Trade Promotion Tools:
Manufacturers use a number of trade promotion tools. A higher proportion of promotion budget is devoted to trade promotion tools (49.9%) than to consumer promotion (27.9%) with media advertising capturing the remaining (25.2%)
- Dealer stock display contests:
It is a type of point-of-purchase advertising which uses the show windows of the dealers for providing exposure to the sponsor’s products. Dealers participating enthusiastically & creatively are awarded.
- Dealer sales contests:
Where participating dealers are invited to compete in terms of the sales performance.
- Sales Promotion Letters:
Many large companies use the medium of letters for sales promotion. Sometimes these letters are used to give information about the company’s products or sometimes they are reminders to buy a particular brand.
Other than normal trade & cash discounts.
The catalogues carry essential information on the products by the company.
- Trade Allowances:
These are temporary price reductions/ reimbursement of expenses incurred by dealers in full or in part, its varied types are as under.
- Trade or buying allowance:
Offer of price reduction on purchase of specified quantity of a product.
- Buy-back allowance:
A secondary incentive which offered certain seem of money to trade for each additional unit bought over & above the deal.
- Count & recount allowance:
When a specific amount of money is offered after ascertaining the number of units sold during a specific period.
- Merchandise (display) allowance:
An allowance to trade for providing desired sales promotion & product displays.
- Co-operative advertising & promotion allowance:
Wherein a manufacture shares at an agreed rate the advertising & promotional cost incurred by the dealer in the promotion of manufacture’s product.
- Trade fairs & Exhibitions:
It is one of the oldest practices in sales promotion. ‘Seeing is believes’ is a concept behind large scale exhibitions. Trade fair is mostly trendy & effective sales promotion tool in case of high cost industrial products.
- Dealer Gifts:
Offer of useful articles and attractive gifts to dealers for his personal, family or office use.
- Premium or push Money:
When an additional compensation is offered to trade or sales force for pushing auditioning a specific product or product line.
Coupons are certificates that offer price reductions to consumers. Coupons serve as an inducement to the channel for maintaining the stock of the items.
- Merchandise deals:
Wherein additional quantity of the same or the same manufactures another product is offered to trade. May be offer jointly by non-competing manufactures.
- Point-of- purchase:
Those special display, racks, banners, exhibits that are placed in the retail store to support the sale of product.
When the companies come up with a new product they resort to product demonstration for sales promotion. There are various types of demonstrations. They are as under:
- Demonstration at retail stores.
- Door-to-Door Demonstration.
- School Demonstration.
- Demonstration to key people.
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