Sales Promotion Effectiveness

THE IMPACT OF SALES PROMOTION ON SALES VOLUME

This essay will develop the understanding of impact of Sales promotion activities on sales volume of any organization. Sales promotion is the process of persuading a potential customer to buy the product. Sales promotion is designed to be used as a short term to boost sales, it is rarely suitable as a method of building long term customer loyalty. Sales promotion is a bridge to link personal selling and advertising. The intention while sales promotion should be to attract new buyers to purchase our product. Sales promotional activities are also used to enhance the effect of publicity through different means. To gain the competitive advantage is another facet of sales promotion. Sales promotional

It involves a supportive scenario to develop its effectiveness across the buyers. Especially there are so much different techniques available to be considered but it requires a deep analysis to generate a useful technique to achieve the favourable result. It is not necessary that same technique for a specific product is to be as effective as previously, some external factors also take part in generating effective technique. Only a well analyzed technique with proper implementation can bring the success in to our hands. These all considerable points are discussed in this essay to facilitate the marketers in the future

Since the end of the last century, a quarter of marketing managers budget for advertising has been devoted to sales promotions and this amount has constantly increased. Whereas in the past, advertising appeared to be the most effective strategy to reach new consumer and to push them into purchasing, today it has been noticed that many marketers are moving toward sales promotions. This change has been pushed by several factors regarding the consumer, the distribution side and the competitive context. The purchasing power of consumers has decreased in recent years and now they appear to be more price sensitive and more reactive to promotional activities which appear to be real, concrete and often immediate. The rising costs of advertising also caused a decline in the use of mass media promotion which became also less effective instead of sales promotion. Distributors, who are more concentrated and powerful, ask producers for more promotions in order to build store traffic. Gaining market share is always more challenging due to a strong competition and implementing a sales promotion strategy gives a greater visibility to the brand and differentiates it from concurrent. The decline of sales volume pushes marketing managers to be more concerned about short term results