Promotion Flashcards
Sale or return
Manufacturers give retailers the option to give back any unsold product, an advantage is that retailers don’t have to risk being stuck with unsold product, though products may be returned damaged which creates waste
Staff Training
Staff become experts in the product which can impress customers.
The quality and motivation of staff are improved
Training has to be done during normal hours , which reduces productivity, or after hours, high will increase overtime pay
Point of sale
Free posters, stands and materials are given to the retailers to display their product, and advantage of that is that it can draw the customers eye towards it, though retailers may have to waste the bulky stands
Trade credit
No cash is required to stock products, which is good for new or struggling buisness.
Retailers can purchase goods and then pay for them once they are sold.
This could lead to bad debt if retailers are unable to sell the goods and repay the supplier
Special offers
This is stuff like BOGOF and short term promotions, an advantage of this is that customers are encouraged to buy new products, even though they might feel pressured into buying more than they need wasting some
Free gifts
Used to tempt customers to buy a new product or an old one, an advantage of this is that it encourages realest customers, although it may be hard to find a gift that suits all customers
Vouchers and coupons
Found in lots of places providing money off, an advantage of that is that customers feel like they are getting better value so they may buy more, although this can reduce profits if it is money off
Loyalty schemes
Information on customer habits and preferences can be gathered.
Promotions can be targeted to reflect actual customer preferences
Customers can be wary if they feel the scheme will be difficult to set up or opt out of
These are time consuming and expensive to implement
