Maximise Sales With Short-Term Promotion Strategies - Essay Sample

Introduction

Sales promotion is the process of convincing potential clients to purchase a product. It is usually used as a short-term method in boosting a business' sales. However, it is not a good method when it comes to building long term loyalty of the clients. In most cases, sale promotion is aimed at the clients while some target the intermediaries. Although the satisfaction of a customer is essential in business, sometimes, a business should stimulate demand in increasing products' sales for a short period.

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In most of the cases, sales promotion is used in introducing new products, selling existing inventories, attracting more clients, and lifting sales for a short period (Mullin & Cummins, 2008). Sales promotion is essential since it helps in spreading information regarding a brand to the new clients or even market. Also, it stabilizes the volume of sales and fulfills an organization's short-term goal. Another important role in stimulating demand for a short period through making an item look great. The main objectives for engaging in sales promotion include establishing a market for new products, remain competitive, gaining the trust of dealers, taking items to new markets, increasing brand awareness, and wooing the existing clients (Yeshin, 2006).

The main strategies of sales promotion include pull, push, and hybrid strategies. In the pull strategy, marketing initiatives and communication are used in pulling products from the firm (Yeshin, 2006). Push strategy tries to push items away from the firm to the clients by convincing different intermediary channels using personal and promotional selling efforts (Mullin & Cummins, 2008). In the hybrid strategy, both push and pull are utilized in selling items using small resistance. Sales promotion is mainly divided into two, including consumer and trade sales promotion.

The fast-moving consumer goods industry has consumer products that sell quickly and at a low cost. These kinds of products usually have a short shelf life due to high consumer demand, and some are perishable. An example of a company that uses sales promotion in increasing its sales since 2015 is Nestle. The company does give consumers discounts on its products with the aim of increasing sales. For instance, in some situations, a consumer is given the option of buying a can of Nestle product then get another one free. The discount method helps in increasing a company's sales for the short term, and people usually opt for such products since they get the chance to purchase them at a price they could not afford otherwise.

McDonald's has also played a significant role in using sales promotion to promote its products and services. For instance, on the company's website, when one signs up, then he or she gets a free McCafe. This is a good strategy for getting new customers for the company for a short period. Also, once in a while, the company usually gives its customers coupons and the option of purchasing one McDonald's pizza or burger, then getting the next one for free. The sales promotion strategies that have been used by the firm since 2015 has assisted it in increasing its sales and clearing inventory.

Conclusion

In conclusion, sales promotion is used by firms in introducing new products, selling existing inventories, attracting more clients, and lifting sales for a short period. The main sale strategies include pull, push, and hybrid. Fast-moving consumer goods industry do have several sales promotion strategies since some have a short life because of high demand while others are perishable.

References

Mullin, R., & Cummins, J. (2008). Sales promotion: How to create, implement & integrate campaigns that really work. London: Kogan Page.

Yeshin, T. (2006). Sales promotion. London: Thomson Learning.