When Coca-Cola opened our eyes to it years ago, it seemed too good to be true. All you had to do was buy your favorite soft drink uncork it and instantly, you won whatever the crown cork revealed. Kids were often seen running round the street looking for missing corks. Soon, other soft drink company joined and in no time it spread to other consumer and household items. Today it is not uncommon to see a promotion where you buy three TVs and get one free. One will wonder how the manufacturer or distributors makes their money from giving away such too-good-to-be-true offers. But that is one of the unique things about sales promotions. that you are able to give away that which is perceived to be valuable to customers in such a way as to increase patronage, distinctively, and subsequently soar the bottom-line.
What is Sales Promotion?
Simply put, sales promotion is a marketing tool that offers the consumer a temporary price cutback. It occurs in such a way that the extra volume sold will be over and above what would have been sold without advertising and packaging alone.
Researchers have come to the concussion that the reason for the increase in sales promotion is attributed to increase in competition among manufacturers and sellers.
When Do You Actually Need a Sales Promotion?
That your product is doing badly in the market is not a sufficient reason for you to embark on a sales promotion. Just like advertising cannot sale a bad product, promotion cannot sales a bad product. Sales promotion basically boils down to exploring and taking advantage of key problems and opportunities. It is necessary that you be sure that promotion is what you actually need to solve the present problem before embarking on it.
When Is Sale Promotion Effective?
Sales promotion is most effective when there is a shortfall in brand performance where the business needs to:
Boost Trial Level
This works mostly with new entrants into the market. It becomes a way of encouraging consumers to try a particular product or service, especially when you are confident about the value of the product. Once consumers become familiar or hooked to the product/service, such promotion is often discontinued.
Increase Repurchase Level
This is commonly found in fast-moving consumer goods. The idea is also replicated in other products to an extent that a buyer may even end up buying a particular product for more than one reason/use.
Knowing When Promotion is Least Effective
A lot of products have moved from being brands to ordinary commodity by virtue of the frequency the engage in promotion. That underscores what we said earlier that promotions should not be used as a solution to accepting bad products.
Sales promotion will do little or no good to bad brands and declining brands.
Promotion as Brand Reenforcer
Sales promotion is not only meant to increase sales, it also helps in re-enforcing a brand. Branding, as a rule must complement advertising notions. But must work hand-in-hand to ensure the desired image and position is achieved.
