Sales Promotion – A brand usually does sales promotion because of the intense competition
in the market, especially if other brands sell the same product and are sold by many other parties.
Companies and brands can have the opportunity to re-attract the attention of their consumers by
conducting promotions.
Therefore, every company or brand needs to make or do what is called a sales promotion. Let’s
take a closer look at how sales promotion is a way to increase sales.
Definition of Sales Promotion
Sales promotion or sales promotion is a type of marketing that is used to introduce a new product, spend
old products and also increase sales figures. And in general, sales promotion can take place
temporarily, with the aim of increasing buyer interest in the product and it is carried out by the company
only at certain moments.
Sales promotion includes a variety of promotional activities, such as sales demonstrations, context,
sampling, point-of-purchase displays, incentives, and coupons. In principle, sales promotion
spending is greater than advertising spending. While techniques on communication and incentives
provide several advantages, promotions can be used to target buyers, respond to special occasions, and
create purchase incentives.
Sales promotion is certainly different from what is known as advertising, even though both have the same
goal. Advertising is an invitation to consumers to buy products with visual forms in the form
of images, videos, sounds. Meanwhile, sales promotion has the goal of inviting consumers to buy
a product by touching the side of the mind in a reasonable and rational way.
Sales Promotion Goals
Sales promotion usually includes attractive benefits and can also increase brand awareness .
Brand awareness will certainly affect the growth in sales numbers. The following
are the objectives of the sales promotion, namely:
1. Create a market for a new product
A company and nrand usually have many products or services to offer. It is possible that each
product has its own target market.
In order to introduce a product to the market, sales promotion can be the solution. Companies
can find out whether their products have targeted the right target consumers or not.
2. Stay competitive
Maybe your company and brand are getting high sales figures. However, don’t let this put you
off guard. At the same time, it’s possible that competitors are carrying out promotional
strategies that can rival and even take current customers. In addition, sales promotion can
keep brands competitive and continue to be chosen by consumers.
3. Brand Awareness
Sales promotion usually includes attractive benefits and can increase brand awareness. Brand
awareness of course will affect the growth of sales figures.
4. Consumer loyalty
If related to the previous point, sales promotion can help maintain consumer interest in your brand.
An attractive sales promotion can make consumers feel they have an advantage when buying our
products compared to other brands.
It is also important to create promotions aimed specifically at registered members or consumers in order to
maintain their loyalty.
Example of Sales Promotion
After Sinaumed’s knows about sales promotion, here’s an example of sales promotion:
1. Sales Promotion Free gifts
There are many ways to optimize sales promotion tactics, one of which is giving free gifts. If
Sinaumed’s owns a restaurant, it can give free desserts as a way of promotion.
Not only that, such clothing stores can provide free goods that may come from old stock and are considered
to be unsold. However, it must also be noted that each piece of clothing is in good condition
so that it still deserves to be used as a free gift.
2. Sales Promotion Samples are free
Basically, consumers really like everything that can be obtained for free. Giving free samples
can trigger consumers to buy the products Sinaumed’s sells. In fact, that may not have been
thought of by consumers before. This method has proven to be effective, especially if Sinaumed’s
is going to introduce a new product.
3. Sales Promotion Discounts
Discounts can certainly encourage consumer buying interest in a product. This has the idea
that consumers can obtain an item at a lower price than usual, which is one form of stimulus that can
encourage purchases from customers.
4. Sales Promotion Vouchers and coupons
Vouchers and coupons, both of which can create an exclusive impression when you give them to selected
people. Especially if the coupon has an expiration date. Consumers who get special
vouchers and coupons will certainly feel the need to use them before the specified time limit.
5. Sales Promotion Giveaway
Sales promotion can be done by optimizing a brand’s social media. It functions not only to
increase sales figures. Instead, this tactic can increase engagement rates for social media
marketing. Sinaumed’s can create quizzes on social media that can attract consumers’ attention.
A quiz with a giveaway as a prize for the winner will provide an opportunity to gain new followers
on social media.
6. Sales Promotion Buy one get one free
Buy one get one free is a form of promotion that is often used by various brands. Buy One Get
One Free or also known as BOGO, gives consumers the advantage of getting 2 products by paying for 1 product.
Buy one get one free is a fairly effective tactic used by almost all types of products and
services.
7. Sales Promotion Cashback
Another example of promotion is giving cashback on every product purchase, with the intention that the
consumer will buy back other products with this cashback promo. For example, if the price of
one bag is IDR 200,000, and every time you buy that product you will get a cashback of IDR 10,000, then if
you buy two bags, the buyer will get a cashback of IDR 20,000.
How, has Sinaumed’s made a choice to promote the product using which sales promotion? Make sure
the sales promotion is chosen right!
Tips for Running a Sales Promotion
In conducting promotions, buyers are often not interested in buying the product. Though the
promotion costs have been incurred. So that these costs are not in vain, here are some
effective promotion tips:
1. Create a different concept
The first step in promoting a product, Sinaumed’s needs to create a unique concept, not just giving a
discount. For example, Sinaumed’s provides special discounts to suit customers who have birthdays
or by providing product bundling promos.
2. Achievements to be Achieved
In making a promotional program, you must know what achievements you want to achieve. This
makes activities more measurable and specific.
Avoid making goals that are too general, such as increasing sales. You can make it more
specific, for example increasing sales and getting new customers.
3. Determine the Target Market
Of course we must know in advance, who will be our target market. The right target market will
give satisfactory results. Then, how do you determine the right target market?
