Sales Promotion: tools and evaluation

Sales Promotion

Select Objective:

The major objective of sale promotion are : (for Consumers)

• ·         Encourage consumer to purchase of large-size units
• ·         Building trial among nonusers
• ·         Attracting competitors customer to switch our product by building trial

Objective for retailers:

Carry new items and higher levels of inventory,

• ·         Encouraging off season buying,
• ·         Encouraging stocking of related items
• ·         Offsetting competitive promotions
• Objective for Sales Force
• ·         Encouraging support of new product and model
• ·         encouraging more prospecting
• ·         stimulating off-season sales

Selecting Consumer Promotion Tools:

Major consumer promotion tools are:

• ·         Samples: Free amount of product or service
• ·         Coupons: Saving on purchasing product
• ·         Cash refund offers (Rebates): price reduction after purchase
• ·         Premiums (Gift): low cost or free incentive to purchase of particular product  
• ·         Frequency Program: rewards on frequency in purchasing company's product
• ·         Prizes (contests, sweepstakes, games): Prize like to win gold coin, cash, trips on purchasing something.
• ·         Product warranties: it's promise from company to buyer, they will fix it or refund the money during a specified period
• ·         Tie-in Promotion: two or more companies team up on coupons, refunds
• ·         Cross-promotions: using one brand to advertise another non-competing brand

Selecting trade promotion tools

• ·         Price -off : discount off the list price on each case purchased during stated time period
• ·         Free Goods: offers of extra cases of merchandise to intermediaries who buy certain quality or who feature a certain flavor or size

Major business and sales-force promotion tools

• ·         trade shows and conventions: participate in trade shows and conventions
• ·         Sales Contests: Gives chance to get extra income or gift to sales personnel for getting sales target

Evaluate

Manufactures can evaluate the program using sales data, consumer surveys, and experiments. Sales data helps analyze the types of people who took advantage of the promotion, what they bought before the promotion, and how they behaved later toward the brand and their brands.

Consumer surveys can uncover how many recall the promotion, what they thought of it, how many took advantage of it, and how the promotion affected subsequent brand-choice behavior.

Experiments vary such attributes as incentive values, duration, and distribution media.