Page 266 - DMGT408DMGT203_Marketing Management

Unit 11: Marketing Communication Tools (Promotion Mix)

Refund or Rebate (the terms are used interchangeably): Rebate offer, refers to some amount of Notes
money repaid to customers sometime after the purchase when a customer submits the specified
proof-of-purchase to manufacturer. The manufacturer “refunds” part of the price paid by the
customer via mail.
Frequent-user Reward: These are incentives to reward those, who frequently purchase the product
or service, such as frequent-flier incentives to air passengers. The purpose is to encourage repeat
purchases or repeated visits to a particular retail store. Locality grocery or general stores use
this approach on an ongoing basis for their regular customers to encourage store loyalty. Usually
such programmes cover a fairly long period to offer customers ample opportunity to respond
favourably.
Coupons: Coupons can be viewed as certificates offered by manufacturers or retailers that
entitle the owner to some stated savings or claim on the specified thing. Coupons bear a date of
expiry and cannot be redeemed after that date. Coupon is a versatile tool and can be used to
accomplish many different sales promotion objectives.
Consumer Contests, Sweepstakes, and Games: These promotions often generate considerable
interest, excitement, and enthusiasm among consumers. Individuals compete based on their
analytical or creative abilities. The participants can win cash, jewelry, trips, or some merchandise.
A panel of judges examines the contest entries and the best one or more entries are declared as
winners. In a sweepstakes, participating consumers’ names are put in a draw. A game offers
something to consumers such as missing numbers or letters to complete a certain numbered digit
or product or brand name. A consumer who does it within the promotion period, wins the prize.
Exchange or Buy-back Offers: Some consumer durables once bought are not replaced for a very
long time in India. To encourage such consumers to replace their old products with a new one,
companies or their authorised dealers offer buy-back or exchange offers. The manufacturer or
the dealer pays some reasonable amount for the old product and sells a new one. Often this new
product is offered on convenient interest-free installments.

Point-of-purchase Displays: In-store presentations and exhibitions of products along with
relevant information fall under this category. The message is clearly “come and get it, we have
it.” There is a saying in Hindi “Jo Dikhta Hai Woh Bikta Hai,” (whatever is displayed, gets sold).
Producers often supply such displays to retailers. Retailers like to use POP materials if they are
attractive, informative, and capable of having impact. Effective displays stimulate customer
interest, increase store-traffic, and often encourage unplanned purchases.

Trade Sales Promotions

Trade promotions are directed at resellers (distributors, dealers, wholesalers, and retailers).
Trade sales promotions are part of “push” strategy of producers. The objectives of trade sales
promotions are different from consumer promotions. Producers realise the importance of retailer
support. They are in the final contact in distribution chain and can influence customers in more
ways. Consumers sometime seek retailer’s suggestions before making a purchase and retailers
in many cases can influence the product choice. The main objectives of trade promotions include:
1. Build strong relations with channel members.
2. To stimulate in-store merchandising support, such as arranging displays, shelf space,
feature advertising etc.
3. Gain distribution of new products.
4. Gain support for existing brands.

5. Manipulate levels of inventory held by wholesalers and retailers.

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