1.

What do you understand by trade promotion techniques ? Also explain the commonly used sales promotion techniques to encourage retailers to sell more.

Answer»

Trade promotion techniques : 

Trade promotion or dealer’s promotion tools can persuade the wholesalers or the retailers to carry the brand and also induce them to promote the brand through featuring, display, etc. to push the product. 

Tools used for sales promotion are :

(1) Contest : 

Many manufactures hold contests for the retailers for the purpose of trade promotion. Sales target are fixed for the retailer. If a retailer exceeds the target, he would be given certificate of appreciation and a prize. This is organised by manufacturers to persuade the retailers to sell more. 

(2) Allowances : 

An allowance is a compensation in cash or kind given to the dealer for providing certain services from the manufacturer. 

Main allowances paid are : 

  • Purchase allowance, 
  • Advertising allowances,
  • Display allowances, 
  • Shelf space allowances,
  • Marketing research allowances.

(3) Meetings and conferences : 

Manufacturers organise meetings, conferences from time to time, so that the dealers can put across their problems, and through mutual discussions, solutions can be found out. Such efforts help in enhancing cooperation and support, which is helpful in sales promotion. 

(4) Training programmes : 

Manufacturers give special or general training to their trade partners or dealers which proves to be useful for increasing sales volume. In general, they are given training first, which is very important for sales promotion. On the other hand, special training is imparted in relation to technical goods. 

(5) Fashion shows :

To advertise the goods sold by retailers, the manufacturers organise fashion shows. In fashion shows, the goods are presented in an attractive way, so that customers take interest in buying them. 

(6) Premium or free goods : 

The manufacturer of a product may give a premium to the dealer if he buys a specified quality. Manufacturer may offer free goods which are extra cases of merchandise to middlemen who buy certain quantity of items. 

(7) Management assistance :

Manufacturers also provide information and suggestions on issues like new management techniques, government policies, etc., so that the dealers may improve their efficiency and can make best use of available resources. 

(8) Push money and novelities : 

Manufacturers may offer push money which is in cash or gifts to dealers or their sales force to push the manufacturer’s goods.



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