What are the main techniques of sales promotion ??

WHAT ARE THE MAIN TECHNIQUES OF SALES PROMOTION ??

INTRODUCTION

Sales promotion is a part of promotion & is restricted to direct inducements on a short-term basis given to consumers or trade to stimulate purchases of products & services.

OBJECTIVES OF SALES PROMOTION

To increase sales by publicity.
To stimulate customers to make purchases at the point
Prompt customers to buy more
Introduce new product
Attract new customers.

SALES PROMOTION TECHNIQUES

REBATE: Then the product are offered at specially reduced prices, usually to clear of inventory, it is called rebate, off on the purchase of Honda city till 25 December 2020
DISCOUNT:- When products are offered to customers at a price less than the market price, the difference between the list price and the price shown is called a discount, a 30% discount on the purchase of shoes, eg.
REFUNDS:- It refers to the act of return of a part of the price paid by the customer on return of empty packets or wrappers or presenting a proof of purchase.
PRODUCT COMBINATION - Offering a product along with another product is product combination- eq buy a cell phone and get sim-card free, buy Maggi ketchup & get Maggi noodles free, etc

QUANTITY GIFT- Sellers devise special packages, which olives extra quantity of the product. To the buyers at less or no additional price, buy one get one free, 30% extra off.
INSTANT DRAWS; It is a technique in which the buyer is given a chance to ‘scratch a card’ or ‘instant draw a coupon' to win an assured gift immediately
LUCKY DRAWS:- On purchase of a fixed amount, get a coupon which entitles the customer for a lucky draw, e.g., Lucky draw coupon on a purchase of rs2001/- or more to win prizes like LCDs, etc.
USABLE BENEFIT: It is a technique in which a benefit is offered to the consumer on fulfilling some condition of purchase of the product, eg. Purchase goods worth & 30000 & get holiday package worth 10000 free
FULL FINANCE @ 0%: - It refers to the offer of sale in return for payment. easy any additional cost installments without any extra cost

SAMPLING: Many business firms distribute free samples of their products to selected consumers to make the product popular. This method is generally used for daily products, e.g., soaps, detergents, toothpaste, tea, etc. It is an expensive method but is useful mainly for introducing new developments in the market.
CONTESTS: These may be held for customers, salesman, and dealers. It provides new ideas for advertising the product. It provides. New ideas as contests for salespeople & dealers are also held to encourage them to increase the product's sale. Attractive prizes were given to the best entries. Prize contests may be controlled through radio: newspapers, magazines, pamphlets dc.

MERITS OF SALES PROMOTION

Sales promotion provides the following merits:

ATTENTION VALUE It helps to attract the attention of a large mass of people in a short time
USEFUL IN NEW PRODUCT LAUNCH Sales promotion techniques such as sampling & prod combination help the market. introduction of new product in the market

3. SYNERGY IN TOTAL PROMOTIONAL EFFORTS Sales promotion techniques add to the overall effectiveness of the other promotional efforts of the firm

LIMITATIONS OF SALES PROMOTION

REFLECTS CRISIS Frequent sales promotion use create an impression that the firm is unable to generate sales
SPOILS PRODUCT IMAGE Excessive use of sales promotion may spoil the image of the product.

3. SHORT-TERM ORIENTATION Sales promotions are generally for a short duration. This gives a boost to sales only for a short period.

CONCLUSION

With an increasing number of businesses in the market to rising competition for increasing sales, the firms have to use unique tactics and schemes to attract most customers to help improve the profits and help the firm establish a monopoly in the market.

REFERENCES:

Books - Sales Promotion. Tony Yashin

Advertising & Promotion - George E Belch

Websites - www.wikipedia.com www.