Sales promotion is a promotional mix tool that consists of promoting a product or service through incentives or activities such as offers, discounts, coupons, gifts, sweepstakes, contests, prizes and free samples.
These incentives are known as sales promotions and are usually aimed at promoting the sale of the product or service, by encouraging, inducing or motivating the consumer to decide on their purchase.
The use of sales promotions is an effective strategy commonly used when launching a new product to the market, when you want to gain market share to the competition, or simply when you want to have a rapid increase in sales; But that has as a disadvantage a cost that is necessary to evaluate well before using.
Here are some examples of sales promotions classified according to the type of promotion to which they belong:
Offers are offers or proposals that are made to consumers to buy a product or purchase a service.
Examples of the use of offers:
When we offer consumers the possibility that they can take two similar products for the price of one.
When we offer consumers the possibility that they can take a free product for the purchase of a different one.
When we offer consumers the possibility of buying a second product at the half price for the purchase of the first.
When we offer one of our services free of charge to people who visit us for the first time.
When we offer one of our products or services free of charge to the first 10 people who buy or visit us.
Discounts are reductions of the regular price of a product that are made for a certain period of time.
Examples of the use of discounts:
When we offer a discount on our services to customers who recommend us and bring us a friend who also wants to purchase them.
When we offer a discount on our products or services to the first 10 people who buy or visit us.
When we offer a discount on some of our products or services to people who visit us on a certain date.
When we offer a discount of 15% on all our products to people who buy through the Internet.
When we offer a 10% discount on all our products for being the month of our anniversary, or for being a special date related to the type of product we sell.
Coupons are vouchers or bonds that give the person who owns the possibility to exchange or redeem them for certain benefits or use them to obtain them.
Examples of coupon usage:
When we publish a coupon in a newspaper or magazine that gives people who cut it and present it to us at the time of visit, the right to get a discount of 20% on our products.
When we publish a coupon on our website or send one via email, which gives people who print and present it to us at the time of visit, the right to get a discount of 15% on our products or services.
When we give our customers a coupon for every US $ 30 of consumption that gives them the right to consume the US $ 10 in any of our products on a given date.
When we give our customers a coupon that gives them the right to get a 10% discount on our services on their next visit.
Gifts consist of small gifts that are given to consumers or customers as a sign of affection or in order to entertain them.
Examples of gifts:
When we send a small gift to our main customers for their birthdays or because it is a holiday date.
When we give our customers a small gift for the purchase of a certain product or the acquisition of a certain service.
When we provide all our customers merchandising items such as pens, openers, and T-shirts that carry the logo or the name of our business.
Drawings consist of activities where one or several consumers or customers are randomly selected to award them a prize.
Examples of the use of sweepstakes:
When all customers who visit us on the day we give them a coupon to fill it, put it in an amphora, and participate in a raffle to be held before the closing of the premises.
When we give our customers a coupon for every US $ 20 of consumption that gives them the right to participate in the raffle of a car to be made on the day of our anniversary.
When we make a raffle among the followers of our Facebook page who have like one of our publications, whose prize is one of our products.
Competitions consist of competitions that are made between consumers or customers, and where the winner or the winners are given a prize.
Examples of the use of contests:
When we create a contest among the customers of our gym where we reward with two months of free membership to lift the heaviest weight on a particular machine.
When we organize a contest among the followers of our Facebook page where we reward the one who tells the best story related to our type of product the best photo taken on the premises of our business.
The following are examples of sales promotions that are not classified within the types just mentioned:
When we do tastings of our products in order that the consumers can taste them before buying them.
When we make exhibitions or demonstrations of our products in order that the consumers can appreciate its operation.
When we send free samples of our products to potential customers in order that they can know them directly.
When we give small talks or free courses on something related to our products; For example, when every week we do a small workshop where we teach to do some type of craft that we sell in our business.
When we give our major customer’s membership cards that allow them to access certain benefits such as special offers and discounts.
When we give our customers accumulating points cards with which they can accumulate points every time they buy our products, and then, once accumulated a certain amount of points, redeem them for products or special discounts.
The examples we have just seen are sales promotions aimed at consumers in order to encourage them to purchase or purchase our products or services; However, it should be noted that sales promotions can also be directed at distributors, brokers or sellers in order to encourage them to reach higher levels of sales of our products.
Examples of the use of these sales promotions are when we give free products to our distributors when buying a certain quantity of products, when we send gifts to our main intermediaries, or when we organize a contest between our sellers where we reward those who achieve the highest Sales or who manage to sell a certain quantity of products during a determined period of time.
Tips for using sales promotions
To finalize this article, here are some tips related to the use of sales promotions:
Make sure that the sales generated will outweigh the investment.
Before launching a sales promotion estimate the sales it will generate, calculate your investment well and make sure that the sales generated will outweigh the investment; And thus reduces the risk of the opposite happening in the end.
Clearly, defines the conditions
Before launching a sales promotion, it clearly defines the conditions and rules that consumers must meet in order to benefit from it, and thus avoid possible confusions, complaints or discomforts in the consumer; For example, that you claim for a promotion that has already ended.
Sets a duration time
Establish a duration time for any sales promotion you make, which is recommended not to be so long, but it lasts long enough for all consumers that make up your target market have access to the promotion and can benefit from this.
Make sure everyone knows about the promotion
For a sales promotion to be effective make sure that it is known to all consumers that make up your target market; For example, communicating through all your advertising messages. It’s no use having a good promotion if few consumers know about it.
Make sure that the promotion can be made effective at all points of sale
Make sure that your sales promotion can be effective in all your points of sale, and thus avoid the painful situation where a consumer goes to a point of sale in order to benefit from a promotion and is given with the surprise of That at that point of sale can no longer give it or know nothing of this.
Wait for the right moment
The effectiveness of a sales promotion can vary according to when it is launched, so always wait for the right moment to launch one, which could be, for example, when there is a greater demand for your type of product.
Seek customer loyalty
Any sales promotion can be quite effective, but in general, the best results usually have, at least in the long term, are those that seek to retain customer loyalty; For example, those based on memberships or cumulative points.
Invest in sales promotions before advertising
Finally, whenever you doubt whether launching a sales promotion or advertising, keep in mind that simple sales promotions such as offering a gift for the purchase of a product usually have a greater effect on the consumer’s buying decision, and Lower costs