What are Sales Promotions

Sales promotion is one part of the promotional mix that is becoming an important tool in Integrated Marketing Communication. This marketing strategy help boost sales.

Sales promotion is an important tool in Integrated Marketing Communication. It provides several distinct benefits in the achievement of company objectives that may account for it becoming one of the fastest growing IMC tools. It is one of the four aspects of promotional mix. Advertising, personal selling, and publicity/public relations are the other three.

Uses of Sales Promotions

First, they effectively increase the level of company’s profits because they allow price discrimination. This way, sellers can sell their products at a lower price without incurring a loss.

Second, sales promotion s can influence trade and customer behavior. There are different purposes for doing sales promotions. It could be to increase the number of customers, boost sales, attract new customers, to compete effectively or reward loyal customers.

Sales Promotion Strategies

One of the trademarks of sales promotions is in providing incentives to satisfy the needs of consumers. This growth in marketing strategy is spurred by the changing attitudes among marketers. Sales promotion strategies employed by firms to attract customers include:

1. Price discrimination – promotions allow companies to use price discrimination by charging different prices to different customers depending on the price sensitivity of the said target market. Coupons and special prices, for instance, are directed to the price-sensitive consumers of the market who are attracted to such sales promotion strategy. Money-off strategies can be readily implemented. The impact of this strategy is huge because it is very appealing to all kinds of consumers.

2. Coupons – this is one way of providing money-off offers to buyers. The coupon could be found in the manufacturer’s product or using other means such as magazines and newspapers. Some use door-to-door distribution of coupons.

3. The Pack – this is bonus or multi-packs. It is similar to price discount since if you buy in packs or bulk, there is an additional product at no extra charge. It could either be a bigger product at a similar price or an additional product included in the pack with no extra cost.

4. Free gifts – companies offer free gift items together with the product. For instance, a free toothbrush when buying a large pack of toothpaste.

5. Free mail-ins – this is using proofs of purchase in exchange for a gift item. The customer needs to make several purchases in order to have proofs of purchase and so he/she can redeem the free gift.

6. Self-liquidating offers – this is when a consumer will pay for only a fraction of the total price of the item if he/she can present proof of purchase of a product. For instance, a bracelet worth $30 will be sold at $15 plus proofs of purchase of a certain item.

7. Contests and competitions – consumers are offered a prize of sizeable amount. It could be a car or house and lot if he/she purchases certain items.

Sales promotion techniques vary from store to store. They are limited only by the creativity and imagination of the marketing strategist. If done well, this marketing strategy could help stimulate sales.