8.10:
Sales Promotion I
Sales promotions are short-term incentives designed to stimulate purchases of goods and services.
Businesses leverage these promotions to unveil exciting new products, amplify brand visibility, gather customer data, and outshine competitors.
It helps improve seasonal sales and ignite a sense of urgency among shoppers.
For example, the promotional tactics employed during the Black Friday sales after Thanksgiving allure customers and help increase revenue substantially.
Sales promotions offer numerous advantages, such as expanding the customer base, clearing out unsold inventories, triggering trial purchases, and increasing short-term revenues.
It also encourages repeat purchases and fosters loyalty.
For instance, Starbucks rewards incentivize repeat purchases to retain existing customers and maximize the lifetime value of each customer.
On the flip side, sales promotions, like frequent or heavy discounts, might risk long-term profitability and sales, eventually damaging the brand's image.
8.10 Sales Promotion I
Sales promotion is a vital component of a company's marketing strategy. It is a set of activities or techniques that are used to increase the sales of a product or service.
Sales promotions boost sales by offering time-sensitive incentives like discounts, coupons, or buy-one-get-one-free deals, which attract customer interest and encourage immediate purchases, leading to a significant increase in short-term sales.
Sales promotion plays an important role in attracting new customers by enticing them to try products or services they might not have considered. This expands the customer base and potentially leads to repeat business. Sales promotions can clear out old or overstocked inventory by offering discounted prices. This helps quickly move items off the shelves, making room for new stock. Sales promotions can be instrumental during the launch of a new product. Special introductory offers can create buzz and drive initial sales, setting the stage for long-term success.
In conclusion, sales promotion is a powerful tool for distinguishing a company in a competitive market, paving the way for both immediate gains and sustained business growth.