For example, coupons and codes are not used in the B2B market. Scratch and Win Offer 11. In such a case the objective would be to encourage shopping at a particular store and buy a certain manufacturer’s brand. Where multiple purchases are involved as proof of purchase, generally the usual inter-purchase interval is more, and consumers are more likely to stay with the brand. Free Goods – An attractive coffee mug free with a pack of 200 gms. Sales promotion letters and catalogues. Much depends on the ingenuity of promotion planner. Demonstration of products induces customers to buy. In certain case all those who furnish the proof-of-purchase are given some specified premium. 62 only. Premium offers provide a point of difference, more so when the product category is fairly crowded. Coupons 2. 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. The main objective of sales promotion is to bring about a change in the demand pattern of products and services. Gift coupons; 8. Nowadays standardization and adaptation studies comprise of all elements of the marketing mix. a highly fragile, perishable or bulky product. Same techniques, which are used for consumer promotions are also used to promote products to business users, such as stationary, computer systems and consumables, machinery, automobiles, and many other products. W hile samplings and tast- ings, price discounts, value added promotions or sweepstakes aim at boosting short t erm s ales, There were no first of second prizes, the top prize was a Santro car, besides many other prizes. Manufacturers often offer extra incentives to retailers to gain their co­operation. The retailers serve as the agents of manufacturer in accepting and redeeming the coupons and send the collected to the concerned manufacturer along with their claims of reimbursement. Exchange Schemes. Displays, Trade Fairs, Melas and Exhibitions in different parts of country. POP material is often tied in with television or print messages to increase effectiveness. Considerable brand switching is possible if only one proof-of-purchase is to be sent to the marketer. Trade show booths can be simple with a single banner featuring your company name and logo. Some of these promotions appear in audio-visual or print media. pen, dairy, calendars, key etc. In most cases the structure represents a typical pyramid, that is there is a bumper prize of very high value. These Promotional tools include sales promotion which further contains a broad assortment of elements like. For example, to win a Santro car, the consumer was required to collect three coupons that would complete the name of the prize, that is, Santro. Various tools of sales promotion, also known as methods of sales promotion may be divided into two parts – (i) Consumers Pro­motion Methods (ii) Dealer Promotion Methods. The factor of chance limited only to what one gets, no losers, all winners. Names of consumers are included in a list of prize winning contest. This is a powerful method of ensure trial. Bonus packs are generally limited to low bulk, low-price products, however, of late exceptions, such as Akai offer have been observed. Here the focus is more on the wholesalers and retailers as compared to the consumers, i.e. (c) Consumers use coupons for products which are consumed regularly, such as tea, coffee, laundry products, etc. 3. ii. xvi. Share Your Word File 9 Types of Consumer Sales Promotion Tools, European Union | Objectives | Organizational Structure, Indian Council of Arbitration | Objectives | Activities, 8 Important Causes for Failure of Advertisement, UNCTAD | Origin | Organization | Principles | Functions, Advantages and Disadvantages of Online Shopping, Weaknesses of Trade Union Movement in India and Suggestion to Strengthen, Audit Planning & Developing an Active Audit Plan – Considerations, Advantages, Good and evil effects of Inflation on Economy, Vouching of Cash Receipts | General Guidelines to Auditors, Audit of Clubs, Hotels & Cinemas in India | Guidelines to Auditors, Depreciation – Meaning, Characteristics, Causes, Objectives, Factors Affecting Depreciation Calculation, Inequality of Income – Causes, Evils or Consequences, Accountlearning | Contents for Management Studies |, a product that is not superior in some way to competing products, a product with a narrow margin of profit, or. Planning a solid sales promotion campaign can help a brand meet the objectives they have set on time, and on budget. Money Back Guarantee – Producers guarantee that if their product does not meet certain standards, consumers can return the product and get their money back. The premium is likely to offer a reason and an incentive to buy the product. Mail-in free offers; 5. Computer magazines often include a compact disc with each issue. For example, if the price of a more expensive wristwatch is Rs. By announcing a price discount on some popular consumer item, the retailer’s intention is to increase store-traffic. The consumer can take the benefit of promotion tools either from the manufactures or from … Displays, trade fairs, exhibitions, and event sponsorship. Couponing is in effect controlled price reduction. Producers can organise competitions or contests among salespersons to encourage them to generate more sales from new customers. In these situations the refund offer is being used to encourage trial at no risk to the customer. Letters on some coupons were part of either the brand of washing machine, television, or wristwatch, etc. Whenever the store-traffic increases, customers visiting the store not only buy promoted product, but some of them buy other products as well. Different combinations of prizes are evolving. Similar discounts are often advertised by retailers in local media (called feature advertising) and by manufactures in national print and audio-visual media. Sales Promotion Schemes; Important tools of Sales Promotion Schemes. 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. Consumer promotions are directed towards the consumer and are strongly prevalent in the FMCG category. The offer was valid for a month only. xii. Samples are one of the most important tools of sales promotion. When consumers do not perceive any meaningful persuasive differentiation between brands and the market is competitive, such promotions work very well. There are several tools which are used for the promotion of products and services. i. Depending on the objectives, refund offers are used to encourage trial of a new product, purchase of increased quantity, or increasing the frequency of purchase, or to encourage the customers to purchase those products whose purchases can be postponed, such as refrigerators, microwave ovens, air-conditioners, and other consumer durable products. Customer will buy those products or services that are highly advertised, mostly seen etc. The same element of chance has been used in case of consumer durable product of high-involvement category. 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. Disclaimer Copyright, Share Your Knowledge Almost all promotions make use of one or more of these tools, alone or in some carefully developed combination. The winners are decided in two stages. This creates confidence among the customers with regard to the quality of the product. For examples, Sensodyne Toothpaste meant for relieving tooth sensitivity is unique product introduced in India. Their interest is not tied up with any brand or manufacturer, unless there has been an agreement with the marketer of some co-operative venture. There are many varieties of premiums and are sometimes referred as direct premiums and mail premiums. These can be either paid or not paid depending upon the kind of product being marketed. Advertisement Allowances/Materials, encouraging dealers and distributors to advertise products. Tastings are given to introduce a new food product to customers in an effort to get them to purchase that product. Promotions directed at the ultimate consumers are called consumer promotions. Each pack of flour contained a coupon with certain half-word or one-third word printed on it. Such sales promotion tools stimulates their buying behavior and induces them to buy the product. 5. a. A. Offer of a coupon is a very versatile technique and can be used to achieve many different sales promotion objectives. Free samples are given to consumers to generate their interest in the product. A judicious combination of techniques can be used to achieve almost any promotion objective. xii. Trading stamps are given by the seller to consumers. Effective sales promotion tools are tailored to presentations at events or trade shows, door-to-door sales, retail sales, direct mail advertising, telemarketing or Internet-based marketing. Types of Consumer Sales Promotion tools. There are occasions when the company decides to move in new geographic markets, such refund promotion may prove to be quite effective in motivating high-risk perceivers to decide in favour of the promoted product as the perceived risk is likely to appear as manageable. It is an offer to refund part of the purchase price of a product to consumers who send a proof of purchase to the manufacturer. Research has shown that the tendency to use coupons rises under certain conditions: (a) When consumers perceive that there is need to control the budget, (b) Consumers are inclined to experiment with new products or services. Samples help consumers verify the quality of the product. 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. Indian companies using this method are – Proctor and Gamble, Nestle and Parle. 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