- What is Sales Promotion?
Sales promotion is one level or sort of showcasing aimed either at the buyer or at the conveyance channel. It is used to present or launch a new item, get out inventories, draw a rush hour and obviously stimulating the sales. It is all more firmly connected with the advertising of item than of services.
The American marketing association defines it as “Media and non-media pressure applied for a predetermined, limited period of times in order to stimulate trial, increase consumer demand or improve product availability.”
The need of sales promotion comes up from the force of rivalry. The brand or the seller has to do something out of the box to grab customers attention. Example, in the open markets of old(farmers), merchants did and do shouting to grab the attention.
Sales must provide incentives to the customer, consumer, and the brand.
2. Objective of sales promotion
· To introduce new product.
· To attract new customers.
· To increase sales.
· To help firm remain competitive.
· To induce present customer to buy more.
3. What is the process of Sales Promotion?
· First of all, the management has to identify the need of sales promotion and consider points like what is the product, who’s the target audience, etc
· Objectives are the end goals towards which all the efforts and strategies are directed.
· When the targets are set, these give the premise to choosing a proper special instrument (publicizing, individual selling, deals advancement, and so on.)
· When the Sales Promotion Plan is prepared, it is tried in scarcely any chose advertise sections to recognize the possibilities or major issues before its full dispatch.
· After the special arrangement is tried in the couple of chosen regions, it is fit to be propelled in the total market. Here the administration must deal with two significant time factors, Viz. Lead Time and Sell-in Time.
· After execution, the presentation of the limited time plan is checked against the set principles and goals and the remedial moves are made in like manner.
4. Techniques with example of sales promotion
· Free sampling — In this the brand provide some samples of newly launched product or already existing products whose sales has to be increase. The customer is asked to try the sample and if they like it, they can buy the product. The sample is usually smaller than the original product. Example- kerastase is French hair care product line, they provide small samples at the saloons for the customers to try and if they like it, they can buy the original product from the saloon or their website.
· Discounts — Temporary or seasonal reduction of price. This is one of the most effective technique to attract customers and stimulate sales. Example -Black Friday sales.
· Reward Points — These reward points are provided on shopping. 100 rupee = 1 reward point, and we can buy from the particular store with these reward points. Also credits card companies provide reward points on buying and those reward are again used for shopping. Example-Myntra give reward points on shopping from their website.
· Bonus packs — In this store offers a certain percentage more of the product, or they create pack of 1 product with 3 to 5 variants. Example – pack of 3 minimalism t shirts by octave. (can choose colors of your choice)
· Other techniques — Gifts coupons/cash backs, mobile coupons, attaching samples to the newspapers, dump bins, buy 1 get 1 free, special prize.
5. Importance of sales promotion
Sales promotion is the bridge between advertising and personal selling. Because of the adversity of business sectors, the significance of sales promotion has expanded hugely. Sales promotion advancement helps evacuate the purchaser’s disappointment about a specific item, manufacturer, and make brand-picture in the brains of the customers and the clients.
Sales special gadgets are the main limited time gadgets accessible at the purpose of-procurement. A publicizing medium arrives at the possibilities at their homes, workplaces, and so forth and may before long be overlooked. The deals limited time gadgets at the purpose of-procurement invigorate the clients to make buy speedily on the spot.
6. Changes over the years
· Over the years promotion industry has changed a lot. Before the internet came into our lives, there were very few ways to enter a promotion. Earlier mail were there post tokens that has been collected. Another way was to phone a hotline number. So, to be honest these were extremely limiting. Now social media is playing a very crucial role in sale promotion. It has increased the speed at which people can find out about things. Take example of fake news it spreads like fire over the social media. So, taking this thing in consideration, companies use it at full speed utilizing it at its best.
· Along with internet phones have also simplified the sales promotion.
7. Rationale of sales promotion
Rationale of sales promotion can be analyzed under -:
1. Short term results — sales promotion such as coupons and trade allowances produce quicker impact.
2. Competitive pressure — If a company offers price reduction or other sales promotion activity the other company may feel forced to do the same.
3. Buyers expectation — Once they are offered purchase incentives, consumers and channel members get used to them and expect more.
4. Low quality of retail selling — Many retailers use inadequately trained sales clerks or have switched to self-service for those outlets only window displays and samples are the only ways.
· It plays a vital role in boosting the brand image as well as make it outstand in the market, there so many brands already present out there doing so well, if promotional activities were not there, there is no such way we can relate to the new brands so this is quite an important process for any brand to rise and connect to their target market