Means and mode of sales promotion in today business
Business is started to make profits and when the estimated target is not reached one has to find solutions and different ways of increasing the sales .Sales promotion is transferring of information to targeted customers by the use of different techniques popular in the current business environment such as use of coupons, discounts, credit facilities, loss leaders, aftersales.Plenty of businesses have opted for these techniques but fail due to poor planning and lack of guidance. I will be discussing each sale promotion tool in details and how you can effectively utilize to move your business to greater heights.
Sales department or persons incharge need to deploy tools such as discounts, using distinctive features such as communication, invitation and incentivity, the use of gifts given to consumers as inducements should not only give value to customer but also offer quick response, stock clearance and customer retention. The aim is to attract customers to buy a specific amount and later be convinced to try new products, the gifts can also be inform of free shopping bags ,pens, airtime.
Credit facilities utilisation on expensive goods like furniture, refrigerator has the high risk of default and proper risk assessment is required due to the consumers high appetites for quick loans. The business world is competitive although the turnover will seem positive in first instance the chances of running out of cash stock is high if the debts are not well managed. Proper and cheap recovery methods should be practised to avoid unresourcefulness.
Loss leader method of promotion and high end display most commonly used in supermarkets which is attributed by reduction of sellers price on specific goods to create an impression that all goods on sell are cheap which eventually attracts customers to the shop, increasing sales when customers end up buying out of curiosity and impulse. This method works best during festive seasons like Christmas and Idd. Displays require strict security especially when selling expensive valuables like jewelry to avoid theft and burglary ensure you install surveillance cameras.
Discounts and after sales services are other promotional techniques you can deploy, discounts are inform of cash, trade and quantity. Cash discounts involves the reduction of payment price from the invoice .In Air travels this method works best to encourage flight reservation as early as possible by encouraging passengers that apply sooner with reduced prices. During festive seasons consumers rush for products due to high demand towards the dates to avoid price hikes and this method can be ideal .Trade and quantity discounts are almost similar where the price reduction is possible for bulk purchases. It encourages your customers to buy goods from you and avoid moving around for different sellers with bulk sale prices.
The most notable challenges or disadvantages facing some of the discussed methods include cost of promotional agency , credit sales is intensive and runs a high risk of defaulters.