TECHNIQUES USED in SALES PROMOTION

Principles and Practices of Marketing
  • Consumer promotions-this are designed to increase short term sales inducing final consumers to try a new product or to increase purchase of an existing product. The effort of company is directed towards the end user of the product. This technique is also known as the pull strategy.ie producer-wholesaler-retailer-consumer.;but the arrow starts from consumer backwards.The media /techniques used usually includes;
  • Free samples.
  • Cash discounts.
  • After sale services.
  • Free gifts.
  • Free demonstrations.
  • Price deals ie decreasing.
  • Sweep stakes- this is a method of gambling in which each person pays a small amount of money and is given the name of a competitor before a race/contest and the person who has the name of the winner receives all the money.
  • Rebates-cash refund to buyer for purchasing a product
  • Coupons(pieces of paper carrying a certain value).
  • Trade promotions-This includes getting wholesalers and retailer to carry new items or increase their stocks giving them certain incentives. This encourages them to advertise the product and give it more self-space. The effort of organization is directed towards the traders or intermediaries.it is also called the Thisisexhibited producer-wholesalers-retailers-consumers. The arrow is a forward one. The media/techniques used includes;
  • trade discounts
  • allowances
  • commissions
  • competitions
  • free demonstrations
  • credit facilities
  • free training-technical products/machines
  • technical support e.g. installations
  • rebates-cash refund given to resellers on providing proof on sales.
  • push money-manufactures pay retail people to promote products for them.
  • trade shows
  • trade contents
  • point of purchase display for attention and dealer loaders- This is a premium given to a reseller to encourage development of special display/produced offering.
  • Sales force promotions-this are incentives given to the sales force to support current or new products or getting the sales people to sign up new contracts with manufacturers and suppliers.the media used to target sales force promotions include;competitors,financial or non financial incentives ie cash rewards,free training,bonuses and commissions.
  • Personal selling-this involves face to face interaction with one or more prospective purchasers for the purpose of making presentations,answering questions and procuring orders.



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