Monetary sales promotion methods enable a customer to get cash benefits upon purchase of a particular product. These techniques enable a customer to get an immediate reduction in the sales price of a product that enables a customer to get immediate satisfaction and contentment. There are various sales monetary promotional techniques that a business organization follows to boost its sales, which are as follows:
Rebate: Rebate is the most popular and effective sales promotional technique under which the business organizations offer products at an amount lower than the price prevailing in the market. For example, a furniture manufacturing company offers a rebate of $5,000 if the customer can purchase the furniture before a particular date.
Discount: Under this method, the goods are offered at a discount. The discounted price of an item is calculated by reducing the discount percentage from the listed price. For example, a shoe manufacturing company offers a discount of
50
%
50% on purchasing some selected category of shoes.
Refunds: This sales promotion method does not allow any instant benefit to the customers, unlike rebate and discount, but enables a customer to get a pre-decided refund at the end of a particular period. For example, a customer would get a refund of $5 after three months of purchase after showing proof of purchase, such as invoice, empty packet, etc.
Coupons: This method requires distribution of a ticket or a card, which carries certain terms and conditions, upon following of which, a customer, would be able to get some rebate or discount. For example, by displaying an availed coupon, a customer would get a discount of
25
%
25%on the product’s purchase price.
Non-Monetary Techniques of Sales Promotion Methods
These techniques, unlike monetary techniques, do not offer any cash benefits to the customers. Rather, these offer some service or an ancillary product upon the purchase of the main product. These techniques are as follows:
Product Combination: This method offers non-monetary benefits to the customers. Instead of getting an instant discount or rebate, a customer is rewarded with an ancillary product upon purchasing the main product. For example, a customer would get a toothbrush free upon purchasing a packet of toothpaste.
Quantity Gift: Under this method, instead of offering another product upon purchasing the main product, the quantity of the existing product is enhanced by a fixed percentage or quantity, without enhancing its purchase price.
For example,
30
%
30% extra toothpaste in a packet of 500 grams.
One extra pair of trousers upon purchase of 2 pairs of trousers.
Scratch Cards and Guaranteed Gifts: Under this method, a customer is asked to scratch a card on purchasing a particular product. The scratch card usually consists of the name of the gift which is offered to the customer on the spot or imminently. This sales technique is usually followed to boost high-end goods and products, such as cars, real estate, expensive television sets, etc. For Example, A customer purchasing a car scratched a card to receive some assured gifts such as a dinner set, computer, wristwatch, etc.
Benefits of Following Sales Promotion Methods
There are various benefits of implementing effective sales promotion methods, such as:
Increases the Customer Base of the Company: Effective sales promotion techniques prompt customers to try a new product, which is different from products they are currently using. This increases the customer base of the organization and, in turn, boosts the revenue.
Promotes Easy Selling of a Particular Product: A few products are either non-moving or newly launched. Both these categories usually experience a lower level of sales initially. The sales of these goods can be augmented using effective sales promotion methods.
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