Sales Promotion
Today, consumers have become more deal oriented. In the current
Economy, consumers are demanding lower prices and better deals.
Sales promotion can help attract today’s more economy-oriented consumers. The growing use of sales promotion has resulted in promotion clutter, similar to advertising clutter.
In developing a sales promotion program, a company must first
Set sales promotion objectives and then select the best tools for accomplishing these objectives.
Sales Promotion
Sales Promotion Objectives:
Sellers may use consumer promotions to urge short-term customer buying or enhance customer brand involvement. Objectives for trade promotions include getting retailers to carry new items and more inventory, buying ahead, or promote the company’s products and give them more shelf space.
For the sale force, objectives incude getting more sales force support for current or new products or getting salespeople to sign up new accounts.
Sales Promotion
Some examples of popular sales promotion activities:
1. Buy-One-Get-One-Free (BOGOF) – which is an example of self-liquidating promotion. For example if a loaf of bread is priced at 3$, and cost 1$ to manufacture, if you sell two for 5$, you are still in profit – especially if there is a corresponding increase in sales. This is known as a Premium sales promotion tactic.