Various tools are used in conjunction with sales promotions.
Sales promotions are short-term marketing techniques used by a manufacturer for a specific purpose, like increasing market share or to encourage sales during off-peak periods. Sales promotions are often one component in an advertising or marketing campaign. A variety of sales promotion tools are available, such as price reductions, product giveaways and special trial periods.
Free Samples
Free samples are a no-risk way for a customer to try a new product before making a buying decision. A common method used by manufacturers is to send a small package of a new laundry detergent to households via postal mail. The manufacturer typically includes coupons as a way to encourage purchases in the future.
Promotional Periods
A promotional period allows a customer to use a product for free for a specified period of time, such as 30 days. Television infomercials use promotional or guarantee periods as an inducement to purchase a product. If the buyer takes no action to cancel the purchase or return the product during the promotional period, the customer is billed automatically or a charge is made to her credit card.
Point of Purchase Displays
Point of purchase displays are used in retail stores to catch the attention of a shopper. The selected products may be sale items but may also be seasonal or high-demand merchandise. The displays are built in a prominent location such as on an aisle end or at the front of the store near the entrance. The store may also place signs at the product's normal shelf locations.
Sales
A sale is a reduction in the price of a product for a specified period of time. Sales are used by manufacturers to gain new users or to increase market share. They also generate traffic in a retail establishment. Sales can result in off-season purchases that normally would not occur, such as a hardware store offering snow blowers at 50 percent off in the middle of summer.
Rebates and Coupons
Rebates provide customers with a return of their purchase price, such as when a cell phone manufacturer offers a mail-in rebate for the purchase of a new phone. Coupons provide a reduction in the price of a product and are applied during the sales transaction. Coupons can be found in newspaper supplements or even on product packages.
Tags: customer product, market share, period time, price product, promotional period, reduction price, reduction price product