Sales promotion strategy can be one of the most effective ways used by manufacturers and producers to increase their sales. Sales promotions have misconceptions and one of these misconceptions is that this type of business strategy is only targeting wholesalers.
However, that notion is wrong. Sales promotion strategy can be used to a single customer, retailer, and wholesalers. There are many ways and various methods that are used in this type of business strategy.
First of all the manufacturer or the producer of the product needs to know the channel of his members, these includes retailers and end customers. For manufacturers moving their products through all there channel member can be quite challenging.
It needs a lot of understanding and patience. Generally, there are three common methods that are widely used by manufacturers to boost their sales promotion strategy.
These sales promotion strategies are push strategy, pull strategy, and mix strategy. Keep in mind that before making a decision of following a sales promotion strategy you have to consider that brand equity, brand loyalty towards the product, advertising strategy, unique selling preposition, competitive promotional strategies, and market shares. But before you look upon to these you might want to take a look deeper about the three different promotional strategies.
The push strategy can only take effect to increasing sales if the company is adequately sure that the customer really wants the product. This strategy normally fails if the retailer or wholesalers is lacking of pushing the product. Through this the company hires a specific person who will promote the product and give them incentives and bonuses by increasing the products sale. Push sales promotional strategy are commonly used by companies with trusted brands of products.
The pull promotional strategy is the opposite of push strategy. The assumption to this is that customers does not have enough idea on the product or know nothing at all about it and does not have any interest in buying it.
The only way to promote these products is that wholesalers and retailers presents the products to shelves and improves it general look so the customers will be attracted to it. The appealing look or these products to the eyes of will let shoppers pay attention to it and making them possible customers.
The mix strategy is made by the company if they think the product needs the push of both sales promotional strategies mentioned earlier.
This strategy involves its intermediaries to push the product of the company or neither the customer wants to buy the product or know nothing about it at all. This strategy is cost bearing to the part of the producer and manufacturer and often takes time to materialize.
In this sales promotional strategy the manufacturer not only provide margins to the wholesalers, retailers, or the third person in charge to push the product, but also try to attract potential customers by making their products more appealing and attractive in packaging and shelves.
Those three promotional strategies are considered as the most comprehensive sales promotional strategies being used by different producer and manufacturer today. The company has to make a proper planning on the sales promotional strategy than can be best for their products. Misdirected promotional strategies will not only lead to loss of financial but can also hurt the brand.