M Promotion Flashcards
Describe into the pipeline promotion
-Methods to sell products to distribution systems (wholesalers and retailers).
What are different methods of into the pipeline promotion
- Point of sale materials
- Sale or return
- Dealer loaders
- Promotional gifts
- Staff Training
Describe point of sales materials
Things that can be placed in a store that attracts the eye of the consumer. This can be posters, display stands.
Encourages impulse purchases.
Describe sale or return
When the manufacturer allows the retailer to return any stock that hasn’t sold. This attracts retailers as it reduces their risk.
Describe dealer loaders
Special offers offered to retailers to encourage bulk buying. For example, buy 10 boxes and get 1 box free.
Describe promotional gifts
Branded limited items that the retailer can give customers for buying a product. This makes it more likely for the retailer to buy the stock as it is a method of attracting customers. Eg branded bowls for buying cereal
Describe staff training
When a manufacturer offers training for staff to teach them how to sell the product. This improves the retailer’s customer service.
Describe out of the pipeline promotion
These are methods used to sell more products to consumers and is done by retailers to attract customers.
Different methods of out of the pipeline promotion
- BOGOF
- Free trials/samples
- Vouchers
- Competitions
- Advertising
Describe BOGOF
Buy one get one free. Can be used for a limited time to boost sales of certain products (maybe some which are about to be discontinued)
Describe free trials/samples
Allows the customer to try the product for free so that they are sure that they like the product before purchasing.
Describe vouchers/coupons
Included in newspapers or or the packaging itself to encourage repurchasing and also encourages customers to buy from the business instead of rivals.
Describe competitions
Telling customers to buy a product for a chance to win something with a much higher value. Can result in customers buying higher quantities of products to increase their chances of winning.
Advertising
Done through newspapers, TV, radio, online to make customers aware of the product.
Loyalty cards
Works on point system where purchases will gain points. The points will become money that can be spent on future purchases and encourages repeat sales as customers think they are earning money from purchases when actually, a lot would have to be purchased before earning any spendable money. Also because points can only be spent at that store.
