The art of creating the association between the shoppers and therefore the makers through their merchandise and fostering the sale of the products or services and acceptance of their ideas is understood as promotions. The success of a company depends on sales promotion as a tool to increase sales, raising customer satisfaction rates and to build brand loyalty. The consumers are flooded with a range of sales promotions schemes by the marketing team of a company. The effectiveness of the promotional schemes depends on the various parameters and perceptions of the customers.
Various promotional schemes
An organization undertakes various methods for increasing their sales, which target their audiences and convert them as their customers. The sales promotional schemes can be introduced over various channels like social media, email or through websites or through any paid advertising campaigns also. This can be categorized based on the customers broadly into two types namely:
- Active – The customers have to undertake an active search for promotional offers.
- Passive – The customers are restricted to the limited search within the store environment.
This sales promotion schemes can also be categorized into two categories, namely
- Price category – In this, the consumer gets the same product at a lesser price.
- Non-price promotions – The consumer gets the increase for their money value like bonus pack, premium offers, etc.
The various sales promotional schemes that are mostly used by the business are as follows:
- Price discounts/ price off offer – In these sales, the product ar oversubscribed at low costs than their actual value.
- Coupon – In this, the manufactures keep the initial value for the merchandise and therefore the discounts ar given to the purchasers WHO redeem their coupons that obtained through advertisements.
- Bonus pack offer – The customers receive an increased quantity of the product/ service at the previous price.
- Premium – Technique of sales, identical or the opposite product is delivered free with the prevailing product purchase.
- Scratch Cards – The customers scratch the area on the product or in the advertising platform and receive the reward according to the messages given there in the scratch card.
Analysis of the buyer’s behavior
For understanding the effectiveness of the promotional schemes in the retail store the understanding of the buyer’s behaviour becomes an important aspect. The various behaviours of the consumers due to sales promotional activities are as follows:
- Brand Switching – Brand change may be a state of affairs wherever a complete loses a once loyal client to a competition.
- Purchase Acceleration – The extent to buy the product earlier than required to avail of the offers.
- Stockpiling – The extent to motivate the consumer to buy the product more than he/she needs.
- Product trial – To drive the customer to buy the new product.
- Spending more – To push the consumer to spend more money than their actual capacity of spending.
Cohorts of sales promotions
The sales promotional effectiveness depends on the age factor of the consumers. The younger generation cohorts consider the value for the money and most don’t wait for the deals while the older cohorts wait for deals, analyse different deals available in the market and value the quantity before selecting the promotions.
Conclusion
The sales promotional schemes have positive effects on the firm’s top management. To intensify the positive effects of the sales promotional schemes the stores have to segregate the customers into groups and introduce different deals for different groups. Advertisements for these deals should be done according to the targeted customers and thus the profit of the store can be increased by the proper direction of the promotional schemes.
