Effective Sales Promotion Strategies and Techniques
Sales Promotion: Short-Term Incentives for Growth
Sales promotion involves short-term incentives designed to increase the purchase or sale of a product or service.
Consumer Promotions
Promotions designed to encourage consumers to purchase. These include:
- Free samples
- Coupons
- Rebates
- Discounts
- Premiums
- Point-of-sale advertising
- Contests and sweepstakes
Channel Promotions
Promotions directed to brokers to obtain their support and increase their efforts. These include:
- Discounts and rebates
- Free products
- Cooperative advertising
- Trade shows and conventions
Sales Force Promotions
Promotions designed to motivate the sales force and increase the effectiveness of their efforts. These include:
- Bonuses
- Contests
- Sales meetings
Objectives of Sales Promotion
The purpose of sales promotion is to attract new clients, reward loyal customers, and increase the shopping frequency of customers who use the product occasionally.
Relationship-Building Promotions
These promotions communicate product positioning and include a specific message along with the offer.
Consumer Promotion Tools
- Samples: Offers a certain amount of product for testing.
- Coupons: Certificates that provide buyers with savings on the purchase price.
- Rebates: A portion of the price is paid back to consumers who send proof of purchase to the manufacturer.
- Price Packs: Marked reduction in prices directly by the producer on the container or label.
- Premiums: Goods offered free or at a low cost to encourage the purchase of another product.
- Advertising Specialties: Helpful articles bearing the name of the advertiser, presented as a gift to customers.
- Loyalty Rewards: Money and other prizes given for the regular use of a product or service.
- Point-of-Purchase Promotions: Exhibitions and demonstrations conducted at the point of sale.
Channel Promotion Tools
- Discounts: Direct reduction on the price of products purchased during a specific period.
- Allowances: Money paid by manufacturers to retailers in exchange for featuring their product in a preferential way.