Objectives of consumer market sales promotions

Objectives of consumer market sales promotions

The following basic objectives can be pursued with sales promotions in the consumer market.

¨      Stimulate trial purchase

When a firm wants to attract new users sales promotions tools can reduce the consumer’s risk of trying something new. A reduced price or offer of a rebate may stimulate trail purchase.  

• Pantene when it was launched did a lot of sampling, to stimulate trail purchase. Their efforts have surely shown results, with Pantene being one of the top selling brands in India today.

¨      Stimulate repeat purchases

In-package coupons good for the next purchase, or the accumulation of points with repeat purchases, can keep consumers loyal to a particular brand.

The most prominent frequency programs are found in the airline industry where competitors try to retain their most lucrative costumers by enrolling them for various perks such as frequent flyers can earn free travel, hotel stays, gifts etc.

¨      Stimulate larger purchases

Price reductions or two-for-one sales can motivate consumers to stock up on a brand, thus allowing firms to reduce inventory or increase cash flow.

Many soaps brands are doing sales promotions to stimulate larger purchases. When people generally come to buy soaps, and see the offers like,

Fairglow, buy 3 get 1 free,

Lux buy 3 get 1 free,

¨      Introduce a new brand

Because sales promotions can attract attention and motivate trial purchase, it is commonly used for new brand introductions.

Fairglow has effectively used sales promotions to introduce its brand, by doing a lot of sales promotions like the buy 3 get 1 free, also Fairglow free with Good Knight, with other HLL products.

¨      Combat or disrupt competitors strategies

Because sales promotions often motivate consumers to buy in large quantities or try new brands, they can be used to disrupt competitors marketing strategies. If a firm knows that one of its competitors is launching a new brand or initiating a new advertising campaign, a well-timed sales promotions offering deep discounts or extra quantity can disrupt the competitor strategy. Add to the original discount an in-package coupon for future purchases, and a marketer can severely compromise competitor’s efforts.

• When Godrej did sales promotions to increase it washing machine sales Samsung to protect its market also introduced sales promotions.

Godrej gave a rebate offer and a free VIP suitcase. So Samsung also introduced the rebate offer and gave a camera free.

¨      Contribute to Integrated Marketing Communications

In conjunction with advertising, direct marketing, public relations and other programs being carried out by a firm, sales promotions can add yet another type of communication to the mix. Sales promotions suggest an additional value, with price reductions, premiums, or a chance to win a prize. This is an additional and different message within the overall communication effort.