Advertising and Promotion Importance and Objective of Sales

Advertising and Promotion Importance and Objective of Sales Promotions

What is Sales Promotion � Sales promotion is the process of persuading a potential customer to buy the product. Sales promotion is designed to be used as a short-term tactic to boost sales – it is not really designed to build long-term customer loyalty.

Methods of Sales Promotion There are many methods of sales promotion, including: � Money off coupons – customers receive coupons, or cut coupons out of newspapers or a products packaging that enables them to buy the product next time at a reduced price � Competitions – buying the product will allow the customer to take part in a chance to win a prize � Discount vouchers – a voucher (like a money off coupon) � Free gifts – a free product when buy another product � Point of sale materials – e. g. posters, display stands – ways of presenting the product in its best way or show the customer that the product is there. � Loyalty cards – e. g. Nectar and Air Miles; where customers earn points for buying certain goods or shopping at certain retailers – that can later be exchanged for money, goods or other offers �

� � � � ATTRACT BUYERS : - Sales promotion attract new buyers the new buyers are incourage to buy the product , by the extra benifits offered by the orgn in buying the product. *INTRODUCE NEW PRODUCT : - Sales promotion is very useful to introduces new product in the market. the consumers do not know about the new product so in order to educated the consomers about new product the various sales promotion tools such as sample distribution, product demostration, participation in trade fair etc can be uses and such promotion activities also persuades the consumers to buy the product. *INCOURAGE ADDITIONAL SALES : - Sales promotion encourage the and existing costomers to buy and use more product than usuall , they buy the additional product during promotion period to take the advantage of sales promotion scheme. *ATTRACT BUYER TO RETAIL STORE: - The retailler can uses some specific sales promotion tools such as price off , coupen, gift etc to attract the buyers to visit their store. *COMPETITON WEAPON: - A marketing from can uses sales promotion as aweapon to compet with it's rival orgn. , . *QUICK SALES : - Sales promotion helps to make quick sales unders sales promotion scheme facilites and benefits are provided for the specific period of time, so the buyres hasten to buy the product before the scheme period expires.

Objectives of Sales Promotions � � � There are 5 Objective of Sales Promotions. Building Product Awareness – Several sales promotion techniques are highly effective in exposing customers to products for the first time and can serve as key promotional components in the early stages of new product introduction. Additionally, as part of the effort to build product awareness, several sales promotion techniques possess the added advantage of capturing customer information at the time of exposure to the promotion. In this way sales promotion can act as an effective customer information gathering tool (i. e. , sales lead generation), which can then be used as part of follow-up marketing efforts. Creating Interest – Marketers find that sales promotions are very effective in creating interest in a product. In fact, creating interest is often considered the most important use of sales promotion. In the retail industry an appealing sales promotions can significantly increase customer traffic to retail outlets. Internet marketers can use similar approaches to bolster the number of website visitors. Another important way to create interest is to move customers to experience a product. Several sales promotion techniques offer the opportunity for customers to try products for free or at low cost.

Objectives of Sales Promotions � � Providing Information – Generally sales promotion techniques are designed to move customers to some action and are rarely simply informational in nature. However, some sales promotions do offer customers access to product information. For instance, a promotion may allow customers to try a fee-based online service for free for several days. This free access may include receiving product information via email. Stimulating Demand – Next to building initial product awareness, the most important use of sales promotion is to build demand by convincing customers to make a purchase. Special promotions, especially those that lower the cost of ownership to the customer (e. g. , price reduction), can be employed to stimulate sales. Reinforcing the Brand – Once customers have made a purchase sales promotion can be used to both encourage additional purchasing and also as a reward for purchase loyalty (see loyalty programs below). Many companies, including airlines and retail stores, reward good or “preferred” customers with special promotions, such as email “special deals” and surprise price reductions at the cash register.