Sales promotion techniques
The sales promotion techniques or tools have three distinctive features:
(a) Communication- Sales promotion attracts the attention of the
consumer and gives him such information that he is led to the
product or service.
(b) Incentive: they give some incentive, concession, inducement or
contribution that gives added value to the consumer.
(c) Invitation: They give a distinct invitation to the consumer to enter
into a transaction with the dealer or the company.
The various tools or techniques of sales promotion can be described
below:
1. Sales promotional letters: Several companies utilize the medium
of letters for sales promotion. These letters serve different
purposes. Some times they are used to give information about the
company’s products, at other times; they are used as reminders for
the customers to continue to buy a particular brand. Some letters
seek information from the customers regarding various aspects of
their purchases.
2. Point of purchase (POP) displays: This is the most widely used
sales promotional tool. Various kinds of display materials like
posters, danglers, stickers, mobile wobblers and streamers are
used at the retailer’s outlet to induce customers to purchases. POP
displays are generally useful in the case of products like liquors for
which advertising is prohibited. At times, to enhance the display
effect, manufacturers use different approaches such as illuminated
designs and motion displays etc. companies use the technique of
mass display within the limited space available in the retail store.
The stocks are artistically arranged to gain maximum attention.
Displays of various types such as window displays, wall display,
counter displays or floor displays are also used. The retailer’s role
is very important from the point of view of displays.
3. Customer service programmes: At times, the company organizes
and conducts customer service programmes or camps with the aim
of providing service to the customers at different points of purchase.
4. Demonstrations: Companies do product demonstrations for sales
promotion, especially when they are introducing a new product in
the market. Demonstrations are usually used for low unit price
products like washing powder or high unit price products like
washing machines and vacuum cleaners. Demonstrations may be
organized at the retail stores by the company salesmen for the
benefit of retailers as well as consumers. Door to door
demonstrations and institutional demonstrations are also
considered to be highly specialized form of sales promotion.
Sometimes demonstrations are organized for influential people
such as journalists, mediamen, opinion leaders, etc, who are
invited to see the demonstration of the product. Demonstration is a
good sales promotion technique which involves the cooperation of
the sales representatives and the prospective customers.
5. Free samples: Free samples of the product are offered to persuade
the consumers to try them out. By offering free samples to a large
section of the new market, a company seeks to gain an entry into
that market. For using this tool, the product should be of low cost
and subject to frequent purchases. e.g., soaps, detergents,
toothpastes, tea, etc.
6. Contests: Contests of various kinds are also commonly used as
sales promotion tool. There are dealer contests which are
exclusively for the dealers of the company and consumer contests
for the general public. Companies spend a large amount of money
on these contests because they have to be publicized widely and
the expenditure on the attractive prizes is also to be covered.
Consumer contests may be in the form of quiz contests, beauty
contests, scooter and car rallies, lucky draws, suggesting a brand
name, writing a slogan, suggesting a logo, etc. The consumer has
to be induced to get interested in the contest and purchase the
product associated with it.
7. Premiums and free offers, price-off schemes and installment
offers: In the Indian markets today, these tools are being used
extensively by different companies. A premium offer is given for a
particular product and alongwith it is a free offer of another
product to be given free to anybody buying the product, for e.g., an
Arial bar free with a pack of Arial washing powder.
Price-off schemes are also introduced by different companies from
time to time. e.g. Kelvinator and Allwyn refrigerators, Hawkins
pressure cooker, etc. Other companies give the installment offer to
the consumer for buying their product which is usually high priced
and give the consumers the facility of paying a certain amount of
money as down payment and pay the balance amount in a
specified number of equal installments. This sales promotion
measure has been found to be very effective.
8. Coupons: These are certificates which promise price reduction to
consumer on specified items. Coupons generally perform specific
functions for the company. Firstly, they encourage the consumers
to make use of the bargain offered and secondly they also serve as
an inducement to the channel members for stocking the items of
that company. Coupons may be distributed through newspaper
and magazine advertisements or by direct mail or along with the
package consisting the product. Coupons are generally used while
introducing a new product or for strengthening the image of the
product.
9. Catalogues: Catalogues carry essential information on the
products offered by the company. A well-designed catalogue carries
complete information relating to the products, their pictures, size
specifications, colours, packing, uses and prices. The products are
listed and indexed properly in order to facilitate order booking and
processing.
10. Trade fairs and exhibitions: These tools are based on the premise
that ‘seeing is believing’ and are extensively used. These fairs and
exhibitions provide the companies with the opportunity of
introducing and displaying their products. This brings the
company’s products and consumers in direct contact with each
other. Trade fairs and exhibitions are very effective in international
marketing and a lot of trade orders and enquiries are generated at
the international level also.
11. Gifts: Companies also distribute gifts to people like customers,
dealers and other influential people. These gifts may include pens,
pencils, calendars, diaries, decoration pieces, etc. The gifts
generally carry the company’s name and logo. These gifts are
intended to create goodwill amongst the various people towards the
company and indirectly help in furthering the sales of the
company.
12. Sponsoring major national and international events:
Companies associate themselves with the major national and
international events such as sports like cricket, hockey, tennis,
golf, etc. The business houses generally sponsor the event as a
whole or may associate themselves with specific aspects of the
events. e.g., companies of soft drinks, cigarette manufacturers, etc.
The purpose behind sponsoring is to remain a part of the news and
got the best of sales promotional efforts in the form of benefits.