SUMMARY OF PROMOTIONAL METHODS
There are many forms of promoting goods and services which are as follows:
Advertising is a paid form of non-personal presentation of goods and services to a group by an identified sponsor.
It is aimed at to strengthen personal selling and advertising endeavors. It involves window displays, trade shows, bonus schemes, competitions, prizes, samples, concessions, etc.
Publicity is a non-personal form of demand stimulation and is not paid for by the person or organization benefiting from it.
Public relation is an organization’s strategy desired to arouse favorable public attitude and establish good market image.
It is a method of offering goods and services to the prospective customers by the person known as salesman. It facilitates face to face contact between the buyer and the seller and any inquiry about the product can be immediately adjusted.
The sales letter is a popular method to reach customers individually. It is sent by mail and hence incurs low costs. It is written to introduce goods and a service, urges the customer to buy them, and offers minimization of buying efforts. It targets at all new, prospective and old customers. The inherent difficulty involved in it is facing resistance from the buyer who may decline even to read the letter and is rather inclined to throw it away into the waste basket.
Sales Promotion Letter:
The sales promotion letter is written to customers to offer a service of values, express goodwill, indirectly promote sales, and convey a personal and friendly attitude. It is meant to keep contact with them. The sales promotion letter is used to capitalize on a timely event. It is written on anniversaries, festivals, achievements, and sales. In contrast to the sales letter it is used to sell indirectly.
Other Sales Promotional Method:
Following are the miscellaneous promotional methods.
a. Calendars and Diaries
On the beginning of a new year many organizations issue calendar and diaries for free distribution to their customers, suppliers, bankers, lenders, creditors, and others. This method is useful as long as one year.
Some companies distribute pens, pencils, purses, wallets, note books, telephone indexes, key chains, etc. Many of these articles carry the name of the distributing company. All the items given are gratis.
c. Exhibitions and Fairs
Business organizations may participate in local and international exhibitions and trade fairs where they publicize and sell their products at concession rates.
Clearance sales are conducted by shops that sell consumer goods. Books, Shoes, and ready -to-wear garments are very popular under this method in which old, out-dated, and defective goods are cleared at reduced rates.
Different types of competitions arc held to attract the attention of masses. Such competitions include marathon race, crosswords, quizzes, etc. After the competition is over prizes are given away.
f. Internal Decoration And Window Dressing
It involves effectively arranging goods in the shop and its window with bright illumination. This extra ordinary decoration attracts many customers. It is an effective tool to demonstrate the goods to look more pleasing and tempting.
g. Bonus Schemes
Under this scheme customers are offered extra units of a product. For instance, if a customer buys two suits, he will get a shirt free of cost.
Advertising companies sponsor many sport events, especially when such programs are shown on TV or broadcast by radio. During the commentary their products are intermittently advertised.
i. Rebate and Coupon
Rebate and coupons are used to offer concessions or special gifts,
j. Courtesy Advertising
When an advertisement is published by the donation it is known as courtesy advertising. In such a case the donor company’s name appears at the bottom of the advertisement with the remarks “courtesy of ….” The cost of advertisement is paid by the donor company.
Free samples of products are sent to traders, importers, and buyers. This approach is adopted only for low priced goods.
l. Fashion Shows
This scheme is taken up by textile manufacturers and dealers. These shows are held in four-or five-star hotels to popularize their products. In the show the models wear different dresses for demonstration.
m. Statues And Busts
Dresses and the jewelry are exhibited on statues and bust which are placed in the show case.
It is a sales promotion technique and refers to a return of part of the price of a product. It is also known as manufacturer’s rebate. Some manufacturers supply a coupon along with the product which the buyer must send in to get the rebate.
o. Sales Returns
Many manufacturers or shopkeepers offer the facility of sales returns under certain conditions and during a stipulated period of time. This technique establishes their goodwill and reliability.