A business grows with the help of trade and commerce, which includes all the activities which influence market demand and supply thus, increasing sales through marketing strategies. Every organization plans its promotional activities according to its size, variety of products, geographical area, targeted customers and market. Trade sales promotion method is a method of sales promotion that focuses on the rise of a product through the distribution channel, i.e., through the merchant middlemen. They act as an intermediate between the customers and the manufacturers. Moreover, boost the sales of the commodity by continuous persuasion and influencing purchase. This method of promoting sales have many impacts in creating a market for a product.
Building Customer Loyalty and Relationships: With increasing competition in the market, a customer cannot decide which brand to trust and what to purchase among so many options. Thus, retailers or the wholesaler helps him settle in the product as per his choice and preferences.
Profitability: In Fast Moving Consumer Goods (FMCGs), traders want to sell more and more goods as the profits are directly dependent on the product’s sale. Every business wants to upgrade supply at a minimal cost and create market value.
Increase in size of the order: Sales promotion is a phenomenal method to escalate the demands if accomplished in the right direction targeting the right customers.
Creation of Demand and Goodwill: Goodwill and demand of a product move hand in hand as a product is known for its benefits and satisfaction of needs of a potential consumer. Thus, a seller should focus on providing products that fulfill the customer’s requirements and make sure that he takes responsibility for complaints and grievances in connection to the commodity sold.
Providing knowledge of customers about the products: It is equally essential for the consumer to know the exact usage of the product. Therefore, sales promotion helps them provide correct knowledge about the existing, new, and upgraded products.
Types of Trade Sales Promotion Method
Trade sales promotion method is a B2B strategy of promoting sales. B2B refers to business-to-business trade where one purchases and the other sells. Thus, the business uses different methods to promote and display products to the ultimate customers. The main reason for promoting goods and services is to enhance markets with new products, increase the flow of a commodity, and build goodwill. The manufactures provide many spectacular offers to traders to improve the sale of their products.
Rebates: The manufacturers give dealers rebates and special trade discounts to increase off-season sales and also awards cashback in any particular situation.
Free Trial and demonstration: To attract customers, the producers guide the dealers about displaying products to attract the customers. Moreover, they provide free trial and training facilities for handling and operating products.
Bundles: It is a combined offer wherein the price of a product reduces if purchased in bulk. It attracts dealers as well as customers and helps in increasing sales.
Coupons: It is one of the methods used to increase the customer’s purchasing power. Coupons specifically include an offer of a reduction in the product’s price if it is purchased in a minimum quantity and within a specified time.
Display Contests: The manufacturers organize these contests so that all the dealers can display their products under a single roof. The prices of the products are usually less than they are generally available in the shops.
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