Wednesday, August 2, 2017

Promotional sales getting the most out of your marketing dollar

One of the most effective and popular methods of increasing sales is through promotions. Sales promotions can be in a form of short-term means the purpose of which is to induce a buyer to make a purchase immediately or in a specified period of time.

Sales promotions can pursue various goals:

-  Promotion of new products and services, prompting the buyer to make a purchase;
-  Encourage customers to make a repeated or multiple purchases;
-  Attraction of new segments of customers;
-  Sale of poorly traded and illiquid goods;
-  Sale of seasonal products at the end of the season;
-  Encourage customers to make regular purchases;
-  Increase in the average purchase amount;
-  Attract customers’ attention to a store or a company.

Here are the most common ways of promotions:

Price discount as a percentage of the cost. This method of sales stimulation is useful when it is necessary to sell a big stock of products, illiquid and unpopular goods, products with expiring shelf life, and also when it is necessary to sell goods from old collections or off-season merchandise.

Discounts for the second and subsequent purchase. The main purpose of this method of stimulating is to increase the total amount of purchase of less popular products. In this case, there may be different ways to use this method. For example, by purchasing one product, a buyer gets a discount on the second at a rate of 20-30%, and on the third at a rate of 50%. This method is often used by the clothes, shoes and appliances stores, i.e. stores, in which usually a purchase consists of one, a maximum of two items.

There is another version of this method of sales promotion when products are formed into kits (usually from two to three products), while the cost of the kit is set lower than if each of the goods was purchased separately. In this case, the main task is to sell illiquid or unpopular merchandise, since the kits, in this case, are formed in such a way that the goods with high demand are combined with goods the demand for which is low.

Regular (simple) discount programs. This mean assumes that the owner of a discount card gets the right to get a discount for all subsequent purchases in this store or in all the store of this trade network. The price discount, in this case, is can be within a range of 3-10%. Discount cards can be issued free of charge, for example, during the opening of a store, during festive events or under the condition of making a purchase for a certain amount.

Cumulative discount cards. This method of sales promotion is an improved version of a simple discount program. In this case, the size of the discount is not fixed, it increases as a buyer makes repeated purchases in the store.

Bonus program is a modification of the discount program. In this case, a buyer is given a bonus card (usually under the same conditions as the discount card), for which certain points (or bonuses) are credited when making each purchase. The bonus card can gather simple points (let’s say 1 dollar = 1 point) or a certain percentage of the purchase amount. For example, if you buy up to $ 100, 3% of the purchase price is credited to the bonus card, with a purchase from $ $100 to $300. - 5% of the cost, etc. As a result, the bonus card can accumulate bonuses or monetary units, which you can use with the next purchase.

Lotteries. Such promotion campaign can combine a lottery and a price discount. It assumes that a lottery is held in a store and price discounts can be a price. Such lotteries can be timed to certain dates, for example, the birthday of a store. Besides discount prizes, a store or a company can offer products it manufactures and sells as a gift.

One of the other ways to promote sales is small wholesale trading when a store offers to buy goods at a reduced price, but on the condition that you simultaneously buy at least four (or other quantity) items of this products.

Promotion with a gift. This type of sales promotion assumes that when making a purchase, a buyer receives a reward in the form of a gift. The condition of getting a price can be a purchase of other products or make a purchase at a certain sum. You have witnessed such stimulation means when promoters display prizes at a table with a custom printed tablecloths as one of these that you can see here so that everyone can see prizes they can possibly get.

Stimulation with a game. Such events include various games, contests, raffles, lotteries, etc. The purpose of these events is to create a friendly atmosphere and get a positive feedback from buyers.

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Promotional sales getting the most out of your marketing dollar

One of the most effective and popular methods of increasing sales is through promotions. Sales promotions can be in a form of short-ter...