Sales promotion is one component of the marketing factor, called Promotion-Communication, where the other components are advertising, public relations, and sales. They are the main objective of driving sales. Promotional incentives must be exceptional, is an instrument to achieve short-term results. Finally, you need to remember the end customer or channel.
All the media on which promotion remains based have three different characteristics in common:
Communication. They grab attention and often give information that “push” will produce the customer.
Incentives. It incorporates an entry into the dealership or a particular advantage, which increases the offer’s value for the customer.
Invitation. It incorporates a clear invitation for the customer to decide to buy in the short term.
The objects of sales promotion
The main objects of promotion at the company level are:
Motivate the sales team
Get more cash in the short term
Significantly increases turnover
The main objects of promotion at the market level are:
Differentiate yourself from the competition
Firstly Make it challenging to compare prices
Entry of new products
Increase the habit through consumption
Capture undecided consumers
The main objectives of promotion at the distribution level are:
Liquidate perishable (little sold) or declining products
Speed up inventory turnover
Improve the image with distributors
I keep the broadcast
Be present at the point of sale
Clear dealer stock
Motivation and direct involvement of the distributor
The characteristics of sales promotion.
The definition of sales promotion and the comparison with the rest of the elements of the communication mix makes it possible to highlight that the interesting characteristics before the promotion to highlight:
The purpose of sales promotion is to increase sellers, distributors, and traders’ ability and desire to sell the company’s products and create a desire among potential customers to buy it “by bringing together the products of them.”
Sales promotion is a discontinuous incentive in time, form, and character. And also, Each time it starts, it should be a sporadic, time-limited action. It does not prevent the repetition of a successful promotion.
Promotion remains used to generate court sales.
It constitutes an inducement unrelated to the intrinsic characteristics of the product. It’s not about improving your outcomes, more about driving sales. If, for example, the packaging remains enhanced for promotional purposes, it is no longer a promotion since the packaging is one of the attributes or qualities of the product.
Promotion is an independent inducement to advertise. Motivator and informant you can come. Instead of that, promotion involves immediate sale. The confusion is that most promotional actions have to remain communicated, and advertising remains used for it. I publicized it “bringing” the customer closer to the product; The PV “brings” the product closer to the customer.
Promotion is an incentive that will get people in shape. It covers different actions in the specific jacket; Socan be a gift, a discount, or participation in a raffle.
It must establish a relationship between the promotional and the product and between the promotional and the customer. For example, if you are unsuccessful in promoting toothpaste, a suitable promotional coupon would be a toothbrush or dental floss.
The advantages of the promotion are as follows:
It makes it possible to counterbalance the differences in price or discounts compared to other competitors.
It increases sales vertically in the short term, and in a long time, it gives them stability.
You can control your results, and your results are required.
It allows eliminating surplus production or reduction of stocks.
It manages to capture, even temporarily, part of the market share of competitors.
The main disadvantages of promotion are:
The customer will be able to focus on the benefit of the initiative that produced it.
Who needs a constant increase in the value of the gift sent to customers due to promotional struggles with the competition.
There is a risk that the customer will get used to the promotion.
Effectiveness of sales promotion
In the end, the promotion is neither good nor bad. It can be effective or efficient as long as it achieves or does not the intended objectives. To set these goals, the main thing to consider is the advantages and disadvantages that have just been reporte.