Sales Promotion Concept

Definition of Sales Promotion

In 21st century, the age of information and technology, market-marketing conditions change in line with social change and developments in the field of business. Developing technology helps companies improve their production capabilities. Thus, consumers can continuously find new brands and products all together, and find different quality, price and type alternatives in every area. Fierce competition environment, increasing resemblance of enterprises and products accompanied with ever changing and increasing wants and needs of consumers introduce survival challenges for enterprises.

Enterprises whose main purpose is to generate profit want to achieve that purpose by adopting a buyer-oriented approach while they are also required to satisfy changing consumer needs. For this, in order to establish a long-term relationship as required by the changing marketing concept, the biggest role is undertaken by shopper marketing. Today, when a conscious consumer chooses a product or service, that consumer does not only want to satisfy his/her need but also wants to know what is the difference of and what added values are offered by that product or service.

Focal point of modern marketing approach is consumers, and enterprises need to adopt a consumer-driven marketing approach, providing products and services in accordance with desires, wants, and expectations of consumers. At that point, the most important issue is to know what the consumers want and what they like because consumers’ buying behaviour is quite complicated. When doing the purchase, the consumer is under the influence of many internal and external factors.

The key point in shopper marketing is to turn a customer who does shopping in a store into a buyer of product. In other words, the main goal in shopper marketing is to shape purchase decisions of shopper in the store, right next to the product. Moreover, that marketing concept makes it possible to direct customers to a point of sale they prefer depending on their shopping habits.

Sales Promotion Activities

Sales promotion refers to communication activities that provide extra incentives to customers or to the sales force that tries to achieve a short-term objective. Sales promotion initiatives are often referred to as “below the line” activities.

Sales promotion activities can be oriented toward final buyers (consumer promotions), business customers (business promotions), retailers and wholesalers (trade promotions) and members of the sales force (sales force promotions) and include the following.

  • Consumer promotions
    • Point of purchase display material
    • In-store demonstrations, samplings and celebrity appearances
    • On-pack offers, multi-packs and bonuses
    • Loyalty reward programs
  • Business Promotions
    • Seminars and workshops
    • Conference presentations
    • Trade show displays
    • Direct mail campaigns
    • Newsletters
    • Event sponsorship
  • Trade promotions
    • Reward incentives linked to purchases or sales
    • Competitors
    • Corporate entertainment
  • Sales force promotions
    • Commissions
    • Sales competitions with prizes or awards

Purposes and Characteristics of Sales Promotion

Shopper marketing has become a focal point for many big and reputable brands of the world. Though it was quite hard to access people through traditional ways, now such problems are being overcome through shopper marketing. Shopper marketing has already become a strategic priority for many producers.

Today, studies carried out in the field of retailing suggest that factors such as quality of service offered in accordance with changing life styles and consumption cultures of consumers and inner and outer look of store (store showcase order, decoration and lighting) have gain more dominance in influencing consumer preferences.

Shopper marketing activities are a means of communication between customers, stores, and products. Generally, more than one marketing methods are used in order to establish a communication between consumers and products offered in shopping centres. Decisions must be have been made regarding products to be offered together with a specific product to be selected in order to increase spending in a store and make the consumers to mentally differentiate the point of sale in the shopping centre from others.

In shopper marketing, changing expectations and requirements of the consumer are continuously observed. Such observations can be turned into an opportunity for the business. For example, consumers in a shopping centre will first decide the shopping category in which they will do the shopping, and then decide which brand to choose in that category, and finally decide the amount of purchase. Here, in-store placement of products at points of sale also has great importance.

Purposes of sales development activities for shoppers include accessing new customers, maintaining existing customers, increasing buying amounts of customers, and accelerating use of product. Purposes of sales development activities also include introducing new product to customers and support the message delivered through commercials, facilitate presentation of new products, boost sale of existing products, urge new customers to try existing products and reinforce brand loyalty. As a result, sales development activities boost the frequency of visits to stores and points of sale for shopping purposes. Sales development activities play an important role on impulse and unplanned purchases at points of sale.

Sources:

  1. Rao, S. R. (2010). Point of Purchase. Business Article Repository of Cite
  2. Walters, R. G. and Rinne, H. J. (1986). An Empirical Investigation into the Impact of Promotions on Retail Store Performance. J. Retailing62(3) 237-266
  3. Pelsmacker. (2001). Marketing Communications. London: Prentice Hail
  4. Cuellar-Healey, S. (2013). Marketing Module 8: Promotion. Cornell University. Retrieved from Cornell University
  5. Winer R.S and Dhar, R. (2011). Marketing management. Pearson Education Limited
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