Student Corner - 251

SALES PROMOTION TOOLS

We have been discussing tools of sales promotion; there are so many tools that one cannot exhaust them in articles like this; however , we have seen some of the most popular tools of sales promotion and we will see some more and then move on to Trade Promotion tools. As we said earlier, Sales promotion can be discussed in Consumer Promotion, Trade promotion and Sales Force Promotion.

In our next we shall briefly look at Trade promotion tools. Now, some more tools of Consumer Promotion. Exchange now is one of the most popular tools of sales promotion. Customers are asked to exchange their old product with the new one ; of course, the company cannot afford to lose revenue. If the company just exchanges the old product with a new one, there is a possibility that the customer might not think well of the company in the sense that it has sold a product which can be updated in some features; this does not augur well; moreover, updating a product involves definitely spending more on the production since it adds some new feature. So, the general practice is you , the company, gives the new product after deducing the money it offers for the old product and sells the updated ones to the customer. Customer is certainly satisfied because he sells his old product and gets a new one at a reduced price. Double advantage.

This tool ‘Exchange’ is very popular since it appeals to the updating hunger of the customer. Possession of an updated product is an expression of deserving social recognition and prestige. From pins to pastes, from coffee to cosmetics, from dresses to dining tables, everything to day is updated. Majority of people are after updating themselves and their products. They do not want to lag behind the times and the people, that is, their neighbours, friends, and relatives and colleagues. The companies are quite aware of the updating mania of the society and they have to use it if they want to sustain themselves, if they want to remain update. 

The business instinct drives its owner to announce a last date for exchange; it is a message to the customers to hurry up for the exchange before it is too late; incidentally, it helps the company in clearing the new products faster and garnering revenue too faster.  There are so many other tools like Premiums, Celebrities Promotion, Instalment Sales.

Basically, all tools focus on the customer; his affordability and his social status. Of course, whatever tools the company might choose to adopt, depending on his financial strength, his alertness to the marketing dynamics, his rivals and competitors just below and above him, the quality must not be compromised.  Compromise in quality is a sure and slow death of the commercial strength of the company.

We will move on to the tools of Trade Promotion in our next.