Advertising:Strategies to make a successful sales promotion - Term Paper Example

?Advertising: Strategies to make a successful sales promotion Table of Contents Introduction 3 Business Location 4 Conducive to culture 5 Buying Power of Customers 6 Professionalism 7 Conclusion 8 Reference 9 Introduction Sales promotions include communication activities that help in adding value to the customers, wholesalers and retailers. Sales promotion helps in building interest amongst the customers by making them purchase the product. Some of the techniques related to sales promotion are premiums, samples, point of purchase displays, contests, etc. Sales promotion is an important tool in the process of marketing an organization’s product or service. It aims at improving sales of an organization by altering the behavioral pattern of consumers towards purchasing of product or services. It also helps an organization to boost its sales by attracting new customers and at the same retaining the existing ones. The strategies of sales promotion include push, pull and mixed strategies. In push strategy sales promotion involves mediators to push the product of an organization to consumers through the distribution channels. In pull strategy of sales promotion it is the consumer who demands for the product of an organization and pulls it through the distribution channel. Mixed strategy is implemented when the product requires a push from the customers as well as the intermediaries (King, 2012). The different tactics involved in sales promotion are cash refunds, premiums, loyalty programs, coupons, etc. Business Location Business location is an important aspect related to the sales promotion strategy developed by an organization. It is important for an organization to evaluate and analyze a location most preferable to launch a new product. Business location can play a major role in assuring good sales promotion strategy for an organization or may even affect the implementation of strategy. It is important to locate a business area which can accommodate the desired target market within its reach. Sales promotion strategy depends on various factors which forms a part of the business location such as competitors, workforce, cost of sales promotion, market, etc (Pinson & Jinnett, 2006, p. 39-40). Sales promotion strategies which are aimed at customer or are customer oriented holds an important place in the itinerary of an organization. Launching a new product largely depends on the result of sales over time which otherwise depends on the business location (Rukuiziene, 2011, p. 230). These strategies begin with the evaluation of location from where an organization wants to launch its product to draw large number of customers. A good business location needs less sales promotion but a location away from the target market requires sales promotion to attract customers. The main aim of sales promotion strategies implemented are related to boosting sales and drawing large customer base which is very important for any organization considering the business location. Conducive to culture Sales promotion is looked upon as the most efficient method to help an organization in boosting the sales of the product (King, 2012). Sales promotion strategies implemented by the organizations have a universal presence across different cultures. The difference occurs in the implementation of these strategies as different cultures have different preferences and so the strategies require a change over before being implemented. Some of the basic objectives that are attained through sales promotion are found to be valid across different cultures. The main objective is to ensure that a customer goes for an initial purchase of the product or prefers a trial, opts for an immediate purchase (Usunier, 2000, p. 325). Different cultural backgrounds and different nations bring in few complications in the process of sales promotion. It is important for an organization to offer discounts, coupons, cash back, etc. according to the norms and regulation of that particular country. An organization is required to investigate legal complications before implementing the sales promotion strategies. Contests which are a part of sales promotion strategies are against religious norms in many countries and people keep themselves away from participation. Finally it can be said that the implications of sales promotion will be different in different culture and nation. Organizations are required to adjust according to the demand of the culture to have an edge over competitors (Clow & Baack, 2012, p. 372). Buying Power of Customers Buying power of customers largely depends on the economic conditions and resources such as services, money and goods. The main sources related to the buying power of customers are the wealth, income and credit. It is important for an organization to evaluate these sources to have a holistic view of the customer’s buying power and accordingly implement the sales promotion strategies. Unless customers have the money to purchase and spend on the products no sales promotion strategy will bring a change in the sales of an organization. It is important to implement the strategies based on customer’s buying behavior and especially in the case of new product launch (Pride & Ferrell, 2011, p. 69). Sales promotion strategy depends on the commitment towards the product in enhancing its sale (Rukuiziene, 2011, p. 230). Sales promotion strategies will work only if a customer is willing to spend on a product. The cost of sales promotion is high and if it is not well directed than the company is sure to incur loss. The loss will not only be financial but also in terms of market share. The company will also lose out on competitors in attaining large market share and revenue. For this reason evaluation of buying power of customer is recommended for an effective implementation of sales promotion strategies. Professionalism Sales promotion has seen unprecedented growth over the years and the credit largely goes to the professionalism of organizations. Sales promotions are not merely a tool to attract customers but it is more than that, it has become an important part of an organization in context to its business. It is very important for an organization to have a professional approach towards the business market. The professionalism of organizations helps them to gain large market share and respect of customers also (Baker, Graham & Harker, 1998, p. 411). A professional organization is required to know and understand the target market to be able to proceed with the sales promotion. Target based approached helps an organization to be more effective in satisfying needs and being more professional (Kotler & Armstrong, 2008, p. 190). Implementation of sales promotion strategies depends a great deal on the understanding a situation, followed by developing strategies in context to sales promotion, maintaining professionalism and lastly communicating effectively with the customers. In other words it can be said a proper planning with a systematic approach towards sales promotion will have a great impact on the customers. Professionalism in sales promotion has brought fundamental change in organizations approach especially in context to the world of business. It has also given organizations significant edge over their counterparts by ensuring increase in sales and revenue. Conclusion Sales promotion is an important tool of integrated marketing communication. Organizations around the world are implementing various sales promotion strategies to woo the customers. These strategies are used in context to the launch of new product or to boost sales of the existing products. The techniques of sales promotion have seen a considerable change over the years but the objective behind its implementation remains the same. Though sales promotion is a short-term approach but it is an important part of selling for an organization (Chunawalla, 2010, p. 60). The strategies related to sales promotion help an organization to encourage the participation of customers by offering various benefits which otherwise helps the organization to boost its sales and attract new customers. Reference Baker, M. J., Graham, P., & Harker, D. (1998). Marketing: Managerial Foundations. China: Macmillan Education AU. Chunawalla, S. A. (2010). First Steps In Advertising and Sales Promotion. Mumbai: Himalaya Publishing House. Clow, K. E., & Baack, D. (2012). Integrated Advertising, Promotion and Marketing Communications, (Ed. 4). New Delhi: Pearson Education India. King, W. (2012). Sales Promotion Strategies. Retrieved from http://ezinearticles.com/?Sales-Promotion-Strategies&id=3959138. Kotler, P., & Armstrong, G. (2008). Principles of Marketing, (Ed. 12). USA: Pearson Prentice Hall. Pinson, L., & Jennitt, J. (2006). Steps to Small Business Start-Up, (Ed.6). USA: Kalpan Publishing. Pride, W. M., & Ferrell, O. C. (2011). Marketing. USA: Cengage Learning. Rukuiziene, R. (2011). Strategic Sales Management Mix for a Launched New Product. The Opportunities and Challenges for Agriculture and Rural Development, 229 (34). Retrieved from http://0-web.ebscohost.com.mylibrary.qu.edu.qa. Usunier, J. C. (2000). Marketing Across Cultures. New Delhi: Pearson Education India. Read More