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Large manufacturers typically use several sales channels, such as retail, online, and distributors. Each channel brings its own revenue, but the bulk of sales usually come from dealers and distributors.<\/p>\n
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However, it\u2019s not as simple as it seems. Sometimes partners need motivation to deliver better results, which in turn brings higher profits for the manufacturer.<\/p>\n
Sales promotion is one of the most important parts of marketing. It involves using various techniques to influence partners to increase sales.<\/p>\n
Content List<\/p>\n
One day you wake up and decide, \u201cI need to motivate my dealers to achieve better results\u201d and start brainstorming the methods you need. This approach won\u2019t produce the desired results. It\u2019s crucial to take three simple steps first:<\/p>\n
The sales promotion process can be short-term or long-term\u2014for example, limited to just one season.<\/p>\n
In any case, you should focus on the end consumer. If customers see good value, the dealer will be able to sell more. This is why price-based promotions are considered especially effective.<\/p>\n
Customers respond particularly well to discounted products. In 9 out of 10 cases, they\u2019ll buy a similar product if it\u2019s discounted or cheaper. However, they may think twice if a particular item is on sale too often.<\/p>\n
The main drawback: the manufacturer doesn\u2019t build a pool of loyal customers, because people only buy during promotions.<\/p>\n
The advantage: a quick impact. You can literally counter a competitor\u2019s price war in the blink of an eye. This method is especially effective when cost is the deciding factor for the buyer.<\/p>\n
The key rule is that the discount should be substantial enough for the promotional offer to be attractive, prompting the consumer to tell their friends about it and potentially return for another purchase.<\/p>\n
This also applies to dealers. For example, you could offer a bonus for meeting a specific sales target. Shoppers, on the other hand, might be given a chance to try your products. You often see luxury perfume samples or tastings of expensive new food products.<\/p>\n
The main goal of this approach is to let buyers experience the quality of the product. At the same time, dealers become motivated to increase sales, knowing they\u2019ll receive a reward at the end, in the form of an agreed-upon sum. Keep in mind that the bonus has to be appealing.<\/p>\n
This requires active involvement from partners\u2014for instance, lotteries, games, and contests. This format is only suitable for manufacturers with a large dealer network and many distributors; otherwise, who\u2019s going to play?<\/p>\n
For example, you could hold a contest for the best sales results or design an interesting lottery. But it\u2019s crucial that the reward be substantial. Nobody wants to put in extra effort for a prize that doesn\u2019t excite them.<\/p>\n
In principle, every manufacturer can devise its own way of motivating its partners. The key is that it addresses the following objectives:<\/p>\n
Possible methods include:<\/p>\n
Manufacturers are increasingly using dealer programs, where partners receive certain rewards at the end of the program.<\/p>\n