The role of sales promotion

The role of gross sales progress. Sales forwarding has been defined as a direct inducement that scissures an extra grade or incentive for the point of intersection to the sales force, distri exceptors, or the ultimate consumer with the old objectives of creating an immediate sale. ( Blesh,2008 ). The sales forwarding agrees deuce types of inducement that provide extra incentive to buy. The incentive is very of the essence(predicate) element in the advanceal program it gutter be couponing, reduction in price, and surrender samples of the w atomic number 18. ( Blesh,2008 ). The sales promotional material can be all in allocated also in the foodstuff placeing intermediaries the sell and wholesale. By giving they more discount offers by offering them more financial incentives to stock and promote for the manufacture reapings.Types of sales promotion activities. The sales promotion is shared out into two main categories the consumer oriented promotion and the jo b oriented promotion.. The consumer oriented sales promotion includes sample, premiums, bonus pack, price offs. This promotion argon directed to the consumer, the end leverager of the good or the wait on, these activities are designed to create more preferable action in the consumer school principal toward the purchasing of the product.. In the consumer-oriented sales promotion they are mainly use of goods and services also the promotional pull strategy by using al approximately publicize that impart be a support for the consumer and motivate him to acquire and create demand for it.. The second types is the trade-oriented sales promotion, thats include the incentives, point of get and an opposite activities that also designed to motivate the distributors and the retailers to carry and use this product and because deliver the product to the consumer.Reasons for the increase in sales promotion. There are many reasons that increase the sales promotion, but from cuddle point of view that there are plainly two types for change magnitude in the sales promotion. They are the declining of brand loyalty and the short-term focus.. first gear the declining brand loyalty, which the consumer become less loyal toward the brand, and the purchase of the product ground on the price and value. There are consumers buying the product with in its full price without looking for promotional offers. alike on the other hand there is some consumer that are more loyal to the promotional offers looking for couponing , premiums, bonus pack, or price-offs.. The short- term focus a roofy of people see that the increase in the sales promotion ground on the short term performance and the increasing in sales volume. The brand managers in near are using the sales promotion routinely, not only for introducing current products to the market or defending against competition, but also to meet the year goal of achieving sales and the market share goal.Consumer-oriented sales pro motion objectives. Obtaining trial and repurchase its single of the approximately important uses of sales promotion proficiencys that encourage the consumer to try a novel product or service. nestle lead use the technique of the trial for the new product Elite-Tea first in the extremelymarkets and the hyper market of the novel trade because, a lot of consumers visits the hyper and super market daily and that entrust let a lot of consumers try the product and gets more study about it and thence repurchase it.. Defending current customers because of the new products that enter the market everyday they are stressful to do something for defending their current followumer by do a lot of advertising and new sales promotion program, by giving excess price promotion, coupons, and bonus packs.. Targeting specific market segments a lot of companies are cogitate their efforts mostly on a specific market segments and are always looking for ways to clear up the target audience. So the use of the coupons and the take is very effective in r to each oneing social club specific segment. base on Elite-tea they are focusing more on the demographic and the psychographic. They focus on the demographic because they are targeting all of the genders even male or female, and they are targeting the age of the teens and seniors. Based on the psychographic they also focus on it because the tea is part of their spiritedness style. So near will reach this targeted segment through the most effective tools of sales promotion start by making try.Nestle Sale Promotion Distribution. Nestle Divided the market into two Promotion strategies they are. The mod Trade, traditional Trade.. Modern Trade divided into three sectors the hypermarket, supermarkets, and discounters. Hyper market Like (Carr quartet, Hyper one). Super market (A-class) (Soudi, Metro). Discounters super market who sells there product on lower price (El-mahaml, Awalad Ragab). In the modern Trade they can use t he promotion magazine, making advertising for the company and also let the consumer know your offer.. There is something called below the line market, which is contain the display floors, consume and airmans.. The Traditional trade contains the supermarkets that are limited, which means the super