Sales promotion
Sales promotion refers to the use of short-term incentives or activities to stimulate the purchase or sale of a product or service. It is a key element of the promotional mix and aims to encourage customer action and drive immediate sales. Common sales promotion techniques include discounts, coupons, contests, and product demonstrations.
8 Key excerpts on "Sales promotion"
eBook - ePubPrinciples of Advertising
A Global Perspective, Second Edition
- Monle Lee, Carla Johnson(Authors)
- 2013(Publication Date)
- Routledge(Publisher)
...What exactly is Sales promotion? The objective of this chapter is to provide an introduction to the role of Sales promotion in marketing and to introduce its types. THE ROLE OF Sales promotion IN MARKETING As mentioned in an earlier chapter, the marketing mix consists of four major components: product, place, promotion, and price. A primary goal of a marketing manager is to create and maintain a marketing mix that satisfies consumers’ needs. As a part of this mix, promotion involves informing individuals, groups, or organizations about an organization's products or services, and persuading them to accept these products or services. The promotional mix refers to the communication aspects of marketing: advertising, personal selling, Sales promotion, and public relations. Marketers strive for the right promotional mix to make sure that a product is well received. Sales promotion is an activity or material (or both) that acts as a direct inducement, offering added value or incentive for the product to resellers, salespersons, or consumers (see Illustrations 17.1 and 17.2). 4 The purpose of all marketing communications is to help the company achieve its marketing objectives. Typical marketing objectives include • introducing new products; • inducing present customers to buy more; • maintaining sales in off-seasons; • obtaining greater shelf space; and • combatting competition. ILLUSTRATION 17.2. Added incentive. Arline Thorns designed this newspaper advertisement to promote Lafayette Interior Fashions’ holiday sale...
eBook - ePub- Philip Kitchen, Patrick de Pelsmacker(Authors)
- 2004(Publication Date)
- Routledge(Publisher)
...It provides additional incentives, such as a price cut on shelf, a product premium, a discount, or a prize, to buy a product immediately. Its main objective is to increase sales in the short run. As such, it is a tool that can be used towards end-users (both companies and individual consumers), but also towards the sales force and members of the trade channel (wholesalers, retailers, etc.). Traditionally, Sales promotion has been regarded as the ‘little brother’ of the marketing mix, a tool that can occasionally be used to boost sales, or as part of a panic reaction when business is slow. However, the role of Sales promotion has become increasingly important and has evolved into an important element of the strategic IMC mix. Whereas advertising offers a reason to buy a product, Sales promotion gives the customer an incentive to buy it (Kotler, 2003). Sales promotion is a tool that influences the conative (behaviour) component of buying behaviour, whereas tools such as advertising, sponsorship and marketing PR play a greater role in the cognitive and affective components of the buying decision. Furthermore, most Sales promotion techniques are capable of reaching specific target groups of customers, and are therefore very instrumental in fine-tuning the marketing effort. In general, the objectives of Sales promotion are to generate store traffic, launch new products, boost sales of existing products, reach new customers, increase the usage of a product with existing customers, reward and retain loyal customers, and counter the marketing activities of competitors. Most of these objectives are tactical in nature, and support the other marketing efforts in the short run...
- Robyn L. Blakeman(Author)
- 2013(Publication Date)
- SAGE Publications, Inc(Publisher)
...The use of Sales promotion is usually a relatively inexpensive way to create awareness, reach new buyers, or reward loyal users. It is also a great way to give the target something extra for making a first time or repeat purchase. Marketers determine what promotional activity will bring the target the most value, such as reducing the purchase price through sales, offering coupons, or by attaching additional value-added material (e.g., bonus packs or two-for-one offers). The American Marketing Association (AMA) definition of Sales promotion, as reported in eNotes, the online encyclopedia of small business is described as “media and non-media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product quality.” eNotes goes on to say that this definition does not capture all the elements of modern Sales promotion: It should be noted that effective Sales promotion increases the basic value of a product for a limited time and directly stimulates consumer purchasing, selling effectiveness, or the effort of the sales force. It can be used to inform, persuade, and remind targeted customers about the business [brand] and its marketing mix. (eNotes, 2012, p. 1) Sales promotion can effectively be used to draw the target away from competing brands by offering an added incentive that temporarily stimulates demand. It is a great way to induce trial of a new or reinvented brand, or as an enticement to make an unplanned purchase. Every brand has an established or perceived value; as an enticement to buy, marketers may employ Sales promotion to temporarily alter this price/value relationship by increasing the take-home value or lowering the price...
