Self liquidating premium

22-Oct-2019 02:48

While drafting the sales letters and circulars, it should be kept in mind that a personal touch and some kind of intimacy is maintained.

By doing so the manufacturer is not only able to attract old customers to renew their purchase but also able to attract new customers.

The entry requirement can be proof of purchase such as a token or entry coupon detached from the pack, extra entries requiring extra purchases. Contests should be organized with adequate time for proper adjudication, and there should be publicized announcement of results.

The meaning of the expression ‘self-liquidating’ is that cost of liquidating the premium is collected from the buyer.

Another important attempt of sales promotion is through attractive package.

Now-a-days customers are attracted by good and attractive packing of products.

The sales manager contemplating a sales promotion programme must bear in mind that a customer goes around a store scouting for the special offers, probably irrespective of brand.

On the other hand, schemes widen consumer choice and encourage the consumers to make an experimental first-time purchase.

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One can be certain on one aspect — While sales promotion schemes may induce the buying habit or buying in large quantities to the exclusion of other brands, they can also induce frantic brand switching and the loss of brand loyalty.

Again, these have to be collected in order to qualify for gifts, and so require repeat purchasing. These can be redeemed at the retail shops as a price reduction.

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