Sales promotion is a combination of some measures aimed at achieving an increase in sales and transforming a potential buyer into a real one. Such measures should be aimed at both the intermediate and the final consumer.
Sales promotion should pursue the implementation of specific tasks that directly depend on their direction. So, for example, if their impact is directed to the final consumer, then these measures are carried out in order to increase:
- the number of customers;
- the number of goods purchased by one buyer.
Promoting sellers is no less important. In this case, the main goal is:
- an increase in the assortment and quantity of goods that arrive at one particular outlet;
- the growth of the seller’s interest in promoting a particular product;
- the introduction of a new range of goods for sale through the distribution network.
Methods of sales promotion from the position of interest of the manufacturer are divided into: “soft” and “hard”. “Soft” include lotteries, contests and games. These types of incentives are carried out by both the manufacturer and the dealer.
The "hard" include:
- natural incentives (distribution of samples of goods, as well as the addition of goods when making a purchase of the main);
- price incentives (sales, discounts and preferential coupons).
In addition, advertising media (an advertising poster and other signs that can help identify a group of products and provide information on discounts and promotions) can be used.
Sales promotion, according to surveys, is then effective when an immediate result is obtained (for example, an instant lottery, gifts, a discount and the provision of additional goods to the purchased). Such techniques can be applied to both direct buyers and sellers of products.
Price promotion is a fairly effective measure due to the susceptibility of most buyers to discounts and other promotions. So, goods for which the price has been reduced for a while will sell out faster. However, when using this method, it is necessary to keep in mind the temporary nature of price reductions. Mostly used price tags that differ from others in color and contain crossed out real price and the one that is valid on a particular day. At the same time, this method should not be too long or should be carried out very often, as buyers may experience distrust of this product.
Opposition to the considered incentive method is the constant work carried out by the manufacturer to take into account consumer requests for each specific product. In this case, attention should be paid to issues of assortment and quality. This method gives a somewhat delayed result, but allows you to form a sphere of loyal customers who are ready to purchase goods of a particular brand, without looking at promotions and discounts. Price stimulation of sales while ensuring quick results does not allow creating a circle of regular customers.
There are such types of price incentives:
- price reduction with a delay in the provision of discounts - when making a purchase, the client receives a coupon for a specific discount, the conditions for which provide for the next purchase;
- distribution of coupons that give the right to purchase goods at a discount;
- direct price reduction - initiated by dealers. At the same time, a clear list of goods subject to discount is determined, its size and terms of the action are stipulated.
Among the ways to directly reduce prices, one can single out the provision of discounts on a small batch of goods combined in one package. The unit price of this batch is an order of magnitude lower than the prices of analogues purchased one at a time.