Consumers were 30 percent more willing to

buy a product through non-

non-direct advertising
rather than media advertising. Not only that,
consumers exposed to this method of
advertising were 97 percent more likely to tell
their friends about it, and 95 percent more
likely to repeat their experience with the
business.

------ A New Century media report, October

2007.
iard sell in advertising« in conjunction with
reducing the degree of hardness in selling to
the distributors and in turn to the retailers.
 Persuasive
Advertising

Distribution

Consumer
feedback and
requirement
? anufacturer

? C&F agent

? Distributor

? Retailer

¦


  

  


   


  
   
 


 anufacturer  C & F Agent

Wanted to
achieve
Prepare
economy of
demand and
scale to reduce
product mix
transportation
cost

Limited shelf
Unable to push
space and low
products to
margin lead to
retailers due to
stocking
competition
problem
 Retailer  Distributor
? Product categories where there is low brand loyalty

? Where many acceptable substitutes are available in

the market.

? Relatively new products are to be launched

? When the brand choice is often made in response to

displays in the stores

? The product purchase is unplanned or on impulse

? The consumer is familiar and has reasonably

adequate knowledge about the product.
? Distributor and retailer money getting stuck in these
products that they would otherwise (if not for the
sales pressure) have never stocked in such large
quantities..
quantities

? Negatively affects sales as stock that is in demand is

available at too low levels to meet customer
requirements.

? A lull in primaries the next month. This would mean

that the offtake data would be constant however the
sales volumes will take a hit.
hit.

? New product-
product-reduced willingness in trying out new
product launches by the company (especially if the
loading has been very substantial).
? Treat channel members as customers

? Supply Chain integration through information

sharing

? Set expectations intentionally

? Capture and monitor

? Influence expectations
? Sales should be secondary driven
? Channel motivation through proper incentive-
incentive-
eg.to retailer for display
? Optimal system would be one in which the
focus is on secondaries and at the same
time a reasonable pressure is maintained
through primaries so that there is no loss of
sale due to availability issues.

? Push
Push--short term strategy & long term
term--VI
? Right time for an effective sales promotion to
initiate a long lasting relationship with the
distributors and retailers.

? 'indshare¶: how important your product is in the

distributor's mind relative to the other lines they
carry. Winning the battle for the distributor's
share of mind can be more important than many
other marketing strategies.

? This applies in industrial markets and consumer

markets where intermediaries play important
roles in the distribution channel.
ºIn the eighties, most big consumer companies in
India earmarked less than a quarter of their
marketing budgets for sales promotions. This
didn't even begin to compare with the 60 per
cent that companies in the West set aside for the
same purpose. Of course, Indian companies
didn't need to match their western counterparts
in those days. Relatively closed markets meant
that companies could afford to use sales
promotions sparingly. This suited most
companies. Though marketing theorists tend to
pay it little attention, the sales promo is probably
the most potent tactical weapon in a marketer's
arsenal. But to be successful, it requires an
exceptional execution.´

----- Business Research Paper on iard Selling at www.writework.com

? Positive motivators ----- µSales Contests¶

? Emphasis on partnership
 Thank you

Note: We hope: this wasn¶t hard selling