Enumerate the main methods of
sales
promotion.
Answers
Answer:I HOPE IT HELPS AND MARK IT AS THE BRAINLIEST...
Explanation:
1. Consumer Sales Promotion Methods:
Consumer promotion is for the common customer, this promotion is supported by advertisements, publicity, direct selling etc. This type of sales promotion is targeted at the end consumers. Customer sales promotion is a “pull strategy” and encourages the customers to make a purchase.
ADVERTISEMENTS:
i. Price-Off Promotions:
It means offering product at lower than its normal price. Company offers either a discount on the normal selling price of the product or more of the product at the same price. This type of promotion must be used with care as the increase in sales is gained at the cost of a loss in the profit. It attracts non users and act as an effective tool to counter competition.
ii. Coupons:
It is a method of offering a discount offering. Coupons are the most widely used customer sales promotion technique. A coupon is a certificate that offers a price reduction for some specified items to the holder. Coupons are distributed with purchase of a product, magazines, newspapers, etc.
A few examples of coupon distribution can be coupon pasted on a package, or placed inside a package to encourage repeat purchase. Coupon books are sent out in newspapers, or offered with the purchase of an item in a given time frame.
iii. Premiums:
Marketers can offer an article of merchandise as an incentive in order to sell product or service these are known as premiums, as the customer gets something in addition to the main purchase. For example, if a customer buys toothpaste, he gets a toothbrush free. Premiums are of different types like packed premium, banded premium, personality premium and container premium.
iv. Free Samples:
Offering free gifts or samples is the most expensive form of sales promotion. Marketers use this technique to increase their sales volume in the early stages of the product life cycle. It means offering a small quantity of a product free in order to persuade customer to try the product.
v. Money Refund and Rebates:
In case of money refund, the customer receives a specific amount of money (refund) after he submits a proof of purchase to the manufacturer. Manufacturers devise the strategy such that the customer qualifies for a refund only when he makes multiple purchases. It is a kind of offer of a refund of money to customer for mailing in a proof of purchase of a particular product, it induce trial from primary users and motivate several product purchase.
vi. Frequent User Incentives:
Repeat purchases may be stimulated by frequent user incentives. Hence, firms offer incentive schemes to reward their loyal customers. The best example of this is the frequent flyer scheme offered by airlines.
vii. Consumer Contest:
In this method of sales promotion, customers take part in small competitions on the basis of their creative and analytical skills. Customers are invited to compete on the basis of creative skill, such contests create brand awareness and stimulate interest in the brand, and it acquaints consumers with brand usage and benefit.
viii. Trade Shows:
A group of retailers or manufacturers conduct exhibitions and trade shows to make the customer aware of the products offered by various firms. Industrial shows and annual industrial exhibition, exhibition of home appliances, consumer goods or gym equipment, etc. are examples of this type of sales promotion.