Sales promotion is a marketing
tool used especially in the con-
sumer goods and retail sectors. It is adopted to in diverse
contexts and to meet various objectives, such as to build loyalty and
retain one's customers, to shift consumers' loyalty from competing brands
towards one's own brand, to induce trials when launching new
products, and to reduce inventory during the lean season, as a
supplement to advertising.
Promotions are also, at times, resorted to independently by
retailers to hold and sustain their customer base and improve their
own brand loyalty. Each day, we get to see new sales promotions from
various marketers, such as a free toy in a pack of potato chips or the offer of
a loyalty card by a retail outlet. The right promotional strategy at
the right time can bring in rich dividends for the marketer. A lot of
research and study is put into understanding what type of
promotion suits a product best, at what time/season, and for how long.
Any wrong move could hurt the brand image; so, all the care must be
taken to adopt the right strategy and implement it in the right context.
Sales promotion campaigns are aimed at making psychological
and emotional impact on the target consumers. The main aim is to
encourage purchase, increase the quantity of purchase or the purchase
frequency. Creatively designed sales promotions strike the right cord in
the customer's mind and drive her to accept the offer (such as a price
discount, a gift, or extra quantity for the same price), without losing the
opportunity. |