what’s Sales promotions?
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what’s Sales promotions?Category: Sales
Sales promotion is a type of Pull Marketing Technique.
If you have a product which is new in the market or which is not receiving a lot of attention, then you can promote this product to customers via sales promotions. Sales promotion is the process of persuading a potential customer to buy the product, It is designed to be used as a short-term tactic to boost sales – affecting long-term customer loyalty.
When undertaking a sales promotion, there are several factors that a business must be taken into account:
• What does the promotion cost – will the resulting sales boost justify the investment?
• Is the sales promotion consistent with the brand image? A promotion that heavily discounts a product with a premium price might do some long-term damage to a brand
• Will the sales promotion attract customers who will continue to buy the product once the promotion ends ?
There are two main types of sales promotion, including:
A) Consumer sales promotions:
Any sales promotion activity when you keep the end consumer in mind is known as consumer sales promotions
B) Trade Sales promotions:
If your promotional activities are focused on dealers, distributors or agents, then it is known as trade promotions.
There are different examples for each type of sales promotion:
1-Money off coupons(Customer sales promotions):
Customers receive coupons, or cut coupons out of newspapers or a products packaging that enables them to buy the product next time at a reduced price.
2-Discount rates (Trade/Customer sales promotions):
like a money off decrease.
3-Free gifts (Customer sales promotions):
A free product when buy another product.
4-Gifting competitions (Customer sales promotions):
It is also a way to increase the sales of the products because customers have an anticipation that they might win a gift from the store.
5-Sampling (Customer sales promotions):
Sampling is an excellent way to introduce your product in the market and at the same time to increase the awareness of the product as for : perfumes, soaps,snacks,…
6-Bundling (Customer sales promotions):
Is when you put a combination of products on sale for the same price whether (1+1free) or complementary products (Pepsi and chips)
7-Exchange offers (Customer sales promotions):
You can exchange an old product for a new product. You will receive a discount based on the valuation of your old product.
8-Free trial (Customer sales promotions):
You have come across several softwares or online programs which offer a free trial to you before you purchase the product.
9-Trade show (Trade Sales promotions):
An event in which firms in a particular industry display and demonstrate their offerings to other organizations they hope will buy them.
10-Free merchandize (Trade Sales promotions):
Such as a tool, television, or other product produced by the manufacturer, be used to get retailers to sell products to consumers. In other words, a manufacturer of televisions might offer the manager of retail electronics store , a television to push its products.