The Means of Sales Promotion at The Manufacturer Level

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1.

What e are the means of sales promotions at the manufacturer level and what is their
importance.

Manufacturer-level sales promotions are made by producers in factories, which cannot be


altered by distributors at the point of sale.
This type of promotions presents three different formulas: price promotions, in-kind
promotions and selective promotions.
YO. Price promotions: these are those that seek to reduce the sales price and can be enjoyed
immediately or deferred.
to. Immediate: are those that are enjoyed at the moment of purchase, and among them the
immediate discount and the immediate discount voucher stand out; They are more
widespread promotions since they generate good results, have a great impact on the client,
require simple planning, do not require much time to apply and can be used as an attack or
defense strategy due to their flexibility; The drawback is the determination of the amount to
be reduced since if it is less than 10% it is not perceived, a minimum reduction of 12% is
required for it to be perceived, in addition to the fact that the image of the brand may be
harmed.

1.1. Importance of sales promotion.


Sales promotion has become one of the key elements of the promotional mix, which currently
represents, according to a survey carried out by the Promotion Marketing Association, that
currently 53% of its budget is allocated to advertising. , 23% for promotion among consumers,
18% for promotion in the industry and 6% for public relations and customer services,
indicating that marketing expenses reflect a trend towards integrated promotion programs
that include a variety of elements and techniques. .
Many companies are beginning to view promotion as a positive set of alternatives rather than
a curse. Along with this acceptance it is stated that promotion is most effective when it is
planned and carried out according to an integrated basis.
Since all the company's products and actions communicate a message, it is critical or difficult
to determine exactly what is going to be communicated and in what way.
Nowadays, greater emphasis is placed on obtaining more in quality and less in emotional
aspects. The consumer wants information and the opportunity to choose. This does not mean
that humor and concerns cannot help sell products. The process is complex and necessary to
constantly control the interaction, which takes a place between the consumer and the
promotional process. We know that if this interaction is effectively managed, an ongoing
relationship can be established with the consumer that builds a continuous real value and
meaning of communication. Although these types of relationships are forming, it is a goal
worth developing. The consumer is faced with many products and when selecting, he or she is
determining the relative value of each of them. He or she is a consumer in one time and often
supported by partial information, he or she chooses the best one. This means that the buyer
frequently goes to the optimal opportunity. In this way, the marketing message must be
communicated in such a way that it influences purchasing decisions and identifies the
important factors of this process.
1.1.1. Situations that demand the use of sales promotion.
It may seem that designing effective promotions is virtually impossible under certain
conditions. However, traders have
Infinite valid reasons for action and promotional objectives.
Firstly, the physical and emotional distance between producers and consumers is constantly
related.
As a result of marketing problems, communication is becoming a very important factor.
It is not enough for a producer to communicate with its newest consumers or industrialists,
sellers or producers must promote their products as well as their characteristics. Thus, it is
important to inform the manufacturer about their products. The wholesaler must promote its
products to the retailer and the latter, in turn, must communicate this to consumers.
Second, intense competition between different companies has caused tension in the
promotion programs of individual sellers.
A good promotional program will be able to help consumers make satisfactory purchasing
choices.
Thirdly, promotional efforts are important in the operational marketing program of
businesses. It is almost always the part that has the highest marketing expenses, apart from
advertising, which is also expensive.
Finally, during periods of downturn in the economy, the importance of promotion is
fundamental and constitutes one of the keys to solving sales problems.
Promotion is necessary to maintain an adequate level of sales and needs to be taken
advantage of for the company to survive; has to. Be carried out continuously with a wide
variety of strategies. Using messages, supporting sellers, these are just some of the ways to
stimulate consumer demand.
Objectives of sales promotion.
The general objective of promotional actions can focus on three ideas:
• Increase sales
• Gain market shares (conquer new customers)
• Position a product

It is convenient to differentiate the objectives by recipients:


TARGET OBJECTIVES
Consumers Increase the number of customers
Build customer loyalty
Increase average spending
Facilitate new consumption
Increase active interest
Distributors Increase preferences for certain brands
Improve merchandise rotation
Increase purchases of each order
Distribute more product ranges
Develop awareness
Prescribers Make known the utilities and benefits of the products
Create brand image
Get brand recommendation
Sellers Increase sales of specific products
Get certain customers to buy more
Communicate product information
Increase your sales effectiveness

1.1.2. Sales promotion in comprehensive communication.


Marketers have a variety of promotional tools at their disposal. To make effective use of them,
a company's personal selling, advertising and other promotional activities must form a
coordinated promotional program within its total marketing plan, that is, the elements that
comprise the promotion were part of a promotional effort. Integrated Marketing
Communication (IMC), a strategic process used to plan, create, execute and evaluate
coordinated communication with an organization's public.
The CIM begins with a strategic planning effort designed to coordinate promotion with
product planning, pricing, and distribution, which are the other elements of the marketing
mix. Promotion is influenced by how distinctive a product is and whether its planned price is
above or below the competition.
Use several instruments:
• Personal sale. It is the personal presentation made by the company's sales force for the
purpose of making sales and developing relationships with customers Through: Sales
presentations, trade fairs, employee incentive programs
• Sale promotion. They are short-term incentives to encourage the purchase or sale of a
product or service. Through: Point-of-sale displays, prizes, discounts, coupons and
demonstrations
• Public relations. It is the creation of positive relationships with the company's various
audiences, through obtaining favorable publicity, creating a positive corporate image and
managing or eliminating unfavorable rumors, stories and events.
• Advertising. It is any paid form of non-personal presentation and promotion of ideas, goods
or services by an identified sponsor. Includes: Printed forms diffusion, exterior, others.

