Tuesday, 2 June 2015

TECHNIQUES USED IN SALES PROMOTIONS


There are many sales promotional techniques, but they can apparently be reduced to 12 classical and widely used. The rest of the techniques usually include some kind of combination of these 12 most used techniques of sales promotion. 

1. Sampling - the use of various distribution methods to deliver actual or trail size products to consumers with the purpose to initiate trial.

2. Coupons - A promotional device that provides a price-off to consumer upon redeeming the coupon

3. Trade incentives - incentives that are given to retail managers and sales people for performing tasks such as displaying merchandise or selling certain lines of merchandise.

4. Trade allowances - deals that are offered to retailers for performing activities in support of manufacturer brand

5. Price-offs - promotion which entails a reduction in the brand's regular price.

6. In, on, and near-packs (and reusable containers) - specially designed pieces that retailers give to consumers who purchase the promoted product.

7. Free-in the mail premiums - a promotion in which consumers receive premium item from the sponsoring manufacturer in return for submitting a required number of proofs of purchase.

8. Self-liquidating premiums - a method where the consumer mails in a stipulated number of proofs of a purchase along with the fee to cover manufacturer's costs of shipping and handling of premium item. From manufacturer's point of view this form of promotion is cost free, and therefore the name is self-litigating.

9. Contests and sweepstakes - a form of consumer oriented promotion in which winners receive prizes, cash, or merchandise.

10. Refund offers - A cash reimbursement to the consumer by the manufacturer whose product the consumer has purchased.

11. Bonus packs - Extra-quantities of a product that company gives to consumers at a regular price.

12. Stamp plans and continuity premiums - type of promotion where the consumer is getting rewarded for continuous use or repetitive purchase of a product/service, fax frequent flyer programs.

These techniques can be trade or consumer oriented. Because sales promotional tools are so varied in form, no single unified objective can be identified for them. There are three major contributions of sales promotions that have practical influence of the objectives of promotion.

BACHUBIRA ZAITUNI

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