eBook - ePubIntegrated Marketing Communication
Advertising and Promotion in a Digital World
- Jerome M. Juska(Author)
- 2017(Publication Date)
- Routledge(Publisher)
...That definition takes a few seconds to absorb, maybe even more. There are several different ways to look at this, but the primary purpose is creating and delivering “persuasive messages” that influence perception and behavior. These message are all about brands or companies, but can also include services, locations, causes, or important topics. Sales promotion Sales promotion is a strategic method for motivating potential buyers to immediately purchase a product or service. But, the reasons for purchasing have nothing to do with the brand’s benefits or characteristics. What are being offered to customers or potential buyers are financial incentives or extra rewards, available only within a limited time period. The offer might be good for only a few hours, days, or weeks, but it has a clear and unmistakable end date. For example, a weekend-only coupon at a grocery store, or four tires for the price of three, are based on saving money. Other examples of Sales promotions are when stores give free movie tickets with any purchase over $25 or enter your name in a sweepstakes with a trip to Hollywood as a first prize. Here is a list of the most popular Sales promotion strategies used to promote both national and local brands: coupons, BOGOs, cash back, free samples, sweepstakes, contests, free gifts, low interest rates, bonus rewards, new experiences, and owner loyalty programs. The most valuable part of a Sales promotion program is its measurability. Most of the methods are directly connected to a quantitative result based on a consumer’s response to the promotional offer. For example, the number of coupons redeemed, sweepstakes entries, gifts awarded, or points earned. However, promotional offers can be expensive, not for consumers, but for the brand or company. The total cost of running a promotion must be compared to the value of increased sales or profits. One of the hidden costs is advertising...
eBook - ePubIntegrated Marketing Communication
Advertising and Promotion in a Digital World
- Jerome M. Juska(Author)
- 2021(Publication Date)
- Routledge(Publisher)
...Maybe even more. There are several different ways to look at this, but the primary purpose is creating and delivering “persuasive messages” that influence perception and behavior. These messages are all about brands or companies but can also include services, locations, causes, or important topics. Sales promotion Sales promotion is a strategic method for motivating potential buyers to immediately purchase a product or service. But, the reasons for purchasing have nothing to do with the brand’s benefits or characteristics. What is being offered to customers or potential buyers is financial incentives or extra rewards, available only within a limited time period. The offer might be good for only a few hours, days, or weeks, but it has a clear and unmistakable ending date. For example, a weekend only coupon at a grocery store, or four tires for the price of three, are based on saving money. Other examples of Sales promotions are when stores give free movie tickets with any purchase over $25 or enter your name in a sweepstake with a trip to Hollywood as a first prize. Here is a list of the most popular Sales promotion strategies used to promote both national and local brands: coupons, buy one get one (BOGO), cashback, free samples, sweepstakes, contests, free gifts, low interest rates, bonus rewards, new experiences, and owner loyalty programs. The most valuable part of a Sales promotion program is its measurability. Most of the methods are directly connected to a quantitative result based on a consumer’s response to the promotional offer: for example, the number of coupons redeemed, sweepstake entries, gifts awarded, or points earned. However, promotional offers can be expensive, not for consumers but for the brand or company. The total cost of running a promotion must be compared with the value of increased sales or profits. One of the hidden costs is advertising. This IMC method is almost always needed to inform people about a promotional offer...
