Sales promotion techniques

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Sales Promotion

 

Giving away free items, entering contests, tasting a new food product and offering discounts are all
examples of sales promotion. These programs are designed by marketers to build interest and to
deliver immediate sale’s results. Sales promotion is different than advertising because while sales
promotion is concentrated on short term results advertising is designed to provide long term positive
results. 

Trade Promotion

 

Trade promotions are one type of sales promotions that is geared toward members of the trade such as sales associates or distributors. There are two types of trade promotions, discounts and deals and increasing industry visibility. Discounts and deals reduce the cost of a product to retailers. This helps to increase product quantity in stores and gives the product more attention. A manufacturer can offer a merchandising allowance to a retailer for promoting the item in store. For example if a retailer uses a product display to promote an item the manufacturer reimburses that expense to the retailer.

Case Allowance

 

Another form of discounts and deals are a case allowance. This gives a discount to the retailer for buying a product in large quantities. The downside to this type of promotion is that often retailers will buy a large quantity at the discounted price and store the product in a warehouse using the discounted product until the next promotion. Increasing industry visibility is used to showcase a manufacturer’s item. This is typically done at trade shows to increase visibility of a product to wholesalers and retailers

Contest and Special Events 

 

Another type of sales promotion is geared toward consumers in the form of a contest or special event or price discount. Some companies offer contests or show up at special events to publicize a product. Price discount that are geared toward the consumer come in the form of coupons, these are used to get money off of a purchase for a limited time. Retailers also offer price discounts, refunds and rebates to motivate consumers to buy a product. Frequency programs offer consumers discounts or free gifts for using their product over a period of time. 

For example cigarette companies offer free gifts when you send in proof of purchase seals off of packs of cigarettes. The size of the prize depends on how many seals you have. Attention getting promotions such as sweepstakes and contests arouse excitement and publicity for a product by getting the consumer involved in the process. 

The company that makes M & M’s had a promotion that had a special color of M & M hidden in certain packages. If someone found that color they would win money. This increased the sale of 

M & M’s in hopes that one consumer would win the money. Premiums are prizes or gifts for purchases a particular product. 

Tommy Hilfiger gives away purses and travel bags for purchasing their perfumes and colognes. Providing samples is also a great way to promote a product. By allowing a consumer to taste an item gives them the opportunity to try it before they buy it. It also brings awareness of a product to the consumer. 

Point-of-Purchase Promotion

A point-of-purchase promotion is designed to capture a consumer’s attention. For example a colorful display in the center of an aisle can be used or an in-store media ad displayed on a shopping cart. Product/brand placement is used when a manufacturers product if feature in a movie or television show. This helps the consumer to develop a positive attitude towards a particular brand. 

Cross Promotion

Cross promotion is used when two or more goods or services join together that share a connection. For example fast food restaurants give toys away in kid’s meals that often promote a movie or character from television. Consumers must go to the fast food restaurant in order to get the toy in the kid’s meal. So it is promoting the restaurant and the movie or television show. 

Sales promotions make the consumer aware of a product and reward the consumer for purchasing a product. It also promotes sales from the manufacturer to the channel members by offering incentives to retailers. Marketers have been using sales promotions at an increased rate for one reason; they offer immediate sale’s results.

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