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What is Sales Promotion?

Sales promotion is a marketing strategy where organizations employ an attractive temporary campaign to increase demand/sales for their products. It forms part of the promotional mix where businesses use a short-term customer-oriented approach. No matter how successful an organization is at some point, it will encounter moments when it needs to boost its sales. Also, the need to stimulate demand may arise. This is where sales promotion becomes functional. It may occur at the beginning of a company’s business journey to establish a customer base. The campaign may also occur sometimes down the line when sales decrease.

Companies that use sales promotion techniques know their audience, emphasize urgency, and are consistent. One of the popular sales promotion events is black Friday sales, a seasonal sale that occurs annually. Sales promotion benefits include increasing customer acquisition by providing free trials, discounts, free shipping, flash sales, and more. Moreover, it can allow a company to introduce new products, sell-out overstock, increase last-minute revenue, and reward existing customers. On the other hand, while sale promotion successfully increases sales, it comes at an expense. The main two risks include devaluing a brand/company. Also, it may make it complicated for organizations to sell products back at the original price.

Characteristics of sales promotion

Objectives of sales promotion

Different types of Sales Promotion

There are many different types of sales promotions. Although all the approaches are appropriate for businesses. Each business implements a type of sales promotion that works best to increase sales and connect with its target market.

Flash sales

Organizations may hold flash sales which are extreme short sales that provide extreme discounts for customers for a limited time. These sales foster a sense of urgency and necessity among its customers. Many retail stores adopt this strategy to sell more products. Therefore get rid of surplus inventory turning a negative into a positive within hours. Companies run successful flash sales by determining their goal of flash sales, keeping the sale timely and straightforward. Also, they choose a target market and tailor the flash sale to attract that group.

Discounted products/services

Adding discounts to products or services is possibly the most popular sales promotion technique. Customers love to grab a bargain. Therefore it makes strategic sense for organizations to offer discounts now and then. Companies that effectively use discounts make sure their products are attractive, consider their bottom line, and do not implement the technique often.

Free shipping

Companies may implement free shipping to reduce the significant portion of customers who abandon purchasing products because of delivery charges. Furthermore, free shipping gives customers a sense of security that they won’t lose out if they decide to send the product back.

Competitions and challenges

Businesses hold competitions and challenges often on social media to improve customer engagement by enabling followers to compete for products. This technique also results in a significant amount of free publicity if the challenge entails sharing the brand on a customer’s account.

Free trials

Demos is one of the most prevalent sales promotion campaigns and one of the reliable techniques to increase customer base. It can be a win-win for both a business and potential customers. A company gets the chance to show the market their products, and customers try them before they buy without any risk. This method increases customer satisfaction because a few end up pleasantly surprised.

Early-purchaser promotions

These sales promotion provides first-time buyers discounts to welcome them as new clients. The new clients are more likely to purchase services and products at a discount. Moreover, because the offer applies once, an organization does not lose a vast amount of money.

BOGO (buy one, get one free) promotions

Organizations often use BOGO to raise awareness of their services and products. Customers who purchase can gift the extra product to a friend or family. Therefore assist businesses in increasing their customer base. However, some data criticize this method for fast food because of its unfavorable outcomes.

Product bundles

Instead of purchasing individual items, product bundles offer a discount to customers who purchase a product collection. This technique is popular among businesses in different industries. They can increase their average order sales, revenue, and values. Also, companies decrease inventory waste alongside saving finances on distribution.

Coupons and vouchers

A company may use coupons and vouchers to reward the customers for brand loyalty which stimulates future purchases.

Donation

Businesses use donation as an excellent way to build credibility and goodwill within the target market. They carry out this sales promotion approach by donating a part of each sale to a charitable institution over a period

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