Do you know the meaning of sales promotion? We will discuss the exact meaning and importance of sales promotion in brief. Sales promotion plays a very important role in the marketing of the product and services. In the same way, sales promotion is the main element of promotion.
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Meaning of sales promotion
sales promotion refers to any activities or steps that are taken for the purpose of stimulating consumer purchasing or increasing sales. It is one of the main components of the promotion mix. In the same way, sales promotion helps to bring more customers by doing different activities. It leads to huge sales of goods and services.
Sales promotion is the main tool for huge selling as well as expansion of the product or introduction of a new product. In the same way, It is mainly conducted for consumers, dealers or intermediaries, and the sales force. It is the way that adds extra value to the product. In this way, It stimulates the consumers and intermediaries to buy the product.
There are two types of sales promotion:
- Consumer promotion: It includes the activities that inform the customer ar stimulate them to buy a certain product. The common method of consumer promotion is coupon, refund, contests, free samples, display, premium, and so on.
- Trade promotion: it includes the activities that inform or stimulate resellers or intermediaries like a wholesaler, and retailers to buy the product. The common method of trade promotion is price off, sales contests, credit facilities, allowances, and so on.
Importance of sales promotion
Sales promotion plays a very important role in marketing. Its importance is in the following facts:
1. Quick sales
As we know sales promotion stimulates the customer to buy certain products or services. In the same way, It helps to sell huge products in a faster way. Many facilities are provided for a certain period of time. In this way, the consumer buys the product before the period expires.
2. Competitive strengths
In the same way, sales promotion helps to fight against competitors. Discounts, free samples, free gifts, coupons, etc help the firm to compete with other competitors’ firms. In this way, It strengthens competitive power.
3. Encourage more purchase
sales promotion helps to attract new customers as well as current customers. Activities like free sampling, discounts, consumer contests, refunds, and premiums lead to huge and aggressive sales. These incentives stimulate consumers to purchase more.
4. Attract new customers
Sales promotion plays an important role to attract and identify new customers. It stimulates the potential customer to buy a certain product or service. The many facilities like gifts, coupons, refunds, and so on help to attract new customers.
5. New product
Sales promotion plays a significant role to introduce a new product to the market. Discounts, free sampling, low prices, consumer contests,s and so on are the sales promotion tool. In this way, It helps to introduce a new product in the market.
6. Increase Brand awareness
In the same way, sales promotion plays a vital role to increase the brand awareness of the business firm. Displays, contests, shows, exposition, demonstrations, and other programs help to increase the brand awareness of the businesses.
7. Increase intermediaries Inventories
Sales promotion also plays an important role to increase resellers’ inventories. Trade promotions like free goods, allowances, sales contests, credit facilities, and so on increase reseller’s inventories. In the same way, resellers want to carry a producer’s products and market these products effectively.
8. Stabilize a fluctuating sales pattern
The demand for the product may fluctuate due to the change in the economy, environmental forces, and so on. In this situation, sales promotion helps to stabilize a fluctuating ales pattern through aggressive sales. In this way, sales promotion helps to stabilize a fluctuating sales pattern.