Эссе: Sales promotion and Discount Instruments

There are various methods of sales promotion and sales. What to choose and what will be effective to understand hard. Therefore, much attention is paid to this component of the complex of marketing communications.

Definition 1

Sales promotion is a short-term incentive measures to quickly make a purchase, as well as long-term programs focused on making repeated and multiple purchases.

Main objectives of sales promotion:

inducement to frequent consumption of products;

inducement to purchase previously unused goods;

promotion of regular customers and formation of their loyalty to the product, brand and company;

minimization of temporary (seasonal) demand fluctuations;

attracting new customers.

Achieving these goals is possible with the use of the following tools:

price discounts;

special prices or offers;

sampling;

prizes;

credits;

coupons;

'reinforcement of goods'

presentations;

testing and verification of goods;

sale of goods on credit;

sales animation;

money back guarantee;

combined sale;

competitions;

lotteries.

Discounts from the price are often used as a tool to stimulate consumers. They are of the following types:

seasonal discount;

discounts from advertised prices;

discounts to certain categories of citizens (pensioners, children, students, etc.);

discounts for regular customers;

discounts on the birthday;

discounts for the purchase of a specified quantity of goods;

bonus discounts.

Under the special price or offer understand the establishment of an attractive price for a certain product for a specific period of time, which stimulates consumers to buy.

It is a consumer incentive tool perceived better than discounts. The consumer is more pleasant to realize that he bought the goods not on sale, but at a 'special price'. A discount is a way of getting rid of stale goods.

Sampling is the provision of free samples. They are distributed by mail, distributed at the sales points shall be attached to the product at purchase.

Sales promotion tools: intermediaries

Sales promotion of Resellers solves the following tasks:

increase in retail sales;

sales promotion of maximum batches of products;

reduction of temporary fluctuations in sales volumes;

exchange of best practices on the sale of certain goods.

The instruments to stimulate intermediaries are:

discounts from the price when ordering a certain amount of products;

offer a certain number of units of products to an intermediary on a free basis provided that a specific quantity of this product is purchased;

premiums for the sale of a specified quantity of products;

organization of competition;

participation in joint advertising campaign with manufacturers;

organization of dealer meetings for exchange of experience, competitions and awards;

free refresher courses.

Remark 1

All instruments and means of stimulation of trade intermediaries can be divided into a group of financial benefits and those that are provided in kind.

The first group includes:

discounts for entering products into catalogs (at all stages of product sales in the amount of 50-25% depending on the volume of the order);

discounts for the number of purchased goods (used in the short term at the stage of sales growth);

reimbursement for advertising;

distribution of coupons to independent retailers in the form of checks (provided when purchasing products) or loyalty cards.

The second group contains the following tools:

distribution of samples of new products for testing;

distribution of free goods to certain intermediaries (for example, those who purchase goods in large volumes);

distribution of Souvenirs with the manufacturer's logo;

organization of the showcase competition;

lotteries, sweepstakes;

organization of exhibitions of goods of the company.

Sales promotion tools: sales staff

The system of personnel incentives takes place in any organization. It is carried out within the company to intensify the sales process.

Note 2

When sales promotion activities are carried out, an integrated approach is important. It is necessary to involve the entire chain of movement of goods from the manufacturer to the end user in the process of stimulation. Therefore, a common mistake is to refuse to encourage sales staff.

Tools to stimulate sales workers to improve their performance:

prizes;

facilities;

competitions and contests.

Bonuses are an additional monetary incentive for the company's personnel. In this case, management establishes different methodologies for determining the amount of the premium.

Currently, options are used to pay a percentage of total sales for a specific time period. The percentage size can be different. As a rule, it depends on the position of the employee and the specifics of the product with which he works.

Benefits are also an additional cash salary. Its size depends on the desire of the employee. Types of benefits are different and are limited only by the financial capabilities and imagination of the company's management.

The benefits can be partially paid by the company lunch, as well as the right of the employee to purchase goods at significant discounts.

Competitions and contests are a kind of special benefits that staff can get by participating in a professional competition. Such events are most often held within the company. Sometimes the organizers are professional associations. Employees are awarded with money, vouchers, products and other awards. Thus, the company's management encourages the initiative of the staff in further improving customer service and increasing turnover.

Stimulation of employees of the enterprise pursues also other purposes: attraction in the best experts in any sphere, professional development of the personnel, etc. various competitions and competitions bring something new in habitual life and work.

Competitions are arranged between individual sellers, between departments or groups.

Sales marketing strategy

Sales concept and sales strategy

Each company has its own mission, the main purpose of which is the work of the enterprise in the market. On the basis of the mission, the development strategy of the organization is developed, which determines measures to achieve long-term and short-term goals. Development strategy in turn contributes to the creation of a marketing strategy. This is the identification of what the company will produce, to whom, for how much and in what way to sell. Marketing strategy serves as the basis for the development of sales strategy, i.e. the organization of work with consumers to translate them into buyers.

Sales are understood as a transaction between two entities that have a specific purpose. This is not a business meeting, but a commercial activity. Each participant defends its interests and plays its role. There is a commodity-money exchange, the conditions of which should be favorable for both parties.

Definition 1

Sales is the volume of sales of goods/services for a specific time period. In other words, it is the exchange of the seller's product for the buyer's money for maximum benefit by the client and maximum profit by the seller.

The basis of sales are customer needs. When there is demand for a product or service, sales take place. Needs and how to implement them can change under the influence of a number of factors:

scientific and technological progress;

culture;

fashion;

social (family, status, reference groups);

psychological (motivation, beliefs, relationships)

personal (age, income, marital status, occupation).

The marketing policy of the company is built in such a way that the buyer spends more money to meet their needs. To do this, a sales strategy is developed.

Definition 2

Sales strategy is a component of the overall corporate strategy, which plays a major role in the success of the enterprise in the market. An effective sales strategy allows you to sell any product.

Sales strategy is developed for sales departments. It determines the volume and calendar of sales, prices, discounts, after-sales service and other factors that affect the sale of products.

Type of sales

Depending on the sector and participants of commercial relations, the following types of sales are distinguished:

B2B (business-to-business);

B2C (business-to-consumer);

C2C (consumer-to-consumer);

B2G (business-to-government);

G2B (government-to-business).

B2B is business to business. The seller and the buyer are companies, i.e. legal entities. The buyer can be an intermediate link in the movement of products from the manufacturer to the finished consumer.

B2C is a business for the consumer. The seller is a legal entity, and the buyer is a private person. This type of sales is the most common. This mass market segment includes retail sales, Internet sales and other means. The main condition – the end user is a natural person who purchases goods or services for personal use.

C2C-consumer to consumer. This type of sales is carried out between individuals. This can be a barter exchange or the sale of personal new and used things through ad sites.

B2G is a business for the government. It is a large market segment. Participants are only legal entities that win government contracts through tenders and auctions. The buyer is the state, and the seller is a business structure.

G2B-government for business. Reverse the previous sales option. The state acts as a seller and sells business property, real estate, etc.

Classification of sales marketing strategies

There are three types of sales strategies:

aggressive;

consulting;

partnership.

The first strategy is aimed at attracting more new buyers. The implementation of such a strategy is carried out with the help of the following marketing tools:

direct selling;

direct marketing;

telemarketing;

advertising in the media and the Internet.