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Retail Marketing

Retail Marketing

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Published by Vinay Singh

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Published by: Vinay Singh on Jul 26, 2010
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10/17/2013

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Sales promotions directed at the end-user, whether by the manufacturer or
the retailer, are called consumer sales promotions. Manufacturer announced
promotions to consumers are based on ‘pull’ strategy of the manufacturer
and retailer announced promotions to consumers constitute ‘push’ strategy
of the retailer.

Objectives of consumer market sales promotions

The following basic objectives can be pursued with sales promotions in the
consumer market.

Stimulate trial purchase

When a firm wants to attract new users sales promotions tools can reduce the
consumer’s risk of trying something new. A reduced price or offer of a
rebate may stimulate trail purchase.

Pantene when it was launched did a lot of sampling, to
stimulate trail purchase. Their efforts have surely shown results, with
Pantene being one of the top selling brands in India today.

Stimulate repeat purchases

In-package coupons good for the next purchase, or the accumulation of
points with repeat purchases, can keep consumers loyal to a particular brand.

The most prominent frequency programs are found in the airline industry
where competitors try to retain their most lucrative costumers by enrolling
them for various perks such as frequent flyers can earn free travel, hotel

stays, gifts etc.

Stimulate larger purchases

Price reductions or two-for-one sales can motivate consumers to stock up on
a brand, thus allowing firms to reduce inventory or increase cash flow.

Many soaps brands are doing sales promotions to stimulate larger purchases.
When people generally come to buy soaps, and see the offers like,

Introduce a new brand

Because sales promotions can attract attention and motivate trial purchase, it
is commonly used for new brand introductions.

Cadbury bytes was promoted with Rs 5 off

Combat or disrupt competitors strategies

Because sales promotions often motivate consumers to buy in large
quantities or try new brands, they can be used to disrupt competitors
marketing strategies. If a firm knows that one of its competitors is launching
a new brand or initiating a new advertising campaign, a well-timed sales
promotions offering deep discounts or extra quantity can disrupt the
competitor strategy. Add to the original discount an in-package coupon for
future purchases, and a marketer can severely compromise competitor’s
efforts.

Contribute to Integrated Marketing Communications

In conjunction with advertising, direct marketing, public relations and other
programs being carried out by a firm, sales promotions can add yet another
type of communication to the mix. Sales promotions suggest an additional
value, with price reductions, premiums, or a chance to win a prize. This is an
additional and different message within the overall communication effort.

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