Traders Sales Promotion Techniques

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Published: 17th August 2015
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Traders Sales Promotion Techniques: -

Types of Sales Promotion: -
1. Consumer Sales Promotion: - Consumer Sales Promotion program is designed to inform, educate and persuade the customers to buy company's product/ services and to stimulate demand of the product. The objective of Consumer Sales Promotion initiative is to attract new customers, retain existing customers, build customer loyalty/ preferences/ confidence, counter competitors activities, create an edge over others, regain lost customers, to introduce new products, to gain the market share of declining products etc.

2. Dealers/ Traders Sales Promotion: - In this program, various Sales Promotion activities are conducted for dealers to motivate and encourage them to stock company's product and sell them. It is defined as a marketing promotion related activity whereby a product/ services is pushed through a marketing channel via the encouragement of those channel members to buy, as well as t promote the products/ services to their own group of customers. Trade Promotion is a part of company's ‘push' strategy. The objective of Trade Promotion is to foster better trade relations between the company and its channel members, to gain new trades, obtain support from the Intermediaries, to counter competitors promotional program, encourage channel members to display and promote their brands over their competitors and also to control retail inventory.

Traders Sales Promotion techniques are as follows: -

1. Sales Training Programme: - This technique is mainly used for high technology, premium priced products where the manufacturer provides educational materials, video's, selling aids like brochures, manuals, formal class training sessions, and other form of assistance to their retailer or their sales force to foster effective selling of their brands.

2. Allowances: - here, the company offers around 2% to 10% discount from the invoice they receive for products/ services and thereby helps to increase their profits. However, the % of discount may vary from company to company, product to product, time to time and sometimes even trader to trader.

3. Contest - various Contest are organised for the trader if they achieve a predetermined target as desired by the company. Various incentives, prizes are offered by the trader to boost their selling efforts and generate more sales.

4. Buying Allowances: - Here the traders are offered discounts on certain specific products/ services during specific period decided by the organisation. The company in such case may decide the minimum amount of purchase required to avail the discount.

5. Promotional Allowances:- Here, the trader performs various promotional activities for the company's merchandise to sustain an organisation's brand and receives discounts on their product/ services.

6. Display Allowances: - Also known as Advertising Allowances, the trader here earns the incentives for arranging the product display in an attractive show window to attract maximum attention, even for making arrangement for point of purchase display on their self corners, they may offer some discounts to the consumer as suggested by the company, even advertise about the company's product/ services/ offers/ schemes in local newspapers.

7. Point-of-Purchase Materials: - Various Point-of-Purchase materials like signs, window displays, racks, display signs, wall displays, posters, banners, audio visuals material and vending machines are provided by the manufacturers to the traders to advertise their brand at point-of-purchase and to promote their brands through effective in-store merchandising of the products.

8. Buy-back allowances: - Such schemes are mainly for perishable goods like bread where the company introduces a buy-back allowance for the trader to encourage re-stocking of the company's products.

9. Dealers Loaders: - Here, the organisation provides various incentives, gifts, discounts to the trader with an intention of gaining their attention an support for their promotional campaign for purchasing a particular quantity of product during their Trade Sales Promotion campaign.

10. Slotting Allowances: - Here, the trader charges a certain amount of fee to make available the shelf space for the new products of the company. This is possible in case of FMCG products where there is little difference between two products and margins offered to the trader are also low.

11. Trade shows: - It is a form of temporary exhibition where manufacturers display their brands to their customers and target market. It helps the manufacturer in numerous ways like to launch new products, finding new target audiences, identifying the customers likes/ dislikes/ taste/ preferences, acquiring demographic knowledge about their customers, display their products to right target market, identifying competitors strengths and weaknesses introduce customised/ personalised products, finally to enhance their goodwill and image in the eyes of Internal and External Public.

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