What are the different Sales Promotion tools?

The Sales Promotion tools are directed towards Consumers (Consumer promotion tools), Dealers or middlemen (Trade promotion tools), and Sales force. These tools are unique in their way and directed differently to these three groups. So basically, these are different tools with purpose of encouraging consumers, dealers as well as the company’s sales force.

Sales promotion tools for consumers (Consumer promotion tools) –
The marketers need to choose the right sales promotion tool to reach its audience. Below are the major promotion tools directed towards consumers –

1) Free samples – The manufacturer offers free samples to consumers in various ways doing door-to-door visits, at retail stores, malls, attached to another product, etc. For example, attaching a sample of a shampoo sachet with a bottle of a beauty lotion. The purpose is to gain new customers or enter into a new market.

2) Exchanges – Customer are asked to submit the old product and a new product is offered at a new price. The organisations sometimes asks to submit the old product manufactured by them, but sometimes, the exchange rolls over to a product from any brand. For example, most of the mobile phones are sold with exchange offers for any brand on the ecommerce site – Flipkart.

3) Sales promotion letters – Sent to buyer’s homes and offices giving information on promotion activity or information on the products.

4) Coupons – These are certificates by which a buyer can buy a product at a reduced price. These are mailed, accompanied with other products, with newspapers or magazines, or even direct mail. This helps consumers and also the dealers as they are required to stock the product because of a possibility of increase in demand. These help in introducing a new product, encourage trials, etc.

5) Cash refund offers or rebates – Here the manufacturer gives a certain percentage of refund as part of the deal for buying a product. The refund is not given while making a purchase but received when the buyer submits a proof-of-purchase to the manufacturer.

6) Point-of Purchase displays – The customers are exposed to company’s product at the POP to ensure its awareness to maximum people visiting the store. It draws the customer to the company’s brand and encourages customers to buy the product before they leave the store.

7) Demonstrations – Demonstrations are done at retail stores and malls. For example, sales people at malls and retail stores demonstrate perfumes, cosmetic products, small electronic items, etc. Company’s also do door-to-door demonstrations as not all the people visit stores regularly.

8) Gifts or Premium – Products are offered free or at a low cost for buying a particular product. For example, buy one get one free, book a flat with no EMI for first year, etc. The company also gives out gifts like wallets, calendars, diaries, etc. along with a purchase. These gifts carry the company’s logo and name.

9) Frequency program – The consumers are rewarded for making the purchase of the product regularly. The aim is to ensure the customer doesn’t switches brand.

10) Free trials – Potential buyers are invited to try the new product for free. For example, new cola, flavoured packaged water, etc.

11) Contests, games, sweepstakes (Prizes) – These are opportunities for the buyers to win cash, trip, or a product when making a certain purchase. Contest asks consumers to submit entries that may win the deal communicated from a panel of judges. These can be quiz contest, beauty contest, etc. Sometimes consumers get a chance to take part in games like bingo numbers, letters, etc. After getting the right numbers, the consumers win a prize. Sweepstakes refers to submitting names for a draw – lucky draws.

12) Product warranties and guarantees – The manufacturers make a promise to the buyer that the product will be repaired free of cost, replaced, or money refunded if it doesn’t performs as promised for a certain period.

13) Promotion along with other brands – Two or more manufacturers advertise each other’s products.

Sales promotion tools for middlemen/ dealers (Trade promotion tools) –
The manufacturers need co-operation of the middlemen for sale of its products. It is important for the manufacturer that the middlemen are encouraged to drive sales of the products. Below are the major trade promotion tools-

1) Attractive terms of sale – take back offers, business on credit facility, price discount or allowance like free or extra units of the product to encourage the store manager to run the brand’s promotions.

2) Dealer contests – Dealers with maximum sales or window display are rewarded.

3) Services to dealers – Manufacturers help in designing and arrangement of the goods in the store. Training and sale techniques coaching given to the dealers staff free of charge.

Business and Sales force promotion tools–
These are directed towards the company’s sales force so that they put in extra effort in making sales.
1) Manufacturers organise sales contests wherein the winners are rewarded by way of money, incentives, trips, gifts, etc.

2) Trade shows – Trade shows or conventions are organised to meet new customers, introduce new products, educating customers about the new as well as existing products. These help the manufacturers come in direct contact with the buyers. Manufacturers sign contracts worth millions or even billions in international trade shows.