The consumers may feel an urge to buy the product, considering certain benefits of the purchase. First, it is meant to provide important marketing information to the potential buyers. To Introduce New Products: When the product is at the introductory stage of the product life-cycle, advertising alone cannot support the marketer to penetrate into the prospective market. However, they may vary with the type of target market and points of channel. A price promotion is about generating new sales NOW! Inducing present customers to buy more – Present customers may be induced to buy more by knowing more about a product, its ingredients, and uses. Fix underperforming businesses We continued to take action to restore growth and profitability in underperforming businesses. The consumer-oriented programmes stimulate the consumers, and evoke the desire to take purchase decision. The product should be such that it can be stocked without occupying much space. Consumer-Oriented Sales Promotion, Consumer-Oriented Sales Promotion Techniques, Objectives – Increase in Sales Volume, Stock Clearance, Emphasizing Variety, Tempting Customers, Seeking More Involvement and Introducing New Arrivals, Providing Information, Increase Sales Volume, To Keep the Memory Alive, To Arrest Seasonal Decline, To Induce Middlemen and a Few Others. It is also difficult for smaller companies to get proper shelf-space in retail shops without offering incentives to the re-sellers, or encourage trail by consumers without offering some immediate or extra benefit. The key to a good contest is to offer a prize worth winning and to make the promotion fun and exciting. 8. So, how do […] iii. Tweet . A number of personal care products, such as shampoos, cosmetics, toilets soaps, or laundry products, such as detergent powders and cakes etc., have been introduced successfully in the last few years. 8. Coupons: Coupons can be considered … At the salesman’s level, the objective of sales promotion is to achieve more sales. Deflect customers’ attention from price. A firm that feels threatened would like to protect its loyal customers from switching to the new competing brand. Additionally, you’ll need to ask yourself questions like, “is this a new product launch or an established brand? There are a lot of sales promotion techniques that can help your brand boost awareness and generate both immediate and long-term sales. Promotional objectives. Introducing new arrivals and creating platform/awareness for newly launched products. The “satisfied” consumers should feel “delighted” to retain long-term understanding for mutual satisfaction. Motivate dealers to stock and sell more. Encouraging retailers to display established brands, and. Repeat purchase by customers, leads to increased sales volume. Sales promotion aims at wooing new customers. One possibility, though, cannot be ignored that these brand switchers sometimes get exposed to better products and some of them may become repeat purchasers, almost every sales promotion that offers immediate value at the time of purchase may contribute to increasing sales-volume. Privacy Policy3. Sales promotion induces present customers to buy more of the product. 2. Invite them to try a few samples of a delicious new dessert, and, chances are, they’ll bite. Display is a powerful tool to enhance sales as it attracts the attention of consumers who are passes-by or window-shoppers. Samples distributed free, with or without a coupon, are often used to introduce a new product or induce trial of even an existing product by consumers. Clearing out extra merchandise, combating competitor promotions and … iii. Content Guidelines 2. Basically the consumers are conscious about prices. In business warfare, it is not uncommon that sometimes challengers resort to offering discounts. Sales promotion encourages dealers and distributors to sell the product more. An existing customer might be asked to use a Scratch card so that he receives a gift. The firm may also announce some attractive trade-deals so that shelf space in retail shops in blocked. Sales promotional devices make products popular among customers. 5. Market research studies revealed that the cause of below-level acceptance was inherent conservatism of the consumers in this market. Sometimes a simple sale price can be the best promotion. In 2019, we took the following steps: Integrated the Nestlé Waters business into the Group’s three geographical Zones from the start of 2020. Promotional objectives involve the question of what the firm hopes to achieve with a campaign—“increasing profits” is too vague an objective, since this has to be achieved through some intermediate outcome (such as increasing market share, which in turn is achieved by some change in consumers which cause them to buy more). A certain sales quota is fixed for dealers and those who exceed the quota by a specified margin, or by the largest margin, are awarded cash or merchandise, and often a certificate too. Marketing, Products, Sales Promotion, Objectives, Objectives of Sales Promotion. The beauty of a free sample is its immediacy. Some products are seasonal in nature. Couponing – Coupon is one of the oldest and most effective sales promotion tools used by marketers. Emphasizing variety, novelty offered by the retail outlet. Consumers develop a new reference price for the product and the increase does not appear to be as high as it was perceived earlier. If you found this article insightful, learn more about retail sales and promotions in the digital age at mobileinsight.com. Do it and you’ve created a successful promotion. However, they certainly work for everyday products, as well. Middleman (Distributors and retailers) and consumers offered attractive discounts and free gifts to lure them to purchase more and more. To accomplish the objective, normally a combination of ‘push-pull’ strategy is used. The various objectives of sales promotion are as follows: 1. It would be more appropriate to choose selected markets with high potential. These trade promotions are targeted to marketing intermediaries such as – wholesalers and retailers. Promotional activities such as advertising giving information regarding price and quality of the product as compared to other similar products existing in the market or offering various facilities to middlemen with a view to sell company’s goods in preference to other goods or offering gifts and discounts to customers, help arrest competition. To Ensure the Present Market Position and to Gain Additional Market Share: In the event of increasing competition, new products and brands are coming up with intense competitive terms, and the brand proliferation is becoming a common phenomenon. The trial retention ratio suggested that once consumers tried ‘Palmolive’ soap, they liked the quality and stayed with the brand. (2) Increase’ Sales Volume – The main purpose of all Promotional activities is to increase the sales of the product or products of the company. To supplement advertising and personal selling efforts. It can be tricky for fast-moving consumer goods brands to nail a promotion tactic. Sales Promotion includes all activities which promote sales of the company’s product and services. Thank you! It is one of the effective sales promotion strategy. Print . They are made available in smaller than the regular package size. 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