Function of Sales Promotion
Various functions performed by sales promotion are as discussed below: –
Attracts large customers
Sales promotion is an effective tool available with business for attracting a large number of customers. It demonstrates the brand products at a large scale and tells people about their benefits. Sales promotion techniques differentiate brand products over the other competitors available in market. This way by defining the uniqueness of products more and more customers gets attracted towards it.
Promotes new product
Mass promotion of innovative products in market is one of the important functions played by sales promotion. It uses distinct schemes such as distributing free samples and providing free trials to customers in order to create awareness about brand products among public. Sales promotion attracts the attention of people and motivates them for trial purchase which eventually leads to introduce new products among large number of peoples.
Stimulate repeated purchases
Sales promotion stimulates the repeated purchases of products which raises the sales of business. It runs limited time campaigns under which customers are provided coupons for their next purchases or points accumulations on repetitive purchases. Customer gets motivated to continue their repetitive purchases with brand for taking benefits from all these campaigns. When they buy products for a longer term then they eventually become loyal to that particular brand.
Counter Market Competition
It makes efforts toward countering the stiff competition faced by organization in market. Sales promotion retain customers with business for a long term by strengthening relations with them. It is a mechanism that interacts on a regular basis with people who once make purchases with brand. Promotional mails and messages are forwarded by sales promotion team continuously for keeping their customers engaged with them. Loyal customers do not shift to other brands easily seeing the attractive offers provided by distinct competitors.
Supplies Product Information
It serve as an intermediary in between the manufacturers and ultimate customers. Sales promotion team explains full details about goods offered by brand. They guide customers about how to use product properly taken into consideration the safety instructions. All queries of clients are timely handled by these sales personnel thereby increasing the overall customer satisfaction.
Enhances Brand Image
Sales promotion plays an efficient role in building a strong brand image in market. It ensures that customers are provided better service while they are making purchases with brand. Full information is shared regarding products and services among clients which enables them in doing easy comparison of products and choosing the most appropriate one. Companies by being transparent about their product features and qualities are able to win the trust of people thereby eventually building a strong position.
Increase the Profitability
It enable business organizations in raising their profit margins by achieving economies of scale. Techniques of sales promotion raises the sales of brand by doing a mass-promotion of its products in market. With the increase in demand, companies need to produce goods in large demands which eventually bring down the cost of production. This way the per unit cost of product gets minimized thereby offering better profit rates to business.