Impact of sales promotion on sales

Promotion is the component of the marketing mix strategy that emphasizes the use of various communication tools to promote the value of your company, products or services. While much of promotion is focused on long-term communication objectives, sales promotions have a specific motive of creating immediate sales. Attract Customers Sales promotions are typically used as a price inducement to attract price-conscious buyers not interested in products a regular prices. This is common when companies want to build a customer base, such as at a grand opening, when a competitor goes out of business, or in a highly competitive industry.

Impact of sales promotion on sales

Sales promotion objectives differ widely: Objectives for trade promotions include getting retailers to carry new items and more inventory, getting them to advertise the product and give it more shelf space, and getting them to buy ahead. Sales force promotion objectives include getting more sales force support for current or new products or getting salespeople to sign up new accounts.

Sales promotions are usually used together with advertising, personal selling, or other promotion mix tools. Consumer promotions must usually be advertised and can add excitement and pulling power to ads. The main consumer promotion tools include samples, coupons, cash refunds, price packs, premiums, advertising specialties, patronage rewards, point-of-purchase displays and demonstrations, and contests, sweepstakes, and games.

Consumer-oriented sales promotions can be classified as either price-based or attention-getting consumer promotion. Price-Based Consumer Promotion Price-based consumer promotions emphasize short-term price reductions or refunds, encouraging consumers to choose a brand while the deal is on.

If used too frequently, however, consumers become conditioned to purchase the product only at the lower promotional price. Coupons A coupon is a certificate that gives buyers a saving when they purchase a specified product.

Coupons can stimulate sales of a mature brand or promote early trial of a new brand. Redemption rates have been declining in recent years, however, as a result of coupon clutter. Most major consumer goods companies are issuing fewer coupons and targeting them more carefully.

Price Packs A price pack is a reduced price that is marked by the producer directly on the label or package.

Price packs can be single packages sold at a reduced price, or two related products banded together. Price packs are very effective—even more so than coupons—in stimulating short-term sales. Special Packs A special pack is a package that gives the shopper more product instead of lowering its price.

A special pack also can be a separate product given away along with another product. Samples A sample is a small amount of a product offered to consumers for trial.

Sampling is the most effective—but most expensive—way to introduce a new product. About 84 percent of consumer packaged-goods marketers use sampling as a part of their promotion strategy. Some samples are free; for others, companies charge a small amount to offset its cost.

The sample might be delivered door-to-door, sent by mail, handed out in a store, attached to another product, or featured in an ad.Sales promotion is defined as a special offer or a part of marketing communication activities. Sales promotion is an independent variable and on the other hand social surroundings, buying behavior, free sample, price reduction and discount level are dependent variables on sales.

Retail businesses can attract crowds of customers and create a big increase in sales volume using the High Impact Sales Promotion Programs provided by G.A. Wright Sales, Inc. "We were amazed with the continued volume and customer traffic after the first few days. This trend in the sales continued up to the very last day." G.A.

Wright Client- . This page is tracking sales of all apps on the Steam Store. Find the best deals! The Concept of Sales Promotion Words | 22 Pages. The Impact of Sales Promotions Increasing Revenue at 7-Eleven Stores in Singapore Introduction Profit maximization has since time immemorial been the ultimate goal of every business.

Nov 20,  · Since this formula is based on real statistics provided by your sales department, sales managers will be more likely to accept the estimate as a true and accurate measure of your program's potential revenue impact. PROECT TOPIC: THE IMPACT OF SALES PROMOTION ON THE SALES OF SOFT DRINKS IN NIGERIA includes abstract and chapter Reviews: 7.

Impact of sales promotion on sales
Unit Public Relations, Sales Promotion, & Personal Selling