Supplement to the INTRODUCTION TO SALES PROMOTION article that explains the types of sales promotions in the commercial sector for mass sales.
Retail promotions are those that integrate distributors with retailers in the distribution. Their primary objective is to convince the retailer to sell a specific brand or product and to publicize a product or service directly.
Some of the objectives pursued by sales promotion to commerce are:
- Convince retailers of the benefits of selling a product Reduce factory inventories and increase retailers' inventories Support advertising and marketing policies Seek that retailers allocate the most favorable spaces on shelves and storage spaces stores Serve as a motivational mechanism for direct sellers and retailers.
It is important not to confuse the sales promotion part to the consumer with the sales promotion to the merchant, small distributor or small shopkeeper.
Promotion to trade:
- Maintaining promotions to distributors is as important as maintaining promotion to the final consumer. The battle to get customers does not begin with mass advertising, but with proper distribution management; Promoting trade is essential. Demonstrating advantages to retailers is a guarantee that they will become the best sellers of business products.
TYPES OF PROMOTIONS TO TRADE:
There are several ways to promote trade, the most representative are:
1. Exhibitors: Consists of the company providing points of sale and retailers with special elements such as stands, signs, dispensers, etc., so that the product can be easily sold.
An example of the "display" type promotion occurs when soda or soft drink factories provide refrigerators or distributors of their products with their brands, guaranteeing a facility to the retailer in exchange for brand loyalty.
2. Sales contests: This consists of "rewarding" the most efficient retailers with prizes, discounts or the same product in order to encourage the retailer's sale to the final consumer.
3. Trade exhibitions: These are scheduled events, held in order for manufacturers to show retail distributors their products, advantages and facilities, in order to attract a greater number of distributors.
Many company-sponsored conventions invite retail unions in order to directly reach those who will serve as product distributors.
Companies must "pamper" their retail distributors in order to maintain their level of sales.
4. Commissions for extraordinary profits: This is another way to reward retailers. When any of them passes a certain sales level, they are awarded with an increase in quantity, commission per sale or discount margin.
5. Drivers: Prizes in the form of merchandise.
6. Preferential treatment: Commercial treatment of special benefit in exchange for exclusivity.
7. Advertising allocations: Consists of the company giving an advertising space to the retailer in order to increase its sales globally and encourage it to work together.
CONSUMERS: Briefly the promotion strategies to end consumers.
First with the promotion:
- The consumer is sought out to try the product for the first time. Distributor loyalty is rewarded. The marketer is encouraged to buy large quantities. Repeat purchases are encouraged. Advertising aspects are reinforced.
The strategies used in response would be:
- Offer free samples Generate price promotions Increase package size and offer larger quantity Offer discounts and coupons Run giveaways Offer prizes
If companies generate an adequate balance in the promotion to retailers and final consumers, it will guarantee efficient levels of distribution and high levels of sales, thanks to the motivation that encourages sellers to sell and consumers to try and buy the product.
