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Thursday, March 19, 2009

Imagine that you are the marketing manager of zideo international, agra, manufacturing leather goods, which are the steps you will take to promote sal

Today the marketing is not merely the selling or promoting the goods and services. It is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. So I have to consider every aspect of the above factors in marketing the leather goods of Zideo International.

Of all the marketing activities, four activities are identified as basic, called 4 Ps. I.e.
1. Product
2. Price.
3. Promotion and
4. Place (or physical distribution)

Products mean goods or service offered by the organization. Price means the money value of a product; promotion is the activity of selling and advertising. Place means the place at which the product is to be sold to the customer. This is also known as the marketing mix.

By optimizing the marketing mix we can increase the sales or marketing of the product. Marketing mix decisions are made for influencing both trade channels and final channels. For this I have to prepare an offering mix and a promotion mix for the Zideo International. The offering mix comprises of product, services and price. The promotion mix comprises of sales promotion, advertising, sales force, public relations, Direct mail, tele marketing and Internet. To increase the sales, more importance is to be given to sales promotion.
Sales Promotion:

The Zideo international can improve the sales of leather goods by stimulating the consumers and dealers effectively. It may be done with a view to increase the product’s rate of use among existing customers and to attract new consumers of Zideo.

The product line and product mix of Zideo International is relates to leather goods. It consists of many purse, watchstrap, chapels, leather bags etc. It is not a Herculean task to improve the sales of ‘Zideo’ as it exports the above items. I can promote the sales by using the following promotional activities.

Consumer Promotion
In consumer promotions sales promotion directed at consumers with a view to increase the rate of use of products among existing consumers and attract new consumers to the product. For that the following techniques can be adopted.



1. Coupon:
A coupon is a certificate that entitles the consumer to specified saving on the purchase of leather goods. The Zideo International through the relations usually issue these coupons and reimburse the value of coupons after the scheme.

2. Sampling
It means free samples such as, money purse, pouch, wallets etc to be distributed to the ultimate consumers. This is suitable for increasing the sale of leather goods of daily use.

3. Premium or bonus after
Today this method is very popular among consumer goods. An offer of a certain amount of a product or a special pack there of is called premium or bonus offer.

4. Money Refund Order
If the product is not satisfied with the consumer with in a stated period, he can return the product to ‘Zideo’. This advertisement will increase the accountability and reliability of Zideo, not only among the scheme beneficiaries but also among general public.


5. Price off or temporary Reduction
This involves an offer to customers of certain amount of money off the regular price of the product. This step I will take to attract consumers of other leather goods.

6. Contests or Sweepstakes
At times contests are arranged with a view to attract new users to the company’s product. An opportunity under this devices\ is given to consumer to contest with a chance to win cash prizes, free air trips or goods. It is an indirect manner of introducing a new product or to improve the sales.

7. Bonus Stamps
Such bonus stamps are issue to the consumers by the manufacturer and retailer also in proportion to their purchases. The consumer goes on collecting stamps until he has sufficient quantity to obtain desired merchandise in exchange of the stamps.

B) Trade Promotions or Middlemen Promotions.

When product are sold through middlemen (wholesalers or retailers or both), the Zideo offers these middlemen certain promotion to induce them to keep larger stock of the manufacturer’s product. These include the following:

i) Buying Allowance Discount
The buying allowance or discount is offered to the dealers to induce him to buy our company’s product. Such discount may be either deducted on invoice price or on cash paid. Such allowance or discount may be given at a fixed percentage on each minimum quantity of product purchased during a stated period time. It increases the profit of the dealer and ultimate result is increase in the sales volume.



ii) Buy-back Allowance
This method of sales promotion is important because it prevent a post deal sales decline. Under this step our company will offer a certain amount of money for additional new purchase based on the quantity of purchases made on the first trade deal.

iii) Free leather goods
Distribution of free goods is an offer of a certain amount of product free of cost on purchases of a certain stated amount of the same or another product.

iv) Display and advertising Allowance
The allowance is offered to the dealer to display the Zideo’s product. The allowance is given on the basis of space provided to display the leather product in the shop.

v) Dealer listed promotion
Under this method dealer name and address is given on the advertisement and other publicity material as calendars, diaries etc. this type of promotion performs the twin functions of consumer educations and convincing of retailers in the need for cooperation in the promotion.

vi) Push Money or PM’s
This is an incentive payment in cash or in kind to the retailer or salesman to push the sale at a fixed rate for each article sold.

vii) Sales Contests
It is advice used to stimulate and motive distributors, dealers and their sales staff. They will be offered cash prizes for those who will win the sale contest, who will make the highest sales of the company’s product. In view of the winning chance, sellers participate in the contest.

C) Sales Force Promotions

Personal selling by far is the most important method of sales promotion. To make it highly effective, sales force promotion schemes are felt necessary. The tools for sales force promotion are:

i) Bonus to Sales Force
A quota of a sale is fixed for each salesman during a fixed stated period. Bonus is offered on sales in excess of the quota fixed. In order to get the higher premium the salesman will try to sell more quantities to goods.

ii) Sales Force Contest
Sales force contests are announced to stimulate company salesman to redouble their interest and effort over a stated period with prices to be the top performer.

iii) Sales Meetings, Salesmen’s Conventions and Conferences
The manufacturers to educating, inspiring and rewarding the salesmen conduct these. New products and new selling techniques are described and discussed in such meetings.

Thus all the steps of sales promotions can be classified into the above three categories which are greatly helpful to me to improve Zideo’s sale to the larger extent.

Thanks,

Sareesh

1 comment:

  1. answer to this assignment is well drafted. it is dealing with the point very clearly as raised in the assignment topic.

    ReplyDelete