How can sales promotion benefit your brand

Updated: Aug 20, 2020

Sales promotion is a very short term tool in promotion mix. If the role of advertising is to facilitate the "buying" of the product, the role of sales promotion is to fast track the "buying" to "buy now".

Some of the most famous forms of sales promotion are cross selling or up-selling. Cross selling is the process in which we try to sell the complimentary products along with the product of contention to the customer. For e.g. trying to sell french fries along with an order of cold drinks.

Up-selling is the process in which we try to sell more expensive products or upgraded version of the product or premium products to the customer.

Scope of sales promotion

Sales promotions are used by almost all kinds of organisations which includes manufacturers, retailers and distributors. Usually, sales promotions are of following types:

  • Consumer promotions: which is targeted towards final buyers

  • Trade promotions: which is targeted towards retailers and wholesalers

  • Business promotions: which target the business customers

  • Sales Force promotions

There are several reasons which add up to the growth of sales promotion, especially in consumer markets. They are:

  1. In a highly competitive world, sales promotion turns out to be the most effective tool for the managers in company to use, in order to fulfill more sales target in less time.

  2. Sales promotion helps a consumers see the points of differentiation amongst products thereby, helping consumers choose right product or services to them.

  3. Sales promotions also help offer lucrative deals thereby, making customers turn their interest towards the brand buy their products/services.

Apart from the above advantages of sales promotion, there is also a pertinent downside of sales promotion. More and more application of sales promotion by more and more companies has resulted in a problem called promotion clutter. This runs a risk of being lost in a sea of promotions , weakening its ability to trigger immediate interests and reactions from consumers.

Objectives of sales promotion

The objective of sales promotion varies with time, requirement and the engaging mediums of the business.

The objective of consumer promotion is to ensure a very exponential spur in sales of product/services to the end line customers in a very short time, while that of trade promotions is to tie up with the retailers so as to get maximum shelf space as well as, the most attractive visibility of their product in the retail.

The objective of the business promotion is to generate business leads and stimulate purchases, the main objective of sales promotion is to get more sales supports for existing or new products and having salespeople onboard to sign up new accounts.

Generally sales promotions are used in tandem with other forms of marketing like advertising, direct selling, digital marketing etc.

If followed properly, not only does sales promotion increase the short term sales of products, but also facilitates long-term customer relationships. Rather than concentrating on "price only" promotion, sales promotion can also host a barrage of other services which can increase the equity of the brand.One of the most important processes that is followed these days is the inclusion of "loyalty cards" and "frequency marketing programs" where loyal and frequent customers may be given privileges.

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