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Principles of Marketing - Philip Kotler
sales promotion tasks arising from the marketing problems of the goods. The specific objectives of incentive will vary depending on the type of target market. Among the objectives of stimulating consumer - encouraging more intensive use of the goods, buying it in a larger packaging, urge people not using the goods, try it, bring to him those who buy the brand competitors. With regard to retailers this - encouraging them to include a new product to its range, maintaining a high level of product stocks and related products, undermining the incentive measures taken by competitors, the formation of retailers commitment to the brand and penetration with their products in new retail outlets. As for the property of the seller, it is - to encourage their support for a new product or a new model, encouraging them to hold a greater number of customer visits and encouragement to efforts to raise the level of off-season sales.
sales promotion Solving problems is achieved through a variety of different means. In this case the developer marketing plan takes into account the type of market and the specific tasks in the area of sales promotion, and the current market situation, and the profitability of each of the means used. Fixed assets sales promotion is given below.
SAMPLES, COUPONS, packaging at a discounted price, the premium and offset stamps. These are the basic tools on which the activities to encourage consumers. Distribution of samples - the offer of goods to consumers free of charge or at probu17. Samples can carry on the principle of "every door", sent by mail, to distribute in the store to make to any other product or beat their promotional offers. Distribution of samples - the most effective and most expensive way to present a new product. The campaign for the dissemination of "Agri" new shampoo cost the company "C. C. Johnson and Sons "at $ 12 million..
Coupons are certificates that give consumers the right to the agreed savings when buying a particular product. In 1979, the company distributed 81 billion. Coupons, ie, almost 1200 pieces per household. Repaid it was only 4% of this amount. Coupons can be sent by mail, to make other goods, included in advertisements. They can be effective in stimulating sales of branded goods already mature and to encourage consumers to try out the new product.
Reduced price packs (also referred to as transactions with a small discount off the price) - this offer the consumer some savings against the normal price of the goods. Information on them is placed on the label or packaging. This may be a package at a reduced price, reduced price when selling another option of packaging products (for example, two packs for the price of one), or the packaging kit when they sell a set of two related products (eg, toothbrush and toothpaste). His ability to stimulate short-term growth of sales packaging even surpass coupons at a discounted price.
The prize - a commodity offered at a fairly low cost or free of charge as an incentive for the purchase of another product. Award "for packing" accompanies the goods from inside or outside of the package. As a bonus can act and the package itself, if it is a reusable container. Free postage Prize - this product is sent to customers who have submitted proof of purchase of goods, such as the cover of the box. Self-destruct prize - a commodity sold at a price below the regular retail customers who request it. Today, the manufacturer offers consumers a wide variety of premium coated with their company name. Thus, the "Budweiser" beer drinkers can order T-shirts, balloons and hundreds of other products that bear the name of this piva18.
Scoring tickets - a specific kind of premium, which is obtained by consumers when making a purchase, and they can be exchanged for goods in special exchange offices. Merchants who use coupons transcripts first, usually attract additional new clientele. Other traders, these coupons are used for defensive purposes, but in the end turn into a burden transcripts coupons for all. And then some merchants simply decide to abandon them, offering in exchange a lower price, 19.
EXPOSURE merchandise is displayed at the point of sale. In the place of purchase or sale of the goods satisfied with the exhibition and demonstration. Unfortunately, many retailers do not like to mess with exposition devices, signs, posters, which they receive each year from hundreds of manufacturers. In response, manufacturers create a perfect exposition design, linking it with their appeals on television or in the press and by offering mount it on their own. One of the most advanced in terms of creativity in the history of advertising and decoration materials for stores clearance is considered to be exposure to tights "L'eggs", which to a large extent contributed to the success marki20.
PROMOTING TRADE SERVICES. To secure the cooperation of the wholesalers and retailers, manufacturers use a number of specific techniques. The manufacturer may offer credit for the purchase, ie. E. To provide a discount on the price of each product box purchased in a certain period of time. This proposal encourages dealers to make purchases of large volume or the purchase of new goods, which they would not normally buy.
