How To Win More Customers With Sales Promotion
Introduction
Sales promotion is employed by business owners to boost sales. Sales promotion is a business marketing strategy with the sole aim of increasing sales. Also, product promotion increases revenue. Product promotion is also the act of promotional mix.
Table of Contents
- What is sales promotion?
- Element of sales promotion
- Types of sales promotion
- Tips on effective sales promotion
- Benefits of effective sales promotion
- Conclusion
What is Sales Promotion?
Sales promotion is the act of enhancing sales. Product promotion is a business development tool. Therefore, it functions to yield increase in sales. Also its overall aim is to create greater revenue. It involves the process of increasing sales. Its main aim is to increase profit.
Sales promotion is a marketing strategy. Product promotions is promoted using various methods – methods that can either be long or short-term. Its main aim is to increase the demand for the product and thus increase sales. Furthermore, this marketing strategy functions side by side with other business tools.
Sales promotion can be effective and sometimes not effective. Only effective methods leads to increased sales.
Elements of Sales Promotion
Effective sales promotion has various parts. Elements that distinguishes it as well as making it effective. Methods of increasing sales can be either long-term or short-term. Some of the parts of product promotion include
Advertising
This involves the act of publicly creating awareness of a product. Advertising of products can be specific or non-specific. Advertising of products can be visual or non visual.
Direct marketing
This involves dealing with the main customers. This involves selling of products to the consumers directly as well as the wholesalers or retailers.
Personal selling
This is another element of product promotion. However, it is a type of promotional mix that deals with selling of products directly by the producer. it does not involve any third party. Examples of promotional mix may include the use of coupons, product samples, contests, and many others.
Types of Sales Promotion
Sales promotion can be of different types. Some of the types of promotional mix include:
Consumer sales promotion
This type of product promotion involves the direct advertisement of goods and services to the main consumers of a product. It deals directly with the consumers of the particular product.
Dealer promotion
This type of promotion doesn’t deal directly with the consumers. It deals with the dealers of products who sell to the consumers.
Business promotion
This type of promotion does not target any particular group. It doesn’t deal with either the consumers or the dealers. It is basically to increase sales generally.
In addition to the types of promotion, there are also promotion methods. Some of the promotional methods also include the following;
Free shipping of goods
This is a promotional technique. Granting free shipping of goods for consumers is a very effective way of increasing customers and sales.
Product discount
This is another way of promoting sales. When the discount is added to products sales is increased and more customers are won.
Competitions
This is another method by which more customers are won. This involves the organization of contests with rewards to the winners.
Flash sales
Flash sales are also very effective in winning more customers. It involves the sales of products at a very discounted rate over a specific period of time
Branded Gifts
It is also a good method of increasing sales as consumers tend to buy more. The knowledge of getting extra gifts on product tends to make people buy more.
Use of coupons
The use of coupons is another method of sales production. Coupons are specific codes assigned to consumers for discounted purchases. When consumers get more coupons, sales is thus increased.
Other methods of increasing sales may include free samples, letters, catalogs, and many others.
Tips on Effective Sales Promotion
For product promotion to be effective, there are some factors to be considered. To win more customers, it is necessary to practice good promotional mix. Tips on how to make promotion effective include the following;
Setting realistic goals
It is necessary to set measurable goals. It is also important to be clear on the objectives after which one can then select the right promotion tools.
Capturing the right audience
The right group must be targeted for good product promotion. Sales promotions targeted at the consumers should not be channeled to dealers or other groups.
Offering products of value
In as much as the goal of product promotion is to increase revenue and win more customers, it is necessary to offer products of value.
Review progress
It is important that at various levels of this promotional mix, growth and progress are reviewed. This helps to identify areas that need improvement.
Limiting the availability of products
Limiting the availability of products is another way to create an increase in the demand for the product. This is also a tip for good business promotion.
In addition to the tips mentioned above, it is necessary that business owners carefully study the market. Studying the target market gives business owners insight on how to satisfy their target audience or group. Business owners can also discover and explore new methods but most importantly stick to what works for them.
Benefits of Effective Sales Promotion
The benefits of promoting sales are countless. Effective product promotion has been found in the following;
- Creation of increased revenue
The major aim of product promotion is to increase the number of products sold. With good promotional methods business owners can increase revenue.
- Better communication
Good product promotion builds a better communication channel between all the parties involved.
- Boost brand visibility
Another benefit of good product promotion is brand visibility. Product promotion helps to make a business brand more known.
- Fosters better producer and consumer relationship
In addition to other benefits of good product promotion, a better relationship between the consumers and producers is built. Therefore, it is necessary to take the process seriously.
- Increases consumer loyalty
Certain sales promotion technique builds consumer loyalty as well as increasing sales. Also, this loyalty can lead to an increase in sales and an overall increase in revenue.
It is, therefore, necessary to state that, the benefits of good product promotion is more than those mentioned above.
Conclusion
Good product promotion is for the business owner who seeks to increase sales and win more customers. It can be specific or non-specific. Therefore, it is a requirement for every business. Good product promotion is an essential part of every business.
It is however, a very potent tool for business growth. It is thus advised that business owners use sales promotion methods in their businesses. Finally, business owners must explore and afterwards stick to what works for them.
