Question

You have been hired by a major American automaker to design a sales promotion campaign to stimulate sales of its newly-developed economy car, known as the Zoom. Identify several sales promotions techniques described in the chapter that could be most effective and explain why. Recommend two consumer promotions, one trade sales promotion, and one business sales promotion for the company.

Answer 1

First let me discuss about various sales promotions techniques which are applicable for automobile industry and all these could be effective for increasing sales and revenue for the car company. These techniques are as stated below:

• Customer can be offered coupon code or referral code, with this techniques, customer can refer such car products to other customer with the referral code, once, they will buy, here, customer will receive cash back. Again, with coupon codes, customers can be encouraged to repeat buying car at the same company within a stipulated time period.
• Price off promotion technique; with this techniques, customers get certain amount of price off over the normal pricing that can encourage customers to buy the car product at the same company. So, company will generate more sales and more revenue within limited period of time.
• Premium offering technique: with this technique, customer gets another offer like product or service associated with buying the car. For example: customer can reveal free services for next one year if they buy the car within a stipulated period of time.
• Free samples checking techniques: here, customer can be offered a sample car for a limited period of time, with these benefits; they can check the car and understand that whether they will be comfortable with the car considering future use of car. Customer can proceed with buying more confidently.
• Quiz contest promotion technique: here, customer will buy the car and participate in the quiz, once they passed that quiz, they can get attractive offer from Car Company.
• Trade shows techniques: here, various car manufacturers will participate in the trade show and such show brings effective communication between customer and marketers. With this technique, company can increase more sales and revenue.
• Others techniques like point of purchase display, gifts offered by marketers, dealer, all such could encourage more buying of car.

Here, I can recommend two consumer promotions, one is trade sales promotion, and another one is business sales promotion for the Car Company. These techniques are as stated below:

• Trade sales technique:

With this technique, main company builds multiple channels to push the product in the market. With this technique, we can see channels like dealership, distributor, campaigning team, retailers, agents, etc. here; company builds distribution networks to push their products – Car. With this technique, channels get incentives and earning, so they will be more interested to increase selling of Car products. Company can reveal more demands in the market with more sales and they increase their revenue.

Business sales promotion Technique: in this technique, Car Company performs sales promotion with only business customers. They keep special offering to such businesses, who buy large volume of Car. This technique reduces multiple communications as needed for dealing with individual customers. Further, in this technique, they can reveal more demands for their Car products with more sales call and they will get opportunity to increase their revenue.