Each type of sales promotion can help a company derive some benefits.
Benefits of a Consumer Promotion Activity
- Sales promotion generally gives an immediate rise in sales.
- Sales promotion is used to clear out non-moving stock or to clear space for adding new stock in our stores.
- It helps against a competitor’s move. When some competitor comes out with a cheaper product or an offer threatening to eat away some of our sales, we can use some sales promotion to safeguard our sales.
- Sales promotion helps to protect against probable reduction in sales due to a price rise. An offer immediately after announcing a price hike delays the actual impact of the rise to the customer, making it easier for them to absorb the price hike.
- It helps the customer in making the buying decision. Sales promotion gives them an incentive to buy our product, because of the immediate price advantage. Some customers wait for festive season for buying high value goods because during that period, many companies announce their sales promotion offers.
- Sales promotion facilitates cross selling. When a company introduces a new product, it can push it to the market by giving the new product free (or at a discounted rate) along with some of its existing product.
- With offers like Buy One Get One Free, the company can effectively sell more units, albeit at lesser revenue.
- It helps in winning other competitors’ customers. If due to our sales promotion offer a customer switches from her regular brand, there are more chances that she may continue buying our product. That is good in the long term to increase our customer base.
Benefits of a Sales Force Promotion Activity
- The sales promotion that will help the salespeople to earn more if they can sell more of a product will motivate them to do so.
- It improves their involvement in the selling process. They may try to approach newer customers, increasing our overall customer base.
- This type of offers may lead to better relationship among the company, the customers and the sales team.
Benefits of a Trade Promotion Activity
- The sales promotion aimed at our trade partners tempts them to display and sell more of our product.
- The visibility of the product at the retail shelves and in the customers’ homes or offices increases. That automatically reduces the shelf space available to other competing brands, reducing their visibility and sales.
- It helps in convincing the channel partners to keep more stock of our product. This will improve availability of the product as well as reduced cost of delivery to the company.
(Expert advice to GROW your business wherever you are, whenever you want.
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