Sales Promotion Strategies

Sales promotion has been one of the most heavily used weapons of the producers or manufacturers. It is counted amongst one of their most affective ways of boosting their sales. Sales promotion has certain misconceptions attached to it. One of the most obvious is that sales promotion is only considered as targeted only at the wholesalers. However, this notion is totally wrong.

There are many ways to promote the sales. Sales promotion can be targeted at the wholesaler, retailer or even at times the end customer. There are various methods that are used. First of all, a producer or manufacturer should be able to know his channel members i.e., is the intermediaries and the end customers very well. Moving a product through all these members to the end customer is not an easy job. It takes a lot of patience and understanding. There are many strategies built around the philosophy of moving the products through. There are three strategies that are widely used to boost the sales promotion activities.

These three strategies are; a push strategy, a pull strategy, and a combination of both. Some of the major questions that impact the decision of following a certain sales promotion strategy include brand loyalty towards the product, brand equity, market share, competitive promotional strategies, unique selling proposition, and advertising strategy. There are a lot of questions to be asked before finalizing a strategy that would help company select the right kind of promotional strategy. Let us have a glance at which strategy is follow in different case scenarios.

Sales Promotion Strategies

1. Push Strategy
In a push strategy the company is sure that its customers want the product. The only thing lacking is the lack of push the products have from the intermediates i.e., the wholesalers and retailers. In this the company provides incentives to these intermediaries and asks them to push the product by increasing its sale. This kind of strategy is usually involved in products where there is fierce competition amongst producers and the intermediaries are given heavy margins by each producer to ensure his product is given the preference.

2. Pull Strategy
This strategy is quite the opposite of the push strategy discussed above. The assumption in this strategy is that the customers either don't know at all or not enough about the manufacturer's product features to have an interest in it. By adopting this strategy the producer works with the intermediaries, especially the retailers to better present the products not only in shelves but also improve its general outlook.

3. Mix Strategy
This kind of strategy is adopted when the company thinks that the products need a push from both sides. Neither the intermediaries are pushing the product of the company to the extent nor the customers know or are interested in the product. To make this thing really happen the company simultaneously launches a two prong battle. This strategy is obviously more cost bearing and takes more time to materialize. In this strategy the company not only gives heavy margins to the intermediaries like the wholesalers and distributors, but also tries to attract the customers by making its products more attractive in shelves and packaging.

This is one of the most comprehensive sales promotion strategies. The company should properly plan for the expenses and the expected outcome. A misdirected campaign will not only result into great financial loss but may hurt the brand in the market.

Sales Promotion Strategies
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William King is the director of Hong Kong Suppliers and UAE Dubai Directory. He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.