Sales promotion methods are divided into 2 types: price and non-price.
Pricing methods of sales promotion
In this case, to increase sales, the cost of goods is changed directly or indirectly. Price stimulation methods include:
sales, discounts;
reduction in product prices;
provision of discount and gift cards;
selling two items for the price of one;
cashback, when part of the money is returned to the buyer after purchasing the product.
All businessmen know that one bahamas email list of the most effective methods of stimulating sales is sales and discounts.
Every customer dreams of saving money, so they buy promotional items. For example, one of the most popular pricing methods is the promotion called "Black Friday", during which the cost of products is reduced by up to 90%. However, if an item is sold at a discount, most likely it has been marked down. For example, this includes old outerwear collections.
Another common method is to issue discount and gift cards. Now almost all network companies give customers discount cards: cumulative or with a set percentage. Promotions are often held when a customer can buy 2 items for the price of one or buy two items and get the third as a gift.
Another common method of price stimulation of sales is when part of the funds is returned after the purchase (cash-back). The client can receive cashback in the following way: the money is transferred to the bank card automatically or the buyer is offered to use the service or application for the smartphone. Cashback can be used to purchase other goods or services.
2 Main Ways to Promote Sales
Price methods of sales promotion are quite popular, however, they have certain limitations, which concern the high frequency of promotions, as well as too strong a drop in the cost of goods.
Non-price methods of sales promotion
In this case, companies stimulate sales by attracting customers and pushing them to buy, without reducing the cost of goods and services. What methods are considered non-price:
distribution of samples;
tastings;
competitions, lotteries, sweepstakes;
issuance of credit coupons.
Let's study non-price methods of sales promotion in detail. When a company offers free samples of a product, the consumer can get acquainted with the product before making a purchase.
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Most often, this method is used by companies working in the cosmetology industry. For example, perfume, shower gels, and foundation can be offered as trial samples. Samples can be distributed through various channels: through the post office, inserted into the packaging of another product, or glued to a page of a magazine.
Tastings are mostly held in hypermarkets. Restaurants and retail outlets are also good places for tasting events. In this case, the most popular products are wines and cheeses. With the help of such non-price sales promotion methods, the buyer gets the opportunity to try the product and only then buy it.
Tasting in the store
To increase sales, most organizations implement promotions, hold sweepstakes and contests. For example, consumers are offered to collect promotional codes with product packaging. Then the person must register on the company's website. This method of sales promotion is best suited during the opening of new stores, airlines. For example, the hundredth buyer can win a valuable prize.
Providing credit coupons is a sales stimulation method that can be classified as both non-price and price. The customer can exchange coupons for products. This method of attracting customers is used in large supermarkets. For example, the customer collects the required number of coupons and then exchanges them for a tea set.