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Its been seen sales team asking for 'visibility budgets' to get some so-called visibility but actually they are offering money to trader to make a big order.
Visiblity is a key for brand recall at selling point, if any company does ATL (Media) of the product/Brand, visiblity or BTL supports the same at shopping point, Hence budget used for visiblity is always have hand in hand coordination with ATL Activities and relation to sales objective.
visibility budget is to create brand awareness and new product awareness. It does not immediately lead to increase in sales target, but it leads to better reputation, image and customer loyalty because of which customer retention is higher and new customers are created which in turn leads to better sales in the long term
Visibility is an 'Investment'. When you are investing in Visibility differently it should be justified by ROI (Return On Investment) thus one of the objective is to 'Increase Sales' & not just 'Mere Visibility'.
Thus, all visibility should be planned on the Objective of Why additional space is taken in an outlet?, Is it based on 'higher visit's by target audience/customers' or is it based on 'Expected increase in sales due to increase in space'.
Investment in Visibility will increase your shelf's in that particular outlet thus increase in chances customer's will identify our products thus it should be attractive & properly planned.
Thus the answer is both to 'Increase space' & Sales to justify Investment or ROI.
It will highlight your products and consumer will be enticed to buy it, in that case more volume will be required to deliver to accounts and will definitely hit sales volume target
Thank you very much Mr. Abdel Fattah for your time and efforts. Your are much appreciated!
It will impact have a negative impact on the brand in the long term
All the display material will not be used; waste of money and efforts!
Yes, visibility budget is for visibility only.
If this is used to corner big orders, make sure at no extra cost to the company in terms of bulk discount, credit line extension and return policy.
i think it is waste of time and money, better always work on the actuals the facts and S.W.O.T to bring stock or make an order. it may be good to sales team as per thier point of view but not through eyes of a buyer. Prior to every buy ask your buyer to work as per the budget and he can plan better as he knows and understands your business.
if we're not going to present the items in the proper way and not visible to the costumers soon it will fall to price reduction or sale to meet the loses and the cost values
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