Sales promotion refers to a variety of marketing activities that are designed to encourage the purchase of a product or service. These activities can take many forms, including discounts, coupons, contests, samples, and demonstrations. The primary purpose of sales promotion is to stimulate demand for a product or service, often in the short-term, by providing an incentive for consumers to make a purchase.
One key function of sales promotion is to attract new customers. This can be done through the use of coupons or discounts that are designed to entice first-time buyers. For example, a company might offer a discount on a new product to encourage people to try it out. This can be especially effective when the product is new to the market and people may be hesitant to purchase it without a discount.
Another function of sales promotion is to increase the frequency of purchases by existing customers. For example, a company might offer a loyalty program that rewards customers for their repeat business. This can help to encourage customers to purchase more frequently, as they know they will receive a benefit for doing so.
Sales promotion can also be used to drive traffic to a particular location, such as a store or website. For example, a company might offer a discount or coupon that is only available at a physical location, in order to encourage people to visit the store. Similarly, a company might offer an online promotion that is only available through a particular website, in order to drive traffic to that site.
In addition to attracting new customers and increasing the frequency of purchases, sales promotion can also be used to introduce new products or to clear out old inventory. For example, a company might offer a discount on a new product in order to encourage people to try it out, or it might offer a discount on an older product in order to clear out excess inventory.
Overall, the functions of sales promotion are varied and can be customized to meet the specific needs and goals of a company. Whether it is used to attract new customers, increase the frequency of purchases, drive traffic to a particular location, or introduce new products, sales promotion can be an effective tool for stimulating demand and driving sales.
15 Role and Nature of Sales Promotion (With Example)
Obtaining distribution and support for new products, ii. For example, Mug free with Bournvita, Toothbrush free with Toothpaste, DVD free with TV, Vacuum cleaner free Fridge, etc. It is a part of marketing strategy. It is a key component of the promotional mix which is used for introducing new products, attracting traffics, clearing out inventories, and lifting up sales temporarily. Both the contents of the sales promotion time should be coordinate with other promotional activities. Enhancing advertising and marketing efforts. To Attract New Customers Demonstrations of products such as vacuum cleaners or food processors can show people how easy they are to use and how well they perform.
Advantages and Disadvantages of Sales Promotion
This technique induces customer to buy their requirements from the retailers who offer such stamps. Industrial shows and annual industrial exhibition, exhibition of home appliances, consumer goods or gym equipment, etc. The techniques of promotion used are-free samples, contests, coupons, demonstrations, price reductions, counter- display cards, etc. The objectives of this program are: i. For example, during off season winter , ceiling fans, coolers and refrigerators may be offered at 20 to 30% off price.
The Functions of Sales Promotion
As a matter of fact, sales promotion activities aim at supplementing and co-ordinating personal selling and advertising. These are usually aimed at increasing the performance of the sales persons. Sales promotional devices at customers level include samples, coupons, demonstration, contacts, money refund offers, premium offer, free trials etc. Sampling In sampling, consumers are given some quantity of a product for no charge to induce trial. Fifth step is concerned with primary decision relating to timing and duration of the schemes to be offered locating, selection of dealers and convictions of the trade and sales force about the suitability of the scheme. When the coupon would be available, the new price does not appear to be so high relative to the new price of the product.
5 Key Functions of Sales & Marketing Management
Generally, the promotion tries to make a secondary request to inquire for specific company brands. In short, promotion is an effort by a seller to persuade buyers to accept, resell, recommend, or use the product, service, or idea being promoted. Coupons may be issued by the manufacturers either directly by mail through sales-force or through the dealers. Couponing The oldest, most widely used, and most effective sales promotion tool is the naira-off coupon. Increasing Sales during Off-Season: Some products are seasonal in nature.
