Sales promotion- pages 4-5 Flashcards
Sales promotion
Designed to boost sales by offering an incentive to current and potential customers to buy a product
Purpose of sales promotion
- Maintain customer loyalty
- To boost sales figures
- To attract first-time buyers
- To entice people into a shop
Main methods of sales promotion
- Coupons
- Free samples
- Competitions
- Money off/discounts
- Loyalty incentive
- BOGOF
Advantage of coupons
May encourage customer to buy the product rather than a rival product
Disadvantages of coupons
Impacts on profit if money-off price doesn’t cover costs of product
Advantages of free samples
Having tried the product, customers may decide to buy which increases profit
Disadvantages of free samples
Impacts on profit if less sales are generated
Advantages of competitions
Appeals to people’s sense of thrill to winning, therefore to build interest in the product
Disadvantages of competitions
Impacts on profits
Advantages of money off/discounts
Encourages customers to buy more products
Disadvantages of money off/discounts
Impacts on profit if less sales are generated
Advantages of Loyalty incentives
Establishes a long-term relationship with customers; customers may choose the enterprise’s products over another
Disadvantages of loyalty incentives
Impacts on profit if less sales are generated
Advantages of BOGOF
May encourage customers to buy additional products as they have saved money else where
Disadvantages of BOGOF
Impact on profit if less sales are generated
