The Functions of Sales Promotion
The various functions of sales promotion can be categorized according to their objectives. Generally, these programs are intended to boost product interest, counter the activities of rivals, and reduce seasonal sales decline. The aim of these programs is also to facilitate the salesmen in securing orders and setting up displays in retail stores. Different kinds of sales promotion programs are directed at achieving particular objectives, such as clearing stock, combating competition, or improving a company’s image.
In addition to being an incentive to consumers, sales promotion can benefit the provider of a product, the middleman, and the manufacturer as a whole. This technique ensures expansion of sales, increases the quality of advertisements, and reduces unit costs. It also promotes the manufacturer’s goodwill, allowing it to control the market. Middlemen also find it easier to sell a product that is frequently advertised. In addition, sales promotions encourage consumers to buy products that will help them improve their standard of living.
One of the functions of sales promotion is to make the product stand out among competing products and draw consumers’ attention. For example, a farmer selling livestock may use the techniques of shouting and joking to attract potential customers. Moreover, the California Management Review has defined three types of customer promotions: price incentives, branding information, and emotional appeal. The use of these tools in the sales promotion process removes the gap between advertising and personal selling.
Apart from advertising, sales promotion activities include various other activities that boost demand for a product. These include exhibitions, shows, and demonstrations, as well as distribution of coupons, quizzes, and sample giveaways. All these efforts are focused on making a product more attractive to the consumer. Therefore, sales promotion activities are crucial to increase the efficiency of advertising campaigns. Further, it enables a company to enter a new market and improve its standard of living.
Apart from enhancing business profits, sales promotion training helps salespeople in overcoming objections. Dealing with objections is part of life, but salespeople can overcome objections with effective communication techniques. Asserting their point is another important function of sales promotion training. Those who have completed this training can be confident enough to deal with such situations. It’s important to keep in mind that salespeople face rejection and need to prove their points.
Other types of sales promotion activities include free goods and discounts. These activities are particularly useful in the retail business, where the middlemen are paid a minimal amount to induce dealers to purchase large quantities of products. These activities may include distribution of samples and free advertisements. While these activities are generally expensive, they are an effective way to introduce new products or improve existing ones. They’re an excellent way to increase sales, but must be considered carefully when considering your budget.
In addition to free goods, sales promotions can involve giving out discounts, advertising allowances, and special displays. The seller might also provide free training for distributors, so they can better understand and promote the product. However, some of the best-known sales promotions involve non-recurring selling strategies. These efforts include coupons, door-to-door distribution, and free samples. For the purposes of this type of marketing, the sales promotion of a product is more important than ever.
