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Posted: January 1st, 1970

History For Trade Sales Promotion Techniques Marketing Essay

Promotion is one of the four major erratic with which the marketing manager works. That it is only of the four should be strained again, because many people feel that marketing is equivalent to and only to promotion. Promotion is more than just advertising or personnel selling. The marketing manager can use publicity, public relations, and various other forms of promotion. But most important, the marketing manager must develop a blend of all the possible promotional ingredients in order to carry out his objectives.

Promotion blend, in promoting the export of its product or products, the exporter will have to decide on an suitable blend of advertising, selling and other sales activities. Helpful promotion blend consists of communicating with others by one or more means. There are four fundamental and interconnected tasks. These are to get attention, to hold interest, to arouse desire and to obtain action.

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a) A chocolate candy bar is a form of confectionery usually packaged in a bar or log form, often coated with chocolate, and sized as a snack for one person. But within that term, a wide variety of products exist, ranging from solid chocolate bars to multiple layering’s or mixtures of ingredients such as nuts, fruit, caramel or fondant.

Our target for chocolate candy bars is the maximum selling and maximum profit gain through promotion. Our product category for chocolate candy bars is business to consumer and the promotion method we advise for chocolate candy bar is Mass selling. Mass selling is suitable for chocolate candy bars because it seeks to communicate ideas or information to large numbers of customers at the same time. As we assume average to large sized firms in each case to support our answer so when the target market is large and isolated, however, it may be much less expensive than personal selling. That’s why we propose mass selling for promotion of chocolate candy bars.

To achieve our promotion blend targets we go for advertising, which is the main form of mass selling. Advertising is any paid from of nonperson arrangement or promotion of ideas, goods or services, by an acknowledged sponsor. It involves the use of such media as Magazines and newspapers, Outdoor posters, signs, skywriting etc., Novelties, Cards, Programs and menus, Motion pictures, Direct Mail, E-Mail Store signs, Radio and television, Catalogs, directories and references, Circulars.

In case of Chocolate candy bar Promotion can directed to four different groups i.e. Promotion to Final Consumers, Promotion to Users, Promotion to Retailers, and Promotion to Wholesalers. Retailers   want   to   know   about   the promotion which will be directed toward the final consumer and their own part in selling the product. Price, cost, normal markups   and   promotional   assistance   are   their   paramount concern. Thus, promotion to retailers is primarily designed to inform. Wholesalers may be impressed by a company which advertises in prestigious national media. In fact, manufacturers may place ads in some consumer magazines for just that reason and then copies of these ads arc distributed among present and prospective channel members. In the end, however, personal salesmen are still needed to cement the relationship between producer and wholesaler.

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The “AIDA Concept” is extremely useful as a starting framework for all sales presentations. Recall that AIDA refers to a four step selling procedure i.e. Attention, Interest, Desire, and Action. In case of Chocolate candy bar the purpose is to focus attention on the chocolate candy bar salesman and distract the potential customer from his current thoughts. This might be   done   by   an   opening sentence suggesting   large   profit possibilities or cost savings.

In case of Chocolate candy bar to petition to the senses, the potential customer might be prearranged the chocolate candy bar to eat. Finally, the salesman of chocolate candy bars will try to summarize the important points he has made, tailor his arguments to the customer’s needs and interests and then close the sale.

b) A car battery is a type of rechargeable battery that supplies electric energy to an automobile. Usually this refers to an SLI battery (starting, lighting, and ignition) to power the starter motor, the lights, and the ignition system of a vehicle’s engine. This also may describe a traction battery used for the main power source of an electric vehicle.

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Our target for car batteries is the maximum selling and maximum profit gain through promotion. Our product category for car batteries run for both business to business and business to consumer and the promotion method we advise for car batteries is Sales promotion. Sales promotion is appropriate for car batteries because Sales promotion activities can make both personnel and mass selling more effective by coordinating both effects. As we assume average to large sized firms in each case to support our answer so when the target market is large and dispersed, however, Sales promotion men may design and arrange for the distribution of novelties, store signs, catalogs, directory references and circulars; they may assist in the development of displays, sales demonstrations, trade show exhibits and other nonrecurring selling efforts. Trade shows are especially important in international marketing.

To achieve our promotion blend we set sales promotions targets. Sales promotion consultants must be flexible, exerting their efforts in the areas which most need improvement. They may tailor their programs for company salesmen, middlemen, consumer or “others” such as engineers, architects. Sales promotion men often nervous tension the use of point-of-purchase material and premiums. They also develop contests and prepare materials for the training of their own salesmen or their customers’ salesmen. They may design the sales assortment their own salesmen carry with them.

