that these savings won’t last long. Deflect Customer’s Attention from Price: Sales Promotion Objectives – Top 7 Objectives: Launch New Products and Increase Trail, Encourage Dealers to Participate in Display and a Few Other Objectives, Sales Promotion Objectives – For both Marketers and Traders, Sales Promotion Objectives – The 3 Fundamental Objectives: Informing, Persuading and Reminding, Sales Promotion Objectives – Educating Customers, Stimulating Sales, Facilitating Co-Ordination, Attracting New Customers, Introducing New Products and a Few Others, Sales Promotion Objectives – 7 Main Objectives: Introduction of New Products, Attracting New Customers, Inducing Present Customers to Buy and a Few Others, Sales Promotion Objectives – 2 Most Important Objectives: Consumer-Oriented Sales Promotion and Trade-Oriented Sales Promotion, Sales Promotion Objectives – Increase in Sales Volume, Stock Clearance, Emphasizing Variety, Tempting Customers, Seeking More Involvement and Introducing New Arrivals, Sales Promotion Objectives – Providing Information, Increase Sales Volume, To Keep the Memory Alive, To Arrest Seasonal Decline, To Induce Middlemen and a Few Others, Sales Promotion Objectives – With Reasons for Growth, Sales Promotion Objectives – Increase Sales Volume, Launch New Product, Increase Trial, Encourage Repeat Purchase and Deflect Customers Attention from Price. 15. They induce buyers to purchase a new product. Fix underperforming businesses We continued to take action to restore growth and profitability in underperforming businesses. Under the situation, the organisation may decide to dispose of the excess stock in a short period of time, introducing different promotional schemes to attract the prospective consumers to sell the products immediately. 8. 1. Inducing present customers to buy more – Present customers may be induced to buy more by knowing more about a product, its ingredients, and uses. A firm that feels threatened would like to protect its loyal customers from switching to the new competing brand. It is usually difficult to choose a particular sales promotion tool for achieving the specific objectives. Some companies offer a free pack with purchase of a product like free soap with purchase of detergent. This objective may also be accomplished for certain consumer durable goods in case of trade segment. They can be delivered the old-fashioned way – newspapers, magazines and by mail. They induce buyers to purchase a new product by distributing free samples in the market. Encouragement for Distributors, Dealers and Sales-Force: Lucrative sales promotion schemes shall encourage the dealers, distributors and sales-force to give more effort to increase sales for mutual benefit of producers and middlemen. Short term incentives offered to the buyers stimulate sales. Essentially, that’s what promotional contests are, whether it’s entirely a game of chance or one that requires a bit of knowhow and effort is up to you. In order to establish high brand equity and to generate brand loyalty, the promoted brands or the products should be easily accessible and readily available to the consumers. The point is, if you have fun with your contest, so will customers. Another important rule when offering a discount price is to stick to a clear time period. Ask them to write an essay about how much they love your product or products. Different lucrative offers are launched to generate a favourable attitude of the consumers. A number of personal care products, such as shampoos, cosmetics, toilets soaps, or laundry products, such as detergent powders and cakes etc., have been introduced successfully in the last few years. It is also difficult for them to get proper shelf-space in retail shops without offering incentives to re-sellers, or encourage trial by consumers without offering some immediate or extra benefit. Stick the word “free” in front of consumers and it tends to turn heads. Generally in an average store there may not be more than ten or fifteen items that get major display spare at any given time. Such sales promotions are communicated to encourage existing consumers to forward-buy. An important objective of sales promotion is to encourage re-seller participation in displays and contests. He or she must then be motivated to give some attention to the product and what it may provide. Frequency Programs – One of the fastest growing areas of sales promotion is the use of frequency programs also known as continuity or loyalty programs. Free samples are distributed or money or merchandise allowance is offered to the dealers to stock and sell the new product. They do not change brands easily, and consumer awareness and trial was low, despite heavy advertising. viii. The objectives for the sales force may be to encourage a new product or model, stimulate off-season sales, and persuade more prospective buyers, and so on. A coupon or a premium offer in a print