A great sales promotion can lead to more sales
The initial sales promotion is a crucial part of the overall business strategy for any business. Sales promotion has grown substantially in the past few years as a useful tool in providing additional incentive fora group or target audience to choose or purchase a particular brand, service, or product over another. A sales promotion can be targeted toward consumers, clients, resellers, or even members of one's own business or company. Sales promotions may change the way a target audience perceives a particular product or service and are usually implemented over a short or limited period of time.
Instructions
develop an initial sales promotion
1. Determine the price for this service. Any product or service has basically two values. The first is the advertised or assigned value and the second is the perceived value, or what someone thinks they would be willing to pay for a particular product or service. This is called the price--value relationship. The primary purpose of any sales promotion is to alter this price--value relationship. Decide how much a product or service will cost, what is the price? This is determined by the cost of raw materials, labor, and how much profit will be added into the final price.
2. Determine price--value and relationship--value. Any product or service has basically two values. The second value of a particular product is the perceived value, or what a customer is willing to pay for that product. Research similar products and study pricing compared with benefits. Some products have a higher price than perceived value and are slow movers, selling rarely. Sometimes a products perceived value is higher than it's actual price. These type of products fly out the door as people cannot buy them fast enough. Finding a balance between the perceived value and actual price is the goal here.
3. Determine the benefits. What are the benefits of this product or service to a customer? How will this product or service improve their situation? List these specifically and prioritize that list. It's a good idea to acquire information from other sources including potential customers. This customer information will aid in prioritizing the list of benefits. Perhaps a questionnaire asking for specific information or setting up a focus group to analyze the positive and negative aspects of a product or service. Again, check out the competition and see what is offered with similar products or services.
4. Determine the theme of promotion. Once the price and benefits are clearly identified, it's time to start thinking of ideas that will showcase any additional benefits of a particular product or service. If research was done with potential customers, that information gathered there will be used here to develop the initial theme of the sales promotion. This may be associating a particular image with a product or service. Although there is probably more than one benefit to a product or service, only the top, single benefit should be the main emphasis of an initial sales promotion. Many businesses make the mistake of trying to cram every single benefit into one sales promotion. Doing this will only make the sales promotion appear scattered and unclear to most consumers. These type of catch-all sales promotions will be lost in the sea of clutter that already exists in consumer--land. The goal here is to choose one strong benefit and focus all promotional materials on that benefit.
5. Determine a budget. Yes, it' a rather obvious step, but a lot of folks skip over this one. It is absolutely imperative that a budget is decided before moving on. Decide if the design work, copy writing, etc. will be handled in-house or completed by paid professionals. Find out what each will cost before moving ahead. The last thing anyone wants is a sales promotion that looks like it was slapped together. This is the first impression of a product or service and this initial sales promotion--in whatever form or medium it may appear--is the one shot at making a good first impression. Don't do it on the cheap. Spend money where necessary and make it look great.
6. Write the copy. This isn't just any copy. This has to be great copy. Copy that compels readers to want more information, or want to purchase a particular product or service. This is where the real successful pros rise above all those cut-rate outfits battling a constant price war to see who can be the lowest. Well, most companies want to sell more products at a higher price. Customers will pay extra if convinced of the value of a product or service. Why do people buy an Escalade when a Suburban is basically the same vehicle for less money? Perceived value. Sales promotion copy needs to be persuasive and convince customers that paying a higher price will give them more value than a low cost alternative. Hiring a great copywriter may be a good investment here.
7. Determine the media vehicle: Most initial sales promotions do not have the budget for television commercials. However, there are many more media sources out there which have much better exposure. Direct mail may be considered but only with a targeted mailing list. A broad spectrum mailing is typically only going to get between 1 and 1.5% response, regardless of what the direct mail companies say. Radio has a good ROI and can be very effective if done professionally. Ads placed in local or even some national publications can also be an inexpensive alternative.
8. Step 8: Design the Sales Promotion Materials. The price--value, top benefit, theme of the sales promotion, copy, and media have all been determined.Now it's time to design the sales promotional components. If radio is the primary medium, consult a pro or work closely with the particular radio station's production staff and facilities (usually included in the price of advertising). If print is the primary medium, it's best to hire a professional designer. If deciding to design without the aid of a pro, study what the competition is doing and design with the same information, but not with the same look and style. Choose a different design in order to make a product or service stand out from competitors designs.
9. Consult a professional. Creating and implementing a successful initial sales promotion can be a daunting task. There are a lot of things that need to be done and a lot of things have to be done correctly. It may be time to consult with a local advertising or marketing agency. These companies work with this stuff on a daily basis and they will know what will work and what will not work. Yes, there will be a cost, but some designers, copywriters, ad agencies, or marketing firms will work within a pre-determined budget.
Tags: product service, particular product, sales promotion, initial sales, initial sales promotion, particular product service