SALES PROMOTION

Accelerate your business with these expert tips on "Sales promotion". Analyse and discover this TIP!

Sales promotion is a useful tool for entrepreneurs who need to make themselves known and win the customer's favour quickly. Its aim is to increase sales in a short period of time, which coincides with the goals of entrepreneurs in the start-up phase of their business.

However, it is important to bear in mind that overuse can have damaging effects on brand image and increase marketing costs, which can affect long-term profitability. Sales promotions can be addressed to the company itself, the end buyer, the distribution channel and the sales team.

Their objectives may include achieving greater short-term liquidity, liquidating stocks, motivating the sales force, differentiating from competitors or countering their promotions, increasing consumer habits, attracting undecided consumers, unveiling product changes or improvements, gaining market share, accelerating the trial-adoption process quickly, improving image with distributors, expanding distribution and locking out competitors.

Promotional mechanisms can be very varied, such as discounts, incentives incorporated into the product itself, direct gifts, social causes, among others. It is important to use them wisely and to have clear objectives, clear counterparts, and to consider new technologies to generate interaction with customers and customer loyalty.

In conclusion, sales promotion can be a an effective tool for entrepreneurs, as long as it is used wisely, takes into account its long-term impact and focuses on providing value and differentiating itself from the competition.

Here are some practical examples of sales promotions that a new business could implement

1. Launch discounts: A new company could offer special discounts on its products or services for a limited period of time to encourage consumers to try them out and increase sales.
2. Social media promotions: Using social media, the company could launch a promotional campaign with the aim of increasing the number of followers and brand visibility. For example, it could offer exclusive discounts to social media followers who share a company post.
3. Referral programme: The company could establish a referral programme that rewards existing customers who recommend the company to their friends and family. For example, by offering a discount on the next purchase.
4. Gifts with purchase: The company could offer a free gift with the purchase of certain products or services. This can help incentivise sales and increase customer loyalty.
5. Participation in events: The company could participate in events related to its industry or community by offering special promotions to event attendees. For example, you could offer discounts on your company's products or services to attendees who visit your booth at the trade show.

These are just a few examples, but it is important for the company to analyse its specific objectives and needs and develop sales promotions that fit its needs and budget.

Sales promotion can be a very useful tool in a company's internationalisation process, as it can help build brand awareness, generate demand and increase sales.

The following are some examples of sales promotions that can be used in the internationalisation of a company:

1. Special discounts: Offering special price discounts on products or services can be an effective way to attract new customers and motivate existing customers to make further purchases. These discounts can be exclusive to international customers or to the first customers to purchase products in a new market.
2. Launch offers: Offering special introductory offers can be a way to create initial interest in a new market. These offers can include discounts, package deals or free samples.
3. Promotional gifts: Offering promotional gifts such as T-shirts, caps or personalised promotional items can be an effective way to create brand awareness and promote products at international events or trade fairs.
4. Competitions: Organising competitions that reward customers for their loyalty, creativity or interaction with the brand can be an effective way to generate greater customer engagement and increase demand for products or services.
5. Loyalty programmes: Establishing loyalty programmes that offer incentives to international customers to make additional purchases or refer other customers can be an effective way to build a loyal customer base and increase sales in the long term.

These are just a few examples of sales promotions that can be used in the internationalisation of a company. It is important to bear in mind that promotions should be carefully designed to meet the specific objectives of the company and the market in which it is operating.

Sales promotion is a communication tool that, when used well, can provide effective responses to different marketing needs and objectives in companies. It can be a valuable aid for entrepreneurs who need to make themselves known and win the customer's favour quickly.

Advertising and public relations give the customer reasons to buy the product. Sales promotion gives the customer reasons to buy the product. now. It is thus a tool designed to encourage sales to The short term and for a limited period of time. 

Sales promotion and entrepreneurship

The objectives of sales promotion focus on increasing sales in a short period of time. Both objectives, under normal conditions, coincide with those of an entrepreneur in the start-up phase of his business. The entrepreneur needs to overcome as soon as possible the valley of death (+) and sales promotion can be a good ally if used wisely. 

While it is true that sales promotion is part of the communication mix, it should also be seen as a complement, if not an important part of the communication strategy. Growth Hacking (+). Growth Hacking focuses on sales incentivisation activities in the digital realm. Sales promotion moves both offline and online, hence its strategic importance and flexibility.

Side effects:

Sales promotion is a useful weapon but it is important not to lose sight of some effects that can be damaging to the brand's image.

WE QUICKLY GO THROUGH THEM:

• Excessive sales promotions generate losses in the customer's perception of value. I don't buy from you because of the goodness of your product, but because of what you discount or give me. In the automotive world, Citroën's constant discounting strategy had a very negative effect on the brand and its sales evolved in a sawtooth pattern. This reduces margins and also sales in off-peak periods.
• Increases marketing costs: the cost of the shares can be very high.
• Declines in profitability: pricing policy is ultimately affected.
• The market is "maleducated" and waits for promotions to buy.

 The truth is that sales promotions are everywhere, in all sectors, media and businesses. They are part of our daily landscape but this should not make us forget that we must use them wisely, in a very justified way and with clear objectives. Let's see how entrepreneurs can make the most of sales promotions.

Sales promotion and demand

As mentioned above, the objective of sales promotion is to bring about an increase and acceleration of sales of a product or service over a given, rather short, period of time. 

This is achieved by incentivising demand through a contribution of value or stimulus, unrelated to the product itself. This stimulus may consist of an offer price (lower than normal), the incorporation of a greater quantity of product to the purchase unit, participation in raffles, contribution to social causes, etc.