Who is the really winner in a sales promotion?
By Yikang Liu
Twitter : @Yikangliu
Linkedin: Yikang Liu
We all see countless sales promotion every day from internet or highway billboards. Companies offer us different kinds of coupon, sampling or huge discounts, which tries to persuade us to buy something we might do not need at all. It seems a good thing for consumers because they get same product with lower price. However, in most case, companies are the biggest winner in sales promotion. They get rid of old fashion products with a bit lower price, which allow them get cash back in short time so that they can produce more new goods.
With the development of modern technology, more and more companies begin to use big data analysis to make their sales promotion become more accrual and efficient. For example, big supermarkets always monitor all good’s sale status so that they can figure which product is more popular. Based on those detailed information, manager could make the best promotion strategies. Promotions managers supervise staffs of promotions specialists. “These managers direct promotions programs that combine advertising with purchase incentives to increase sales. In an effort to establish closer contact with purchasers—dealers, distributors, or consumers—promotions programs may use direct mail, telemarketing, television or radio advertising, catalogs, exhibits, inserts in newspapers, Internet advertisements or Web sites, in-store displays or product endorsements, and special events. Purchasing incentives may include discounts, samples, gifts, rebates, coupons, sweepstakes, and contests.”
For some new products, company could use low-price strategy to attract more new customer. Sales promotion is an efficient way to extend the target market. We always see lots of “buy one get one free” or “limited time offer” on the market. Even if most people do not know much that product, they would like to try because of decent price. Once the products are accepted by the customers, they willing to pay more in future.