advertisement increases the attention getting ability of ad. The gift can be clearly packaged with the product as a visual sales incentive at the point of purchase. Objectives of Consumer Promotion. Price-off reductions are typically offered right on the package through specially marked price packs For example, on Palmolive shaving brush Rs. (2) Increase’ Sales Volume – The main purpose of all Promotional activities is to increase the sales of the product or products of the company. Content Guidelines 2. • consumer promotions are run while other marketing activities, such as Palgrave Macmillan Ltd 1479-1862/06 $30.00 Vol. If advertising is an indirect approach the sales promotion is a direct approach for persuading customers to buy. Reactive sales promotion objectives are developed in response to some unfavourable market situation or where the objectives are essentially short term, such as the following-. Ready stock should be made available through different outlets, approachable and accessible to the target consumers. This objective may also be accomplished for certain consumer durable goods in case of trade segment. Sales promotion is often referred to by the names of “Extra Purchase-Value” (EPV) and “Below-the-line-selling”. The word “free” is always a big attraction, so even mailing or emailing coupons for a free sample valid on a future store visit is certainly a sales technique worth considering. The most commonly used method of consumer promotion takes the form of samples, contests, demonstrations and coupons. Welcome to EconomicsDiscussion.net! The sales volume of any product depends on so many basic factors of marketing, such as product quality, its price, distribution, effectiveness of marketing communications, and macro-environmental factors (demographic, economic, technological, political/legal, and competitive, etc.). Not sales next quarter. An important area that concerns sales promotion objectives is directly related to the specific promotional techniques to be used. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Launch new product and increase trial. Encourage Repeat Purchase: Encourage Dealers to Participate in Display and Sales Contests, Objective # 7. Sales Promotion Tools and Techniques – Consumer Promotion Tools, ... Refund offers can be used to achieve a variety of promotion objectives, such as to guarantee trial, to reward loyal consumers, to load consumers, to increase purchase frequency, to introduce new products, to enter new markets, to encourage the purchase of related products, etc. Experience game-changing insights that will improve your retail operations and drive revenue. … Sales promotion is used to retain customer’s interest in the product during off-season. Price increase can often have negative effect on sales. iii. Through some sales promotion scheme or offer, the retailer can attract more number of customers to his outlet. Market promotion is also a valuable means to inform consumers the changes made in the existing products and introduction of new products. 9. 8. Promotional activities are undertaken to attract retailers and wholesalers to stock the product more. Definitely, sales promotion cannot be a substitute for weaknesses in marketing strategy. They must have some knowledge about the product offered by the producer. These objectives are for both marketers and traders. It shall attempt to generate a bondage between the awareness and perception of the consumers and the personality of the brand and its features. To stimulate maximum sales on special occasions such as Diwali, religious festivals, and other such occasions. Sales promotion aims at wooing new customers. Display is a powerful tool to enhance sales. 1. Product adoption increased just by stimulating trial rate by consumers, leading to growth in sales which was maintained subsequently. The products are categorised and standardised to suit the specific consumer demand. A number of personal care products, such as shampoos, cosmetics, toilet soaps or laundry products, such as detergent powders and cakes etc., have been introduced successfully in the last few years. The various objectives of sales promotion are as follows: 1. Stimulating sales – Sales promotion helps in promoting larger sales in certain specified segments of market. The trial use, through distribution of samples or demonstration may convince the prospects regarding the positive features of the brand introduced. Detergent powders and cakes toilet-soaps, shampoos, oral hygiene products, and many other non-durable products, which are consumed every day, may respond well to such promotions. Consumers desire superior customer value, which includes quality products and service that are competitively priced. Coupons encourage nonusers to try a brand, encourage repeat purchase among current users, and make users to try new, improved version of a brand. 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