Sales Promotion Ideas (part 1)

There are a myriad of sales promotion techniques being applied successfully.  The key is create excitement among consumers in order to facilitate participation. Consumers view sales promotions as something that add value - they get something for free!

Promotions can be divided into two broad categories:  price and non-price promotions.

Non-price promotions

Premiums

Well-designed premiums are powerful motivators.  Customers view it as an offer they cannot refuse.  Premiums not only rewards the customer but also afford companies the opportunity to get to know their target audience.  Technology can be used to create targeted, interactive promotions.

Companies like Woolworths and Coles use loyalty cards to gain insight into their customers' shopping habits as well as to retain their share of the market.

 Sampling

This is often used to introduce new brands.  A significant change in sampling is the move away from mass distribution campaigns towards narrowly targeted dissemination.  Companies like Pinch Me create databases incorporating geographic, demographic and shopping preferences of customers.  This cuts down on waste and ensure that you have a captive, motivated audience reviewing your product.

Sweepstakes and contests

This is one are where marketers prefer cyberspace due to cost efficiency, immediate data collection capabilities and the ability to keep the consumer engaged.

Contest require entrants to perform some type of activity based on skills, e.g. to state in 25 words why they should win the competition.  The winner is determined by a panel of judges.

Sweepstakes generates enthusiasm as it is based on luck.  Participants are required to submit free entries from which a winner will be drawn.

Event marketing

Most people only classify corporate sponsorship, staged promotions and product licensing as event marketing.  However, this is a much bigger field.  It is also referred to experiential marketing, live marketing or participatory advertising.   Some companies manage to come up with very creative, entertaining and attention grabbing ideas!

Point-of-purchase displays

These displays are specifically designed for retail and directly influence how customers interact with brands in-store.  It determines whether they see your products or whether your brand just blend in.