Trade promotions help in establishing good distribution channels mainly for the new businesses. Trade promotions ensure that products are always available. For example, the automobile industry is highly competitive, and customers may opt for substitute cars or vehicles if the ones they want to buy are not available. Therefore, these promotion techniques make the products readily available because of good distribution channels. It also supports other forms of promotions like sales promotions made for customers. Other trade promotions encourage the retailer to promote the product further to the customers as well. One of the advantages of trade promotions is increasing the sale of seasonal products, which means even the products that are not used or made throughout the year are promoted to increase the sales volume. For example, air conditioners are mainly used in winter. Therefore, during this time, sellers of these products can give discounts to customers for sales maximization.
The importance of trade promotions is realized by all the successful brands and wholesale dealers who use them commonly to gain higher profits and capturing huge market share. Trade promotions are of many forms and there are various methods or techniques of trade promotions used by the seller or distributors. Trade promotions for B2B customers are different from the promotion done for the customers. Consumer promotions or sales promotions are done by the sellers to attract the customers and work by driving demand for a product or service, by offering discounts, premiums, gifts, and vouchers. However, trade marketing involves B2B promotions focus of dealer is on the supply side and convincing retailers to buy more products.
Methods of Trade Sales Promotions
There are various techniques or methods used for trade promotions by the trader to promote the product. Some of the major methods are:
Deals and discounts- This technique is always considered a good tactic. The aim is to encourage the sales among existing customers to buy more and attracting new customers to try your product. Deals and discounts could be like– price reduction, a certain percentage off, tiered discounts, and others.
Sales contests- It provides incentives to retailers that if they sell more products, then they will be rewarded or even get a special discount or bonus. Cash and gifts are the primary tactics for encouraging the retailers, but some will be motivated by experiences or even opportunities to make themselves better and gain some competitive spirit.
Training programs- One of the best ways is to train the employees well for promotional methods and allow them to develop their strengths. Effective training programs will lead to effective sales of the products. Thus, personal selling is one of the best ways of training. Management should train all the employees in their product offering techniques.
Digital marketing- Digital marketing consists of pull or push online communication methods. It is characterized by consumers actively seeking marketing content digitally. When it is seen that a marketer is sending messages without the consumer’s consent related to the recipients then it is called push marketing. Whereas, push digital marketing is one of the methods that mainly include services related to the opt-in subscription that is with the consent of recipients.
Social media advertisement- Social network advertising is the most used form now-a-days. Advertising on social media networks like Facebook, integral, etc., act as a powerful tool of promotion and advertisement serving on social network applications, provides fast results.
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