What are the two types of trade

Sales promotion


Sales promotion, also called sales promotion, describes all measures in communication policy that have the content of sales promotion in the trade. All market participants are included. These include retailers as well as sales and consumers.

Definition [edit]

Sales promotion (also: sales promotion) comprises a large number of individual actions with which the sales results are to be improved. The activities are usually limited in time and can be aimed either at dealers, consumers or sales organizations.

The main goal is to increase sales and therefore sales. At the same time, however, many manufacturers and retailers are pursuing the goal of increasing the company's profile and winning new first-time buyers or repeat buyers. Retail promotions, on the other hand, are intended to encourage retailers to include a manufacturer in their range, increase sales and advertise the manufacturer's products in a targeted manner.

Types of sales promotion

There are three types of sales promotion, each of which focuses on different market participants

Trade promotions [edit]

These are special measures that the manufacturer addresses to retailers. It aims to carry out a sales promotion measure together with the dealer in his shop. The trade should be encouraged to advertise the dealer's products in a targeted manner and to include them in the range in larger quantities.

Examples of trade promotions [edit]

  • Offer of sales aids such as brochures, catalogs or flyers
  • Provision of advertising material, e.g. B. Displays for product presentation at the point of sale (POS)
  • partial assumption of advertising / advertising costs

Consumer promotions [edit]

This type of promotion is always aimed at the end consumer, but can be promoted by the manufacturer or the retailer. The aim here is to increase sales through direct merchandising. In the area of ​​consumer promotions, a distinction must be made between short-term and long-term measures. Short-term promotions are, for example, temporary special offers, the distribution of leaflets or the issue of vouchers. In the long term, measures such as the mailing of consumer magazines or product offers have an extended benefit.

Examples of consumer-oriented promotions [edit]

  • Contests and raffles
  • free samples
  • Additions to the purchase of certain products (e.g. P&G gave away children's picture books as part of a Pampers campaign when purchasing Pampers megapacks)
  • Collective stickers in chocolate bars
  • Coupon campaigns for supermarket customers
  • Special offers, discounts (including discounts in kind) and discounts on purchases
  • Special price packs (e.g. "two for the price of one", "now with 30 percent more content for free")

Field service promotions [edit]

Here, the manufacturer tries to motivate his own sales force or dealers to generate higher sales with the help of special claims. Of course, these promotions are not limited to the field service. Employees on site in the shop or at a booking agency can also be incentivized.

Examples of sales force promotions [edit]

  • Sales contests
  • Rewards with a high incentive effect (e.g. travel, wellness weekend, prizes in kind)
  • Incentives
  • Training and sales training

Legal requirements [edit]

If sales promotion measures are planned, it is important to comply with the transparency requirement, which results from Section 4 No. 4 of the Act against Unfair Competition (UWG) [1] results. As a result, someone acts “unfairly” who does not clearly and unambiguously state in campaigns such as discounts, gifts or free gifts which conditions the target group must meet in order to benefit from them. Depending on the action, very different conditions can exist.

Examples:

  • In a McDonald’s campaign for the 2014 World Cup, guests had to appear in a Germany jersey in order to receive a free burger
  • Time limitation of an offer (e.g. special offers at Lidl, which are only valid on "Super Saturday")
  • Collecting points for customers, but only from a certain purchase value
  • “Bonus Miles” for air travelers

If the regulation of § 4 UWG is violated, competitors can take legal action against it. You have a right to information, compensation and injunctive relief.

Relation to online marketing

Sales promotion in online marketing can be done in many ways and is primarily aimed at consumers. For example, online shops give users discounts when they subscribe to a newsletter. Other web shops specifically address dropouts with vouchers so that they can still buy the items from the shopping cart. Sales promotion also plays a major role in social media marketing. In the social networks, consumers can also be addressed emotionally via image or video material.

References Edit]

  1. ↑ Law against Unfair Competition gesetze-im-internet.de Retrieved on August 15, 2017

Web links [edit]