What is sales promotion? Major sales promotion tools in Marketing
What is Sales Promotion? What role does sales/trade promotion play for businesses in general and marketing activities in particular? How many sales promotion tools (forms of trade promotion/Sales Promotion) in Marketing? What are those tools? How to use?
What is sales promotion?
Sales promotion, also known as trade promotion, are programs and activities with the aim of motivating customers to make purchasing decisions in a short time.
In the Marketing mix strategy, sales promotion is one of the 4 Promotional Mix tools. Sales promotion includes the form of Trial - Samples, Coupons - Coupons, Cashback - Refund... for consumers and Discount, Allowance... for home audiences. distribution.
The role of sales promotion to a businesses
- It is a powerful tool to help businesses increase sales in a certain period of time, especially at a time of intense competition.
- Support the sales team in persuading customers to buy.
- As a supporting factor for advertising programs, helping advertising messages become more attractive, easier to reach target audiences.
- It is a means of increasing customer loyalty to the business's brand.
Major sales/trade promotion tools (forms)
There are a lot of sales promotion tools that already exist, so to make it easier for you to remember and visualize, hocmarketing.org will classify these tools into 2 groups, based on market criteria, Target audience, including: Sales Promotion Tools for Consumer Market and Business Market Sale Promition Tools
Sales Promotion Tools for Consumer Market
As tools aimed at the end consumers, including:
Samples
Manufacturers give trial samples to target customers to use, feel and then decide to buy. This tool is often used for general consumer products, especially food.
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We can easily see the image of "trial samples" in supermarkets, shops, schools, streets... |
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Coupon/Voucher
Manufacturers launch coupons through means such as direct distribution at the store, printed in magazines, discount codes on websites, mobile applications... so that customers can use these coupons. This coupon is for the purpose of buying products/services at a lower price than usual.
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Traditional Vouchers |
Online Vouchers |
Refund
Exists in the form of a sales policy of a manufacturer or distributor, with a commitment to refund part or all of the money you have paid for the purchase of a product if the product has a problem. malfunction due to manufacturer's fault during use and within a certain period of time.
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Refund program in an online store |
Refund program at Brands River |
Price packs
Instead of just selling products in a single form, a manufacturer or store will sell them in packages, or bundles, boxes with 2 or more products and a price cheaper than the total value of the individual products.
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A pack of Doublemint |
A pack of Fixodent |
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A bucket of CocaCola |
A basket of foods and drinks |
Buy 1 get 1 free
Buy 1 of this product will get 1 or more products of the same or different types for free.
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Gifts
Giving gifts to customers (usually loyal customers) to increase the loyalty of old customers, stimulate old customers to continue to return to buy products or use services.
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A gift from Porsche |
A gift from Standard Chartered |
Competition/games
Organizing programs, activities, games, draws... with prizes at sales locations, fairs, exhibitions, schools...
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Lucky wheel at a store |
Lucky Draw at NeeBank |
B. Sale Promition Tools for Business Market
Trade discount
The manufacturer offers a discount on the invoice in case the distributor buys the product in bulk. Or for businesses that supply raw materials and components, they will reduce prices for production units when their purchase invoices reach the required quantity.
Trade allowance
Manufacturers finance the cost of gasoline, transportation, and hiring salespeople for distributors and retailers.
Trade offerings
CocaCola offers free fridges for retailters
The manufacturer donates specialized equipment and supplies to support sales such as product display shelves, cash registers, receipt printers, product weighing equipment... to distributors, Retail store
PB & PG
A PG at a retail store
Usually, PB (Promotional Boy) and PG (Promotional Girl) often appear at trade shows for the purpose of promoting images, but in the corporate market, manufacturers will sometimes use PB and PG. with the purpose of both sponsoring sales human resources for stores, retailers, and promoting the brand image.
Frequently Asked Questions (FAQ)
Sales promotion refers to the short-term tactics and incentives used by businesses to encourage customers to buy their products or services.
The major sales promotion tools in marketing include coupons, discounts, rebates, samples, contests, sweepstakes, loyalty programs, and point-of-purchase displays.
A coupon is a document or ticket that can be redeemed for a discount or rebate when purchasing a product or service.
A loyalty program is a marketing strategy that rewards customers for repeat business by offering incentives such as discounts, free products, or exclusive access to events.
A point-of-purchase display is a promotional tool used by businesses to attract customers at the location where the product is sold, such as a store shelf or checkout counter.
