You may have noticed that many small or big brands use some exceptional sales promotion techniques to increase their sales further, and this also creates buzz about their products. Astonishing offers an increase in the buying capacity of the customer. In this article, we talk about sales promotional methods, but before we dive in, let’s understand the meaning of sales promotion.
Sales promotion refers to short-term greed, which provokes buyers to buy the product. These activities include offering additional discounts, gift offers, and others. The ultimate objective of sales promotion is to escalate sales and profits, but it differs from advertising approaches and techniques. It supplements other promotional efforts such as advertising, digital campaigns, and personal selling.
Sales promotion Techniques used for:
- Customers in the form of a discount coupon, flash sales, gifts, reward points, etc.
- Traders in the form of dealer discounts, dealer incentives, contests, etc.
- Salesperson in the form of bonuses, special offers, etc.
Now, it’s time to explore well-known Sales Promotion Techniques.
Sales Promotion Examples
It means to offer the product at a price less than the original cost to clear off the excess inventory. It’s one of the generic ways to boost sales. You may have seen this example somewhere in your locality, and you will often get some discounts in big retail grocery stores, department stores. Although it does not affect the sales much, if you are getting small rebates on the items you need, you would definitely like to have it.
For example: offer a soft drink company to sell its bottle of 500ml, at Rs 30 instead of the original price of Rs35.
Every buyer thinks that when Black Friday or some flash sale is out. Discount works like magic for many customers. They shop extensively in the festive season, summer/winter clearance sales due to not being able to shop or can’t afford during regular seasonal days.
Getting a significant discount is an ecstatic moment. Isn’t it. Offering insane discounts is the evergreen way for brands to increase sales volume. Companies offer huge discounts to induce consumers to buy more. By cutting prices, it is beneficial for both customers and retailers. It creates the possibility of buying more at a lower price and helps retailers sell out their old and new stocks.
For example, Diwali festive sale is live, Discount of 50% off in Big Bazaar.
Free Gifts or vouchers
Businesses use this sales promotion techniques in different ways. Sometimes it is not useful, but still, it hopes that the company’s sales will increase. You receive an item as a gift with the main product’s purchase, although the product includes the free item’s price. When promoted effectively, sales increase and customers get a chance to get some items for free. Conversely, this does not happen every time. You can get a free shopping voucher for Rs 500 for shopping above the expected amount., 1 GB memory card with a mobile, a toothbrush with toothpaste, etc.
Buy One Get One Free:
(Well known as BOGO) one of the most spectacular methods for business’s goals fulfillment. Women have a strong desire to shop. They intend to buy more; When they pay for one item and get another for free. Seeing a great deal will awaken anyone’s desire as it is used as a self-liquidation that increases sales. For example, getting two sarees at the cost of one, then who wise woman would not want to take it. BOGO deals occur in every segment of daily consumption; Whether it’s fashion apparel, non-food, or food items. Sometimes it can be used in service class business, such as in spas, salons, etc., to create awareness about a new brand or shop.
It may be less appealing as other methods, but it has uses in online mode to the maximum. In this technique, a coupon or discount voucher is given to consumers on purchasing a product to avail of particular benefits, and users can redeem it with the purchase meant of some specific items. You can get vouchers like; Get a 30% discount voucher on the booking of an international flight and redeem it on branded apparel. You also get coupons through offline shopping, but users prefer to use it online as you can earn cashback.
Since electronic items are expensive, customers cannot pay in full, so companies use this scheme to encash products. Under this scheme, the product is sold on an installment basis at a 0% interest rate. However, one must be careful about the file fees or hidden charges in such schemes, which may perhaps bother you later. For example, buy LG TV at 0% interest and pay in 24 easy installments.
Distribution of free samples
Do you have something that people can eat or drink, or you could have a product that a person can smell like perfume? If yes! So show samples. In General, customers get acquainted with the quality and taste of the product to some extent by obtaining free samples of food products such as tea, biscuits, and snacks.
The sample can be delivered in-store or door-to-door. Usually, people would like to taste it before purchasing any product they have not seen and heard about. Pharmaceutical companies give out free samples of medicines to doctors. Moreover, a smart salesperson can encourage the customer by explaining the product with his excellent presentation skills.
Fairs and Exhibitions
Trade or fashion fairs, parades, and exhibitions are essential sales promotion techniques that do not involve colossal marketing costs to gather customers (like online ads, TV ads, etc.). They provide a platform for an exhibition or showcase of the product.
Generally, fairs and exhibitions are organizing by companies or trade associations on a large scale. At these fairs and exhibitions, stalls are allotted to the trading companies they display their products. Fairs and exhibitions have broad appeal as many people visit these exhibitions to buy some stuff. Customers are attracted by gifts, special concessions, and a free showcase of specialized and exceptional products. The National Book Trust organizes a World Book Fair in New Delhi every two years, where publishers worldwide are invited to display their publications. Trade shows, demonstrations, and displays of a product (e.g., mixer grinder, water purifier, vacuum cleaner) attract attention and encourage on-the-spot sales. Clothing manufacturers often organize fashion shows to promote their products.
Limited time sale
You have a big discount, placed a Buy One Get One offer, but what if you spice it up limited-time sale board on your store. Seeing this offer, people get excited as they enjoy a handsome deal on big brands. Limited-time sales create an urgency for the consumers, and the customers buy more quickly for fear of losing amazing offers. To get instant gratification, make your buying decision instantaneous because the proposal is for a limited period, a maximum of 3-5 days. Whether it is organized online or offline, people happily like this sales promotion technique, and the sales volume increases rapidly.
Other Examples to Promote Sales:
Lucky Draw and Assigned gifts
Under this method, the customer gets a coupon on purchasing the product, like scratching the card to win a particular gift. Sometimes a lucky draw is held, and multiple draws decide the winners. The winner is entitled to gifts. For example, get a lucky draw coupon worth Rs 500 on the shopping of above Rs 2000.
Under this method, consumers participate in competitive events organized by a firm, and winners get assured prizes. Such a contest involves the application of skills or luck. For example, contest to write a good slogan for a company to win exciting gifts.
Advertising is a non-individual collective way of promoting sales. It plays a vital role in facing competition, stabilizing demand, increasing sales, building goodwill, introducing new products, etc. There are some old and traditional sales promotion techniques that people know. Furthermore, it would be best to think of unique and creative promotional strategies to differently advertise your business.