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Figure 1. Holiday discounts are one type of sales promotion.[\/caption]\r\n\r\n Figure 1. Holiday discounts are one type of sales promotion.[\/caption]\r\n\r\nSales promotions are activities that go on for a limited period of time with the goal of stimulating sales. Sales promotion activities include special offers, displays, demonstrations, and other nonrecurring selling efforts that aren't part of the ordinary routine. As an additional incentive to buy, these tools can be directed at consumers, retailers and other distribution partners, or the manufacturer\u2019s own sales force.<\/p>\r\n
Companies use many different forms of media to communicate sales promotions, such as printed materials like posters, coupons, direct mail pieces and billboards, radio and television ads, digital media (like text messages), email, websites, social media, and so forth.\u00a0Most consumers are familiar with common sales promotion techniques\u00a0including\u00a0samples, coupons, point-of-purchase displays, premiums, contents, loyalty programs, and rebates.<\/p>\r\n
In addition to their primary purpose of boosting sales in the near term, companies can use consumer sales promotions to help them understand price sensitivity. Coupons and rebates provide useful information about how pricing influences consumers' buying behavior.\u00a0Sales promotions can also be a valuable\u2013and sometimes sneaky\u2013way to acquire contact information for current and prospective customers. Many of these offers\u00a0require consumers to provide their names and other information in order to participate. Electronically-scanned coupons can be linked to other purchasing data, to inform organizations about buying habits. All this information can be used for future marketing research, campaigns and outreach.<\/p>\r\n
Consumer sales promotions can generate loyalty and enthusiasm for a brand, product, or service. Frequent flyer programs, for example, motivate travelers to fly on a preferred airline even if the ticket prices are somewhat higher so that they can earn and redeem miles for future flights. If sales have slowed, a promotion such as a sweepstakes or contest can spur customer excitement and renew interest in the company's offering. Sales promotions are a good way of energizing and inspiring customer action.<\/p>\r\n
Trade promotions offer distribution channel partners\u00a0financial incentives that encourage them to support and promote a company's products. Offering incentives like prime shelf space at a retailer\u2019s store in exchange for discounts on products has the potential to build\u00a0and enhance business relationships with important distributors\u00a0or businesses. Improving\u00a0these relationships can lead to higher sales, stocking of other product lines, preferred business terms and other benefits.<\/p>\r\n
If a company is continually handing out product samples and coupons, it can risk tarnishing the company's brand. Offering too many freebies can signal to customers that they are not purchasing a prestigious or exclusive product. Another risk with too-frequent promotions is that savvy customers will hold off purchasing until the next promotion, thus depressing sales.<\/p>\r\n
Often businesses rush to grow quickly by offering sales promotions, only to see these promotions fail to reach their sales goals and target customers. The temporary boost in short term sales may be attributed to highly price-sensitive consumers looking for a deal, rather than the long-term loyal customers a company wants to cultivate. Sales promotions need to be thought through, designed, and promoted carefully. They also need to align well with the company's larger business strategy. Failure to do so can be costly in terms of dollars, profitability and reputation.<\/p>\r\n
Public relations (PR) is the process of maintaining a favorable image and building beneficial relationships between an organization and the public communities, groups, and people it serves. Unlike advertising, which tries to create favorable impressions through paid messages, public relations does not pay for attention and publicity. Instead, PR strives to earn a favorable image by drawing attention to newsworthy and attention-worthy activities of the organization and its customers. For this reason, PR is often referred to as free advertising.<\/p>\r\n
Because PR activity is earned rather than paid, it tends to carry more credibility and weight. For example, when a news story profiles a customer's successful experience with a company and its products, people tend to view this type of article as less biased and more credible than a paid advertisement. The news story comes from an objective reporter who feels the story is worth telling. Meanwhile an advertisement on a similar topic would be viewed with skepticism because it is a paid placement from a biased source: the ad sponsor.<\/p>\r\n
