Sales promotion is especially effective for encouraging high-volume purchases.
Along with advertising, personal selling and public relations, sales promotion is one of the four basic tools available to marketers to communicate the benefits of their business to target consumers and persuade them to buy. But sales promotion can be more effective than the other tools in helping to drive immediate, high-volume purchases.
Incentives
A prospective client may have a favorable impression of your business, but feel no urgency about taking action. Without an incentive to make a purchase, he may be lured away by a competitor or forget what you offer. Many sales promotion devices create incentives to act right away. Common examples include limited-time-only price discounts, or buy-one-get-one-free deals. In many industries, customers can also be incentivized by loyalty programs that reward them for buying frequently or in large quantities, or both.
Excitement
Another purpose for sales promotion is to attract attention and create interest. Techniques like contests or sweepstakes can set your business apart from competition and build excitement around the chance to be a winner or just to join in a distinctive event. For example, buyers who would overlook a traditional display at your industry's trade show might be eager to visit a booth where they could take part in a drawing for a car.
Consumers and Trade
Some sales promotion devices are primarily intended for household consumers. Two of the most common are discount coupons delivered to people's mailboxes or cell phones, and small gifts with a purchase, known as premiums. But sales promotion also can help to build distribution among trade buyers. For example, wholesalers might order in larger volume than usual if you offer a rebate. Retailers might feature your brand in prime store locations in return for a subsidy called a merchandising allowance.
Integration With Other Tools
To maximize the value of sales promotion, its features and timing should be carefully integrated with other promotional tools. For example, while sales promotion and advertising messages need not be identical, both must use images and spokespersons relevant to the target. Contests and sweepstakes can be featured in publicity. Personal salespeople should be well informed about sales promotion devices like loyalty reward programs, so as to reinforce their value and encourage participation.
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