A sales promotion is implemented in order to motivate a client/customer or prospect to do something. Sales promotion tactics include coupons, sweepstakes, BOGO, percentage off, etc…and can attempt to satisfy broad marketing objectives such as:
- Taking your competitor’s customers or warding off competition
- Attracting brand new customers
- Stimulating/increasing repeat or bigger purchases
- Encouraging consumer to purchase a new brand or do business with new vendor
- Supporting or enhancing other advertising or sales initiatives
- Helping to cushion a price increase
- Helping to cross-sell another product to existing customers
- Helping to motivate the sales force by giving them a new sales incentive or tool
- Making your distributors, retailers, or other intermediaries happy and more willing to push your product or service
- Helping to gain access to greater distribution
- Helping you migrate customers to direct or Web-based purchasing
- Maintaining or increasing your market share
- Attracting frequent switchers – those customers who are always looking for a deal
- Attracting a specific, attractive segment (or group) of customers with an offer designed for and distributed to them
Post-Sales Promotion Program Analysis – Ask the following questions in order to learn what to do or not do when developing your next program:
- Did your promotion reach your target market?
- Did your method of distribution get to enough of your target market?
- Did you offer enough of an incentive to attract new business (indicated by sufficiently high redemption rates)?
- Did you offer more than you needed to in order to attract new business (indicated by far higher redemption rates than expected)?
- Were your fixed costs higher than you expected – and if so, how can you cut them next time?
- Were too many of your incentives misredeemed and, if so, how can you reduce errors and/or cheating in the future?
- Did processing each incentive cost more than you expected and, if so, how can you reduce this handling cost next time?
Please feel free to shoot me an email if you have any questions…I’m always happy to help!
Danielle Foley ~ www.FoleyMarketingAdvisors.com ~ 973.632.9170 ~ firstname.lastname@example.org