Major Forms of Trade Allowances
a. Buying Allowances: Typically when a manufacturer to get its new brand accepted by retailers. Deals offered periodically to trade that permit wholesalers and retailers to deduct a fixed amount from the invoice
b. Promotional Allowances: Retailers receive slotting allowances for featuring the manufacturer’s brand in advertisements or for providing special displays.
c. Slotting Allowances: The fees manufacturers pay retailers for access to the slot, or location. Its is the practice of manufacturers paying retailers for shelf space.
3 Point-of-Purchase Displays
Point-of-purchase advertising displays and trade shows are sales promotions directed to the trade markets. The point of purchase (P-O-P) is an ideal time to communicate with consumers. Accordingly, anything that a consumer is exposed to at the point of purchase can perform an important communications function. A variety of P-O-P materials -- signs, displays, and various in-store media -- are used to attract consumers' attention to particular products and brands, provide information, affect perceptions, and ultimately influence shopping behavior.
4 Sales Training Programs: Customised training programs are arranged for the knowledge and skill up gradation of distributors and retailers.
5 Trade Shows and contests: A temporary forum for sellers of a product category to exhibit and demonstrate their wares to present and prospective buyers. Sales Contests - are used to increase sales over a determined period of time by awarding prizes for those sales staff/representatives who attain stated goals. Important issues to consider are what incentives work best for each sales person and what specific goals will be obtained.
Functions of trade shows:
• Servicing present customers
• Identifying prospects
• Introducing new or modified products
• Gathering information about competitors’ new products
• Taking product orders
• Enhancing the company’s image
a. Buying Allowances: Typically when a manufacturer to get its new brand accepted by retailers. Deals offered periodically to trade that permit wholesalers and retailers to deduct a fixed amount from the invoice
b. Promotional Allowances: Retailers receive slotting allowances for featuring the manufacturer’s brand in advertisements or for providing special displays.
c. Slotting Allowances: The fees manufacturers pay retailers for access to the slot, or location. Its is the practice of manufacturers paying retailers for shelf space.
3 Point-of-Purchase Displays
Point-of-purchase advertising displays and trade shows are sales promotions directed to the trade markets. The point of purchase (P-O-P) is an ideal time to communicate with consumers. Accordingly, anything that a consumer is exposed to at the point of purchase can perform an important communications function. A variety of P-O-P materials -- signs, displays, and various in-store media -- are used to attract consumers' attention to particular products and brands, provide information, affect perceptions, and ultimately influence shopping behavior.
4 Sales Training Programs: Customised training programs are arranged for the knowledge and skill up gradation of distributors and retailers.
5 Trade Shows and contests: A temporary forum for sellers of a product category to exhibit and demonstrate their wares to present and prospective buyers. Sales Contests - are used to increase sales over a determined period of time by awarding prizes for those sales staff/representatives who attain stated goals. Important issues to consider are what incentives work best for each sales person and what specific goals will be obtained.
Functions of trade shows:
• Servicing present customers
• Identifying prospects
• Introducing new or modified products
• Gathering information about competitors’ new products
• Taking product orders
• Enhancing the company’s image