Effective Sales Promotion Strategies and Regulations
Sales Promotion Concepts
Means to stimulate demand, supplement advertising, and facilitate personal sales.
Importance of Sales Promotion
It complements advertising and encourages purchases.
Structure of Sales Promotion
Categories
- Service agencies
- Promotional agencies
- Marketing entities
Consumer Strategies
- Prize coupons
- Price cuts
- Offers
- Samples
- Contests and sweepstakes
Main Objective of Awards
Convince the customer to buy a product upon sight.
What is a Prize?
It is merchandise offered at a reduced cost to the company or customer who buys a particular item.
Types and Classification of Awards
- Premier Auto Callable
- Free prizes, classified as:
- Attached to packets Awards
- Reusable Awards
- Inside the package
- By mail
- Free prizes with a purchase of value
- Awards by stamps
Target Coupons and Requirements
The aim is to attract consumers to a product or store by offering a reduced price for a limited time. Coupons must be easily recognizable, meet trader needs, provide legal protection, display the issue date, and be readily accepted.
Forms of Coupon Distribution
- Inside or outside a package
- Print (magazines, newspapers)
- Door-to-door
Price Reduction
A promotional strategy offering consumers a discount on a product’s regular price.
Common Examples of Tenders
- 2 for 1
- 3 for the price of 2
- Buy one, get one free
- Buy one, get one half price
Samples and Strategy Planning
Samples are a sales promotion strategy where the product is the main incentive. The three ways to plan the strategy (SIG) are:
- Intensive
- Selective
- Analytical
Methods for Distributing Samples
- In packaging
- Door-to-door
- By mail
- In-store
Sales Promotion Strategies for Distributors or Commercial
- Exhibitors: Product exhibitions and information sheets.
- Cabinets or Sideboards: Three classes (closed, semi-closed, and open) showcase products without touch.
- Merchant Competitions: Activities between vendors where channel members can earn rewards.
- Product Demonstrations: Highlight proven products, often with special discounts.
- Bonuses: Free items or money for major purchases.
- Advertising Specialties: Items with company names offered for extra purchases.
- Free Trade: Extra goods for buying a certain amount.
- Sales Compensation: Incentives for sales performance.
- Cash Incentives: Cash or items to distributors to encourage sales.
Industrial Promotion Tools
- Business conventions and goods exhibitions
- Trade shows
- Exhibitions
Benefits of Business Conventions and Trade Shows
- Generate sales and capture new markets
- Maintain customer contact
- Introduce new products
- Network with clients and existing sellers
Trade Fair Attractions and Disadvantages
Efficiency is the main attraction, but the high cost for exhibitors is a disadvantage.
Purpose of Trade Fairs
Allow buyers and sellers to interact and see products firsthand.
Article 1: Purpose of Health Advertising Laws
Regulate and control health advertising.
Effects of Regulation
Impacts advertising agencies and advertisers.
For alcohol and tobacco, public and private sectors must promote responsible consumption.
Interchangeable Generic Drugs Must Contain
The initials GI.
Medicine, herbal remedy, and medical equipment advertising will be directed towards professionals and the general population, as per the secretary’s guidelines.
Powers of PROFECO (Consumer Protection Federal Agency)
Promote and protect consumer rights, ensuring equity, social and legal security in supplier-consumer relations.
Chapters of the PROFECO Law
- General Provisions
- Authorities
- Information on Advertising
- Promotion and Offers
- Door-to-Door and Indirect Sales
- Services
- Real Estate Operations
- Guarantees
- Credit Operations
- Accession Contracts
- Bankruptcy
- Monitoring and Verification
- Grievance Procedure
- Sanctions
- Administrative Resources