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Trade-Oriented Sales Promotion

 Trade-Oriented Sales Promotion

1. 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.

2. Merchandise allowance: The manufacturer may offer an allowance in return for the retailer’s agreement to feature the manufacturer’s product in some way. For example, an advertisement allowance compensates retailers for advertising the product. A display allowance compensates the retailers for the usage of special displays.

3. Cooperative advertising: Dealers are given an allowance to advertise the manufacturer’s product. Dealers claim such allowance by producing to the manufacturer the proof of advertisement.

4. Dealers’ sales contests:  A sales contest is a contest for dealers to encourage them to increase their sales performance over a period of time. Sales contests recognize good performers. They may be in the form of holiday trips, cash prizes, or other gifts. Some companies award points for performance to achievers.

5. 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.

6. Buying allowance:  Buying allowance is granted to those dealers who purchase in a stipulated period of time. It is very much useful in introducing new products to consumers. It motivates dealers to buy in huge quantities, dealers get immediate benefits in the form of price reduction.

7. Point of purchase: The point of purchase display is a silent salesman. It calls the attention of the customer to the product with the hope of initiating buying action. This device is known by several names such as dealer aids, dealer displays, merchandising, and point of sale materials.



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