PR is not actually a costless form of promotion. It requires salaries to be paid to people who oversee and execute PR strategy. It also involves expenses associated with events, sponsorships and other PR-related activities.<\/p>\r\n Sales promotions are activities that go on for a limited period of time with the goal of stimulating sales. Sales promotion activities include special offers, displays, demonstrations, and other nonrecurring selling efforts that aren’t part of the ordinary routine. As an additional incentive to buy, these tools can be directed at consumers, retailers and other distribution partners, or the manufacturer\u2019s own sales force.<\/p>\n Companies use many different forms of media to communicate sales promotions, such as printed materials like posters, coupons, direct mail pieces and billboards, radio and television ads, digital media (like text messages), email, websites, social media, and so forth.\u00a0Most consumers are familiar with common sales promotion techniques\u00a0including\u00a0samples, coupons, point-of-purchase displays, premiums, contents, loyalty programs, and rebates.<\/p>\n In addition to their primary purpose of boosting sales in the near term, companies can use consumer sales promotions to help them understand price sensitivity. Coupons and rebates provide useful information about how pricing influences consumers’ buying behavior.\u00a0Sales promotions can also be a valuable\u2013and sometimes sneaky\u2013way to acquire contact information for current and prospective customers. Many of these offers\u00a0require consumers to provide their names and other information in order to participate. Electronically-scanned coupons can be linked to other purchasing data, to inform organizations about buying habits. All this information can be used for future marketing research, campaigns and outreach.<\/p>\n Consumer sales promotions can generate loyalty and enthusiasm for a brand, product, or service. Frequent flyer programs, for example, motivate travelers to fly on a preferred airline even if the ticket prices are somewhat higher so that they can earn and redeem miles for future flights. If sales have slowed, a promotion such as a sweepstakes or contest can spur customer excitement and renew interest in the company’s offering. Sales promotions are a good way of energizing and inspiring customer action.<\/p>\n Trade promotions offer distribution channel partners\u00a0financial incentives that encourage them to support and promote a company’s products. Offering incentives like prime shelf space at a retailer\u2019s store in exchange for discounts on products has the potential to build\u00a0and enhance business relationships with important distributors\u00a0or businesses. Improving\u00a0these relationships can lead to higher sales, stocking of other product lines, preferred business terms and other benefits.<\/p>\n If a company is continually handing out product samples and coupons, it can risk tarnishing the company’s brand. Offering too many freebies can signal to customers that they are not purchasing a prestigious or exclusive product. Another risk with too-frequent promotions is that savvy customers will hold off purchasing until the next promotion, thus depressing sales.<\/p>\n Often businesses rush to grow quickly by offering sales promotions, only to see these promotions fail to reach their sales goals and target customers. The temporary boost in short term sales may be attributed to highly price-sensitive consumers looking for a deal, rather than the long-term loyal customers a company wants to cultivate. Sales promotions need to be thought through, designed, and promoted carefully. They also need to align well with the company’s larger business strategy. Failure to do so can be costly in terms of dollars, profitability and reputation.<\/p>\n Public relations (PR) is the process of maintaining a favorable image and building beneficial relationships between an organization and the public communities, groups, and people it serves. Unlike advertising, which tries to create favorable impressions through paid messages, public relations does not pay for attention and publicity. Instead, PR strives to earn a favorable image by drawing attention to newsworthy and attention-worthy activities of the organization and its customers. For this reason, PR is often referred to as free advertising.<\/p>\n Because PR activity is earned rather than paid, it tends to carry more credibility and weight. For example, when a news story profiles a customer’s successful experience with a company and its products, people tend to view this type of article as less biased and more credible than a paid advertisement. The news story comes from an objective reporter who feels the story is worth telling. Meanwhile an advertisement on a similar topic would be viewed with skepticism because it is a paid placement from a biased source: the ad sponsor.<\/p>\n PR is not actually a costless form of promotion. It requires salaries to be paid to people who oversee and execute PR strategy. It also involves expenses associated with events, sponsorships and other PR-related activities.<\/p>\nSales Promotions<\/h2>\n
Advantages of Sales Promotions[1]<\/sup><\/a><\/h3>\n
Disadvantages of Sales Promotions<\/h3>\n
Public Relations<\/h2>\n
Advantages of PR<\/h3>\n
Disadvantages of PR<\/h3>\n