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. Therefore the most important part of daily business activities is promoting the finished products for sale. Attracting and retaining a customer is important to making a sale. So the companies have opted for 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, their meaning, and their use in the business world. Furthermore, the benefits that Sales Promotion Strategies yield for business organizations.
Stimulating the buying response in the targeted consumers the companies deploy Sales Promotions. Also, an incentive is offered for a shorter time period i.e. One time Offer, Customer Loyalty Cards, Free Coupons, Sales, Free samples, Free Gifts, or Extra Value Packs. Thus the consumer operating society and today’s business world strongly operate on Sales promotion and Sales Promotion Strategies.
Types of Sales Promotion Strategies
- Push Marketing Strategy
- Pull Marketing Strategy
- Combination of Pull and Push Strategy
In Push Marketing Strategy the Manufacturer or Business organizations endeavor to take their manufactured products to the customers. As the word Push suggests Businesses attempt to PUSH the goods or products towards the customers.
In Push Sales Strategy the manufacturer pushes the products from the supply chain to the customers. Moreover, incentives are given to the middlemen to increase motivation. So that they recommend or convince the final customer to buy the product. Push marketing incentives involve:
- Sales premiums
- Discount to Wholesalers
- Buy Back Guarantee
- Stock on Credit
- Bonus to Sale Team
- Referral System
- Free trials
- Specialty items
The strategy not only benefits the small retailers but also ensures productive business for big players in the market. Although the companies; in order to increase demand for a product in the consumer market use Sales team and Trade promotions. Since the companies convince the Intermediate trade channels and distribution channels to push the product to the final consumer through promotions and personal selling. Hence the companies promote the product to the middlemen which then promote the product to the ultimate customer.
The PUSH sales promotion strategy can be divided into bits and pieces for a better understanding.
- the manufacturer promotes the product to wholesalers
- Also, the whole-seller promotes the product to retailers
- the retailer promotes the product to the end consumers
The objective of the Sale Push Strategy is to convince the retailers and wholesalers to take a brand and promote and display that brand. In simple words, Pushing the Brand to the Final targeted Consumers by giving incentives to the retailers and wholesalers is Push Marketing Strategy.
In Push marketing, the company focuses its promotional efforts on the end consumer. So 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. Therefore 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. So the Company advertises the products to attract a large number of consumers. Therefore bring the consumers to the sale point of the products i.e. pulling the Consumers from the Marketing Channels.
The objective of the Pull Sale Strategy is to convince the customer to try out the new product. Moreover to attract the customers towards your product, forcing the consumers to reject the competing products. Also creating customer loyalty and building strong customer relationships. Hence the consumer will contact the retailers for the product, and the retailer then contacts the whole sellers and wholesalers. Then contact the Manufacturers for the products. Pull marketing incentives involve:
- 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. Moreover making retailers contact the suppliers and distributors. Also, the suppliers and distributors will contact the companies for the product.
Combination of Pull and Push
Manufacturers nowadays use both pull and push simultaneously. Basically in order to create increased market demand, to capture a large market share. Moreover to beat the market competition and boost sales.
- Combination of the two systems
- Offering customers coupons,
- Free gifts or free trials
- 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
- To 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 for the power of the word “SALES”.
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
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