To accelerate the sale of their products, companies use various methods of sales promotion. This set of actions is designed to increase customer demand in a short time.
The concept
Today, the competition in any market is so high that enterprises are forced to use methods of sales promotion and sales of new goods. Activities aimed at accelerating the sale of products should be carried out continuously. There are many ways the effect of which affects potential consumers and leads to their desire to purchase a particular product.
Sales promotion is a set of measures necessary for each company interested in successfully promoting its products on the market. Through the introduction of various programs, wholesale buyers, sales representatives, and sales consultants also receive motivation for speedy sales.
Tasks
Starting an active process of selling goods can pursue the following goals:
- sales of a large volume of products;
- introduction of a new brand (product, manufacturer) on the market;
- increasing the effectiveness of promotional events;
- turning the interest of buyers on the goods of the company.
Objectives of motivating intermediaries:
- inclusion of products in a constant range;
- Regular orders in large volumes.
Work with personnel directly in retail outlets is aimed at creating personal interest among employees in order for the goods to be sold as soon as possible.
Benefits
Sales promotion has a number of positive aspects:
- the effect is very fast;
- using various methods, you can attract any target audience;
- from a financial point of view, measures to accelerate sales are available to both large and small organizations;
- motivates to make the next purchase;
- sales are increasing dramatically;
- keeps buyers in good shape, promotes the appearance of excitement;
- supports the work of intermediaries;
- contributes to the overall development of trade.
disadvantages
The disadvantages of stimulating sales of goods include:
- short validity period; advertising support is required to increase it;
- after the completion of various stocks, sales usually fall sharply;
- with the continuous use of incentive methods, they lose their effectiveness;
- some nuances are established and regulated at the legislative level;
- low probability of attracting new regular customers;
- a high percentage of fraud (for example, theft of incentive prizes by intermediaries);
- if the buyer has formed stable preferences, he is unlikely to respond to offers from other companies.
Types
To date, there are three main incentive mechanisms that encourage purchases:
- The general.
- Selective.
- Individual.
The objective of general retail promotion is to revitalize trade. It is aimed at all target audiences and combines the integrated application of several methods: discounts, tastings, coupons, lotteries, gifts, etc.
Selective sales promotion does not need powerful advertising support. The use of this type involves placing the goods separately from the general display, for example, at the entrance to a point of sale, in the middle of the hall, in the aisles between the shelves.
Individual sales stimulation usually comes from the manufacturer.It is held in rooms intended for product viewing, and involves the use, for example, of an unusual packaging design that contains information about bonuses, contests, etc.
Incentive methods, their features
To constantly maintain the interest of buyers in products, quality advertising is needed. For it to work as efficiently as possible, it must be combined with other ways to quickly promote trade.
Effective methods of stimulating the sale of goods are:
- Distribution of free probes. This method helps to attract new customers by providing them with the opportunity to actually test the product and objectively evaluate it. The disadvantage of this method is that the manufacturer cannot predict in advance the degree of success of the sale of goods. In addition, the reception requires significant financial investments.
- Demonstration of the product (tasting, if it is about drinks and food). On the one hand, the consumer has the opportunity to evaluate the product, but on the other, this method works on a small number of people and requires considerable cash costs.
- Mailing leaflets containing information about discounts and benefits. Advantages: excellent susceptibility, unobtrusive communication of the potential buyer with information about the benefits of the acquisition. Disadvantages: peak sales are not immediately reached. The content of the proposal should be given special attention - each line of the text should be composed correctly and motivate the purchase.
- Placing information on discounts in print media. Positive aspects: the method takes into account geographical features and most fully covers the desired target audience. Nevertheless, the degree of susceptibility of this method is low.
- Money back guarantee. The method strengthens the reputation of the company, makes its image positive in the eyes of customers. By creating the image of an organization that is confident in the quality of its products, new consumers are attracted. The main drawback is that sales volumes increase slightly.
- Gift for the purchase. The method does not require significant financial investments, and the level of sales is growing rapidly. But regular customers do not need powerful motivation, in addition, gifts do not always reach the final consumer in full because of the high percentage of thefts by intermediaries.
- Compilation of a set of several products sold at a discount. An effective method that stimulates sales acceleration. The buyer can evaluate several products of the company at once. Negative moment - reduces the level of prestige of the enterprise.
- Competitions, lotteries, games. These methods motivate people to make purchases due to their excitement, an element of rivalry. Consumers have a trusting relationship with the brand. The disadvantage is that in the end, a limited number of people take part in events, and the implementation of ideas is very expensive.
Incentive Forms
The greatest efficiency is achieved through the use of several methods simultaneously. An integrated approach involves combining them in the following forms of sales promotion:
- Price. It represents a temporary reduction in the price level to such a limit that the sales volume increases sharply, but the company does not suffer serious losses due to a decrease in the cost of goods.
- Incentive stimulation. The consumer receives a reward for a completed purchase (prizes, coupons, samplers).
- Active offer. Includes all methods involving the participation of gambling-minded people.
- Stimulation of intermediaries. Techniques aimed at creating a stable interest among sales agents and sellers in a commercially successful result.
- Advertising on the spot. It means bright design, attention-grabbing posters, conspicuous signs, etc.
Features of the implementation of measures
To achieve maximum efficiency when organizing sales promotion, it is necessary to consider the following nuances:
- Too small financial investments will not bring the proper result. It is important to apply the methods in a comprehensive manner; the implementation of one sales volume will not significantly increase.
- When developing a program, it is important to consider the timing of its execution. With a short duration, it will not be possible to attract the maximum number of potential buyers. A protracted stock period is also ineffective.
- If there is such an opportunity, prior to the large-scale introduction of incentive funds, it is recommended to test them first. This is necessary in order to predict the result.
- After the events that encourage people to buy, it is important to assess the degree of their effectiveness.
Finally
In today's market, competitiveness is a must. There are many ways to attract attention of potential customers to the company's products, but their choice should be justified, and the implementation carefully planned. It is important to remember that the method should preserve and strengthen the positive image of the company, and not increase sales once.