Sales Promotion Techniques
There are four key sales promotion techniques that marketing firm use to build inters in a product or increases the sales of a product over a specific period of time. These techniques are discounts and deals, increasing industry visibility, price– based consumer sales promotion and attention– getting consumer sales promotion. This paper will summarize these four key techniques and give real life examples of each technique that marketing firm direct at both trade and consumers. Before we in our in-depth into the different types of promotion, let us determine the difference between the trade and4 consumers. Promotions that are directed toward trade are focused on the channels of which the product will be distributed. For example a trade promotion may be focused at the retail chain Target or Sport Chalet. Promotions that are focused on consumers are directed people like you. To begin we will focus on sales promotion directed toward trade.
Discount and Deals
The key sales promotions techniques; discount and deals techniques is about lowering the prices or giving a price break to the wholesaler or retailer. The company can do this in two ways, by merchandising allowance or case allowance. Merchandising allowance is giving the retailer or wholesaler money back for in-store advertising. For example, Silkygirl, a cosmetics company will give Watson merchandising allowance if Watson gives the product an entire shelf section.
For case allowance is giving the retailer or wholesaler a discount for purchasing the product in bulk. This basically means that the more of the product that the retailer orders the lower the cost per unit is. For example, if Watson only orders 100 bottles of BB Cream from Silkygirl, the retailer or wholesaler may pay RM20 per unit. However, if the retailer or wholesaler desides to purchase 200 bottles of BB cream from Silkygirl, the price may decrease to only RM 15.90 per unit. This would be an incentive to purchase a large quantity.
Increasing
Discount and Deals
The key sales promotions techniques; discount and deals techniques is about lowering the prices or giving a price break to the wholesaler or retailer. The company can do this in two ways, by merchandising allowance or case allowance. Merchandising allowance is giving the retailer or wholesaler money back for in-store advertising. For example, Silkygirl, a cosmetics company will give Watson merchandising allowance if Watson gives the product an entire shelf section.
For case allowance is giving the retailer or wholesaler a discount for purchasing the product in bulk. This basically means that the more of the product that the retailer orders the lower the cost per unit is. For example, if Watson only orders 100 bottles of BB Cream from Silkygirl, the retailer or wholesaler may pay RM20 per unit. However, if the retailer or wholesaler desides to purchase 200 bottles of BB cream from Silkygirl, the price may decrease to only RM 15.90 per unit. This would be an incentive to purchase a large quantity.
Increasing