1. In this buyer’s market era no business organization can afford to ignore sales promotions. A sales promotion plan can be made more effective when it is hedonic benefit oriented in the case of food products and utilitarian benefit oriented in the case of personal care products. With that in mind, here are nine benefits of running a well-planned sales promotion: Previous post: How QR Codes Can be Used to Share Your Content, Next post: Design Thinking Interview with Clark Kellogg of Collective Invention. Do You Know the 5 Most Powerful Words for Marketers? Sales promotions are a form of marketing used to induce business immediately. Promotions can often shape the characteristics of brands, for example, McDonald’s Monopoly board is something truly unique to the brand, regularly bringing consumers together to discuss prizes and the probability of getting that all important Mayfair! These include: Helps Create Awareness of New Products – Sales promotion is a highly effective methods for exposing customers and business partners to new products and for moving customers to take an action (e.g., sample a product). With that in mind, here are nine benefits of running a well-planned sales promotion: Creates differentiation – When you launch a new product or ask customers to engage with your business in a new way, this sets you apart from your competition. Measuring the effectiveness of sales promotion can be easy when compared to measuring the effectiveness of advertising and personal selling.. For instance, trade discounts, contests, trade allowances, bulk discounts are examples of trade sales promos. Barnum spoke about promotion, he was most likely using the word as a verb. 1. What are other benefits you think of around sales promotions? I’m not talking about promotions where you drop the prices on your existing products significantly, or when you have a blowout sale to move stale inventory. Such promotions can bring in more profits for the manufacturers because they permit price discrimination. Sales Promotion offers many advantages to organizations, dealers and retailers associated with the business and the end customers who buy the products. ~P.T. Some such advantages are: Boosts sales within a short period of time Instead I mean a well-planned, seasonally relevant focus on themes or solutions wrapped around your products that your customers will take note of and value, and that prospects will be enticed to try for the first time. How QR Codes Can be Used to Share Your Content, Design Thinking Interview with Clark Kellogg of Collective Invention, If I Owned a Restaurant, Here’s What I Would Do Immediately (in light of Covid-19 shutdowns). “Without promotion something terrible happens… Nothing!” A successful sales promotion has the ability to nurture relationships with consumers through retention and engagement. Price discrimination: It has the following advantages: Produces immediate sales; Because of these sales’ promotion measures, people get very excited to buy more. Advantages of Sales Promotion. Promotions, when done well, are an effective way for you to market your business or products and services. Disadvantages of sales promotion. How to Create Word-of-Mouth for Your Local Business, 11 Marketing Tactics You Should Steal From Starbucks. Get smart with the Thesis WordPress Theme from DIYthemes. Advertising expenditure can be converted into revenues with the support of sales promotion efforts only. Advantages of Sales Promotion. Barnum. The job of the organization is to extend incentives at the right time so that new customers are attracted to the existing products. • understand the different types of consumer and trade-oriented sales promotion tools, and the reasons for using them. Sales Promotion Advantages. It generates excitement, and customer again wants to purchase the product. It’s a planned and coordinated event meant to sell a specific product or service for a limited time and that meets a seasonally relevant consumer need. Prevents competitor entry or promotions; Advantages of Sales Promotion. What Are the Benefits of a Sales Promotion?. advantages and disadvantages of sales promotion One of the biggest aims and advantages of sales promotion is that it helps boost the sales of a company. Promotional pricing can be an effective short-term strategy, but it should be used sparingly to retain a sense of urgency and to keep your margins sustainable. Sales Promotion Advantages. ADVANTAGES OF SALES PROMOTION Better Sales. SALES PROMOTION MKT 3310 Lecture 9, 2012 1 Lecture objective By the end of today’s class you should: • understand the role of sales promotion in a company's integrated marketing communications program. 10. The major sales promotion advantages are briefly explained below: Getting New Customers for Existing Product: Every organization strives to acquire more customers for their existing products. During the sale promotional period, there is always an increase in the level of sales. When P.T. When I speak of promotions, I mean it as a noun. Coupons, percentage-off deals, rebates, premiums, free trials and samples, contests and sweepstakes are common examples of promotional tools. Posted on May 31, 2008 by Drypen | 0 Comments. Promotional pricing advantages include building brand awareness, having marketing content and moving old inventory off your shelves. “Without promotion something terrible happens… Nothing!”. A sales promotion is a marketing technique that is designed to entice a customer to take a specific action such as make a purchase or request more information.