Trade-oriented sales promotion programs are directed at the dealer network of the company to motivate them to sell more of the company’s brand than other brands. It is also known as a push strategy, which is directed at the dealer network so that they push the brand to the consumers by giving priority over other competitor brands. Trade sales promotion is a promotional inducement directed at retailers, wholesalers, or other business buyers to arouse instantaneous sales.
Some of the important Trade-Oriented promotion tools are as follows:
- Cash bonuses:
It can be in the form of one extra case for every five cases ordered, cash discounts or straight cash payments to encourage volume sales, product display, or in support of a price reduction to customers.
- Money Refund Offers:
Here the company or producer gives a definite proportion of refund as a component of the deal for buying a product. If the customer is not pleased with the product, a part or all of the purchaser’s money will be refunded. The refund is not given while making a procure but received when the buyer submits a proof-of-purchase to the producer. It will generate new users and support brand devotion.
- Stock return:
Some firms take back partly or wholly the unsold stocks lying with the retailers and distribute it to other dealers, where there is a demand for such stocks.
- Price off Offer:
It stimulates sales during a slump season. It gives a momentary reduction to the consumers, i.e., goods are offered at a rate less than the labeled rate. Fans are sold at a decrease rate in the winter season.
- Premium Offers:
Products are offered free or at a low cost for buying a meticulous product. It is a momentary price decrease which increases the nature of the buyers. For example, buy one get one free, book a flat with no EMI for the first year, etc. Products are offered free or at a reduced cost as an incentive for purchasing. The company also gives out gifts like wallets, calendars, diaries, etc. along with a buy.
- Credit terms:
Special credit terms may provide to encourage bulk orders from retailers or dealers.
- Consumer Sweepstakes:
These are opportunities for the buyers to win cash, trip, or a product when making a definite purchase. Consumers submit their names for insertion in a list of prize-winning contest. After getting the right numbers, the consumers win a prize. At a particular time, lots will be drawn. The prize-winner gets the prize. Sweepstakes refers to submitting names for a draw – lucky draws. This system is followed by trade businessmen to endorse sales.
- Dealer conferences:
A firm may organize dealer conferences. The dealers may be given information about the Company’s performance, future plans, and so on. The dealers can also provide valuable suggestions to the company at such conferences.
- Dealer trophies:
Some firms may institute a. special trophy to the highest-performing dealer in a particular period of time. Along with the trophy, the dealer may get a special gift such as a sponsored tour within or outside the country.
- Product warranties and guarantees:
The producer makes security to the purchaser that the manufactured goods will be repaired without charge or cost, replaced, or money refunded if it doesn’t perform as promised for a definite stage.
- Push incentives:
It is a special incentive given to the dealer in the form of cash or in-kind to push and promote the sale of a product, especially a newly launched product.
Purchasers are asked to submit the old product and a new product is accessible at a new price. The organizations sometimes ask to submit the old product pretend by them, but sometimes, the swap rolls over to a product from any brand or a certain brand.