2021 WAEC Marketing Theory Ozayi Ltd is a new manufacturing company producing consumer goods. The company intends to gain...

Ozayi Ltd is a new manufacturing company producing consumer goods. The company intends to gain market shares by using sales promotion

a). Outline four importance of sales promotion to the company

b). List and explain four sales promotional tools that can be used by the company

It could enhance the image of the company's product
It could stimulate high demand for the Company's product
it increases buyer's awareness of the Company's products
It serves as a lead to the company sales representatives
it could motivate the sales force to exceed their sales targets
It encourages the marketing intermediaries to stock more of company's products
it strengthens the effect of advertising and personal selling activities of the company
The company can use sampling to introduce new products

Price off: The company can reduce its products prices to encourage customer patronage
Salesmen competition: These are incentives offered to salesmen who perform better than their colleagues.
free gifts: These are extra products given to customers when purchase is made to encourage them to buy in large quantities
Coupons: These are certificates that give buyers a stated savings on the purchases of the company's products
discounts: The company could use trade or cash discounts as incentives to marketing intermediaries to stock more of their products
Loyalty schemes: It is used by companies to reward the customers according to how much they spend. Cash, vouchers or free goods can be used to compensate them;
Merchandising incentives: The company uses incentives such as commission and fringe benefit to motivate the sales force in improving their productivity towards the sales of the company's product
Training Schemes: The company could send its staff and sales force to sales meetings, seminars and training courses to update their knowledge, skills and abilities so as to enhance productivity on the job
Prizes: The company offers the chance to win cash, trips or goods as customers purchase something of value. The prizes are attached to the product packages