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Advertising, promotions, social media and public relations all support marketing strategies using different and specific methods.
Sales promotions are temporary deals, events and ways of communicating with potential customers to motivate them to spend, or spend more. Adapting a variety of common sales promotions to your situation helps you increase your revenues and profits.
It often takes more than advertising to break consumers’ brand loyalty, especially if they have been using a product or shopping at a particular store for years.
One reason is the worry that trying something new will result in a waste of money if they don’t like the new product. Offering customers a chance to try your product or service risk-free is a common method of breaking brand loyalty and converting competitors’ customers into your customers.
Instead of offering consumers a discount on the price they’ll pay for your product, offer a rebate, which is a monetary amount consumers receive later, generally in the form of a check you send via mail. This allows you to gather customer information and create a mailing list, a benefit you can't get simply through a point-of-sale discount.
Buy One, Get On Free
Consumers love a good deal, and they love freebies even more. Offering a free product if the consumer purchases one is a time-honored sales promotion that works for several reasons. If your margins are high enough, you might be able to cover your costs for both products at your selling price for one.
This type of promotion allows you to double the amount of time the consumer uses your product, potentially leading to a better experience and an affinity for your product. This strategy also can help you decrease your dependence on costly, free-sample giveaways.
To stimulate impulse buys or to remind regular customers not to leave the store without a specific product, marketers have used in-store displays for generations. These are signs, racks or other physical promotional pieces that stand out from their surroundings while touting a particular product or offer.
Loss Leaders and Discounts
As with free samples or buy-one-get-one-free promotions, loss leaders make products or services available below the seller’s cost. Some large retail chains use loss leaders to lure consumers into their stores, hoping that they will buy other products while they are in the store.
Supermarkets are well known for marking down a staple, such as milk or bread, to entice customers into the store, marking up the prices of other staples such as eggs or orange juice to even out the promotion financially.
Some restaurants offer entrée or sandwiches as loss leaders because they make enough profits on additional sales of soups, salads, fries, drinks and desserts to turn a profit. Loss leaders often have a dual goal of generating a profit and getting consumers into a store to stimulate future sales.
Discounts are markdowns on products or services that help reduce slow-moving product or temporarily spike sales.