1.1.3. The means of sales promotion at the manufacturer level.


The store can expect support from its suppliers: advice, advertising, support in displaying its
products, price, in and with packaging; reinforcement of stock availability and special attention
to replenishment and assortment
The supplier can help in store campaigns:
• Facilitating promotional action, bringing your products closer to the final consumer
• Collaborating in the effective display of these products
• Increasing the sale of your products at the premises
On the other hand, the aid will depend largely on:
• The place where the store is located
• The importance that the store has in the area
• The place that the store occupies in the supplier's strategies
• The volume of your transactions

1.2. Offers.
Offers are short-term price reductions, commonly used to increase testing among potential
customers or to retaliate against actions taken by a competitor. For example, if a rival
manufacturer launches a new paper blend, the company responds with a “two packages for
the price of one” offer. This short-term price reduction piles up stock on the kitchen shelves of
cake mix buyers and makes it difficult for the competitor to introduce itself.
1.2.1. Prizes or gifts.
It is a promotional tool often used with consumers, consisting of merchandise offered free or
at significant savings over its regular retail price.
1.2.2. Competitions.
It is when consumers apply their analytical or creative skills or thinking thinking about trying to
win a prize.
1.2.3. Raffles and giveaways.
This promotion requires participants to submit some type of entry form, but they are more of
a random game that requires no analytical or creative effort on the part of the consumer. The
approach is very effective. A variation of the sweepstakes is the game to win instant prizes.
1.2.4. Samples.
It is offering the product for free or at a very reduced price. They are often used with new
products as samples put the product in the hands of consumers. A trial size is usually offered,
which is smaller than the normal package size. If consumers like the sample, they are expected
to remember and purchase the product.
1.2.5. Corporate promotions.

1.3. Cross promotions.


Cross-selling is a technique to increase turnover by selling additional products or services to
those that our clients were purchasing to date, becoming an efficient and economical way to
promote their products or services to increase their sales.
The goal of cross-selling is to maximize the value of each customer. To do this, it is necessary
to know our customers as best as possible: what their needs are, their purchasing motives,
their usage and consumption habits... once you have the result, proceed to negotiate with
companies that have products that adapt to your needs. strategy to be offered to your
customers as added value by purchasing their products most of the time.
The offer must be individualized to each client. We can present this offer directly with our
sales force, through direct marketing actions such as mailings or calls from teleoperators or
through promotional actions.
Their success is based on the negotiation obtained between the companies participating in
the cross promotions and above all, the media dissemination campaign of the same which
must be in the advertising media that are directed to our customers. target markets.
There are three types of cross-selling techniques:
1. Sell multiple products or services to the same customer.
2. Sell products or services to different business units of the same account.
3. Sell products or services to the same account in different places
The benefits of cross-selling are:
1. Greater value for customers, since they believe that companies with wide ranges of
products and services offer much more value than companies with smaller ranges.
2. More loyal customers, since customers who receive more products and services from the
same company tend to be more loyal.
3. Increase in our negotiating power with the client.
4. The possibility of growing in mature markets.
5. We save costs, since the cost of getting new clients is very high. And with cross-selling we
maximize customer value.
These types of sales techniques can be used by both small and large companies. Small
companies have the advantage of better knowledge of their consumers as a result of close
relationships with them. On the other hand, large companies have a broader portfolio of
products and services and, in addition, the possibility of investing in information systems that
allow them to have databases with multiple consumer information to apply cross-selling
techniques.
This advertising budget must normally be absorbed by the brand that will offer these added
values during its promotional campaign and the rest of the participating companies will absorb
the costs involved in providing these benefits, which is extremely attractive to them for the
simple fact of having a presence. brand in advertising campaigns, POP materials and
everything related to said promotion, in addition to increasing traffic at its points of sale.
Measurement and results:
For a cross promotion to be successful, the redemption of the coupons and/or the benefits,
products or services offered must be between 5% and 10%.
1.4. Fairs, Exhibitions, Outlet.
1.5. New media: Activations, sampling, caravans,
1.6. Advertising Media that supports promotional media at the manufacturer level.
1.7. Product protection systems as a means of sales promotion.
2. The means of sales promotion at the wholesale level
2.1. Story and recount.
It consists of promoting the movement of stock from wholesalers to retail stores, offering the
former an incentive per box of product sold through their promoters, counter staff or ampos.
Due to their attractiveness, it is common to propose household appliances as incentives
(televisions, radios, etc.), or some less expensive items for personal use (watches, pens,
calculators, etc.), which can be purchased by the company with large quantity discounts. .
It is important to direct the incentive towards the sellers and not the owner or owner of the
business, since they already have the profit from the sale. It will be necessary, therefore, to
establish a control system for the people who will participate in the promotion and, with the
help of the wholesaler, record the sales achieved by each of them weekly or biweekly so that
they can become creditors of the prizes.
Advantages: It is the most economical way to boost product availability in retail stores.
Furthermore, it can be an interesting proposal for wholesalers who have stocks higher than
what is normally necessary and find themselves unable to pay their overdue invoices and
unable to place new orders from the manufacturer. It is also applicable when they have a
previously presented or short-lived product in stock. Its instrumentation is simple and can be
carried out by the manufacturer's own sales representative.
Disadvantages: sometimes it is not easy to control the stocks of the product to be promoted,
either because the majority have several warehouses or because they lack space or order and
it is difficult to compare the movement of units. This promotion is not recommended for
products with serious demand problems, but the wholesaler's staff, pressured by the
persistence of the retailers, tends to abandon the promotion and deal with other products.

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