Consumer Sales Promotion and Methods of Promotion Price discounts or price-off deals: Price deals are probably the

most commonly used promotional techniques. A price deal for a customer means a reduction in the price of the promoted product and the consumer saves money on purchase. Example: Colgate fresh energy ice blue gel (Colgate India) 50 gm pack, Rs. 5.50 off on normal price, now available at Rs. 12.50 only. Price discounts are communicated through POP advertising, window displays, sales people, advertising in newspapers, magazines and TV ads.Such promotions work very well in gaining the attention of consumers, particularly at the point of purchase among similar brands and may also encourage unplanned or impulse buying. Price pack deals Price pack deals are also called value packs. They can take any of the two forms: 1.Bonus pack and 2.Banded pack. In case of a bonus pack, an additional quantity of the same product is offered free when the standard pack size of the product is purchased at the regular price. Example: Godrej Colour Gloss triple action shampoo, offers 20% extra free. 100ml +20ml. Sunsilk shampoo (HLL) 400ml bottle gives 33% more free. Dettol shaving cream get 40% extra free. Bisleri 20% extra free (Bada Bottle, Same price) The Banded pack is when the marketer develops special packs of the product containing more quantity but the price is proportionately low. This is a method to load the consumer up with the product. This technique is often used to introduce a new large size of the product or to encourage continued usage and also to increase consumption. The offer is termed as banded pack when 2 or more units of the products are sold at a reduced price compared to the regular price.

Another variation of this technique is buy 1 get 1 free or some similar offer, it could be same for less or more for the same. Example: Fairglow soap buy 3 get 1 free, The main advantage of this tool is that extra product may encourage increased usage and help sustain the habit. Also among other similar brands, a bonus pack stands out at the point of sale. 2. Refunds And Rebates: Refund is the repayment of total money paid for purchase, while the rebate represents repayment of only part of the money paid for the purchase. Refund offers seems to work very well in guaranteeing the trial of a product or service since there is no risk involved for the customer because of the promise of total refund of the purchase amount. Refunds and Rebates play an important role in the consumer durable segment because the product price is reduced to a great extent because of the rebate offer. Example: Taj mahal Tea guaranteed its taste by openly telling the public of its offer that agar chai pasand nahi aaie, toh pure paise vaapas! After having launched it new product Whisper Ultra Thin, confident about the product quality and confident about offering the promised product, to increase its trail and usage, had started the money back offer. 3.Coupon: A coupon entitles a buyer to a designated reduction in price for a product or service. Coupons are the oldest and most widely used form of sales promotions. Coupons bear an expiry date and cannot be redeemed after the cut off date. The main Advantages of coupons are: 1.Encourage brand switching 2.Stimulate trial for a product 3.Take off the attention from price Fair and Lovely dark circle removal cream to create more product trials has coupons in the newspapers and magazines which avail you of Rs.10/- off on a 40 gm pack.

4. Contests And Sweepstakes: Contests and sweepstakes can draw attention to a brand like no other sales promotionstechnique.A contest has consumers compete for prizes based on skill or ability. Winners in a contest are determined by a panel of judges or based on which contestant comes closest to a predetermined criterion for the contest. Contests were very often used earlier where people has to write slogans, poems, stories etc. generally I like the product because and the best ones won prizes. But off lately, contests are becoming less and sweepstakes increasing. People are more willing to play on luck rather than participate by showing their abilities. A sweepstake is a promotion in which winners are determined purely by chance. Consumers need only to enter their names in the sweepstakes as a criterion for winning. Some popular types of sweepstakes also use scratch-off cards. Contests and sweepstakes often create excitement and generate interest for a brand, but the problems of administering these promotions are substantial. One problem is that the game itself may become the consumers primary focus, while the brand becomes secondary. The technique thus fails to build long-term affinity for the brand. Example: Britannia khao world cup jao campaign has taken the market by a swing. Under the offer you collect points available on Britannia biscuit packets and exchange 100 points for a scratch card, which has various gifts and the 100 world cup tickets. The offer was actually introduced during the last world cup and had shown phenomenal results. Sale increased tremendously; there was an increase in the sales by 25%, claims the company. So it is being done this year too. This year too the contest is showing good results. 5.Sampling: Getting consumers to simply try a brand can have a powerful effect on future decision-making. Sampling is a sales promotion technique designed to provide a consumer with an opportunity to use a brand on a trial basis with little or no risk. Saying that sampling is a popular technique is an understatement. Sampling is particularly useful for new products, but should not be reserved for new products alone. It can be used successfully for established brands with weak market share in specific geographic areas.

