Promotion is a way to communicate advantages and features of a product to customers. Companies use various methods to promote their products in the market. Advertising, personal selling, sales promotion and publicity are the common methods adopted by any organization to market and promote its products.
Sales promotion is an approach which induces customers to try or buy more of a product. Sales promotion techniques are generally used for short periods of time. Let us discuss Five Techniques of Sales Promotion used by Companies to attract Customers.
1) Offer for a Limited Period of Time
We often read in newspapers that a particular product is on sale for a limited period of time. Reduced prices are generally applicable on specific products for a specific period of time. This technique is used to increase sales to existing customers as well as attract new customers, thereby widening the customer base and increasing the market share.
2) Money Back Guarantee/Assurance
Some sellers attract customers by assuring money back guarantee on their purchases. Here, suppliers assure their customers that if they don’t find a product useful for their intended use, they can return it and get their money back within a specific period of time.
Through these types of assurances, customers gain a level of confidence in the product which may further influence their purchase decision.
3) Exchange Offers
Schemes like “Bring you old watch and get 20% discount on a new watch” fall under this sales promotion technique. This technique is used to make consumers aware on new or improved features or additions to a product.
A customer may not consider buying a product even if it offers extra feature and benefits in the absence of any incentive. Exchange offers can make customers visit showrooms or outlets and study new offerings.
4) Quiz Contests
Many times, we visit a shopping mall and see that a company is running a promotional campaign whereby visitors are asked to participate in a quiz. Questions relate to the product which is promoted. Visitors are offered prizes for correct responses.
Objective behind this sales promotion technique is to create awareness through participation. There are situations where a visitor may show interest in the product and decide to purchase it on the spot.
5) Distribution of Free Samples
This is one of most commonly used method of sale promotion. In this method, consumers are given samples of a particular product. Objective behind this is to induce trial of a product. A loyal customer may not decide to switch to another brand immediately. Hence, by giving free samples, companies can make consumers use a product and do a comparison with the features and benefits of the brand they are currently using.
This technique is also useful when company is planning to launch a completely new product. Consumers are given a chance to try the product and realize the benefits associated with it. It increases the possibility of product acceptance when the product is finally introduced in the market.
Different companies adopt different sales promotion techniques. Techniques used may depend on the nature of product, target customers, objective behind promotion, costs associated with promotion and so on.
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