Tie in promotions, cross-promotions and point-of-purchase are examples of

Sales Promotion is a key ingredient in Marketing campaigns, consists of collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumer or trade. In this article lets see the effective methods of Sales Promotion, Techniques of Sales Promotion along with effective tools.

What is Sales Promotion?

• Sales promotion is defined as, “those marketing activities, other than personal selling, advertising and publicity that stimulates consumer purchasing and also other dealer effectiveness measures such as displays, shows, expositions, demonstrations and various other non-recurrent selling efforts not in ordinary routine”
• It may also be defined as “any steps taken for the purpose of obtaining or increasing sales.

Need of Sales Promotions

Sales promotion are orientated towards changing the customer’s short-run purchasing behaviour through:

• Increasing average spend and also sales revenue.
• Invigorating slow-moving product(s).
• Promoting a new menu, product or product range.
• Influencing impulse purchasing in a certain fashion.
• Amalgamating items for sale.
• Attracting attention to the business in slower months.
• The celebration of special events.

Examples of Sales Promotions

• Contests, coupons, freebies, and loss leaders, point of purchase displays, premiums,
• prizes, product samples, rebates and also sweepstakes.
• Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase.

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Sales Promotion Types

• Consumer Promotions
• Trade Promotions / Dealers’ Sales Promotions
• Sales Force Promotion
• Internet promotions

Sales promotions can be directed either at the customer, sales staff, or distribution channel members (such as retailers). They are targeted at the consumer are called consumer sales promotions where as Sales promotions targeted at retailers and also wholesalers are called trade sales promotions.

Advertising Vs Sales Promotion:

Advertising offers a reason to buy but sales promotions offers an incentive to buy. Sales Promotion includes tools for consumer promotion (Samples, coupons, cash refund offers, Price offs, Premiums, prizes, patronage rewards, free trials, warranties, tie in promotions, cross promotions, POP displays, and also demonstration ; Trade Promotion (Prices offs, Advertising and display allowances and free goods) and Business and sales force promotion (Trade shows and conventions, contest for sales representatives and also specially advertising).

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Methods of Sales Promotion

There are various methods of Sales Promotion. The following are various tools and techniques of sales promotion

Techniques of Sales Promotion

Sales Promotion, which is the fourth major component of the promotion mix, is direct and instant inducement aimed at an immediate increase in sales. In a competitive market, sales promotion comes handy to a marketer in meeting the short term sales requirements. It serves a supportive activity to advertising and also personnel selling. The primary elements in the promotional mix are advertising, personal selling, direct market

ing and publicity/public relations.

Customers: The consumers are always the main target of every techniques of Sales Promotion.

Main objectives and techniques of consumer promotion are as follows:

• Encourage and induce trial and purchase of a product
• Generate consumer interest, which should lead to trial
• Build traffic for a brand at the retail point
• Increase the rate of purchase

Distribution Channels: This techniques of Sales Promotion is a Promotional techniques aimed at incentivating third party agents include free restaurant meals, free gifts, competitions and also the use of the hotel’s leisure facilities.

Sales Employees: Sales promotion incentives are similar to those listed above and include commission related sales, competitions, token and points systems occurring over an extended period to encourage an ongoing sales commitment by the sales force. It is one of the effective techniques of Sales Promotion.

Sales Promotion Tools: (Important Methods of Sales Promotion)

The major sales promotion tools are:

Samples:

These are offers of a trial amount of a product. Samples may or may not be free. Sampling by the staff who are employed by a hospitality firm such as a hotel, restaurant, or ski resort can be a very useful educational and also promotional device

Coupons:

They are certificates that offer buyers savings when they purchase specified products. These can be mailed, included with other products, or placed in ads.

Premiums:

Premiums are goods offered either free or at low cost as an incentive to buy a product. Promotional items such as caps, T-shirts, and sweatshirts can be sold at a good profit, thus creating another profit centre for the company

Patronage rewards:

These are cash or other awards for regular use of a company’s products or services. Most airlines and hotels offer frequent-flyer plans that award points for miles travelled.

Point-of-purchase displays:

It includes displays and demonstrations that take place at the point of purchase or sale.

Contests, sweepstakes, and games:

These provide consumers a chance to win something, such as cash or a trip.

Product packages:

A product may be packed to the theme of the foodservice outlet.

Seasonal specials:

Seasonal food dishes may be offered to the guests

Free meal night:

Once in a while pick a random guest who gets an entire meal for free. People will come for the chance at a free meal, and also for the cost of one free meal, you increase sales on a slow night.

Live music:

Live music can also draw crowds to your foodservice outlet

Themed entertainment:

Different types of entertainment based on a theme may be organised to attract the clients

Up-sell:

Trained staff can be a major driving force to up-sell your products

Take-away:

This option can be a good option to increase the sales as per the choice of the guests

Bulk order rewards:

These are for guests may be offered in any form

Guests’ Views:

 Gather positive customer reviews and put them beside the product or service being offered. Testimonials are powerful

Charity:

Donations can be very helpful in marketing of a foodservice outlet.

Customise service:

You can train your staff to offer customised services to your guests.

Provide assurance or guarantee:

Providing assurance to your guests about the products and also services offered by your organisation. By removing risk you can increase the sales.

Partner up:

 Partner up with another related product or service provider to put together packages that include your and their service and also products. This will not only increase profits but also decrease costs.

Make it easy or convenient:

Make it simple for your guests, people often find it difficult to get things done. So offer products and also services at their convenience.

What are the 4 types of sales promotion?

What is sales promotion examples?

What is a consumer promotion example?

What is the most common type of sales promotion?