Sales promotion for companies is all about the ways the company markets the product or service it is touting in order to make money. Marketing also involves some testing on the part of the business to determine which combination of these methods works best for its products or services, and allows the company to sell the most.

Step 1 Identify the potential customers. To create a sales promotion, you must first come to understand whom you are trying to sell the product or service, so you can then choose a methodology that appeals to the customer. Create a scenario that describes who the customer is, how they think and feel, what they like to do, what their household income is and how the product or service benefits them or fills a need they have. Step 2 Plot your product in the life cycle, which is composed of four main stages: introductory, growth, maturity and decline. Sales promotion efforts are different in each stage because the needs of the audience are different in each stage. Determining where your product falls in the product life cycle reveals how you should be marketing your product. Generally, products in the introductory stage require sales promotions to bring awareness to customers; growth products offer sales promotions that differentiate it from its competition; maturity requires more of a reminder type sales promotion using coupons and special sales; and the decline stage is typically where cost cutting measures occur to cut down on sales promotions. Step 3 Choose a sales promotion. Start off by choosing one method to implement as a sales promotion. You may start by offering coupons to customers. Coupons can work for almost any stage of the product life cycle and coupons can be distributed in a variety of ways. You can distribute coupons online via email, in stores where the product is sold, on your business website, in direct mail--your own direct mail campaign or in coupon supplier mailers such as Value Pak and Red Plum. Step 4 Track the response rate. When you implement the sales promotion, track the response rate of the method. For example, coupons may include a coupon code that customers have to input in online orders or provide during a phone order to claim the savings. If the sales promotion is successfulgenerates a profitthen you can mimic the sales promotion in future campaigns. If not, you can modify the existing sales method or add a new method to the mix. Step 5 Implement a new sales promotion. Try out a new sales promotion, such as giving away free samples for customers to try. You may combine giving away free samples with a coupon so after a customer tries the product, likes it and decides to buy it, the user also has the added incentive of saving money to buy the product. Step 6 Repeat Steps 3 to 5. Continue to add and subtract sales promotions until you find the marketing mix that works best for your business.

Consumer sales promotion techniques

Price deal: A temporary reduction in the price, such as 50% off. Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package.

Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). Coupons: coupons have become a standard mechanism for sales promotions. Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. On-shelf couponing: Coupons are present at the shelf where the product is available. Checkout dispensers: On checkout the customer is given a coupon based on products purchased. On-line couponing: Coupons are available online. Consumers print them out and take them to the store. Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption. Online interactive promotion game: Consumers play an interactive game associated with the promoted product. Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer. Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product. Point-of-sale displays:

Aisle interrupter: A sign that juts into the aisle from the shelf. Dangler: A sign that sways when a consumer walks by it. Dump bin: A bin full of products dumped inside. Glorifier: A small stage that elevates a product above other products. Wobbler: A sign that jiggles. Lipstick Board: A board on which messages are written in crayon. Necker: A coupon placed on the 'neck' of a bottle. YES unit: "your extra salesperson" is a pull-out fact sheet.

Electroluminescent: Solar-powered, animated light in motion.[2] Kids eat free specials: Offers a discount on the total dining bill by offering 1 free kids meal with each regular meal purchased. [edit] Trade sales promotion techniques

Trade allowances: short term incentive offered to induce a retailer to stock up on a product. Dealer loader: An incentive given to induce a retailer to purchase and display a product. Trade contest: A contest to reward retailers that sell the most product. Point-of-purchase displays: Used to create the urge of "impulse" buying and selling your product on the spot. Training programs: dealer employees are trained in selling the product.

Push money: also known as "spliffs". An extra commission paid to retail employees to push products.

