Tools/ Methods/ Types for Sales Promotion

For consumer as well as middlemen promotion, different sales promotion tools are utilized. They are as follows:

1. Consumer Promotion

Consumer-based sales promotion focuses on increasing the usage of a product among current users or adding new customers to the product. It can also be taken-up to respond to competitor’s sales promotion campaign or other activities. The different tools used for consumer-based sales promotion are as follows:

  1. Free Distribution of Samples: Free samples are distributed to the end users. These samples may be provided with any particular product purchased. They may also be distributed in a retail store-or even door-to-door approach may be used for the free distribution.
  2. Coupons: Generally, coupons are provided to customers for influencing their buying activity and to promote the sales of a particular product. These coupons are the tools, providing a certain amount of saving on the purchase of a particular product. These coupons are generated by the manufacturers and are offered to customers with the help of different retailers.
  3. Premium or Bonus Offers: When customers buy a definite amount of a particular product from a shop, a certain amount is offered free of cost. It is called ‘bonus or premium offers”.
  4. Money Refund Offer: This is also called ‘money back offer’. The producer uses media advertising to convey that full price of the product would be returned to the consumer within defined time-period if the product is not up to the stated level.
  5. Bonus Stamps: Manufacturers or retailers, provide bonus stamps to different consumers, based on their size and quantity of purchase. These bonus stamps are collected by the consumers, so as to make it huge enough to exchange them with desired merchandise.
  6. Draw: In this system, every purchaser is issued a token or coupon when he buys a specified product or a specified quantity of that product in a given time-period. After the end of that period, a ‘lucky’ draw is performed and winners are given different prizes.
  7. Exchange Offers: Under the ‘exchange offer’ method, a manufacturer may offer an entirely new piece of product of his manufacture in exchange for an old product of a similar type of whatever makes the subject, of course, to some nominal extra payment, by the buyer.

2. Middlemen Promotion

  1. Buying Allowance/ Discount: In order to attract the retailers or wholesalers, a significant allowance or discount is provided by manufacturers on the purchase of their products. The manufacturer may provide a discount on list or on the amount of cash paid.
  2. Buy-back Allowance: Baed on the size of purchases made by retailers or wholesalers at the time of their first deal, the manufacturer offers a specific amount of money to them to buy additional products.
  3. Credit Facility: In order to promote bulk quantity purchases, the manufacturers offer credit to different dealers based on the quantity of their previous purchases.
  4. Advertising Material: Manufactrers design different advertising instruments or materials for retailers or distributors to promote the sales of their products. These may include signboards, new-year calenders, diaries, packing bags etc.
  5. Dealer-Listed Promotion
  6. Display and Advertising Allowance