Forms of product or service promotion, Marketing Management

Assignment Help:

Forms of Consumer Promotion:

1 free distribution of samples: it involves free distribution of samples to ultimate consumers. The samples may be distributed door to door or may be offered in a retail store or with the purchase of any particular product. These samples may also be given to professionals to recommend. This helps the consumer to verify the real quality of the product. This is suitable for introducing a new product of daily use.

2 coupons: a coupon is a certificate that entitles the consumer to specify saving on the purchase of a specified product. These coupons are usually issued by the manufactures through the retailers or in most of the cases; they are kept inside the package. The consumer may get a discount of the value stated on the coupon at the time of purchase. The retailers are reimbursed the value of coupons by the manufactures.

Premium or bounous offers: an offer of a certain amount of product at no cost of consumers who buy a stated amount of a product or a special pack there of is called premium offer or bonous offer. This method is very popular now -a -days in view of the actual competition. Premium may be kept inside the pack or in the form of reusable container.

Money refund offer: this offer is generally stated in the media advertising that the manufacturer will return the price if the product is not to the satisfaction of the consumer within a stated period. For example, bll -worker exercise is promoted in this way.

Price off or temporary price reduction: this involves an offer to consumers of a certain amount of money of the regular price of teh product. This is done to attract consumers of other brands to his product. This offer is generally made on some specific occasions or festive such as Diwali or Id etc. or when a substitute or competiting product enters the market.

Contents or sweep stacks: at times, contests are arranged with a view to attack new users to the company's product. An opportunity under this device is given to consumer to contest with a chance to win cash prizes, free air trips or goods. It is an indirect manner of the introducing a new product. In such contents, consumers are asked to reply very simple Q in a form available on purchase of the company's product.

Bonus stamps: such bonus stamps are issued to the consumers by the retailers or by the manufacturer in propostion to their purchases. The consumer goes on collecting stamps until he has sufficient quantity to obtain a desired in exchange of teh stamps.

Draw: under this system, every purchase making a purchase of certain specified amount is offered a coupon during a certain period. After the expiry of the period a draw is made and attractive prizes are given to the winners.

Cheap bargin or self liquidating premium: under this method, the consumer is offered another product at a cheaper rate along with the purchase of the company's product. For example, a plastic bucket of 5 L at Rs. 5 only with the purchase of one Kg. Pack of surf.

After sale service: under this method, the producer gives a grarantee to the consumers to maintain the product for certain specified period. It is called warrenty. If, during this method consumer feels any problem, he may get the defect removed at no cost, it developes faith among the consumers about the quality of the product.

There are different types of deals and the most common among them are described below:

1.       Buying allowance discount: the buying allowance or discount is offered to the dealer to induce him to buy the manufacturer offers a certain amount of the money for additional new purchases based on the quantity of purchases made on the first trade deal.

2.       Display and advertising allowance: the allowance is offered to the dealer or to display the manufacturer's product. The allowance is given in the basis of space provided to display the manufacturer's product in the shop.

3.       Buy back allowance: this method of the promotion is practised to prevent a post deal sales decline. Under this method, the manufacturer offers certain of money for additional new purchases based on the quantity to purchases made on the first trade deal.

4.       Dealer -listed promotion: under this method dealer name and the address is given on the advertisement and other publicity material as calenders, diaries etc.

5.       Push money of the PM's: this is an intensive payment is the cash or in kinds to the retailer or salesman to push the sale at a fixed rate for each article sold.

6.       Sales contests: it is a device used to stimulate and motivate distributeers, dealers and their sales staff. They are offered cash prizes for those who will win the sale contest, who will make the highest sales of the comany's product. In view of the winning chance, sellers participate in the contest.

7.       Free gifts: under this method, producer gives free gifts to the dealer on the basis of the quantity of the product purchased by him.

8.       Advertising matrial: the advertising materials such as calenders, New Year diaries, literacture, sign boards, packing bags, posters etc. are supplied by the producer of the product to the dealer or middle man for advertisement.

9.       Credit facility: the producers allow credit to their dealers, based on the quality purchased by them. This enables them to purchase bulk quantity.  


Related Discussions:- Forms of product or service promotion

What is way to approach customer in personal selling process, What is the w...

What is the way to approach the customer in personal selling process? Approaching the Customer: In this step sales person must know how to meet the outlook and what is t

What are the purchasing procedures, Question 1: Explain why purchasing ...

Question 1: Explain why purchasing is an important aspect of Food and Beverages Management and Control. What are the purchasing procedures and how are they implemented? Qu

Short brief on drivers that influence customer behaviour, Question: Q1....

Question: Q1. Name and give a short brief on drivers that influence customer behaviour. Q2. Name and give a short brief on what do consumers want? Q3. Explain in your own

Matrices, [1 - x] -4 [2 -2] [3z 10] [2y -3] [0 3] = [4 -u]

[1 - x] -4 [2 -2] [3z 10] [2y -3] [0 3] = [4 -u]

Define multinational corporations, Question a >> Describe multinational co...

Question a >> Describe multinational corporations. How is international marketing different from domestic marketing? Question b >> Though society and culture do not appear to

Pricing, what are the factor that should be considered while setting pricin...

what are the factor that should be considered while setting pricing policyn..

What is the meaning of marketing concept, What is the meaning of marketing ...

What is the meaning of marketing concept? Meaning: Marketing concept means that the achievement of organizational goals based on determining the wants and needs of the tar

Functions of headlines, Functions of Headlines:- To pull attention ...

Functions of Headlines:- To pull attention of audience To highlight major features of the product To give major message of the ad in brief To stimulate interest

Increase in level of competition and readership by ads, Q. Increase in leve...

Q. Increase in level of competition and Readership by ads? Increase in level of competition:- The level of competition has enhanced manifold. For any product numerous brands

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd