Consumer Focused Sales Promotion Techniques

1. Free Samples :Free sample marketing is the act of giving products or

services away to prospective customers for free. It is especially effective
in the health, beauty, food, and drink industries. Samples give the
consumer a chance to see how well they like a product or try something
they otherwise would not normally buy.
Example:Naturally, snack food companies have found great success
with their free sample offerings. Pretzel Crisps maker the Snack Factory
started out by offering free samples of its flat pretzel cracker to reach
both pretzel and chip lovers. According to Perry Abbenante, Snack
Factory vice president of marketing, the conversion rate of the sampling
efforts was between 25 and 30 percent, meaning that at least a quarter
of those who tried a free sample ended up buying the product.

2.) Coupons : Basic coupon marketing strategy is simple – you give out
vouchers or codes that users can redeem in exchange for discounts and
free items. The benefits of this strategy are numerous, including:

•Helping you drive more sales by making tempting offers.

•Getting more return customers.
•Driving more traffic to your store and drumming up interest via social
media.
•Clearing out unwanted product stock.

3.) Price off Deals: Price deals are probably the most commonly used
promotional techniques. A price deal for a customer means a reduction
in the price of the promoted product and the consumer saves money on
purchase.

Example: Colgate fresh energy ice blue gel (Colgate India) 50 gm pack,
Rs. 5.50 off on normal price, now available at Rs. 12.50 only.

Price discounts are communicated through window displays, sales

people, advertising in newspapers, magazines and TV ads. Such
promotions work very well in gaining the attention of consumers,
particularly at the point of purchase among similar brands and may also
encourage unplanned or impulse buying.

.) Contests And Sweepstakes: Contests and sweepstakes can draw attention to

a brand like no other sales promotions technique.A contest has consumers compete
for prizes based on skill or ability. Winners in a contest are determined by a panel of
judges or based on which contestant comes closest to a predetermined criterion for
the contestA sweepstake is a promotion in which winners are determined purely by
chance. Consumers need only to enter their names in the sweepstakes as a criterion
for winning. Some popular types of sweepstakes also use “scratch-off cards”.

Example: Britannia khao world cup jao campaign has taken the market by a swing.

 Under the offer you collect points available on Britannia biscuit packets and
exchange 100 points for a scratch card, which has various gifts and the 100 world
cup tickets. The offer was actually introduced during the last world cup and had
shown phenomenal results. Sale increased tremendously; there was an increase in
the sales by 25%. 

Common techniques which have become popular in recent times 

1. First order discount: You can run this type of sales discount all year round
on your website or in your shops. It motivates people to try your products and
ensures a positive experience with your brand. 

Example: ReForm is a skincare brand selling anti-aging and highly moisturizing

creams and lotions. Their products are not extremely expensive, but they’re not the
cheapest cosmetics you’d find in the supermarket. So they used the “first order
discount” sales incentive to entice people to try their products and order online.

2.) Free Shipping:  There’s one thing that people consider when buying from
an e-commerce website: the shipping cost

Example: Steve Maden a large e-commerce retailer knows that people

place orders from countries all over the world. That’s why they often offer
free shipping. As you can see, their free shipping period offer is limited to
two days. Which makes their website even more enticing.

3.) Referral Marketing: Referral marketing is a marketing tactic that makes

use of recommendations and word of mouth to grow a business's
customer base through the networks of its existing customers.

Example: Uber does this masterfully with the “Free Rides” link in its
menu. In their double-sided referral program, your friend’s first ride will
be free. And once their first ride is complete, the referrer’s next ride will
be free, too.

Promotional Techniques for wholesalers and retailers:

1.) Merchandising allowance: short term agreement to compensate wholesalers and retailers
for features, i.e, advertising or in store displays. A proof of performance has to be provided
to avail this offer. For example: A radio or television affidavit of broadcasting with invoice, or
a picture of dealer boards on top of retailer’s shop.
 2.) Dealer’s Sales Contests:  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.
Example: A trip to a hill station on meeting a particular target.
3.) Dealer Loader: Premium presented to retailers for purchase of a certain quantity. These are
of two kinds-buying loaders, or gifts given in return for an order, or display loaders, a
premium which is a part of a special display piece.
Example: 5 litre bottles of Johnnie Walker displayed at various bars and pubs.

Promotional Techniques for Sales Persons:

1.) Sales Incentive schemes: provided to all participants who achieve a certain sales
performance goals. These are rewards provided over and above their regular compensation.
Like, if you know that most salesmen achieve their target towards end of the month or
quarter, you can give them monetary rewards for sales made before 15 th of the month or 1st
month of the quarter.
2.) Sales Contests: offering non-cash rewards or prizes to the best performers of the contest.
For Example: Offering Gift cards, fine-dining experiences, entertainment tickets, etc to the
best performing people.
3.) Sales aids include a wide variety of devices and activities designed not so much to motivate
salespersons but to help them in actual selling process. These include price lists, product
bulletins, movies and materials like catalogues.
Example: This is widely used in Mutual Fund and insurance. They are provided with scheme
brochures, past performance data, etc