These two examples present the use of the same method of sales promotion. 8. The list apparently appears to be short, however, considering the possible combinations, the figure reaches to about eight million different approaches. Depending on the consumers’ value perception of the premium, the consumers may even be agreeable to purchase the product at a slightly high total price for the combination of the product and the premium. Coupon Redemption schemes; 11. Here the focus is more on the wholesalers and retailers as compared to the consumers, i.e. Price Reductions on some specific occasions e.g., 20% to 30% discount on all products of Gandhi Ashram on Gandhi Jayanti. These promotions can be developed for durable as well as non-durable goods. Grocery stores owners informed the consumers regarding the possibility of prizes that consumers can win with continued use of the brand. For instance, in case the manufacturer plans to distribute free samples of a product, it can cost far more than the total money spent by the manufacturer for the prizes. Anyone can send the answers to the questions on a postcard. The discount offer on higher model is 12%, then the effective price of higher end model would be Rs. Sales Promotion Tools and Techniques - Economics Discussion. 55.50. Samples are one of the most important tools of sales promotion. Such sales promotion tools stimulates their buying behavior and induces them to buy the product. Often a combination of contest and sweepstakes is employed in some promotions. COUPON (2 days ago) sales promotion tools and Techniques – 12 Commonly Used Tools: Coupons, Free Samples, Price-Off Offer, Fairs, Exhibition, Free Gifts, Competitions and a Few Others To increase sales of any product, producers adopt different measures like distributing samples, gifts, coupons, bonus, etc. Convention – By this the company gets many benefits like finding new sales leads, contacting customers, introducing new products, meeting new customers, selling more to present customers, and educating customers with publication and audio-visual materials. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Price deals (price-off, price-cut, cents-off, denote the same thing), iii. Entry forms are duly filled by the buyers. Customer will buy those products or services that are highly advertised, mostly seen etc. v. Sales Contests and Sweepstakes – Three kind of contest prizes are – (a) Cash awards, (b) Merchandise Prizes, (c) Special Honour viz., winner to appear in a TV show. Price packs (cents-off deals) – Offers consumers saving off the regular price of the product, directly cuts price on the label, or combination of two products (tooth paste and tooth brush). 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. Coupons – A certificate that gives buyers a saving when they purchase specified products. Firms may use a variety of sales promotion tools to help them increase short-term sales. This too may or may not involve the purchase of any product or service. TOS4. Most of these techniques can be used both for consumer as well as trade promotions. In most cases a combination of two or more techniques will combine the strengths and compensate for the weaknesses and will produce better results compared to either technique used alone. Promotion can be launched directed at consumer or trade. The offer may be for a product purchase alone or in combination with other products. Money-off offers; 13. Contests and sweepstakes generate considerable interest and awareness, and can be used to gain large sales increases. In this article, I will be focusing on “Promotional Mix” and how businesses can use promotional tools to increase their sales. These can be either paid or not paid depending upon the kind of product being marketed. Thirdly, […] Fairs and exhibitions may be organised at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products. Premium may be of several kinds — direct premium, reusable container free in mail premium, a self liquidating premium, trading stamps, etc. Companies can offer a car or consumer durables for generating a certain percentage sales in a particular month or quarter. To increase sales of any product, producers adopt different measures like distributing samples, gifts, coupons, bonus, etc. On one coupon would be ‘SA’ the other two coupons should have ‘NT’ and ‘RO’, thereby completing the word Santro and entitling the consumer to win a Santro car by submitting the three coupons. Coupons are generally issued along with the product. Sales Promotion. This is a fairly popular technique in cases of footwear, shirts, jeans, towels, and many other varieties of products. Producers/retailers may promise free service to consumers for a specified period of time after sales. Choosing from the below list of possible tools, identify which one/s would be most appropriate for: A newly launched chocolate bar; Computer software (for editing digital photos) A … This type of deal is often seen in case of laundry products, food products, and personal care products, etc. A. Welcome to EconomicsDiscussion.net! 6. If there are three different models of a product and because of the discount offer the price of the higher end model appears not too high to the consumer, compared to the lesser- priced model, then consumer may buy the higher end model. Sales promotion is one of the best tools to attract new customers and retain old ones, including marketing activities by adding more value to the products for a … Customers are educated as to how to make proper use of the product. A producer of branded wheat flour, “Shakti Bhog Atta”, announced an interesting promotion. iv. Akai offered a 14″ colour television on purchase of 21″ colour television. Premiums – Goods offered either free or at low cost as an incentive to buy a product. They will stimulate the customer and get him or her into buying mode. These measures are called the tools or techniques of sales promotion. Pack premiums on packs, as bonus packs. However promotion and product have received more attention. Free Services 8. A price deal for customers means a reduction in the price of promoted product and the customer saves money on purchase. Free Samples 3. Money-Back Offer 12. Contests are the promotion events that give consumers the chance to win something such as cash, trips or goods. The motivation to purchase and continue purchasing the product gets shifted to the incentive of premium as the purchase situation is one of total low-involvement as far as the product category is concerned. When retailers offer coupons of their own, they have to bear all the above mentioned costs themselves. The prizes were around 8000, the top prize being rupees ten million. 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