Question

Discuss the various techniques of sales promotion.

Hint:

Sales promotions are effective when used strategically and tailored to the target audience. The key is to create a sense of urgency or added value that drives immediate action.

Answer 1

Sales promotion refers to short-term incentives designed to encourage the purchase or sale of a product or service. It is used to boost sales, attract customers, and create brand awareness. Some common techniques of sales promotion include:
1. Discounts and Price Reductions: Offering temporary reductions in price to encourage customers to make a purchase. This is one of the most commonly used techniques, as it directly impacts the customer’s decision-making process.
2. Coupons: Coupons are vouchers that provide customers with a discount or offer a special deal when they make a purchase. Coupons can be distributed through newspapers, magazines, or online platforms.
3. Samples: Offering free samples of a product allows potential customers to try the product before making a purchase decision. This technique is often used for new products or to promote a product’s features.
4. Contests and Sweepstakes: Contests and sweepstakes are promotional activities where customers participate for a chance to win a prize. These techniques create excitement and engagement around the brand.
5. Loyalty Programs: Loyalty programs reward repeat customers by offering points, discounts, or special deals based on their purchasing behavior. This technique is designed to increase customer retention and encourage repeat purchases.
6. Trade Promotions: These promotions target retailers or wholesalers and offer them incentives such as volume discounts, allowances, or free goods in exchange for stocking or promoting the product.
7. Point-of-Sale (POS) Displays: These are special displays placed in retail locations to attract attention and encourage customers to buy the product at the point of purchase. They are often used for impulse buying.