Use promotions and offers to increase sales
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The easiest way to increase sales is to cut prices, but most
businesses try to avoid this. Their reasons are twofold: firstly, they fear
that it will erode peoples' perceptions of the value of their products; and,
secondly, it is expensive - effectively it means they must give money to all
their customers. Sales promotion helps companies to overcome these two problems, and
as a result is a multi-billion pound industry. Businesses use sales promotions
to generate new or renewed interest in their products, as well as increase
sales in the short term. The range of promotions and offers which are in regular use
include: On-pack promotions contained on the outside
packaging of the product. In-pack premiums, which are special offers only
available once the product packaging has been opened. This allows you to
differentiate your promotion between buyers who see the outside packaging and
consumers who also see the inside. Multi-purchase offers encourage consumers to
try other products, perhaps for the first time. Extra product has the attraction of only
costing you the raw material content but the consumer feels the full benefit as
if it had been supplied at the purchase price. Free product is a promotion used as an
encouragement to first time buyers in the expectation that they will like the
product and become a regular user. Money off vouchers and money off next purchase
give the customer extra value, but only when they buy more product or repeat
purchase. Competitions, draws, sweepstakes allow you to
offer larger rewards to smaller groups of customers. All those taking part feel
some benefit; as if they were receiving say a free lottery ticket. You also
have a newsworthy main prize, which can attract a lot of interest and perhaps
publicity. Promotions and offers must comply with certain, often stringent,
legal requirements. It is also in your company's best interest to not upset
customers by failing to meet reasonable expectations. The areas to consider
when putting a promotion together include: - Precise nature of item on offer
- Limit of entries per household (if applicable)
- Number and actual proofs of purchase required
- Despatch date - period within which goods should be received
(not more than 30 days)
- Consumer participation limitations (e.g. age limits, number of
entries, no employees/agency)
- Promoters name and address and company registration
particulars
- Exclusion of responsibility for applications lost,
delayed
- Closing date
- Judging criteria
- Winner notification and timing
- Availability/access of winners list and results
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