2. To Ensure the Present Market Position and to Gain Additional Market Share: In the event of increasing competition, new products and brands are coming up with intense competitive terms, and the brand proliferation is becoming a common phenomenon. When the coupon would be available, the new price does not appear to be so high relative to the new price of the product. It provides a platform to generate a better relationship with the consumers and the prospects. Coupons: Coupons can be considered … ii. Contests are used to motivate dealers. One way of promoting a product is to distribute three samples. At the salesman’s level, the objective of sales promotion is to achieve more sales. Bonus packs provide more value for consumers as they get extra product for the money they spend. (4) To Arrest Seasonal Decline – In slack season, the promotional activities help in maintaining the sales of the product. A free sample, along with a coupon of attractive value, may prove to be more effective in inducing trial of a new product by consumers and may also lead to purchase of the regular pack from the market. Consumer’s dissatisfaction about a particular brand can be removed by aggressive sales promotion programmes. When the sales promotion strategies are targeted to the end consumers, it is referred to as consumer sales promotion. Consequently, a marketer’s promotional toolbox contains a large variety of consumer promotions. Updated September 26, 2017. Facilitating co-ordination – Sales promotion facilitates co-ordination and proper link between advertising and personal selling. Informing is to educate the consumers about the product. The space available for displays in retail stores and in showrooms is limited and expensive depending on the size of the store and display material, number of displays is limited. Most firms use some form of promotion. While the basic goal of most consumer-oriented sales promotion programs is to induce purchase of a brand, the marketer may have a number of different objectives for both new and established brands—for example, obtaining trial and repurchase, increasing consumption of an established brand, defending current customers, targeting a specific market segment, or enhancing … Post . Encourage Dealers to Participate in Display and Sales Contests: 6. Sales promotional devices at customers level include samples, coupons, demonstration, contacts, money refund offers, premium offer, free trials etc. Updated September 26, 2017. i) To reduce inventories before financial year-closing, ii) To increase the stock-holding of retailers, or even consumer before the introduction of a competing brand, or. Particularly, sales promotion serves as a bridge between advertising and personal selling. A number of personal care products, such as shampoos, cosmetics, toilets soaps, or laundry products, such as detergent powders and cakes etc., have been introduced successfully in the last few years. It supplements and coordinates effort in these two areas. Free samples are distributed or money or merchandise allowance is offered to the dealers to stock and sell the new product. Promotions are used to gain potential customers or keep current customers satisfied. Sales promotional devices help introduce new products in the market. Fall short and the time and money you’ve invested to connect with that customer and drive sales is not coming back. Mobile Insight® is the only retail and merchandise management solution designed to meet the brick and mortar sales challenges of high-value brands and retailers. It helps marketers to realize a variety of objectives. To supplement advertising and personal selling efforts, xvi. Have you ever considered using digital data and insights to drive more effective sales promotion? (iii) To push stocks of the old brand before the introduction of new model. Some of the objectives of sales promotion are:-. A consumer might be asked to test a sample of a completely new perfume in the market and rate it. It could be money in the form of a cash rebate. The basic objective of sales promotion, is to develop good relationship with the customers and to establish a better understanding. Objective # 2. 3. Deflect Customer’s Attention from Price 7. After the sessions over, they are not demanded any more. 4. To add extra value to the product and develop brand franchise. Consumer Sales Promotion Techniques. At the consumer’s level, the main idea of a sales promotion … Let our Customer Success Team show you why Mobile Insight® is a Retail 4.0 game changer. v. Enhancing advertising and marketing efforts. To develop favourable consumer experience with the product. iii) To push stock of the old brand before the introduction of new model. Generally, a sequence of events is needed before a consumer will buy a product. In order to provide better facilities the organisations should concentrate on effective distribution system and should establish scientific logistic framework to satisfy the demand of the consumers. Through some sales promotion scheme or offer, the retailer can attract more number of customers to his outlet. They may read not only the headline but also the copy, and may get exposed to the advantages and benefits associated the brand. The promotional programmes may be consumer -oriented or trade-oriented. 2. The focus was on an incentive, which would ensure trial of even one cake. A certain sales quota is fixed for dealers and those who exceed the quota by a specified margin, or by the largest margin, are awarded cash or merchandise, and often a certificate too. Some promotions offer free merchandize or cash refund offer by collecting tokens on purchases of a specified value. Sales promotion at the consumer’s level. You might also discount the purchase of multiple items or related items. This approach limits the risk to customers when giving your product a try. The promotional objectives are to be considered and framed by the organisations on the basis of an in-depth study of the economic environment, nature of competitive situations, the attributes of the product, the stage of the product in the product life cycle, consumer’s perception about the product and the image of the organisation. Price increase can often have negative effect on sales. PROMOTIONAL OBJECTIVES AND EFFECTIVENESS. Colgate Palmolive launched ‘Palmolive’ toilet soap in 1989. The main motive of consumer-oriented promotion is to increase sales directly by attracting new customers and wooing existing ones. The basic goal of most consumer-oriented sales promotion programs is to induce purchase of a brand. They supply comparative information on various products so that consumers may be willing to purchase the products promoted by them. Before publishing your Articles on this site, please read the following pages: 1. “Our digital solution captures a broad range of internal and external data that lead to insights into customer wants and needs, traffic patterns, price, product merchandising, store conditions, sales channels and a lot more,” says Eduardo Santaella, Chief Operating Officer of Mobile Insight, “leveraging this information helps shape sales promotion techniques and strategies. Ask them to write an essay about how much they love your product or products. v. Refunds or Rebates – Refunds also known as rebates are offers by the manufacturer to return a portion of the product purchase price, usually after the consumer supplies some proof of purchase. Share It. 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