Consumers Sales Promotion Techniques

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Published: 17th August 2015
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CONSUMERS SALES PROMOTION TECHNIQUES

Consumers Sales Promotion techniques are as follows: -

1. Contest: - Here consumers are asked to answer few simple questions on a form provided by the company and are requested to forward the same form to the company. The basic objective is to increase the acceptance of their company's product/ services sine these forms are only available to the customers who buy the company's product first. The company then announces the results on the basis of all forms they receive till a stipulated date decided in advance and then prizes are given to the winners of the contest.

2. Discounts: - Here Products are offered to the consumers at less than the listed price. For e.g.: - a discount of 33% on the sales of Ketchup.

3. Freebies: - Also known as ‘he razor and blade model', here one product is sold at a low price in order to boost the sales of the complementary product/ services. For e.g.: -Toothbrush is sold at a lower price in order to boost the sales of toothpaste.

4. Refunds: - Here certain portion of the price of the product is refunded to the customers on showing the proof of purchase. E.g.: - Refunding Rs. 100/- on showing empty packet of the product priced Rs. 1000/-.

5. Loss Leader: - Also known as ‘leader' here the company sells its product at a price below its market cost with an objective to simulate the sales of its profitable goods/ services. E.g.: -- supermarket's sell food items such as sugar, potatoes at less than its market cost to attract customers to their outlet and then sell more/ better profitable products to earn better rewards.

6. Product Combination: - Along with the man product some complimentary product is offered to the customer as a gift. E.g.: - Free Tata salt with Tata tea.

7. Premiums/ Prizes: - The company offers free items like games, toys, stickers, puzzles, magic tricks, riddles, tattoo's, souvenirs, mugs, jars, spoons or any other household items that are available with other products of the company. For e.g.: -free toy with Peppy, Cheese Balls or Kinder Joy.

8. Zero Interest rate: - Here the product is sold at 0% rate of interest and money is received i instalment. No interest is charged to the buyers. The company decides the number of instalment in advance and the price of thee product will be recovered from the customers.

9. Product Samples: - Also known as ‘sampling method', here the company distributes free samples of their products to the customers/ target market. This technique is very common in case of FMCG products like distributing sachets of shampoo, tea, washing powder, even small unit samples of soaps, toothpaste, toothpowder etc. If the consumers are satisfied after the use of free sample they buy the product. Kellogg distributed free samples of their product at the introduction phase of their product launch.

10. Coupons: - Coupons are published in various newspapers, magazines or hand-outs by the company and distributed among the consumers stating that they can obtain the product at special offer/ discounts whenever they want to buy the product.

11. Rebates: - Products are offered at some reduced price either to boost the sales or in order to clear the excess stocks. For e.g.: - Rebates up to Rs. 12,000/- by a LCD manufacturer for a stipulated limited period of time.

12. Loyalty Reward Programme: - It is an approach by the organisation to focus on attracting new customers and retaining the existing ones through various incentives and rewards for encouraging loyal buying behaviour. Here, Loyalty card, reward cards, point cards which looks similar to credit cards or debit cards is offered o the buyer and then they are identified as a member of loyalty programme. On nest purchase the buyer either gets some discounts on the current purchase or an allotment of points that can be redeemed later for any gift.

13. Buy-one-get-one-free (BOGOF): - As the name itself indicates that the customers on purchase of any product is offered the same product as complimentary. For e.g.:- buy one soap get one free.

14. Lucky draw :- Here, after purchasing the product, the customers are given a coupon and asked to fil their details in the same with a specific number mentioned on it and then winners are announced by draw of luck on a specific date decided in advance by the company.

15. Scratch Cards: - Here, Scratch Cards are immediately offered to customers as a gift after the purchase of the product and immediate results can be seen y the customers as against lucky draw where they have to wait for results.

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