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Sales Promotion And Publicity
STOCK BALANCE
In order to avoid stock out situation and its possible adverse effects on customer attraction, outlet image
and return on investment, stock balance variety and assortment mix must be considered as joint decisions
in merchandise planning. The merchandise investment must be balanced with expected sales and it must
be done with careful attention to planning and control; which is the key components of merchandise
management and the only means of maintaining a healthy stock balance.
Stock balance can be analyzed from three perspectives:
- WIDTH OF MERCHANDISE ASSORTMENTS: refers to the assortment factors necessary
to meet the demands of the market and to meet competition. Decisions must be made on
the number of brands, sizes, colours and similar factors. - SUPPORT: refers to the determination of units of merchandise required to support the firm’s
expected sales of each assortment factor. The decision must be based on expectations of the
sales importance for each assortment factor. - MONETARY VALUE: the total monetary investment in inventory that top management will
allow to be invested in the stock should be a final consideration in viewing stock balance.
Management must strive for merchandise turnover that is fast enough to provide an adequate
return and yet not so fast that frequent out-of-stocks occur.
EXHIBITIONS AND TRADE FAIRS
EXHIBITION: refers to a situation in which a firm operates a booth at a trade show or other special interest
gathering, staffed by salespeople or public relations personnel.
There is no clear demarcation between an exhibition and a trade fair. A trade fair is staged for the purpose
of selling goods or demonstrating new ideas and techniques. Exhibition can range from a prestige
international trade promotion, world trade fair, to a small educational display in a local public library
or hotel lounge. Many manufacturers of consumer and industrial goods exhibit their products at trade
shows, which take place annually. For example, the Lagos International Trade Fair. Trade show visitors
are able to see demonstrations of new products or innovations in existing products. Manufacturers’
salespeople are able to talk to buying influences and top executives of customer firms, secure inquiries
and leads for further follow-up, distribute literature to prospective customers, develop mailing lists for
later use, and socialise with prospective buyers on an informal basis.
Exhibit space in trade shows is bought months in advance of the actual opening dates. Exhibits should
be professionally prepared and possess considerable eye appeal. Provisions must be made for manning
the exhibits during the days the trade shows are open. Usually, this trade shows run for about one week
to two weeks in some cases.