Posted in Marketing and Strategy Terms, Total Reads: 406
Offer is the common method of sales promotion followed by all sorts of firms. The offer appears in different forms like discounts, coupons, end of season sales, exchange offers and Assured gifts with all purchases at the retailer sides. At traders side Trade allowances, dealer loader and push money are used to attract prospective customers.
This phenomenon of providing offers is based on the insights from studying the consumer thought process in buying. Due to this offers customers feel that they are saving money. And for few customers these offers make them to do impulse buying where the customer doesn’t weigh the options before buying a product. Many companies want the selling to happen through impulse buying as this process hinders them to compare its features with the competitors.
All these offers are sales promotions which aim in providing short-term incentives to encourage the purchase or sales of a good or service. Advertisement offers reason to buy a product whereas promotion makes the customer buy the product immediately.
The objective of the sale promotion is to increase the short-term customer buying and also increase the brand involvement. From the retailer’s side, it encourages them to carry new items, maintain inventory and provide more shelf space to these products. Some of the popular sales promotion activities are
• CRM incentives or money off coupons
• Merchandising—Providing POS materials like containers, refrigerators, dump bins
• Free gifts
• Discounted prices
• Joint promotions
• Gift cards
• Free samples
• Vouchers and coupons
• Competitions and prize draws
• Finance deals
After every sales promotion activities, evaluation should be done by comparing the sales before and after the offers. This will provide us the effectiveness of the promotional offers.