CONSUMER ORIENTED SALES PROMOTION TOOLS

CONSUMER ORIENTED SALES PROMOTION TOOLS

The consumer-oriented promotion tools are aimed at increasing the sales to existing consumers and to attract new customers to the firms. It is also called a pull strategy. The consumer can take the benefit of promotion tools either from the manufactures or from the dealer, or from both.

1. Demonstration:  

The demonstration is required when products are complex and of a technical nature. Customers are educated as to how to make proper use of the product. Demonstration of products induces customers to buy. Demonstrations are provided free of cost.

2. Exchange scheme: In this case, the customer exchanges the old product for a new one. The old product’s exchange value is deducted from the price of the new product. This sales promotion tool is used by several companies for consumer durables. For instance. Philips came up with a five-in-one offer. The offer consisted of Philips TV, two-in-one, iron, mixer-grinder, and rice cooker at an attractive price.

3. Personality promotions: This type of promotion is used to attract a greater number of customers in a store and to promote the sale of a particular item. For instance, a famous sports personality may be hired to provide autographs to customers visiting a sports shop.

4. Coupons:  A coupon is a certificate that fetches buyers a saving when they purchase a specified product. Coupons are generally issued along with the product. They entitle the holder to either a specified saving on a product or a cash refund.

5. Cash refund offer:  Cash refund offers are rebates allowed from the price of the product. It is an offer to refund part of the purchase price of a product to consumers who send proof of purchase to the manufacturer.

6. Buyback allowances:  Allowances are granted to buyers on the basis of their previous purchases. In other words, buyback allowances are given for new purchases, based on the number of goods bought previously.

7. Contests: Contests are the promotion events that give consumers the chance to win something such as cash, trips, or goods. Contests are conducted to attract new customers. They introduce a new product by asking the prospects to state the reasons for the purchase of the product.

8. Instalment sales: In this case, consumers initially pay a smaller amount of the price and the bal­ance amount in monthly installments over a period of time. Many consumer durables such as refrigerators and cars are sold on an installment basis. For example, Washotex came up with a scheme to pay 20 percent now and take home the Washotex washing machine.