Sales Promotion:
Sales promotion is a marketing strategy used to stimulate customer purchases and increase sales volume or market share. It involves offering incentives or additional value to customers or trade partners for a limited time. Sales promotions are typically short-term tactics aimed at achieving specific objectives.
Sales Promotion Mix:
The sales promotion mix refers to the combination of tactics and techniques a company uses to promote its products or services. The mix typically includes various kinds of promotions, tools, and techniques to reach different target audiences. Here are some components of the sales promotion mix:
Kinds of Sales Promotion:
- Consumer-Oriented Sales Promotion:
- Coupons: Discounts offered to consumers for immediate or future purchases.
- Discounts and Price Reductions: Temporary price reductions to stimulate sales.
- Loyalty Programs: Rewards for repeat purchases, such as loyalty cards or points systems.
- Contests and Sweepstakes: Promotions that encourage consumers to participate for a chance to win prizes.
- Sampling and Free Trials: Offering free product samples or trial periods to encourage trial and purchase.
- Rebates: Partial refunds to customers after purchase, contingent on certain conditions.
- Trade-Oriented Sales Promotion:
- Trade Allowances: Discounts or incentives offered to retailers or distributors.
- Co-op Advertising: Shared advertising costs between manufacturers and retailers.
- Trade Shows and Exhibitions: Events where businesses showcase products and build relationships with trade partners.
- Sales Contests: Competitions among sales representatives to boost sales of specific products.
- Merchandising Support: Providing retailers with promotional materials and displays to promote products in-store.
- Dealer Incentives: Providing incentives, such as bonuses or commissions, to encourage sales by trade partners.
Tools and Techniques of Sales Promotion:
- Advertising Specialties (Promotional Products): Items like branded pens, mugs, or T-shirts given away as promotional items.
- Point-of-Purchase (POP) Displays: In-store displays and signage designed to attract attention and promote products.
- Digital Coupons and Vouchers: Online discounts and digital coupons that can be redeemed during online or in-store purchases.
- Mobile Marketing: Sending promotional offers, discounts, or coupons to customers via mobile devices or apps.
- Influencer Marketing: Partnering with social media influencers to promote products to their followers.
- Contests and Giveaways on Social Media: Running social media contests and giveaways to engage and reward followers.
- Flash Sales: Limited-time, heavily discounted sales events to create a sense of urgency.
Push and Pull Strategies of Promotion:
Push Strategy:
- A push strategy involves promoting a product or service directly to distributors, retailers, or trade partners to persuade them to carry the product and push it onto consumers.
- Manufacturers often use push strategies to gain shelf space, visibility, and support from retailers.
- Promotional activities, trade shows, and discounts to trade partners are common elements of a push strategy.
Pull Strategy:
- A pull strategy involves creating consumer demand for a product or service to pull it through the distribution channel.
- Companies focus on consumer advertising and promotions to generate interest and demand.
- Consumer-oriented sales promotions like advertising, digital marketing, and coupons are part of a pull strategy.
In practice, many companies use a combination of push and pull strategies to effectively market their products or services. Push strategies aim to get products into the distribution pipeline, while pull strategies aim to create consumer demand for those products. Successful sales promotion requires a well-balanced approach tailored to the specific industry, product, and target audience.