Tuesday, December 2, 2014

Sales Promotion Policy

Sales promotion


Marketing mix contains four elements. Each of the "4 Ps" is of equal important. Employing appropriate strategies for each of the elements is very vital. The "product" has to be manufactured after deliberating on consumers' likes, preferences and demand for the product in the market. Also, "plans" must be devised to produce the right quantity and in the most apt manner. The "pricing" of the product has to be just right to entice customers. The market where the product is going to be sold and distribution channels for it are to be fixed beforehand. "Promotion" is making the customer aware about the existence of the product and its features. Promotion comprises of advertising, word of mouth publicity public relations and sales promotions. Sales promotions are promotion of the product at the place where it is sold.


Features


Sales promotions are carried on at the point of sale. The main aim is to stir consumer interest in the company's product. These aim at increasing the company's customer base by providing them with free samples and discounts. The customer gets lured and often resorts to making a purchase, and thus provides the company profits. The company extensively uses communication and publicity strategies promote the product.


Time Frame


Sales promotions are always for a short duration of time. The usual tenure ranges from a fortnight to a month. It gives a sense of urgency to the potential customer, motivating him to act quickly and not delay.


Benefits


Both the company and customers stand to gain with sales promotions. The company, while venturing into newer markets, often uses this exercise to gauge the reactions of the customers. The company is able to stimulate customer interest in its products and thus establish themselves in the minds of the customers. Sales promotions are carried out for a limited period of time and have targets and budgets. Trial offers and free samples are valuable luring items. The company hopes to benefit by selling more products. The promotion may also bring new customers to the store who have not previously been in, which may lead to the customer seeing other items for purchase.


Limitations


Despite the several benefits that accrue from sales promotions, there is a flip side too. The company may only be able to attract and retain customers for the duration of promotional event. Once the benefits to customers cease, they might go back to their preferred brands.


Types Of Promotions


There are three main types of sales promotions. The first and most significant is the customer-oriented sales promotion. Here, various strategies are employed to make the customer aware about the company's product and force him into making a purchase.


The next is sales-force oriented promotion. The sales and marketing personnel are lured and coaxed into selling as much as possible. They are motivated by means of bonuses, incentives, promotions and perks.


The third type is the retailer-oriented sales promotion, where retailers are offered commissions on selling the company's products.

Tags: aware about, company product, customer aware, customer aware about, free samples, making purchase, promotions carried