eBook - ePub- Lynne Eagle, Barbara Czarnecka, Stephan Dahl, Jenny Lloyd(Authors)
- 2014(Publication Date)
- Routledge(Publisher)
...12 Integrated campaign development Sales promotion CHAPTER CONTENTS Introduction Factors driving increased Sales promotional activity Strategic and tactical considerations Advantages and disadvantages of Sales promotions Manufacturer and retailer perspectives Competitor response Ethical issues in Sales promotional activity Summary Review questions Recommended reading Case study 12.1: Thomas Cook Notes LEARNING OUTCOMES After studying this chapter, you will be able to: • Define the main types of Sales promotions and discuss their role within the marketing mix • Discuss the strategic and tactical roles Sales promotions may play • Critically evaluate the advantages and disadvantages of Sales promotion activity both in the short and long term and from a manufacturer and retailer perspective • Discuss the impact of competitor reaction to Sales promotional activity • Discuss the issues relating to contentious sales activity such as that directed at children Introduction Sales promotions are incentives used to stimulate sales of a specific product or service by changing prices or adding perceived value in the short term. For example, price-based Sales promotion may involve a 25 per cent reduction in the normal selling price, or offers of ‘buy one, get a second one for half price’. An added value Sales promotion may involve buying a product at the normal price but receiving accessories or complementary products free. For example, getting a specified number of photographs printed may entitle the purchaser to a free photo album. A food manufacturer may offer free recipe books in return for evidence of a specified number of product purchases. The objective of a Sales promotion may be to stimulate sales of existing products, combat competitive activity or support the introduction of a new product range...
eBook - ePub- John Westwood(Author)
- 2012(Publication Date)
- Kogan Page(Publisher)
...CHAPTER EIGHT Sales promotion S ales promotion includes such things as websites, sales literature, presentations, advertising, exhibitions and trade visits. Sales promotion is an essential sales tool in any market and this is just as important for export markets as for your domestic market. When planning your Sales promotional activities for overseas markets, it is important to bear in mind that each market is different. This means that some Sales promotional activities are more suited to some markets than others and even the same activity may need to be modified or varied to suit the requirements of different markets or to take into account different languages and different cultures. Understanding your target market For each of your target markets you need to understand who your potential customers are, the factors that motivate them to buy and how you can get your products in front of them. You need to understand the methods of Sales promotion that are used locally, since these may be different from those used in your domestic market or they may be used in a different way that reflects local cultural differences. You also need to find out how established competitors operate in the market and the methods of Sales promotion that they use...
eBook - ePubDecision Making in Marketing and Finance
An Interdisciplinary Approach to Solving Complex Organizational Problems
- P. Koku(Author)
- 2014(Publication Date)
- Palgrave Macmillan(Publisher)
...To stimulate purchase, the seller must first attract buyers’ attention and/or draw them to the seller’s premises; therefore, some retailers, especially automobile dealers, have a reputation for creating a carnival-like atmosphere with balloons, free drinks, popcorns, and other giveaways during a special event. These events are usually held to introduce new-year models and/or to facilitate movement of inventory of models that are about to be replaced with newer models. Other retailers especially in the services sector are prone to using free trials during Sales promotion. It is not unusual to see a gym or a local cable company advertising free trials during their Sales promotion. Because of their focus on the end consumer, most of the activities used in Sales promotion are “pull”-strategy driven. Pull strategies are “customer oriented” in the sense that they “induce” the customer to purchase or try the offering whereas “push” strategies focus on the intermediaries (channel members) and incentivize them to sell the product. Coupons These are documents generally issued by manufacturers of packaged consumer goods and retailers during Sales promotion that entitle the holder to a reduction in retail price. Coupons either have the amount or a percentage of reduction in the purchase price that the holder is entitled to stated on them (e.g., $2.00 or 10%). They are distributed through a variety of means, for example, through print media, through the mail as well as the Internet. Coupons are often redeemed at a retailer who subsequently presents them to the manufacturer (in case of a manufacturer-issued coupon) to be reimbursed. Since there could be significant processing costs associated with couponing, therefore a seller or manufacturer planning to use coupons must ensure that the cost-benefit analyses have been done prior to embarking on the program. Theoretically, coupons are supposed to be used by price-conscious individuals who could not afford the item at its full cost...
