Stimulation of sales for goods and services - Marketing: theory and practice

Stimulating sales for goods and services

Sales promotion began to develop as an independent part of the system of marketing communications technologies in the US since the early 1950s. Famous marketer F. Kotler formulates the concept of "sales promotion" as "short-term incentive measures to encourage the purchase or sale of goods or services."

There are the following impact objects (target audiences):

1) the consumer - is the most important, so the whole marketing policy is reduced to the impact on the consumer. A wide range of sales promotion techniques was created with the sole purpose of attracting the consumer in the most effective way and satisfying his requests. The consumer is given priority, since all other objects are only intermediaries and the impact on them is to enhance the impact on the consumer. The objectives of incentive, addressed to the consumer, are as follows:

o increase the number of consumers (customers);

o increase the amount of goods purchased by the same buyer.

In quantitative terms, sales promotion is mainly aimed at the consumer. It is drawn to the broadest masses and has the goal of ensuring the sale of goods, creating a flow of consumers directly in the place where the sale of goods. This is the difference between incentives and direct marketing techniques, addressed directly to each potential buyer, in order to induce him to order goods outside the place of trade;

2) Seller. The seller's ability and willingness to sell the goods must not be ignored by the manufacturer. It is in the interest of the enterprise to stimulate, encourage and enhance these qualities. The goal of incentives in this case is to turn an indifferent seller to a highly motivated enthusiast;

3) Reseller, being a natural link between the manufacturer and the consumer, is a specific object of incentives, performing regulatory functions in this case. In this case, the incentive objectives can be as follows:

o give the product a certain image to make it easily recognizable;

o increase the number of products entering the sales network;

o increase the intermediary's interest in the active marketing of a particular brand.

Depending on the object of the forthcoming impact, the incentive objectives are chosen:

1) Strategic:

o increase the number of consumers;

o increase the amount of goods purchased by each of them;

o Bring interest to the product on the part of consumers;

o increase the turnover to the targets planned in the marketing plan;

o meet sales plan metrics;

2) specific:

o speed up the sale of the most profitable commodity;

o increase the turnover of an item;

o get rid of unnecessary stocks (overstocking);

o regularize the sale of seasonal goods;

o Provide resistance to the emerging competitors;

o revive the sale of goods, the sale of which is experiencing stagnation;

3) One-time:

o benefit from annual events;

o take advantage of any particular opportunity (the anniversary of the company, the creation of a new store, etc.);

o support the advertising campaign.

Product promotion programs are otherwise called loyalty programs, customer reward programs, giving him benefits in order to make him committed to (loyal) one or another product, enterprise, brand.

The choice of ways to stimulate sales depends on the goals. The methods (methods) of stimulation can be grouped into three large groups:

o price offer or chain incentive (sale at discount prices, discount coupons, discount coupons);

o Offer in-kind or incentive in kind (premiums, product samples);

o active offer (customer contests, games, lotteries).

In general, the majority of enterprises resort to means of sales promotion, including manufacturers, distributors, retailers, trade and industry associations and non-profit organizations. Stimulation of sales is most effective when used in conjunction with advertising. Having decided to resort to it, the enterprise must determine its tasks, select the necessary incentive means, develop an appropriate program, organize its preliminary testing and implementation, ensure control over its progress and evaluate the results achieved.

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