Methods of Sales Promotion

Methods of sale promotion create demand and increase sale volume of goods. There are various methods of sales promotion. The important methods can be divided into three classes for easy study as follows:

1. Consumers' promotion method

While selling or distributing any product of any company, first priority should be given to the interest and satisfaction of the customers. The producer should think the consumers as the monarch of the market. They also should be stimulated to buy goods or services. Success can be achieved only if they are attracted. To attract the attention of the consumers, the following methods should be applied:

a) Free sample: Newly introduced products can be given as gift to the consumers when they come to buy any goods. Similarly, if the customers buy certain amount of product, certain amount/units of new products can be given as gift. New products can also be distributed to the customers free of price through post, shop, or any other means keeping with other goods. In order to bring new products in market, the customers can be distributed even if the customers do not buy any. Although costly, this method becomes very effective for sales promotion.

b) Coupon: Any type of evidence can be provided to the customers who buy goods from the seller. It is called coupon. If the customers go to the same shop to buy goods in nature, the seller may give any kind of gift or discount. Trade mark also can work as coupon. Such type of coupon becomes more effective for established products in market. This coupon can be kept into packets of products. It also can be distributed while the customers are buying goods. This method encourages the customers to make repeated purchase order.

c) Premium or gifts: Giving gift or selling goods at discount price is called premium or gift method. This increase sale volume. Giving steel cups, glasses and spoons for buying Horlicks, Boost, giving glasses for buying beer, giving polish for buying shoes etc. are the some of the examples of this method.

d) Price-off/discount: Sometimes or in certain season, the target customers can be attracted by announcing price of/discount in market price. This kind of discount/price off should be advertised through effective media. Discount of price in goods on the occasion of Vijaya Dashami, Tihar/Deepawali, etc. are the examples of price off or discount.

e) Consumers' contest: Consumers can be drawn in contest by giving questions to the customers through any national or local newspaper and asking them to send correct answers of the questions. The customers should win the contest applying their creativity and intelligence. In this way, the first, second and third position holders can be distributed price free gifts, free travel coupon, hotel facility etc. On the other hand, lottery can be distributed to the customers buying certain amount of goods. The lotteries are made public each month and the winners are distributed prizes. This is called consumer contest method. This method becomes effective in sales promotion.

f) Decoration and display: Consumers are attracted by displaying or decorating or showing goods to them at the places where they gather. Short introduction or explanation of the products also is given to the customers at systematically held display or exhibitions. On such occasion, products may be distributed free of price from which the customers know about the quality, utility, features etc. of the goods. This method stimulates the customers to buy goods as soon as possible.

2. Trade promotion method

The trade promotion method is called intermediary promotion method. For increasing sale volume the channel members such as wholesalers, retailers, dealers etc. should be encouraged. The following methods can be used for trade promotion.

a) Free goods: Goods can be distributed free of price if the customers buy goods in certain quantity within certain time. This method gives additional encouragement to wholesalers, retailers, traveling sellers to buy goods. It also encourages intermediaries/middlemen to keep more inventories.

b) Allowance: The middlemen or intermediaries who sell goods in more than determined quantity can be encouraged by giving allowances. Similarly, cash allowance, or facilities are provided for advertising, decorating and conducting different promotional activities. This facility motivates intermediaries/middlemen to deal/sell goods. This is supposed as strong method of trade promotion.

c) Gifts: Immediately after buying any goods/product, gift is given to the buyer or intermediary. Even by giving small gifts, the middlemen can be encouraged to sell or deal in goods. Diary, calendar, ball-pen, wall-clock, key-ring, lighter, glass, cup, T-shirt, astray etc. are the examples of such small gift. This also increases sale quantity.

d) Price-off/reduction: Price off every product/goods is fixed in market price list. But price may be deducted from the list temporarily to encourage the middlemen to buy goods. Generally, this method becomes suitable in unfavorable season.

e) Credit facility: Regular and sincere middlemen can be provided credit facility. Such facility motivates them to buy goods. This also plays an important role in bringing/introducing new products in market. Because of credit facility, each middleman tries to increase inventories.

3. Sales for promotion method

Every company appoints representatives or sellers in order to make selling effective. Sale volume can also be increased by encouraging or motivating them. The company can get success in increasing sale and earning more profit. Proper arrangement of incentive should be made to create pleasant and suitable environment for motivating employees to work sincerely. They can be mentioned in short as follows:

a) Bonus and commission: Sellers can be given commission on the basis of sale quantity/volume. The seller, who can sell more quantity or volume than others, gets cash commission. Similarly, if any seller sells more volume than a certain limit, additional amount can be given as reward or bonus or commission. This increases interest of the sellers to sell more quantity of goods for getting more bonus or commission.

b) Sales contest: The sellers should be given encouragement or motivation for selling maximum quantity of goods. For this sale contest should be organized conducted. Clear criteria should be fixed to take part in such contest. The sellers who get success in such contest should be given attractive reward. Such program greatly contributes to sale promotion.

c) Gifts: Sale can be promoted by giving small goods of low prices to the sellers. Even if such goods may be cheap, they are useful in household use. Sale employees can be provided reward such as pen, watch, diary, calendar, lighter, T-shirt etc. to the sellers.

d) Promotional kits: Besides this, all the sellers can be given catalogue; brochure and other information about goods can be provided. The concerned sellers need to know about the goods intended to sell. Similarly, sellers should also be encouraged by displaying some models of goods.

e) Sales meeting: Sellers should be given clear information about company's policy and programs. For this, the top level management should call sale meeting. Through the same meeting, important information can be given to all the concerned sellers, by which they get motivated and encouraged to bear more responsibilities and perform works successfully.

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