Objectives of Sales Promotion
Sales promotion objectives are as follows.
- To attain additional market share and to improve the profit and revenue margins.
- To expand and to grow the target market.
- To improve the product experience of the customers.
- To develop brand franchise and to add special features attributes to the existing range of products.
- To distribute the excessive stocks inventory.
- To establish liquidity by selling off the liquid assets.
- To shut-down specific range of products that become obsolete or non-preferable by the customers.
Characteristics of Sales Promotion
The following are the important characteristics of a successful sales promotion.
1. Maximum Effect at Minimum Cost
The nature of promotion objective involves achievement of objective by way of sales promotion instead of advertising, then the promotion objective is achieved through minimum cost.
2. Motivates Consumers to Buy Now
Successful sales promotions strive towards purchasing now rather than postponing. The role of consumers in this case is to take instant decision to process the transaction further.
3. Offers What the Consumers Want
Sales promotion should never tise that strategy which is not desirable by target consumers. They can attract consumers only if the offers are interesting, exciting and valuable to them.
4. The Promotion Should be Clear and Uncomplicated
The successful sales promotions have powerful incentive to carry out the process. There is a direct relationship between subsidiary offer and main offer. The promotion should be clear so that the consumers can understand the promotional offer better. If the promotion is not clear, then the target consumers will not get attracted to the offer made.
5. Promotion should be Highly Visible
The strategy behind making the offer is to attract the target consumers. In this case. the selection of media is crucial. If the promotion is effective, then it results in high visibility and creative qualities.
6. Promotion Benefits all Concerned
Promotions consist of cooperation of sales force and channel members. These few aspects are motivated to a greater extent in order to get the promotional efforts successful.
Reasons for the Significance of Sales Promotion
The sales promotion is gaining high significance because of the following reasons,
- Existence of increased interfirm rivalry in industry as well as in all sectors of the economy.
- Because of trades resistance which restricts the firms to invest in designing the promotion mix of different companies which have been emerging.
- Because of trades resistance which restricts the firms to invest in designing the promotion mix of different companies which have been emerging.
- Fragmentation of viewers and readers as a result of television channels, newspapers, magazines etc.
- Sales promotion cost is affordable when compared to the cost of mass media.
Types of Sales Promotion
The various types of sales promotions include the following:
