Sales Promotions - JustAnswer



Sales Promotions

In the current times with the economic turmoil that is among us there is a need for excellent sales promotion techniques towards trade and consumers. Selling items at regular retail prices is not going to be acceptable anymore because of the declining sales market. This means that company's need to find a way to grasp their potential customers and keep their existing customers. There are several ways to do this, but there are only a few that would allow for profit increase as well. If every company could give something away for free and still do well I am sure that they would. Unfortunately this is not the case. Marketing firms have to both find a way to attract customers while being smart about budgets. Among these ways are Discounts, deals, price based consumer sales promotion, and attention-getting consumer sales promotions. These are the ways that marketing firms promote products in a efficient way.

One of the best way to attract a potential customers and buyers is to promote discounts and deals on products. This is also known as a "price break". According to Marketing: Real People Real Issues, "A manufacturer can reduce a channel partner’s costs through sales promotions that discount its products.” (Solomon) For example, a manufacturer can offer a merchandising allowance, which reimburses the retailer for in-store support of a product, such as when a store features an off-shelf display for a brand." A great real-time example of this is when a coupon is presented in a magazine and at the bottom of the coupon it says that the store that the coupon is used at will be reimbursed. Another allowance is the case allowance. This is when a manufacturer offers a discount to retailers or wholesaler during a set period of time based on the sales volume on the product that is being ordered. Although this is a great way to provide discounts it does have its downsides because this promotional price for retailers only lasts for a short period of time. This allows for retailers to purchase more than they need and warehouse it in order to resale to other retailers. Of course, this can cause ethical issues. Another way to promote products is to increase industry visibility.

Increasing industry visibility are different ways for a manufacturer to increase the visibility of their product through channel partners within the industry. These ways consist of trade shows, promotional products, and incentive programs. Trade shows are shows that are held in an conventional type setting where products are shown. A great example of this is the auto show that happens every year that showcases the new and upcoming models of cars by the manufacturers. Promotional products are another great way to promote a product. These promotional products are things such as key chains, t-shirts, coffee mugs, and more that have a company’s logo on them on some type of add on them. An example of this would be an "Obama" campaign shirt to advertise the campaign. There are also incentive programs where some type of incentive is the promotional item. This could be something like selling 100 items and getting 100 items free for selling the 100. This works in two ways. This advertises the product by getting the seller to sell those 100 products to receive some themselves, which in turn advertises to those people that the items were sold to, and it advertises with people seeing the 100 items that the seller has received free. This would make someone want to join.

Price based consumer sales promotion and attention-getting consumer sales promotion are both sales promotions that create some form of a buzz for consumers. The price based consumer sales creates contests and special events while the attention-getting consumer sales promotion creates coupons, money back, and rebates to attract customers. An example of the price based consumer sales would be where a car dealership creates a contest where the 200th person that enters the door wins a car. This attracts people to come in and try to be that 200th person, while the dealership tries to get them to purchase a vehicle if they are not that person. The attention-getting consumer sales on the other hand makes consumers buy a product because they will get a great deal of money back or a rebate. Rebates can be instant or rebates that have to be mailed in. These are great ways to attract potential buyers.

Overall, there are plenty of ways to attract customers to a product. Customers are constantly searching for the best deals, especially in this economic time. These different ways to promote creates a variety of ways to capture potential customers. Moreover, discounts, deals, increasing industry visibility, price based consumer sales promotion and attention-getting consumer sales promotion are excellent ways to advertise and promote a product to a potential customer.

References

Solomon, M. R., Marshall, G. W., & Stuart, E. W. (2008). Marketing: Real People,

Real Choices (5th ed.). Upper Saddle River, NJ: Pearson

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