Trade discounts (also called functional discounts): These are payments to distribution channel members for performing some function . [edit]Retail Mechanics Retailers have a stock number of retail 'mechanics' that they regularly roll out or rotate for new marketing initiatives. Buy x get y free a.k.a. BOGOF for Buy One Get One Free Three for two Buy a quantity for a lower price [edit]Political issues Sales promotions have traditionally been heavily regulated in many advanced industrial nations, with the notable exception of the United States. For example, the United Kingdom formerly operated under a resale price maintenance regime in which manufacturers could legally dictate the minimum resale price for virtually all goods; this practice was abolished in 1964.[3] Most European countries also have controls on the scheduling and permissible types of sales promotions, as they are regarded in those countries as bordering upon unfair business practices. Germanyis notorious for having the most strict regulations. Famous examples include the car wash that was barred from giving free car washes to regular customers and a baker who could not give a free cloth bag to customers who bought more than 10 rolls.[4] Consumer Sales Promotion and Methods of Promotion Price discounts or price-off deals: Price deals are probably the most commonly used promotional techniques. A price deal for a customer means a reduction in the price of the promoted product and the consumer saves money on purchase. Example: Colgate fresh energy ice blue gel (Colgate India) 50 gm pack, Rs. 5.50 off on normal price, now available at Rs. 12.50 only. Price discounts are communicated through POP advertising, window displays, sales people, advertising in newspapers, magazines and TV ads.Such promotions work very well in gaining the attention of consumers, particularly at the point of purchase among similar brands and may also encourage unplanned or impulse buying.

Price pack deals Price pack deals are also called value packs. They can take any of the two forms: 1.Bonus pack and 2.Banded pack. In case of a bonus pack, an additional quantity of the same product is offered free when the standard pack size of the product is purchased at the regular price. Example: Godrej Colour Gloss triple action shampoo, offers 20% extra free. 100ml +20ml. Sunsilk shampoo (HLL) 400ml bottle gives 33% more free. Dettol shaving cream get 40% extra free. Bisleri 20% extra free (Bada Bottle, Same price) The Banded pack is when the marketer develops special packs of the product containing more quantity but the price is proportionately low. This is a method to load the consumer up with the product. This technique is often used to introduce a new large size of the product or to encourage continued usage and also to increase consumption. The offer is termed as banded pack when 2 or more units of the products are sold at a reduced price compared to the regular price. Another variation of this technique is buy 1 get 1 free or some similar offer, it could be same for less or more for the same. Example: Fairglow soap buy 3 get 1 free, The main advantage of this tool is that extra product may encourage increased usage and help sustain the habit. Also among other similar brands, a bonus pack stands out at the point of sale. 2. Refunds And Rebates: Refund is the repayment of total money paid for purchase, while the rebate represents repayment of only part of the money paid for the purchase. Refund offers seems to work very well in guaranteeing the trial of a product or service since there is no risk involved for the customer because of the promise of total refund of the purchase amount. Refunds and Rebates play an important role in the consumer durable segment because the product price is reduced to a great extent because of the rebate offer.

Example: Taj mahal Tea guaranteed its taste by openly telling the public of its offer that agar chai pasand nahi aaie, toh pure paise vaapas! After having launched it new product Whisper Ultra Thin, confident about the product quality and confident about offering the promised product, to increase its trail and usage, had started the money back offer. 3.Coupon: A coupon entitles a buyer to a designated reduction in price for a product or service. Coupons are the oldest and most widely used form of sales promotions. Coupons bear an expiry date and cannot be redeemed after the cut off date. The main Advantages of coupons are: 1.Encourage brand switching 2.Stimulate trial for a product 3.Take off the attention from price Fair and Lovely dark circle removal cream to create more product trials has coupons in the newspapers and magazines which avail you of Rs.10/- off on a 40 gm pack. 4. Contests And Sweepstakes: Contests and sweepstakes can draw attention to a brand like no other sales promotionstechnique.A contest has consumers compete for prizes based on skill or ability. Winners in a contest are determined by a panel of judges or based on which contestant comes closest to a predetermined criterion for the contest. Contests were very often used earlier where people has to write slogans, poems, stories etc. generally I like the product because and the best ones won prizes. But off lately, contests are becoming less and sweepstakes increasing. People are more willing to play on luck rather than participate by showing their abilities. A sweepstake is a promotion in which winners are determined purely by chance. Consumers need only to enter their names in the sweepstakes as a criterion for winning. Some popular types of sweepstakes also use scratch-off cards. Contests and sweepstakes often create excitement and generate interest for a brand, but the

