Sales Promotion Techniques free essay sample

There are four key sales promotion techniques that marketing firm use to build inters in a product or increases the sales of a product over a specific period of time. These techniques are discounts and deals, increasing industry visibility, price– based consumer sales promotion and attention– getting consumer sales promotion. This paper will summarize these four key techniques and give real life examples of each technique that marketing firm direct at both trade and consumers. Before we in our in-depth into the different types of promotion, let us determine the difference between the trade and4 consumers.Promotions that are directed toward trade are focused on the channels of which the product will be distributed. For example a trade promotion may be focused at the retail chain Target or Sport Chalet. Promotions that are focused on consumers are directed people like you. To begin we will focus on sales promotion directed toward trade. We will write a custom essay sample on Sales Promotion Techniques or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Discount and Deals The key sales promotions techniques; discount and deals techniques is about lowering the prices or giving a price break to the wholesaler or retailer. The company can do this in two ways, by merchandising allowance or case allowance.Merchandising allowance is giving the retailer or wholesaler money back for in-store advertising. For example, Silkygirl, a cosmetics company will give Watson merchandising allowance if Watson gives the product an entire shelf section. For case allowance is giving the retailer or wholesaler a discount for purchasing the product in bulk. This basically means that the more of the product that the retailer orders the lower the cost per unit is. For example, if Watson only orders 100 bottles of BB Cream from Silkygirl, the retailer or wholesaler may pay RM20 per unit.However, if the retailer or wholesaler desides to purchase 200 bottles of BB cream from Silkygirl, the price may decrease to only RM 15. 90 per unit. This would be an incentive to purchase a large quantity. Increasing Industry Visibility The meaning of increasing industry visibility is very literal. The company in this ways is trying to become more visible in the industry. This technique is used both with trade and consumers Other types of trade sales promotion techniques are trade shows, promotional products, and incentive programs.These promotions techniques increase the visibility of a manufacturer. The technique allows manufacturers to wholesalers and retailers to stay in the mind. With the trade, manufacturers shows the wholesalers and retailers any new products the manufacturers has Promotional products are little gadgets or products with the logo of the manufacturer on the product. These free products can range from coffee mugs, hats, pins, and T-shirts. The manufacturer gives these goodies away to the wholesalers, retailers, and consumers so they will be reminded of who gave them the free stuff.Manufacturers use another sales technique called incentive programs. Incentive programs is where the companies give bonuses our gifts when a sales person sales over the quota amount. An example of this is when a Ford dealership sets a quota of the amount of cars a sales person needs to sell in a month. The sales person needs to sell 10 cars for that month and sells 15 cars. The dealership gives the sales person a bonus of amount of money for the extra car sold. Price-Based Consumer Sales Promotions Others sales promotion techniques are focused toward consumers and they are price-based promotions.The common form of this type of sales promotion are coupons, price deals, refunds, rebates, frequency programs and special bonus packs. Manufacturers use coupons to get consumers to buy their products over the competitors. These coupons encourage the consumer to buy the product because of the dollar or two off coupon the customer fell they are getting a deal. Rebates are a way for the consumer to recover some of the purchase price. For example, you can purchase a Compaq computer for RM 2799 after the RM 200 manufacturer rebate. This sales promotion requires you to mail in the proof of purchase and wait for the RM 200 check, unless it is an instant rebate. A few retailers are starting frequency program or customer loyalty programs. Manufacturers may offer a discount or freed item to customer who stay loyal to their product. For example, One Utama shopping center has a customer rewards program. The consumer receives a point for every RM1 spent in the certain shops. Every 10 points the consumer receives, consumer get RM1 for the parking fees, or customer can purchase certain item when there is an event for it.Besides lowering prices or giving rebates, companies may try to encourage a consumer to purchase a product by offering more of the product at the same price. For example, Dove shampoo may have been in a 10 ounce bottle for RM19. 90, but the company now claims you get 50% more by offering a 15 ounce bottle for the same price. Attention-Getting Consumer Sales Promotions Attention getting consumer sales promotions are use to get the consumer interested in a product and create publicity for the manufacturer.The attention getting consumer sales promotion techniques come in the form of sweepstakes, contests, premiums, samples, point-of-purchase promotions, product/brand placement, and cross promotions. Sweepstakes are bases on a chance of winning the promotion. Magic Mountain offers a sweepstakes for a chance to win two yearly passes. Samuel Adams holds a contest for amateur brewers to come up with a new beer. I am not sure what the winner receives. Premiums also get consumer attention by giving the consumer something when they purchase a specified product. For example, if you buy Aveeno sunscreen, you will receive a free UV protestant lip balm.Samples are small portions of a new product a manufacture is selling. It is also a popular way to stimulate interest. Wal-Mart allows consumers to request different samples online at different times of the month. Another way to get consumer attention is through point-of-purchase promotion. Just like the large Budweiser display mentioned earlier, these displays grab consumer attention. Product placements are way to create publicity. It is where the manufacture places their product in movies or TV shows. For example of product placement is when you see Coke in the American Idol shows.