Sales Promotion Techniques
Types of Sales Promotions
There are many types of sales promotions that businesses use to attract attention, encourage purchases, and build long-term loyalty. Let’s break down the most common types:
Coupons
Coupons are one of the most widely used tools in sales promotions. A coupon offers a discount or a special deal when the customer presents it at the time of purchase. Coupons can be distributed in many ways—via newspapers, online, through apps, or even on social media. Coupons are attractive because they give consumers the feeling that they’re getting a better deal, which can motivate them to make a purchase.
Example:
Target regularly offers digital coupons that customers can apply at checkout when shopping online or in-store. These coupons often include discounts on popular items or promotions like “$5 off when you spend $25.” Target’s use of coupons helps drive foot traffic and encourages customers to buy more.
Rebates
A rebate is a type of promotion where the customer pays full price for a product but can claim a portion of the price back after making the purchase. Rebates are usually processed by the customer filling out a form and submitting proof of purchase. While rebates are popular, they are a bit more complicated than coupons because they require action from the consumer.
Example:
Best Buy often runs rebates on electronics, offering customers a cash-back deal if they purchase a particular item and submit the required documents. Rebates can help drive sales because consumers often feel like they are getting a great deal, even though they may need to wait to receive their refund.
Samples
A sample promotion involves giving consumers a free trial or taste of a product, usually with no obligation to purchase. This can be particularly effective for products like food, beauty products, or new technologies. Samples allow consumers to try before they buy, which can be a powerful tool for generating interest and convincing people to make a purchase.
Example:
Costco is famous for offering free samples of food and beverages throughout its stores. Shoppers can taste-test new products or products they’ve never tried before. These samples often lead to increased sales because people are more likely to purchase something once they’ve tasted it and enjoyed it.
"Sales promotions create urgency, complementing other IMC strategies for maximum impact."
