Importance Of Sales Promotion
Sales promotions provide a breather to salespeople as it removes some weight off their shoulder and induces prospects to purchase the product. In many ways, sales promotions help your salespeople get more leads and ultimately more customers.
Why is sales promotion important to your business?
Helps grab eyeballs
Be it a shiny point-of-purchase display, or free trial pack of a product, sales promotions help prospects see your product in a new light, at least for a brief period of time. Once they have a (literal!) taste of your product, they are invested in your product, and become familiar.
Highlights utility of the product
One of the toughest things for a brand is to gain the trust of the end consumer. But sales promotion acts as a bridge between a new blissfully unaware prospect, and a lead who has experienced your product. It even helps them recognize their need for a product, and how your product solves for that need, by giving them a teaser or sample of the product.
Stimulates demand for new products
It helps businesses cover new geographical areas or industries, by incentivising potential customers to try out your product, rather than just stick to brands they are comfortable with. Sales promotions are the investments made by a business to win new prospects step out of their comfort zone, and familiarise themselves with your product. It also helps clear surplus inventory for a business.
Helps differentiate your product
Intense competition and crowded markets have increased the importance of sales promotion efforts as a crucial differentiator. When McDonalds started giving away toy figurines as part of the happy meals, it became a game changer for the food industry. It enticed many young customers to purchase the meal, even if they were not too hungry.
Boosts sales team performance
Sales promotions eases the pressure on your sales team by making the product more enticing with discounts, displays, discounts and exhibitions. It helps salespeople get more leads, and close more sales.
Increases demand in off-season
If a product has a certain pattern of purchase, and is heavily seasonal in nature, like perishables or hotel occupancy, then sales promotions during the off-season acts as a booster and helps sell more products during that period. It helps stabilize demand and volume of products in the off-season It also helps sales managers forecast demand, and stock products accordingly.