Discounts for the promotion of new product sales...

Discounts for the promotion of new product sales

Such discounts can be considered as an addition to the planned discounts, which we already mentioned as a means of promoting the promotion of a new product on the market. As a rule, such discounts in the form of financing a national advertising campaign with the names of the trading firms that sell this product are not enough. For example, such advertising does not really provide buyers with information about where they actually can buy this product in their city (district).

Therefore, dealers and final sellers have to conduct their own advertising campaigns, using local media (advertising rates in which are usually lower than in the national press or on national television). This gives them the opportunity to indicate in their advertising addresses of their stores, which actually provides a growth in sales.

However, such advertising still requires considerable funds. The means of their compensation to local sellers are discounts for the promotion of sales.

These discounts can be set in different ways: for example, simply in the form of an additional discount of 1-2% from the list price or in the absolute amount per unit purchased from the manufacturer. In any case, such discounts directly affect the price of the purchase of goods and therefore they can be classified as explicit.

Perhaps, however, the use of hidden discounts of this type. They can take the form of compensation by the manufacturer-producer of a part of the costs of trade firms for advertising new products in the local press or on regional television. Such discounts do not affect the value of the selling price and serve only as a way of compensating the actual costs incurred to promote a new product. Typically, the basis for their provision is the availability of documentation that confirms such costs.

Discounts for complex purchases of goods

Many companies that sell lines of complementary goods use a special type of discounts to motivate buyers to purchase several products from such a line, i.e. complex purchase.

The logic of this discount is that the price of each of the items in the set is lower than with an isolated purchase, even in the same firm.

Often in the composition of such a set of goods covered by a discount for the complexity, include goods that are not produced by this firm. For example, firms that sell copying equipment allow buyers to purchase it along with a large amount of paper, which as a result is cheaper than for a single purchase. In the same way, computer companies now include a large set of software tools both already written to the hard disk and located on the CD - CDs.

If the discount covers only the goods of a given firm, then its value is determined on the basis of rules already known to us, i.e. by comparing the effect of price and volume effect. If the set includes products of other firms, the amount of discount is determined by how much the discount was received by the company itself, buying goods from manufacturers (this can be discounts for the amount of purchases, for promoting a new product, etc.).

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