Choice of right sales promotion strategies has become important today. You can never get success in the market until you do not understand your audience and still if you do not put the sales promotion strategy, you can’t get success in the market. The most important part of the daily business activities is promoting the products finished goods for sale. Attracting and retaining a customer is important to make a sale. The companies have opted many efficient strategies that are tried and tested over the period of time. In this article we will discuss the Sales Promotion Strategies in detail, there meaning, their use in business world and the benefits that Sales Promotion Strategies yields for the business organizations.
Stimulating the buying response in the targeted consumers the companies deploy Sales Promotion; an incentive offered for a shorter time period i.e. One time Offer, Customer Loyalty Cards, Free Coupons, Sales, Free Sample, Free Gifts, Extra Value Packs. The consumer operating society and today’s business world strongly operates on Sales promotion and Sales Promotion Strategies.
Types of Sales Promotion Strategies
- Push Marketing Strategy
- Pull Marketing Strategy
- Combination of Pull and Push Strategy
- Push Marketing
In Push Marketing Strategy the Manufacturer or Business organizations endeavor to take there manufactured products to the customers. As the word Push suggests the Businesses attempt to PUSH the goods or products towards the customers.
In Push Sales Strategy the manufacture push the products from supply chain to the customers. Incentives are given to the middle men to increase the motivation so that they recommend or convince the final customer to buy the product. Push marketing incentives involves:
- Sales premiums
- Discount to Whole sellers
- Buy Back Guaranty
- Stock on Credit
- Bonus to Sale Team
- Referral System
- Free trials
- Specialty items
The strategy not only benefits the small retailers but also ensure productive business for big players in the market. The companies; in order to increase demand for a product in the consumer market use Sales team and Trade promotions. The companies convince the Intermediate trade channels and distribution channels to push the product to the final consumer through promotions and personal selling. The companies promote the product to the middle men which then promotes the product to the ultimate customer.
The PUSH sales promotion strategy can be divided into bits and pieces for a better understanding.
Step 1: the manufacturer promotes the product to whole sellers
Step 2: the whole-seller promotes the product to retailers
Step 3: the retailer promotes the product to the end consumers
The objective of Sale Push Strategy is to convince the retailers and wholesalers to take a brand, promote and display that brand. In simple words Push the Brand to the Final targeted Consumers by giving incentives to the retailers and wholesalers is Push Marketing Strategy.
- Pull Marketing
In Push marketing the company focuses its promotional efforts on the end consumer in order to increase the market demand for the product. As the word Pull suggests the Businesses attempt to PULL the goods or products from the manufacturer. A Pull Sales Strategy requires high investment funds for advertising. The Marketer Spend a huge amount on promotion activities to create Brand Awareness.
The Pull marketing Strategy is best when the distributors are not ready to promote or recommend a product. The Company advertises the products to attract large number of consumers and bring the consumers to the sale point of the products i. e. pulling the Consumers from the Marketing Channels.
The objective of Pull Sale Strategy is to convince the customer to try out the new product, attract the customers towards your product, forcing the consumers to reject the competing products, creating customer loyalty and building strong customer relationships. The consumer will contact the retailers for the product, the retailer then contact the whole sellers and whole sellers then contact the Manufacturers for the products. Pull marketing incentives involves:
- Free Samples
- Sales Coupons
- Sale Premiums
- Advertising Specialties
- Loyalty Programs for Customers
- Patronage Rewards for Consumers
- Point of purchase POP displays
Attracting the Customers and Consumers and creating consumer Interest in the product to increase and generate market demand is the Pull Marketing Strategy. With increased product demand, the manufacturers will pull from the supply chain, making retailers to contact the suppliers and distributors, and the suppliers and distributors will contact the companies for the product.
- Combination of Pull and Push:
The Manufacturers now day use both Pull and push simultaneously in order to create increased market demand, to capture large market share, to beat the market competition and to boost sales.
Combination of the two systems:
Offering customers coupons,
Free gifts or free trails
Customer loyalty incentives
Customer Referral Incentives to drive customer traffic
Choosing the right type of Sales Promotion Strategies
Deploying the right types of Sales Promotion Strategies will bring attention and light to the brand and create good sales for the company as well.
- Identify the Correct type of sale Promotion that fits and best suits the Brands
- Identify the Media Channels to promote the brand and the shorts term sale incentives
- Identify the right duration of the Sale Promotion to benefit from this technique
- Consider testing the sales promotion on a little chunk of customers
- Have a clear picture of the Purpose of the Sales Promotion
- Examine the Number of Sales Promotion held in a time period
- Do not deviate from the rules of Sales Promotion
- Except the power of the word “SALES”