In case of car batteries Promotion can directed to four different groups i.e. Promotion to Final Consumers, Promotion to Users, Promotion to Retailers, and Promotion to Wholesalers. The vast number of potential customers practically forces mass selling into the promotion blends of manufacturers and retails. Intermediate users are much less numerous than final consumers and a bland which emphasizes personal selling becomes more practical. retailers, like industrial buyers are less numerous than final consumers, it becomes feasible to use more personal selling. Promotion to wholesalers is very similar to promotion to retailers, expect that wholesalers are less numerous and perhaps even more conscious of demand and cost.

The “AIDA Concept” is tremendously useful as a starting framework for all sales presentations. Recall that AIDA refers to a four step selling procedure i.e. Attention, Interest, Desire, and Action. In case of car batteries there is no prearranged, sure way to get a prospect’s attention. Much depends on the salesman’s gut feeling and originality, as well as his knowledge of his customers. If a salesman were calling on the same customers frequently, he would have to use a new approach each time. If each call were on a new prospect, a few successful attention gutters would suffice.

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Regarding car batteries creating interest requires more time. The attention getter must he followed up and other appeals brought into play. If the opening device was mentioning competitors of the prospect, an enlightenment of the competitors’ use of the product might be appropriate. Arousing desire requires more persuasive effort. The salesman of car batteries might explain specifically how the product would be use in the customer’s factory or how it would be purchased by customers of the buyer. Finally, the salesman of car batteries will try to recapitulate the important points he has made, tailor his arguments to the customer’s needs and interests and then close the sale.

Ch. 15 Q. 18.

Indicate the types of sales promotion that a producer might use in each of the following situations and briefly explain your reasons:

The basic objectives of promotion are to inform, persuade or remind target customers about the company’s marketing mix and the company itself. Sales Promotion is a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers are the trade.

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Sales promotion consists of consumer promotion (such as samples and coupons); trade promotions (such as advertising and display allowances); and business and sales force promotions (contests for sales reps).

A firm has developed an improved razor blade and obtained distribution, but customers are not motivated to buy it.

Our recommended type of sales promotion need to use here is consumer promotion. Our target is consumer motivation and this tactic is appropriate for improved razor blade and target of creating customer interests because it fulfill through Building Product Awareness of improved razor blade. Several sales promotion techniques are highly effective in exposing customers to products for the first time and can serve as key promotional components in the early stages of new product introduction.

Our main objective is Creating Interest. Marketers of improved razor blade find that sales promotions are very effective in creating interest in a product. In fact, creating interest is often considered the most important use of sales promotion.

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Consumer sales promotion techniques which we able to apply for improved razor blade are Price deal. Temporary reductions in the price, Loyal Reward Program which include consumers collect points, miles, or credits for purchases and redeem them for rewards. Cents-off deal in which we offers a brand at a lower price.

A competitor is about to do a test market for a new brand and wants to track sales in test market areas to fine-tune its marketing mix.

Our recommended type of sales promotion need to use here is trade promotions. This tactic is appropriate where the situation is that a competitor is about to do a test market for a new brand and wants to track sales in test market areas to fine-tune its marketing mix, because it fulfills our main objective of sale promotion here is Reinforcing the Brand – Once customers have made a purchase sales promotion can be used to both encourage additional purchasing and also as a reward for purchase loyalty. Many companies, including airlines and retail stores, reward good or “preferred” customers with special promotions, such as email “special deals” and surprise price reductions at the cash register.

Trade sales promotion techniques which we are going to applied here are as follows:

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Trade allowances: short term incentive offered to induce a retailer to stock up on a product.

Push money: also known as “spiffs”. An extra commission paid to retail employees to push products.

Dealer loader: An incentive given to induce a retailer to purchase and display a product.

Point-of-purchase displays: Extra sales tools given to retailers to boost sales.

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Trade contest: A contest to reward retailers that sell the most products.

c. A big grocery chain won’t stock a firm’s new popcorn-based snack product because it doesn’t think there will be much consumer demand.

Our recommended type of sales promotion need to use here is business and sales force promotions. This tactic is appropriate for popcorn-based snack product and target of increase customer demand because it fulfills our main objectives of being a firm’s new popcorn-based snack product because it doesn’t think there will be much consumer demand are, Providing Information, Generally sales promotion techniques are designed to move customers to some action and are rarely simply informational in nature.

As Our target here is to increase consumer demand and our objective is Stimulating Demand. Next to building initial product awareness, the most important use of sales promotion is to build demand by convincing customers to make a purchase. The sales force promotions techniques we are going to applied here are, On-shelf couponing: Coupons are present at the shelf where the product is available. Checkout dispensers: On checkout the customer is given a coupon based on products purchased. On-shelf couponing: Coupons are present at the shelf where the product is available. Checkout dispensers: On checkout the customer is given a coupon based on products purchased. Along with them free samples are also recommended.

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Hint: Be sure to define the target for each product and an objective for the promotion. How does the product class affect the promotion strategy? For each promotional tactic, include an explanation as to why that tactic is appropriate for that product type and target.

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