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Sales Promotion
A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.
Trade-Oriented
Contests, dealer incentives
Trade allowances Point-of-purchase displays Training programs Trade shows Cooperative advertising
Premiums
Contests/sweepstakes Refunds/rebates Bonus packs Packs Price-off deals Frequency Loyalty programs programs Event marketing
FREE SAMPLES
These are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to popularize the product. Common examples - shampoo, washing powder, coffee powder, etc.
Premiums
Premium: an offer of an item of merchandise or service either free or at a low cost that is an extra incentive for customers
Self-liquidating Premiums: require consumer to pay some or all of the cost of the premium
COUPONS
Sometimes, coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. The holder of the coupon gets the product at a discount. Best example for this is coupons distributed by the pizza restaurants like dominos, pizza hut, etc
Sweepstakes/games: a promotion where winners are determined purely by chance and cannot require a proof of purchase as a condition for entry. Winners are chosen by random selection from a pool of entries or generation of a number to match those held by game entrants.
Eg : Telebrands shopping
Price-off offer
TRADE PROMOTION
The word Trade Promotion encompasses virtually all forms of Product Promotion and Demand Creation.
Trade shows, special pricing, sales incentives, discounted or free display fixtures, demonstrations and freebies such as tickets to sporting events, movies or novelties (pens, paperweights, calculators), etc are few examples of promotional activities.
Slotting Allowances
Trade Contests
Used to achieve sales targets. Funds known as spiff money. Rewards can be prizes or cash. Can be designed for various channel members. Some organizations do not allow trade contests because of possible conflict of interests.
TRADE INCENTIVES
Cooperative merchandising agreement (CMA) Corporate sales program (CSP) Producing plant allowance (PPA) Back haul allowance (BHA) Cross-dock or Pedal runs Premium or bonus pack
TRADE SHOWS
Ranks 3rd in B-to-B marketing expenditures. Manufacturers spend huge amounts of money per show.... Largest trade shows all over the world are: International CES ( consumer electronic and technology shows ) The Super Show ( Texas car & vehicle shows ) Miami International Boat Show & Strictly Sail International Housewares Show Mid-America Trucking Show Egs in India are auto expos (last year jan 5 to jan 11 ),vivah mumbai ( 2-4th august), food fairs etc .
Trade Allowances
Off-invoice allowance: a per-case rebate paid to retailers for an order. Drop-ship allowance: money paid to retailers who bypass wholesalers or brokers for preplanned orders. Slotting fees: money paid to retailers to stock a new product. Exit fees: money paid to retailers to remove an item from their inventory
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