Sales Promotion and Personal Selling

  • Cheap Bargain (or Self liquidating Premium): – Under this method, the consumer is offered another product at a cheaper rate along with the purchase of company’s product. For example, a plastic bucket of 20 litre at Rs.10 only with the purchase of 5 Kg pack of ‘Surf’. This scheme provides an opportunity to the consumers to get such product at cheap rate and it increases the sales of the main product.
  • Demonstration of product: – Some companies demonstrate their product or service before consumers so that they may know about the product and decide to purchase it. Such demonstrations may be arranged at retail stores, in fairs and exhibitions, festivals or even door to door basis.
  • Decoration and display at the Shop: -In this promotional method, goods are decorated and displayed at the shop in the manner that it may withdraw the attention of general public passing there from. It encourages them to come to the shop, enquire about these goods and buy them.
  • Fairs and Exhibitions: Fairs and exhibitions may be organized at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products. Goods are displayed and demonstrated and their sale is also conducted at a reasonable discount. The ‘International Trade Fair’ in New Delhi at Pragati Maidan, which is held from 14th to 27th November every year, is a well known example of Fairs and Exhibitions as a tool of sales promotion.
  • After Sale Service: -It refers to providing free after sales services to the buyer for a specific period of time. In this method, product is maintained free of cost in the guaranteed period. It includes, free repairs, free replacement of certain parts, etc. is an important tool of sale promotion. It develops faith among the consumers about the quality of the product.
  • b) Middlemen/Dealers-Oriented Sales Promotion

    The purpose of Dealers-Oriented Sales Promotion (or trade sales promotion) is to

    • Develop in-store merchandising support, as strong support at the retail store level is the key to closing the loop between the customer and the sale.
    • Control inventory by increasing or minimizing levels, thus helping to eliminate seasonal peaks and valleys.
    • Expand or improve distribution by opening up new sales areas.
    • Generate interest about the product among those responsible for selling it.

    Some of the most common forms of trade promotions are as follows: –

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