Sales promotion is a part of a business’s marketing activities. In essence,sales promotions are short-term deals and business occasions such as online and/or in-store events to spur customers to buy. In addition, sales promotions involve methods of communicating with possible customers.The objective of sales promotion is to increase the sales of products and services.
The various sales promotion tools used by marketers include:
1. Bonus Packs
A popular sales promotion tools is the marketing of bonus packs. A business may typically sell something like deodorant as a single item off the shelf of its health and beauty aids section. To boost sales, it may offer a bonus pack of three packages of deodorant at a sales price. For example, the single deodorant may cost $3.99. However, the bonus pack may offer three deodorants for $9.00. Therefore, the consumer saves approximately $3.00 by buying this bonus pack and it is worthwhile to do as the consumer will use this product regularly throughout the year and may as well take advantage of this reduced cost.
A company can choose to offer free samples of its products to engage its customers and potential customers. This engagement is to get people to try its “tried and true” established products. This is for that customer segment that has not tried some of the business’s traditional product offerings.
In addition, giving free samples is also a way to get people to try new product offerings. It lets customers investigate whether these products suit their needs, and they can test these products without any cost to them. Subsequently, if some customers are pleased with the new product it spurs them to then purchase the products, and in many cases quite regularly thereafter.
3. Point-of-Purchase (POP) Displays
These kinds of displays are to compel people to buy a certain product or group of products. An instance is when you walk into a supermarket and you see a floor display or rack away from the main aisles or at the end of aisles featuring, for example, the now very popular coffee pods. The design of these in-store displays is to alert customers to a specific product.
These displays stand out from the crowd of other products resting in their usual shelf sections. These displays help customers ‘notice’ a product that a customer may never have noticed before on its regular shelf amidst hundreds of other products in a grocery store aisle.
4. Loyalty or VIP Programs
To build sales, a business may offer a loyalty program to regular customers. They will offer loyalty rewards to customers who make frequent purchases. These rewards can be coupons, gifts, free trips, free products, and more. The intention of these loyalty or VIP programs is to compel people to become and to remain regular customers so that the business can build up its stable of regular clientele.
Many companies offer coupons that give customers a discount on their purchase. These can be “dollars off” coupons, “percentage off” coupons, “buy one, get one at half-price” coupons, as well as “buy one, get one free” coupons, among other coupon offerings. Coupons encourage customers to buy because they relate directly to helping customers save cash.