Promotion - the use of short-term measures designed for rapid response in response to market now offering their products. In fact, it is a direct encouragement of consumers to purchase products or services, business and trade areas - these include products to its range for the selling (remember that advertising or propaganda only promote their image or create appropriate).
Thus, the main objectives of sales promotion are:
- Ensure rapid growth in sales of the company;
- Encouraging consumers oprobuvaty product or make repeat purchases;
- Encouraging a system of intermediary trade organizations and employees own the supply system to intensify efforts for the implementation of enterprise.
The main consumer incentives are:
- Discounts - reduction of the selling price when purchasing consumer a great party of enterprise;
- Lower prices - selling goods at prices slightly lower than the competition;
- Free of charge product samples - providing consumers with free product "on trial";
- Coupons - certificates that give consumers the right to buy the exact quantity (amount) of goods at low prices;
- Prize - goods that are free or at low cost as a present for the purchase of a product;
- Guarantees - the obligation of producers compensate consumers in cases where the goods do not meet established standards or specifications advertised;
-upakovky - sets of products offered to consumers at reduced prices;
- Demonstration - placing special expertise to directly familiarize consumers with the products of the company;
- Loyalty cards - special index cards a consumer visiting a particular trade institutions; on the number of visits recorded in this card gives consumers the right to a discount or free purchase of goods.
The main means of stimulation of trade is like the ones already mentioned (discounts, price reductions, guarantees etc.) and some others, including:
- Contests - comparing the results of resellers or sales agents for material incentives winners;
- Conference - special workshops, meetings, certification programs to improve the skills of employees own trading system;
- Tests - pre-financing intermediaries to promote the sale of goods directly at their sale.
Advantages and disadvantages of various means of sales promotion is presented in Table. 24. As noted in the table, using some means of sales promotion is quite expensive. Therefore, sales promotion program must be carefully planned.