Sales promotion is one of the 4 promotion mix variables that organizations can u

Question

Sales promotion is one of the 4 promotion mix variables that organizations can use to communicate, and control consumers’ behavior. They can be directed at consumers, the trade (retailers, wholesalers, agents, brokers), and a firm’s salesforce. The Kohl department store has a very successful promotion in the form of Kohl’s cash. For every $50.00 consumers spend, they generate $10.00 in Kohl’s cash which normally can be used a week later. A consumer who spends $100.00 before sales taxes will receive $20.00 in Kohl’s cash. Initially, Kohl drives the consumer in the store with a high-value coupon worth between 15-30%. Then drives most back into the store a week later to spend the Kohl’s cash. Naturally, most consumers spend more money than what they have in Kohl’s cash. Please describe a unique sales promotion (consumer, trade or salesforce) that you are aware of. Indicate who it is directed at and its effects. Why do you think that it is successful? Make sure that your posting is unique.

Explanation / Answer

Sales promotion is defined as those activities that provide extra values or incentives to the sales, the distributors and to the ultimate consumer which can increase immediate sales.

Sales pro­motion is divided into 2 categories—

Unique Sales Promotion Technique

There are many different types of sales promotion activities that can be perused as one of them is explained below:

VouchersCoupons

There are many web applications now days providing various discount coupons or free vouchers which attract lot of new customers to visit their store once and if they like their goods or services they will become their regular customers thereby stimulating their sales force. Like companies issue their coupons on Groupon.com which is providing huge discounts to customers.

Direction

This sales promotion technique is directed at customers as customers are called kings by sellers.

Effects of Customer Oriented Sales promotion

1. It generates consumer interest, which will definitely lead to trial.
2. It results in inquiries from the target customer group.
3. It builds customer traffic for a brand at the retail outlet
4. When customers will keep on getting coupons and vouchers it will motivate them to repeat their choice.

Reasons for Success

Two main reasons for the success of this promotional technique are-

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