Objectives of Sales Promotion
1. Obtaining Trial & repurchase
One of the most important uses of SP is to encourage consumers to try a new product or service
tools have become an important part of new brand introduction strategy. The labels of initial price can be increased through sampling, coupons & refund orders. The success of a new brand depends not only on getting initial trial but also on inducing a reasonable percentage of people who try the brand to repurchase it & establish on-going purchase pattern.
2. Increasing consumption of an established brand:
SP can generate some new interest in an established brand to help increase sales or defend market share against competitors. One way to increase product consumption Is by identifying new users
for the brand. Another strategy for increasing sales of an established brand is to use promotion that attracts new users of the product category or users of a competitive brand. Eg. VIM Bar challenge.
3. Defending current customers:
A company can use SP techniques in several ways to retain its customer base. One way to load them with the product, taking them out of the market for some time. Special price promotions,
coupons or bonus packs can encourage consumers to stock up on the brand.
4. Targeting specific market segment:
Many marketers are finding that SP tools such as contests& sweepstakes, events, coupons & sampling are very effective ways to reach specific geographic, demographic, psychographic & ethnic markets. SP programs can also be targeted through specific users-status groups such as non- users or light users v/s heavy users.
5. Enhancing Integrating Marketing communication & building Brand Equity:
Final objective is to enhance or support the integrated marketing communication efforts for a
brand or a company. Building brand equity & image has traditionally done by advertising. However, SP techniques such as contest & sweep-stakes or premium offers are often used to draw attention to an advertising and increased involvement with the message & product or service & help build relationship with consumers. Eg. Dunkin donuts
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