Sales promotion

As a sales promotion (English Sales Promotion ) all temporary activities are combined with action character within the communication policy of marketing that are used to activate the operators (Sales organs, distributors, customers ) to increase sales results and support other marketing activities. "While advertising is a reason to buy, sales promotion offers an incentive to carry out or promote the act of purchasing. " ( Kotler / Bliemel 2004) Sales promotion can be directed to consumers, to the sales force as well as to the trade. Depending on the addressee vary the appearance of the promotion, which can distinguish between short-and long -term sales promotion.

• 4.1 Conflicts between manufacturers and retailers 4.1.1 In the Product Policy
• 4.1.2 In the pricing policy
• 4.1.3 In the distribution policy
• 4.1.4 In the communication policy

Manifestations

Through the Promoter certain measures can make to promote such cross-promotion or co sampling to the sale. The precise form is determined by the objective.

Trade Promotions

Trade promotions (trade or dealer promotions) are directed by the manufacturer to the trade. The manufacturer pursues the goal to promote a related product that is a sales promotion campaign to the end user to perform. Looking to trade short-term sales promotion measures are, for example, sales letters and mailings, display material for shop windows and showrooms as well as partner actions. A dealer council, an information center for trade, seminars and lectures will be counted as long-term sales promotion.

Consumer -oriented promotions

Consumer -oriented promotions ( consumer promotions) are aimed at the consumer. They can be both initiated by the manufacturer of done ( consumer promotions, such as the organization of an event in the parking lot of a supermarket ), as well as through trade (dealer promotions, such as a special offer with display support as a result of trade promotion ). The instruments of consumer- oriented sales promotion in particular between price promotions (eg special offers, special packages, coupons, loyalty rebates ) and non-price promotions (eg, handouts, inserts, displays, product samples, sweepstakes ), a distinction. Among the short-term, addressed to the consumer sales promotion measures include special offers, discounts, coupons, flyers and mailings. There are consumers against newspapers as non- designated products with added value, new consumption and application ideas and the like.

Sales promotions

Whether sales promotions ( Staff Promotions ) also are part of the promotion is controversial in the literature. The target group for sales promotions is the own sales. Through training, brochures, premiums or sales contests should the seller be excited to intensified marketing initiatives.

Promotion

Promotion as part of the promotion not only serves to carry out or promote the act of purchase, but to achieve an increase in sales primarily. If a product at half the price with 50 % discount sold, then the sales promotion, instead the action is advertised with " two packs for the price of one ", the customer has the same price advantage, it pays well only half the normal price for the product but he bought two packs, which (mostly and consumption ) promotes sales.

Demarcation

After Heribert Meffert, the promotion is bordered on the Kontrahierungspolitik, with the help of free gifts, payment terms or improved delivery and payment support, for example, the distributor or customer. The promotion also sets itself apart from the merchandising by the lack of value of the measure itself off. Sales representatives, dealers and customers are much more incited to identify themselves prior to the sale process with the offers and the presentation intense. Opposite the advertising is not the product message or making a promise or an image, but on the factual support for the sale itself or, in the case of customer - promotion, the tasting as a direct incentive to buy or the generation of addresses for actual product advertising. Here, however, are overlapping with classic advertising goals indeed.

Expiration

After placing the order to an agency candidates from the pool of freelancers ( Promoter ) (mostly nationwide) selected for a particular job. In the following passage, the promoters have yet to be prepared for the special requirements of the order. This usually happens through training, for which the time can vary from a few minutes to several days. Following the training, the orders for the freelancers are defined and assigned.

Objectives

The main objectives of consumer promotions are next to the extraction of first-time, testing and re- buyers the purchase and use intensification and increasing the awareness of the brand and goodwill. Trade promotions aimed trade a special incentive to offer, has joined the product or even to buy and support by special measures its sales. Staff promotions provide motivation and stimulate direct sales.

Conflicts between manufacturers and retailers

Manufacturers and retailers are dependent on each other; resolution of compulsory community is not evident in the long term. Both sides aim to sales or sales and maximize profits and expand their respective market significance. On both sides there are developments concentration, ie the balance between large and small developing on both sides more and more in favor of the great. But that's where the similarities end. The trade-offs are obvious due to the different positions of the two sides:

In the Product Policy

The manufacturer strives based build a clean product - and brand image on a stringent positioning. It is part of its strategy, always up to date align its product portfolio for variations, pack sizes and innovations to meet the needs of its target group and hedge against competing brands. Of course, it does so based on market and consumer research. The trade is the design of the products sold at heart - according to its own criteria of their own positioning and its target image using the focus on profit-oriented product line design to promoting its own brands. It is fair to hold the benefit of trade, he also strives to provide its customers with multiple brands, and it is therefore a competition among manufacturers to its limited shelf space is just right.

In the pricing policy

For the manufacturer, the price is a major part of its brand positioning, the first remains untouchable. Ideally, the manufacturer strives to low margins and a clear package conditions (discounts / bonuses / services / labor charges ) that he can keep the same for all trading partners in the relationship. For trade are due to the competition of price and price response options, the most important level of action in its marketing. Therefore, a variable pricing with the highest possible profit margin top priority for him.

In the distribution policy

Are as large orders and a high distribution density at all major trading partners significantly and in this combination also the ultimate for the manufacturer. Ideally, the trade should decrease its entire product range and achieve through preferential placement also provides the basis for fast sales. It would be desirable if the staff of trade would also have enough were known integral know -how to ensure a good advice to customers. The trade would just-in -time delivery prefer smaller quantities to avoid and / or reduce transport and storage costs. Of course, a selective or even exclusive distribution would come his image goals. Regarding the placement of the trade sees itself as part of its product line design and weighting clearly identified as responsible and solely competent. Products that need advice, have a hard time with him.

In the communication policy

The manufacturer is doing everything possible to increase product and brand awareness and pre-sell the product via the communication. For him, the creation of brand loyalty and the associated consumer loyalty to the product is fundamental. Ideally, he wants to create demand pressure communication with his pressure in trade. The placement of sales promotion measures and means in the shops is part of its communication strategy. For the commercial communication is primarily an instrument to enforce their own positioning, maintain customer traffic in the stores as well as the retention and acquisition of customers. The placement of Manufacturer's promotions in its stores, he looks more critical and often counter-productive in terms of its corporate presence.

Legal review

Sales promotion activities must comply with the transparency requirement of § 4 No. 4 UWG, because of them is a natural and strong luring out. Therefore, the conditions for their use must be specified, namely clear and unambiguous. The conditions are on the one hand, the authorized persons ( customers, anyone, people who in a certain period of birth, etc. ) and other operating arrangements (quantity restrictions, duration, etc. ). The information must be sufficient so without difficulty, noticeable ( legible, audible) and understandable.

Examples: If the action is valid only for a certain period so specified must be the beginning and end and after the calendar month or determinable. The statement " only valid for 14 days " in a newspaper supplement is not enough. If only individual articles to be reduced, so the exact discount must be specified. If, however, all groups reduced submits " up to x % discount " from.

Professional associations

In the area of ​​sales promotion no German-speaking professional association has prevailed until today. There were some attempts by agencies, but had a commercial background and failed. An umbrella organization find sales promoters in the Professional Association of Sales Promoters and Trainers based in Cologne ( BDVT ).