Promotion is a marketing activity used by businesses to encourage short-term increases in sales. Promotional strategies include price discounts, free samples, free trials, competitions, loss leaders, buy one get one deals, free gifts, and loyalty cards. Examples of each strategy are provided such as Shoe Locker having shoe sales, Neutrogena giving out new face cream samples, and Proactive offering a 30 day free trial for their new acne medication.
Promotion is a marketing activity used by businesses to encourage short-term increases in sales. Promotional strategies include price discounts, free samples, free trials, competitions, loss leaders, buy one get one deals, free gifts, and loyalty cards. Examples of each strategy are provided such as Shoe Locker having shoe sales, Neutrogena giving out new face cream samples, and Proactive offering a 30 day free trial for their new acne medication.
Promotion is a marketing activity used by businesses to encourage short-term increases in sales. Promotional strategies include price discounts, free samples, free trials, competitions, loss leaders, buy one get one deals, free gifts, and loyalty cards. Examples of each strategy are provided such as Shoe Locker having shoe sales, Neutrogena giving out new face cream samples, and Proactive offering a 30 day free trial for their new acne medication.
WHAT IS PROMOTION? Promotion is a marketing activity used by businesses to encourage an increase in sales in the short term.
It is different from advertising since advertising is
for long term communication. TYPES OF PROMOTIONAL STRATEGIES PRICE DISCOUNT When using this technique the business reduces the price of goods to attract customers, for a specified time.
For example, Shoe Locker having a sale on brand
name shoes over the weekend. FREE SAMPLES This technique is used with new products on the market. Customers are given a small portion of the product to try. This is done to encourage them to buy the product if they are satisfied with it. FREE SAMPLES For example, S.M. Jaleel may give out samples of a new juice in groceries or, Neutrogena may give out samples of a new face cream at Pennywise cosmetics. FREE TRIALS This is another technique used with new products. The product is used for a period of time and, if the customer is dissatisfied, he /she gets a refund. FREE TRIALS For example, Proactive the acne medication, has a 30 day free trial to encourage customers to try the product since it is new on the market. COMPETITIONS The firm may have a competition to encourage customers to buy more of the product than usual, for a time period, in order to enter. COMPETITIONS For example, Chubby soft drink, may hold a essay writing competition for kids, requiring customers to enter using 10 labels per entries. LOSS LEADERS A business can reduce the price of a product, without making a profit on it, in order to attract customers to the store for a time period. For example, a store can reduce the price of T- shirts to attract customers. Once customers come in the store, they will be tempted to buy other items. BUY ONE GET ONE ( BOGO) Another popular promotional strategy is, “buy one get one”.
For example, Payless Shoe Stores may have a
BOGO sale for a time period. Customers may get half off the second item or the second item free. FREE GIFTS A business can give free gifts to customers upon purchases. For example, Courts furniture store give customers gifts upon purchases during the Christmas season. LOYALTY CARDS Another effective promotional strategy are loyalty cards. Customers who receive these cards can receive special discounts upon purchases.
For example, customers who receive cards from
clothing stores, can receive a discount after every $200.00 spent.