The current structure of the country's retail trade is characterized by the dynamic development of large and medium-sized department and self-service stores, franchises, chain stores and new sales channels that operate with modern business systems. Likewise, due to the presence of a large number of independent small businesses lacking management techniques that allow them to operate efficiently and respond with innovative strategies to the challenges of the competitive environment in which they operate.
These techniques include sales promotion aimed at end consumers, which, when applied more broadly and creatively in small establishments, will allow them to achieve higher levels of performance. Sales promotion comprises the set of material and economic incentives that a company implements in order to stimulate the acquisition of its products and services during certain periods of time, mainly immediately.
The above with the purpose of contributing to the achievement of financial objectives such as the maintenance, balance and growth of sales levels, having more liquidity in a short time and promoting inventory turnover. Likewise, to facilitate the renewal of merchandise, optimize the use of storage and exhibition spaces and improve its competitive position.
Such promotional efforts may be directed at current customers to maintain their loyalty and increase their acquisitions; to attract potential clients as well as to counter the actions of the competition. This is essentially supported by the existing product lines, by the changes that occur in their breadth and characteristics and by the incorporation of new lines.
Specific objectives of sales promotion
Among the specific objectives to be achieved with the implementation of sales promotion are the following:
- Increase the frequency of purchase and the average consumption per visit of the clients. Dampen the periods of seasonality in which the demand for products decreases or in which they are out of season. Promote the sale of merchandise at the end of the season. products in a stage of decline due to disuse or obsolescence. Accelerate the output of slowly rotating merchandise. Get more customers to try certain products. Improve the brand image of products. Decrease high stocks of items. Promote the acquisition and consumption of new products. Introduce new uses, varieties and packaging of products.
Temporality of sales promotions
Depending on their timing, sales promotions may be seasonal, corresponding to those that are repeated on days and in special seasons of the year. For example, at the beginning of the year, on the occasion of spring, summer vacations and the return to school; at Easter, for festivities such as mothers day, children's day, Valentine's day, Christmas and the end of the year. They can also be permanent when they cover relatively long periods of time, such as cards to accumulate points or money for purchases made. Or, periodicals referred to those that are applied systematically in regular periods of time: one day of the week or at the end of the month or occasional for particular situations that warrant it.
Promotional techniques
There are various sales promotion techniques, including those described below:
Promotional actions based on price
- Merchandise with a discount label on the normal price. Greater quantity of products for the same price. For example, two items for the price of one or three for the price of two. Or, special price per package or box that contains several products of the same genre (grouped or multipack sales). Offer all merchandise of a certain type at the same price. Special launch price of a new product. Accept the item used as part. of the payment of a new one. Coupons or discount vouchers delivered to the establishment, distributed by post, e-mail or through insertions in local publications or through flyers. The foregoing applies when purchasing a certain product or for future purchases.
Promotional actions based on the product
- Offer products of the same genre in which an additional quantity of the product is included for free in the packaging. For example, an additional 15% of a shampoo, 20 free disposable facial tissues when you buy a box of 100. Give the purchased item a free complementary product. This could be the case of a tube of toothpaste when purchasing a toothbrush, a towel when purchasing a bathing suit, or a pressure cooker for purchasing a gas stove. Dual-use packaging that has the advantage of to serve to save or store various items or as an ornament once the product has been consumed.
Promotional actions based on gifts
- Gift of different genre items attached to the product (on pack) or inside it (in pack). For example, a box of candy with a toy, Sample gift of one item for purchase of another. Redeem a certain number of lids, wrappers, etc. for a gift.
Promotional actions based on sweepstakes and frequent customer rewards
- Tickets for raffles incorporated into products and settled by suppliers. Raffles organized by the business that offer customers the possibility of winning a prize in exchange for a high purchase. Cards to accumulate points for purchases made with monetary value applicable to subsequent acquisitions or for the purchase of a particular product offer. Delivery of promotional items from the company itself or from its suppliers such as pens, calendars, t-shirts, caps, etc.
Promotional actions based on demonstrations, samples and tastings
- The demonstration consists of the intervention of company personnel or suppliers to explain the relevant characteristics of a product, or to demonstrate it by applying it to the customer. The above in order to create the desire to buy or provoke an immediate purchase. Delivery of small samples of products to customers for them to try, either free of charge or with the payment of a minimal sum. Tasting consists of giving them a taste to the customer a certain quantity of a product (drinks and food) inside the establishment.
Suppliers and promotional activities
For the development of promotional activities, it is especially important for small merchants to have the collaboration of merchandise providers in matters such as consulting for their organization, advertising, exhibitions and demonstrations, supplying products with a bonus that turns them into promotions., discounted merchandise, delivery of samples, promotional items to give away to customers and strengthening of stock availability.
Phases of the sales promotion plan
- Strategic analysis of the current situation of promotional activities, their strengths, weaknesses, opportunities and risks. Definition of general and specific objectives for the different seasons of the year. Definition of the customer segments to which the actions will be directed. Promotionals.Generation of new types of promotions and selection, among those already existing, of those that are more closely adjusted to the particular characteristics of the establishment and the environment in which they operate.Calendarization of promotional actions. required of merchandise suppliers to implement promotional actions. Establishment of contacts with suppliers to define the scope of their collaboration.Selection of means to be used to publicize promotional actions and their cost estimation. Formulation of the budget for the execution of the plan. Preparation of indicators to evaluate the results of the application of the plan. Definition of the progress control system of the plan and policies to incorporate corrective measures.
In relation to the above, it should be noted that the strengthening of the planning function with tools such as the sales promotion plan contributes to the efforts of small businesses to participate actively, rather than reactively, in shaping their future., to see beyond their daily tasks, to properly face the changes in the environment, to use and allocate their resources more rationally
Finally, it is important to point out that the reason why customers decide to participate in a promotion is not only for obtaining a gift or saving money, as there are other benefits that they perceive in addition. For example, accessing an article of better quality, known brands and higher prices, products that they do not consume on a daily basis because they normally have a higher price, to know and try new products and brands, to be excited about raffles, to get a some satisfaction with the acquisition made and to improve your self-esteem as a buyer.
