ABSTRACT (BUSINESS STUDENT SALES PROMOTION SKILLS NEED, A TOOL FOR ORGANIZATION PERFORMANCE)

This project was focused on Business Student Sales Promotion Skills Need, a Tool for Organization Performance. As a consequence, many firm are conducting international business operation, management of the organizations therefore strive to improve their organizational performances through marketing actions or actives such as promotional motives. The reason had been that, consumers tend to buy products they have been informed about, it is therefore not surprising that, marketers tend to use “sale promotion” to communicate information, position product brand, add value, and control sale volume. In spite of the numerals sales promotion technique available to many organizations, it is important to note that many organizations have not yet appreciated how to effectively and efficiently utilize the sales promotion techniques in attempting to enhance their organizational performance. For a fast growing organization, sales promotion is use as tool for their organizational performance which increases their sales.

INTRODUCTION

          Sale promotion is an initiative undertaken by organizations to promote increase in sales, usage or trial of a product or services (that is, initiatives that are not covered by other elements of the marketing communication/promotional mix). Sales promotion is an important component of an organizations overall marketing strategy along with advertising, public relations and personal selling. Sale promotion acts as a competitive weapon by providing an extra incentive for the target audience to purchase or support one brand over another. It is particularly effective in spurring product trial and unplanned purchases (Aderemi 2003).

          Most marketers believe that a given product or service has an established perceived price or value, and they use sales promotion to change this price value relationship by increasing the value and/or lowering the price compared with other components of the marketing mix (advertising, publicity, personal selling). In determining the relative importance to place sales promotion in the overall marketing mix, an organization should consider its marketing budget, the stage of the product in the life cycle, the nature of competition in the market, the target of the promotion, and the nature of the product. For example, sale promotion is particularly attractive alternative when the budget is limited. In addition, sale promotion can be effective tool in a highly competitive market, when the objective is to convince retailers to carry a new product or influence consumers to select it over those of competitors.

DEFINITION OF TERMS

SALES PROMOTION  

          According to Kotler (2004), sales promotion is a key ingredient in marketing campaigns and consists of a diverse collection of incentive tools, mostly short term designed to stimulate quicker or greater purchase particular product or service by consumers. Sales promotions programmes are those activities other than stimulate consumer purchase.

          Achumba (2002) defined sales promotion as those marketing activities, other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as displays, shows and expositions, demonstration etc, sales promotion has been defined as a direct inducement that offers and extra value or incentive for a product to the sales force, distributors or the ultimate consumer with the primary objective of creating an immediate sales.

          Sales promotion refers to those promotion activities other than advertising, publicity and personal selling that stimulate interest, trial or purchase by final customers or others in the channel. (Bagavathi Pillai, 2007).

TYPES OF SALES PROMOTION

  1. Discounted Products: Adding a discount to your product is possible the most popular types of promotion customers to grab a bargain, so it makes sense to offer discount every now and then. Choose to promote -% vs N –think about what will look more attractive to the buyer. Always consider your bottom line and be sure to not constantly have a sale, as people will just, come to expect this as the norm.
  2. Free Shipping/Free Returns: Free shipping and returns gives the customers a sense of security that they won’t lose out if they wanted to send the product back. If you are worried about your margins then you can always incorporate the shipping cost into your product, or work about offering free shipping when a customer spends over a certain amount.
  3. Flash Sale: A flash sale is basically an offer that only lasts for a limited time and it is a great way to create sense of urgency for the customers to buy. Many retailers are now adopting this strategy as a way to sell more products and get rid of surplus stock. Monetate found that 56% of businesses agree that flash sales campaigns are better received than regular campaigns. The more successful flash sales are ones that don’t last very long and 50% of purchases occur during the first hour of a flash sale.
  4. Buy More, Save More: This kind of deal entices the customer to buy more of your stock, so it’s kind of a win. There will be plenty of potential customers visiting your store that want to buy, but feel guilty because of the price. Giving them a discount if they spend more, may just give them a little shore in the right direction. You don’t have to offer a huge discount, but make sure it’s attractive enough to convert visitors.
  5. Product Giveaways/Branded Gifts: Let be honest, everyone loves a freebie so this really is a great promotion. Not only does it gives potential customers the chance to test out your product, but all it entices people to buy your stuff. If your product is not something that you can giveaway, then think about creating some useful branded gifts that you can offer with each purchase. Think along the lives of key chains, bumper stickers, magnets, pen etc. customers will appreciate the gesture and will think of you whenever they see their branded gift.
  6. Loyalty Points: Rewarding your customers will help you build a solid base of loyal fans and it will entice people to shop more at your online store. Providing great customer service is so important to the success of your business, and offering a loyalty point system up a virtual card. The customer can gain points every time they buy and then use their points to get money off future purchase, or if they buy 9 items, they get the 10th free.
  7. Coupon Giveaway: This is a different way of promoting discounts. Sending your customers virtual coupon will make the promotion seem more exclusive and will give the customer more of a push to visit your online store. Think about sending coupons to loyal customers that have spent over a certain amount. You could also consider sending coupons to visitors that have experienced bad customer service, to try and convert them back to happy customers.
  8. Competitions: The great think about running a competition is that you only have to give away one thing, but you gain so much-making it a popular type of promotion. It will not only help raise your profile, but every person that enters, will then becomes an email contact that you can try and convert into a sale. If they are entering your competition, chances are they are interested in your products, so running a competition is a great idea-particularly for start-ups.
  9. Price Match Promise: There is a reason holiday promotions are so successful. Customers always like to spend more around the holidays, making it the perfect opportunity for you to get your brand out there and sell more products. You don’t have to go too crazy on your offers, but enticing customers with slight discounts will always work in your favour. It is also the perfect time to get creative with your promotion and use the theme of the holiday to sell your products.