MKT230 week 8 day 7 Sale promotion techniques
There are many sales promotion techniques with a variety of objectives from increasing attention to increase sales of a product. The sales promotion techniques for traders focus more on distribution networks and or the chain of distribution and how to stimulate activity in that channel. The sales promotion techniques for consumers focuses on inducing impulse and psychologically persuading the consumer to make fast purchase decisions with little to no second thought usually with a wide incentive offered if they make the purchase within the parameters of a promotion.
The promotion techniques for traders are as follows:
Discounts and deals
Discounts and deals incentivize retailers to buy from a specific company usually held on contract or short term oral agreements. Discounts are usually straight forward and are margins cut from the seller’s price to entice a buyer to purchase from them. This can be applied on bulk purchases or on select purchases such as near expiry food or clothes about to go out of season etc. The trader is usually enticed to buy in bulk to reduce the cost of acquiring their stock and to make as much of a profit as they can. This can be referred to as a case allowance where the more you buy the cheaper per unit cost you acquire.
Deals are also straight forward agreements between parties to reimburse the other for services rendered. For instance in a merchandising allowance deal levis can close a deal with walmart to let them set up special stalls on July 4th or on super bowl season for occasion themed