Promotion- into the pipeline Flashcards
What are the 5 into the pipeline methods of promotion?
Trade credit
Point of sales materials
Sales or return
Dealer loaders
Staff training
What is trade credit?
Manufacturers offer retailers credit to pay for goods at a later date.
What are the advantages of trade credit?
No cash is required to stock products, which is good for new or struggling businesses.
Retailers can purchase goods and the pay for them once they are sold.
What are the disadvantages of trade credit?
This could lead to bad debt if retailers are unable to sell the good and repay the supplier.
What is point of sale materials?
Free posters and display materials are given to retailers to display products to customers.
What are the advantages of point of sale materials?
This can enhance the look of the retail store.
It can draw customers’ eyes to the product display.
What are the disadvantages of point of sale materials?
Retailers may need to dispose of bulky display materials at the end of the promotion.
What is sale or return?
Manufacturers give retailers the option to return goods that do not sell.
What are the advantages of sale or return?
It allows retailers to try new products without the risk of being stuck with unsold inventory.
It improves cashflow.
What are the disadvantages of sale or return?
Products may be returned in a poor condition, creating waste.
What are dealer loaders?
Discounts used to encourage retailers to stock up on a product e.g. buy ten boxes get one free.
What are the advantages of dealer loaders?
Retailers can save on the unit cost of products allowing for greater profits.
Savings can be passed to customers to increase sales revenue.
What are the disadvantages of dealer loaders?
Retailers may overstock and find they are unable to sell.
Products might go out of date or out of fashion.
What is staff training?
Manufacturers can offer retail staff free training to give them the skills and knowledge to sell the product.
What are the advantages of staff training?
Staff become experts in the product, which can impress customers.
The quality and motivation of staff are improved.