The manufacturer may offer credit for inclusion in the product range, offsetting the cost the dealer on presentation of this product to the public. Offset compensates for the advertising efforts of the dealers in connection with their on advertising goods manufacturer. Test device for exposure compensates the efforts of dealers on the organization of specific calculations of the goods.
The manufacturer may offer a free product, ie. E. A few extra boxes intermediary who buys from him a certain quantity of goods. It can offer premium-pusher in the form of cash or gifts to dealers or sellers for their efforts in pushing the goods. The manufacturer may offer free souvenirs bearing the company name, such as pens, pencils, calendars, paperweights, an assortment of paper matches, notebooks, ashtrays, lineyki21.
PROFESSIONAL MEETINGS AND SPECIALIZED EXHIBITIONS. Industry associations hold annual conventions of its members, usually accompanying these activities unit specialized exhibitions. In this specialized exhibition presented and demonstrated in action commodities firms which are suppliers of the industry. Every year held more than 5,600 specialized exhibitions, collecting about 80 million. Visitors. The seller expects to receive from participating in the specialized exhibition several benefits, including the identification of new potential customers, maintaining contacts with customers, introduce new products, introduce new customers and increase sales nyneshnim22.
Contests, sweepstakes, games. Contests, raffles and games provide an opportunity lucky or particularly zealous consumers, dealers or traveling salesman win something - say, to win the prize, a trip for leisure or goods. The competition requires that consumers something presented to it -.. Verse, forecast, proposal, etc. The materials presented special jury evaluates and selects the best of them. Lottery requires that consumers have indicated their participation in the drawing. In the course of the game with every purchase consumer gets something - Rooms for bingo or missing letters, which can help him to win any prize. Trading Contest - a competition held for the dealers or the company's own sales staff in order to encourage them to redouble their efforts to trade for a certain length of time. Achieved the highest results obtained prizes.
The development of sales incentive programs
As for the complex incentive program, with respect to its developer marketing plan should take further decisions. In particular, the market leader must decide how to apply the intense stimulation, who can participate in the program, how to advertise your event to promote, how long it will last, when to start and what resources should be allocated for its implementation.
Intense stimulation. activity of the market should decide how intense stimulation to offer. you must have a certain minimum incentive to the success of the event. Stronger incentives and provide more sales, but consistently falling sales pace. Some large firms selling packaged goods consumer, have a regular control service sales promotion, who are studying the effectiveness of previous measures and issue manager for trademarks recommendations on the most appropriate incentives.
CONDITIONS OF PARTICIPATION. Incentives can be offered either all or only some special groups of persons. So, only those who donate the cover of the boxes can be offered bonuses. In some states, you can not organize a lottery at all, in other cases, the lotteries are not eligible family members of employees of the company and persons who have not attained a certain age.
Means of disseminating information about the program incentives. activity of the market to decide how to disseminate information about its program to stimulate and spur interest in it. Coupons to offer 15-cent discount on the price of goods can be distributed directly to the packaging in stores, by mail or by means of advertising. Each method of propagation inherent in your coverage and costs.
DURATION OF INCENTIVE PROGRAMS. If the duration of the sales promotion activities is too short, many consumers will not be able to take advantage of the benefits offered, as it was at this time they may not be necessary to repeat purchases. If the event is too stretched over time, the proposal would lose some of their charge, pushing on immediate action.
The timing of sales promotions. Managed by the trade marks must select calendar dates for the sales promotions. These terms will be governed and production, and sales service, and product distribution service. Furthermore, it may be necessary and not a series of previously planned activities, which will require to establish cooperation in a very short time.
Consolidated budget for sales promotion. Estimates for sales promotion activities can be developed in two ways. activity of the market may select specific measures and shortchange their cost. However, often the size of allocation is determined as a percentage of the total budget.