SALES PROMOTION - IMPORTANCE AND ADVANTAGES

 SALES PROMOTION - IMPORTANCE AND ADVANTAGES

IMPORTANCE OF SALES PROMOTION

          Sales promotion is essential and important for the internal and external functioning of any marketing organization. With sales promotion, it will improve the sales and growth of the organization. Therefore, the importance of sales promotion includes:

 

                               i.            To improve sales of predicting and modifying the target customers purchasing behavior and patterns.

                             ii.            To boost sales and draw new customers to receive sales calls for a particular manufacturer product.

                          iii.            To persuade retailers, wholesalers and distributors to carry the company’s brand, give itself space, promote it by advertising and ultimately push it forward to the consumer.

                          iv.            To build product awareness by exposing customers to new product for the first time. It is also an effective way of gathering information about change in price.

                             v.            It helps in stimulating demand and increases sales over a short period of time.

                          vi.            It serves as a means of differentiating firm’s product from that of its competitors.

ADVANTAGES OF SALES PROMOTION

          Sales promotion is vital for business who desire to increase sales and interest in the company when used moderately, with careful planning sales promotion can increase sales even after the promotion programmes is over. The advantage of sales promotion includes:

a.     It creates urgency by drawing attention to a particular product of services being offered.

b.     It keeps trade flowing and stock flowing and stock flowing between distributors and retailers. It also encourages distributors to buy more of the items and ensure that they always have adequate supplies.

c.      A good sales promotion campaign help in attracting or convincing retailers or dealers to stock manufacturers products.

d.     It provides useful information and can be an effective tool when introducing a new product.

e.      It helps in increasing sales and stimulates demand for product, that is why most manufacturers commonly reduce the price of their product for a limited time to induce customers to make purchase and also increase the number of unit sold which can lead to increase in market share.

f.       It maintain stability in sales, this can be done through advertising and focuses on brand loyalty including repeat sales.