Some of the important trade-oriented promotion tools are as follows: It can be in the form of one extra case for every five cases ordered, cash discounts or straight cash payments to encourage volume sales, product display, or in support of a price reduction to customers. Some retailers want to maintain control over the selling activities of their sales staffs. Not only seasonal product, any consumer or industrial level product can be pushed in ⦠The Gimme Six Promotion is available for pleasure use only, and is not redeemable for cash. Premium offers are used by several firms selling FMCG goods such as detergents, soaps and food items. This trade ⦠Product displays in retail outlets arenât created equal. ⢠New Account Placements Awards are tied to: The number of new accounts ordering a minimum number of cases or units Promotional programs placed in new accounts. ⦠For instance, the Hawkins pressure cooker manufacturer announced an attractive price reduction, up to Rs.150 off, on a new Hawkins in exchange for any old pressure cooker. Creative Ways to Make Money from Social Media, 8 Best Traffic Sources in Affiliate Marketing, The Most Helpful Types of Fundraising Systems. The consumer can take the benefit of promotion tools either from the manufactures or from the dealer, or from both. Next we examine some of the most often used types of trade promotions and some factors marketers must consider in using them. ⦠In sales contests, salespeople can win trips or valuable merchandise for meeting certain goals established by the manufacturer. Trade Sales Promotion When the promotion activities are strategized keeping in mind the dealers, distributors, or agents, it is called trade sales promotion. Buying allowances are used for several reasons. Plagiarism Prevention 4. Sales promotions take many different forms, but ⦠A buying allowance can also take the form of free goods; the reseller gets extra cases with the purchase of specific amounts (for example, 1 free case with every 10 cases purchased). Trade oriented sales promotions are inducements offered by manufacturers to wholesalers and retailers. Price-Pack Deals: Price-packs are also called value-packs. Manufacturers use a variety of trade promotion tools as inducements for wholesalers and retailers. TOS 7. First one is the Customer Oriented Sales Promotion that deals with the customer and second is the Trade oriented Sales promotion that ⦠So, we can say that sales promotion is of two types. Four goals of a trade promotion are: ï§ Stimulate in-store merchandising or other trade support, ï§ Manipulate levels of inventory held by wholesalers and retailers, ï§ Expand product distribution to new ⦠It refers to reduction in price on a particular item during a particular period. Trade-oriented sales promotion programmes are directed at the dealer network of the company to motivate them to the sell more of the companyâs brand than other brands. Types of allowances offered to retailers include buying allowances, promotional or display allowances, and slotting allowances. Trade sales promotion is a promotional incentive directed at retailers, wholesalers, or other business buyers to stimulate immediate sales. These can be extra quantities of the same product at the regular price. It is common during festival season or during off-season period. Manufacturers offer trade discounts expecting wholesalers and retailers to pass the price reduction through to consumers, resulting in greater sales. They are easy to implement and are well accepted, and sometimes expected, by the trade. So, for ⦠Figure 16-6 Three forms of promotion targeted to reseller salespeople test or receive incentives offered by the manufacturer. Trade-Oriented Sales Promotion Objectives
- Obtain Distribution of New Products
- Maintain Trade Support for Existing Products
- Encourage Retailers ⦠In contrast, trade sales promotions target resellersâwholesalers and retailersâwho carry the marketer's product.