Essay: There are three main types of sales promotion strategy that organizations use to increase their sales and to get new business.
- The push strategy
- The pull strategy
- Combination of both
- Push strategy:
Push strategy focuses on promotional activities to create consumer demand. The manufacturer promotes the product to the wholesaler the wholesaler promotes it to the retailer and finally its forwarded to the consumer .The main idea behind the push strategy is to persuade the distributors and retailers to sell your product and service to the consumers by offering different kinds incentives. The most common push strategy involves money back guarantee, discounts and other advertising items. Organizations convince the intermediary channel that is the distributors to market their product and ultimately forward it to the consumers.
- Pull strategy:
In this type of strategy requires high spending that is spending on consumer and developing a demand for the product. Here the consumer would get attracted by the promotion and then ask for the product from the retailer the retailer would then ask the wholesaler for the product and finally the wholesaler would ask it from the manufacturing company.
The difference between the two is that in the push strategy the company would persuade the wholesaler to sell their product or to give their product the shelf space so as to create consumer demand. On the other hand the pull strategy would directly communicate with the consumers and influence them directly to ask for the product
- Combination Sale promotion strategy:
As the name suggests in this kind of strategy there is a combination of both the push and pull strategy. Both the distributor and the consumers are taking in account the organization offers incentives to the consumers and discounts to the distributors.
Effect of communication in promotion:
Communication plays sheet anchor’s role in the promotional campaign. The basic reason of communication is to share the information and concept behind the product to the customer. The effectiveness of the message depends upon the feed back that is being acquired from the customer. An effective communication would have a definite feedback from the customer which would help in developing an idea that what the customer wants from that particular product or service. In short we can say that the basic reason of communication in promotion is to converse the consumer that what benefit they would get by this product (Management Hub, 2009).
Sales promotion techniques came in various forms but there is no universal strategy that works for all. In order to develop an effective sales promotion strategy number of things should be kept in mind from consumer behaviors to external competitor strategy, nature of the market, availability of funds etc. all these factors are very important and should be dealt with great care to successfully implement the strategy.
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