MIDDLEMAN SALES PROMOTION TECHNIQUES

MIDDLEMAN SALES PROMOTION TECHNIQUES

          Most of the product come to the market through a distribution channel comparing of wholesalers and retailers. Dealers or distribution are the front runners and the growth of any company largely depends on its channel network. The prime objective of trade promotion is to push the product through marketing intermediaries. In any sales promotion scheme it is very important to decide the period for which it can run in line with the profitability and selling behavior of the people. In this competitive age without support of wholesaler and retailers no manufacturer can survive. By offering incentives to middleman manufacturer may derive many benefits. Retailers can help clearing the inventory level and may provide self-space to attract customers towards the product.

(1) Special Discount: In this method manufacturer provides discount facility to retailers and wholesalers on their purchase. This may act as good incentive to purchase more and more quantities. The discount is provided on the basis of amount of purchase by the whole seller or retailer. As the amount of purchase is increasing the rate of discount increases.

(2) Sales Assistance: Under these method manufacturer provides assistance to the dealers so that they maintain the cordial relation with them. The sales assistance may be in many forms like helping them in making sales strategies or training the middleman’s salesman. Sales assistance also delivery facility, credit facility and storage facility.

(3) Trade Allowances: In this method allowances are offered to wholesalers and retailers for purchasing or promotion specific product. It is simply a discount for the purchase of the promoted product during the specified period. The allowances is tied with the purchase of certain minimum quantity of the product. This trade incentive is often used to gain more distribution or to maintain the existing one. These allowances are over and done the normal allowances.

(4) Point-of-Purchase (POP) Advertising: It Includes a display or other promotion located near the site of the actual buying decision. In expenses incurred by retailers on window dressing and other layouts are borne by manufacturer. This helps in attracting the customers to the print-of-purchase.

(5) Trade Shows: In this scheme vendor’s displays. These trade shows are goods organised by industry trade association, perhaps as part of these association’s annual meetings or conventions. Manufacturer have the opportunity to display now products.

(6) Dealer Contest and Training Programme: These are run by the manufacturer to induce retailers and their salespeople to increase sales and to promote product. Dealer contest help to clear stocks and transfer the benefits of bulk purchasing to the customers, manufacturer have the specialist staff which can train the sales force of middleman.

(7) Free Goods: It is in the form of extra quantity of purchased product, “free”. There may or may not be any limit on the quantity of purchase during the promotion period. Free goods encourage re-sellers to stock more during the promotion period. The offer also looks more attractive to re-sellers is the product is a fast moving item. The value pf offer is more to retailer then the price to re-seller. This scheme encourage retailers to stock more. This scheme is not suitable for show moving goods.

(8) Cash Rebate:  It is an incentive gives retail sales people cash rewards for very unit of product they sell. It is a monetary reward given to the sales force of the dealers to sell a manufacturer’s product. This is a form of delayed value promotion for the re-sellers. The manufacturer offers a rebate on purchase of a certain quantity. Once the retailer has met the conditions, the rebate is given to the retailer. This motivate the retailer to order for purchase of certain quantity. The retailer may be required to arrange a product displays in a prominent show-window or offer discount to consumers.

(9) Advertising Allowance: Advertising and displays allowances are primarily used for consumer products. To earn the advertising allowance, usually the retailer is required to advertise the product offer and promote the product. In case of display, the promotion is confined within the retail store.

(10) Buy-Back Allowance: Buy-back allowances is used to encourage restocking by retailers. When the manufacturer realize that after the initial deal the inventory levels at the retail are quite low this offer helps in building the inventory level with retailers to normal. Retailers like it because they build up their stocks at a reduced price without offering any promotion to consumers. Sometimes manufacturer specify minimum amount for buy-back allowance.

(11) Count and Recount Allowance: It is an offer of money to re-sellers for each unit of promoted product sold out during a specified period of time. Count and recount allowance is used to ensure that re-sellers are not out stocks. This exercise involves great deal of time and efforts.

(12) Forward Dating: Manufacturer provides the facility to retailer to purchase a certain quantity of product in the specified period but the billing is done after a period, however, the goods are shipped at a later date. The retailers may be offered a discount on purchase exceeding a certain quantity or amount.

(13) Slotting Allowance: It is fees manufacturer pay retailers to make available the space on the shelf for their new product. Fees changed may vary depending on the importance, image and size of the store.