markets that leave limited branches like (royal House). Also its containing Kiosks.. Nestle types of promotions is the consumer promotion which is nationwide that means the promotion nestle do it in any supermarket will be in every super market in Egypt. The other type the costumer specific and that means that nestle went to a special super market like Carrefour and ask him to make a deal of promotion offers only for him, something specific, the consumer will find this offer only in Carrefour.. Trade deals, nestle sales people start by making special offer for the super markets by going to each super market and say to buyer today I consider an offer, every 10 boxes you buy you will g et 1 box for free and a display stand to show the product in professional appearance.Consumer-oriented sales promotion techniquesNestle consumer-oriented sales promotion techniques take inSampling MethodsPremiumsBonus Packs. Sampling is a variety of procedures where by consumers are given some quantity of products for no charge only for trying this new product. Sampling first found to introduce new products in the market. Sampling is one of the most effective techniques in the sales promotional program and the most expensive. Nestle start to launch her new product in the market by first starting using the sampling form. They established there booths in all of the modern trade categories, and that one of the thing that helps them to reach the consumer taste and mind. The real benefits of sampling come to the consumer because that a risk-free because he will not buy the product its free and the consumer tries the brand directly, get more information about the brand and its benefits. Also its generating for Nestle much higher trail rates rather than advertising and Nestle did a brand that is unique and superior in benefits that makes the sampling program worthwhile. The cost of the sampling is very expensive so the cost can be recovered again if the consumer who tried the product can be a regular consumer for this product.. Nestle from here to start to rear her sampling regularitys first because many reasons first the brand manager mustiness take in-depth how the sample program will be distributed. The sampling rule is very important because its the one that influence the type of consumer who receives the sample. The best sampling mode gets the product to the best prospects for trail and repurchase. The sampling methods divided into four types. Door-to-door sampling. Sampling through mail. In-store sampling the most effective Method Used by Nestle.. On- box sampling. Nestle in establishing their new product elite-tea used the most effective sampling method and its the in-store sampling. The in-store sampling starts by that the marketer starts to hire some people who mold for him booths and then prepare small samples of the products ( for ex 50 Boxes of tea ), then pass all of this to the shops. This was very effective for Nestle Elite-tea because it first established in the market and the consumer doesnt go for any clue about this new product. Also what comes to the consumer mind first that the Tea is very expensive because of Nestle Brand name, so they used the in store sampling method to grape the consumer to taste the product and give them a lot of information about the product price and how its unique from the other products. In the modern Trade nestle used to distribute some flyers that contain all of the information about the new product, if the consumer not interested in sampling the new product they are mostly giving him a flyer thats contain information about the product.. Premium is an offer of an item of service either fr ee or at low price that have an extra incentive for the purchaser. The free premiums are usually small gifts include in the product package sent to the consumer who buys the product. Nestle used this technique in her new product elite tea by displace inside every package mug and spoon. They also increased their package by 25% for every package the consumer purchase it, he will find that another box stamped with the original package that contain 25 tea bags.. Bonus pack offers the consumer extra amount of packs of the product at a regular price. Nestle did that in Elite tea they was putting with the original pack another pack with the same quantity that have a regular price, that was one of the most important steps let the consumer start to buy nestle new product because of the bonus offer and that will make the consumer try the product, that will lead him for more purchase and become a regular consumer. This offer most used in the modern trade in the hypermarkets and high class su per markets (Metro, Soudi )Nestle Elite Tea Sampling Promotion Cost. First it view on the sales forecast or the calculate itself. Then its establish on the marketing support percentage of the main budget for display case the percentage of the marketing support between 15-20% of the main budget.. If the whole budget is 1000000$ and the marketing support is 20% so they will deal 200,000$ for the sales promotion technique.. Then they will dived this 200,000$ based on the methods they will use. For example. 50,000$ for Sampling. 25,000$ for Premiers.. 25,000$ for Bonus packs.