problems of administering these promotions are substantial. One problem is that the game itself may become the consumers primary focus, while the brand becomes secondary. The technique thus fails to build long-term affinity for the brand. Example: Britannia khao world cup jao campaign has taken the market by a swing. Under the offer you collect points available on Britannia biscuit packets and exchange 100 points for a scratch card, which has various gifts and the 100 world cup tickets. The offer was actually introduced during the last world cup and had shown phenomenal results. Sale increased tremendously; there was an increase in the sales by 25%, claims the company. So it is being done this year too. This year too the contest is showing good results. 5.Sampling: Getting consumers to simply try a brand can have a powerful effect on future decision-making. Sampling is a sales promotion technique designed to provide a consumer with an opportunity to use a brand on a trial basis with little or no risk. Saying that sampling is a popular technique is an understatement. Sampling is particularly useful for new products, but should not be reserved for new products alone. It can be used successfully for established brands with weak market share in specific geographic areas.

Some Other Methods of Sales Promotion There are many ways which are used by themerchants to sell their products. These ways however differ upon characteristics of the merchandise that is being sold, its value, its size and much more. Besides advertising on televisions, radios, internet, newspapers,billboards and posters, there are however some other methods of promoting merchandise and services. These methods are through the way of sampling, demonstrations, and exhibits, use of aisle tables, selling by the way of telephone, the house to house selling, and providing extra services and through the sales events. Sampling is done in order for the customers to try the merchandise. It involves direct tasting of the product. Demonstration is done to be able to know the how to of the items; how it is use of how it should be manipulated. Exhibits allow the merchandise to be shown to the public by displaying the merchandise together with the same products, highlighting it as well as sometime allowing the customers to handle the items.

The aisle tables are use in flea markets in which the merchandises are displayed in tables. This is only a temporary store in which the stalls are easily put up and removed. The uses of aisle tables are very much prominent in times when there are special occasions that take place. Selling through the telephone is also use in order to sell products. This is usually done to the merchants own acquaintances or just through referrals by phone. House to house selling involves selling the merchandise, door to door in different houses. With this method, merchants either bring or hand-carry their merchandise through pushcarts or just show their brochures to the customers. Some other merchants provide other services to their customers, as extra when the customers purchase the product. This method promotes the product and motivates the customers in buying the merchandise. Things like free freight services for merchandisetransport are just one of among the many examples. Sales events are also use to promote the merchandise. This involves reducing the price of the merchandise in a given percentage in a certain occasions. These sales events are events like anniversary sales, inventory sales, Christmas sales and others. Although the products price are reduce, the number of products that are being sold increases. Even though, these methods differ in their ways on how to sell the items, they have the same intent and that is to sell.

Objectives of Sales Promotion Sales promotion is a tool used to achieve most of the five major promotional objectives discussed in the Promotion Decisionstutorial: Building Product Awareness Several sales promotion techniques are highly effective in exposing customers to products for the first time and can serve as key promotional components in the early stages of new product introduction. Additionally, as part of the effort to build product awareness, several sales promotion techniques possess the added advantage of capturing customer information at the time of exposure to the promotion. In this way sales promotion can act as an effective customer information gathering tool (i.e., sales lead generation), which can then be used as part of follow-up marketing efforts. Creating Interest Marketers find that sales promotions are very effective in creating interest in a product. In fact, creating interest is often considered the most important use of sales promotion. In the retail industry an appealing sales promotions can significantly increase customer traffic to retail outlets. Internet marketers can use similar approaches to bolster the number of website visitors. Another important way to create interest is to move customers to experience a product. Several sales promotion techniques offer the opportunity for customers to try products for free or at low cost.

Providing Information Generally sales promotion techniques are designed to move customers to some action and are rarely simply informational in nature. However, some sales promotions do offer customers access to product information. For instance, a promotion may allow customers to try a fee-based online service for free for several days. This free access may include receiving product information via email. Stimulating Demand Next to building initial product awareness, the most important use of sales promotion is to build demand by convincing customers to make a purchase. Special promotions, especially those that lower the cost of ownership to the customer (e.g., price reduction), can be employed to stimulate sales. Reinforcing the Brand Once customers have made a purchase sales promotion can be used to both encourage additional purchasing and also as a reward for purchase loyalty (see loyalty programs below). Many companies, including airlines and retail stores, reward good or preferred customers with special promotions, such as email special deals and surprise price reductions at the cash register.