To determine this, Sinaumed’s can analyze and also understand through the customer database.
Through this database, you can identify several problems that can be solved using the products you
offer. In this way you will have target market data which is divided into segmentation,
targets, and also their problems. This data is also the basis for Sinaumed’s to create a sales
promotion program.
4. Doing Promotion by Utilizing
Certain Events
The first tip for doing promotions is to take advantage of several major events, such as Independence Day,
Eid al-Fitr, Christmas and New Year. By doing this promotion at the right time and place.
Then consumers will feel interested in buying because there is an urgency of need there, especially
for products that consumers need at that time.
And at certain moments, consumers will be very happy if the product they need costs less. For
example for clothing products at Eid or Christmas and New Year. Setting lower prices can also
attract more consumers.
5. Provide Special Promotions to Loyal
Consumers
Special promotions for loyal consumers or customers are intended to increase the number of customers who
will buy the product. For example, if you have known your regular customers who have subscribed
to your store for 5 years, provide special offers and lower prices from other customers as a form of
appreciation for these customers.
Loyal consumers are customers who make repeated purchases (repeat orders). The existence of
these customers must be maintained in order to continue to contribute to increase sales.
Besides that, even loyal consumers will not be easy to switch to competitors.
6. There is a minimum purchase
By setting a minimum purchase, it can encourage customers to make a larger number of transactions.
Because by setting a minimum purchase, the discount given is getting bigger.
This method will certainly attract the attention of your consumers, who initially only bought one product, they
will add more because they are eyeing the discount.
7. Understanding Consumer Needs
Promotion should be done by starting to understand consumer needs. It aims to make the
promotion more effective. For example, by giving gifts on every purchase of a product.
Consumers will certainly love it, because these products are consumer staple products and
complement each other.
Consumers who feel their needs are understood can make these consumers interested in buying the promo
products offered. Therefore, it is important to know more about consumer needs.
One of them is by providing customer satisfaction surveys to consumers, from which conclusions can
be drawn about consumer needs.
8. Product Bundling Promotion
Sinaumed’s can also use this one marketing strategy, namely bundles. Maybe it’s not just one or
two people who apply this promotional method, but there’s nothing wrong with trying to create a bundling
promotion. Usually, business people will sell goods together in packages, especially if you
sell on the marketplace, you can really use these tips.
But the obstacle that most online sellers face when using the bundled marketing strategy is the difficulty
in calculating inventory. Then how do we avoid difficulties in calculating inventory sales of
goods? So whether you want it or not, Sinaumed’s must first calculate the amount of each
inventory, only then can you determine the maximum stock that can be sold.
Take it easy, there is an easy way so that you no longer have trouble counting stock and it is easier to
create product bundling promotion strategies. The tip is that Sinaumed’s can use the Jubelio
system because the application already has features that make it easier for you to create promotions, one of
which is product bundles. Later you can also set the number of stock items that you will sell
and will automatically generate a new SKU.
9. Doing Promotion in All Media
The media that exist in modern times like today are of course very diverse. As well as print
media, electronic media, and social media. Sinaumed’s can use all of these media as promotional
media so that the products produced are more recognized by many people. With promotions like
this, of course, can bring in new potential customers.
This one media is very helpful and effective to do as a way of promotion. Lots of features
that support this promotion. Sinaumed’s can also pay for the services of people who have
considerable influence on social media. Therefore, optimizing social media is highly
recommended as a medium for promotion.
10. Keep Profits in Mind
The last tip in doing promotions is that you have to take into account the profit that will be obtained.
Profit or profit is the orientation of every businessman. Therefore, even if you are
doing a promotion, you still have to take into account the profit that will be obtained. Thus,
it will still benefit, even if it costs money for promotion.
Even though the promotion costs a lot and cuts profits, it will still be very important for you to
calculate the profit you get from the promotion process that you are doing. This is done to
ensure that the promotion you are doing is not in vain and is right on target.
You can calculate profits through calculating ROI. If you have difficulty or are unfamiliar
with this, you can try using accounting software such as Accurate Online to get comprehensive financial
reports and financial data quickly and with minimal errors.
Sales Promotion Tools
Kotler (2005) states that sales promotion tools consist of:
1. Samples
Samples are a small number of products offered to consumers to try.
2. Coupons
Coupons given to buyers will provide discounts for certain products.
3. Refund offers (rebates)
An offer to return part of the purchase price of a product to consumers who send proof of purchase to
manufacturing companies.
4. Price Packages (transactions with
discounted prices or discounts)
Offer consumers savings from the usual price of a product.
5. Premium (giving gift)
Goods offered for free or at very low prices as an incentive to buy a product.
6. Program frequency
Programs that provide rewards related to the frequency and intensity of consumers buying the company’s products
or services.
7. Contests, sweepstakes and games
Promotional activities that give consumers the opportunity to win something such as cash, trips or goods either
by luck or by extra effort.
8. Subscription rewards
Cash or other prizes offered for use of a company product or service.
9. Free testing
Inviting potential buyers to sample the product free of charge in the hopes that they will buy.
10. Product warranty
The seller’s explicit or implicit promise that the product will perform as specified.
11. Joint promotions
Two or more company brands work together with coupons, cash-outs and contests to increase traction.
12. Promotion – cross
Using a brand to advertise other non-competitive brands.
13. Point of purchase
Display or demonstration that takes place at the place of payment or sale.