SALES PROMOTION

Sales promotion covers a:wide range of activities aimed at I increasing sales of a new product by a sales campaign that encourages customers to buy a particular product.

So, the objectiveof most sales promotion efforts is to sell more of the product, both during and after the promotional period. The idea is that if the consumer can be persuaded to -try the product, he or she may continue to use it.

Sales promotion is often thought of as being the same as advertising. Although the objectives of promotion and advertising are the same, namely, to persuade the consumer to buy, there are differences in the way they are practiced. Sales promotion often takes the form of an incentive, e.g. a free sample or a special offer, or "buy two and get one free".

Sales promotion efforts directed to consumers might be:

■ to induceconsumers to try the new brand

■ to increase average purchases

■ to increase brand awareness

Sales promotion efforts directed to dealers might have such goals as:

■ to increase shelf space

■ to increase dealer enthusiasm

■ to obtain more dealers and wider distribution

■ to induce dealers to buy in larger quantities

■ to help dealers operate more effectively

Sales Promotion Methods Directed to Consumer

The most effective and popular sales promotion methods directed to consumer are as follows:

Packaging and design. The packaging and design of a product is very important if it is to catch the customer's eye. It may have to compete with other product for shelf space, e.g. a supermarket may stock several types of a product but the one that catches the consumer's eye is likely to be the one put in the shopping basket. The key elements of packaging and design include colour, size, display and brand or trademark. A company uses packaging and labels or trademarks to separate its product from those of close rivals. This is sometimes called branding and brand names are a common form of promotion. The packaging of products has undergone a revolution in recent years. Soft drinks, for example are now sold in cans or plastic bottles rather than in large and heavy glass bottles.

Games and competitions. These are becoming commonplace in promoting sales of a product or service. Supermarkets, garages and travel agents often run competitions to increase sales. Newspapers have tried bingo games to increase their circulation. The prizes to be won are very attractive, e.g. 1 million, a 2-week holiday, or a car.

Games and contests are conducted only for a limited time, after which a new contest or game may be introduced. In one format, customers attempt to collect particular sets of game slips that qualify them for prizes. As game slips are distributed free with a purchase, the object is to encourage customers to purchase more frequently and more consistently in order to acquire more game slips and thus have a better chance of winning.

Pricing promotions. The idea behind a pricing promotion is to try and persuade consumers that they are getting value for money, e.g. 25 % extra free, special bonus pack, two for price of one, and 10 pence off. A seasonal sale to clear out stock from the previous season to make room for the new season's collection is a further example of pricing promotion.

Sampling. One means of launching a new product is to provide free samples of it to households. These samples can be delivered door or through a particular magazine. Hair products, washing powders/liquids and fabric softeners are often launched this way. The company hopes that once consumers — have tried a small sachet sample of the product, they will go and buy the larger size bottle or packet at the shop.

Merchandising. This involves the layout of the shop, the placing of the item in the store, the use of colour and point-of-sale materials, or POS materials. It is often called the "silent salesman" or "selling through technique". The best or I prime selling spots in a supermarket are the check-out areas, ; the shop perimeter and eye-level shelves. A child's attention I is easily caught by the sweet at the check-out. Less popular | products may be placed near the front of the store, with the | popular items at the back. Customers may then pick up some of the less popular items on their way through the shop.

Some other very popular promotional methods directed to consumer are coupons, trading stamps, premiums, exhibitions and demonstrations, direct mail, personal appearances.

Sales Promotion Methods Directed to Dealers

Sales promotion methods directed to dealers include sales meetings, special training seminars and even factory visits , provided for dealers and their salespeople. Because many products today are technical and complex, the knowledge of a dealer's salespeople can be the deciding factor in picking the sale for one brand over another.

Display allowances may be offered to dealers instead of or along with display materials. These are special monetary incentives for dealers to feature certain brands or to allot them more shelf space.

Also, in efforts to stimulate greater push by dealer salespeople, a manufacturer may offer special premiums, such as prizes, trading stamps, or push money. For example, it is common for a manufacturer, to pay a small commission for each item of that manufacturer's brand sold by a retail clerk. Automobile firms are the most frequent users of incentive programs; for example, they offer contests and free trips for their dealers' salespeople and even for the dealers themselves.

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