Marketing firms use several key sales promotion techniques directed towards trade and consumers. The different sale promotion techniques are discount and deals, increasing industry visibility Price-based consumer sales promotions and attention-getting consumer sales promotions. Each sale may be uses in different ways but they all have the same common goal to increase sales. Whether the technique increases the awareness of the item by advertising on the television or newspaper or put on discount inside the store, the goal is to increase sales.
In 2008 the Coca-Cola Company earned a gross profit of 20,570 million dollars making it the number one soft-drink company in the world ( 2008 Year in Review , 2006-2009). The number one soft-drink company in the world stays number one by continuing to use numerous amount of sales promotion techniques. Coca-Cola Enterprises Inc. , markets their products by using sale promotions to build interest in or encourage a purchase of a good or service. There are two different types of discounts and deal promotions; merchandising and case allowance (Solomon, Marshall, & Stuart, 2008).
Discount and promotional deals such as My Coke Rewards offer free product and services by redeeming collected points. Retailers may stock large quantities at the discounted price during the promotions in the anticipation of the sale and the opportunity to take advantage of the sale. In this example, Coca-Cola increases sales by putting a code inside the packaging for consumers to redeem online. The more Coke products consumed the more points the consumer earns.
The promotion is continuous by changing the themes and the rewards available keeping the consumers interested in redeeming points. This type of promotion will not be the most successful method for every company because retailers will purchase large quantities of the product during the promotional period and need to purchase any at regular price because they stocked a large amount away. When you see a shirt, cup, or pen with Coca-Cola you are looking at the sales promotion technique increasing industry visibility.
Industrial visibility can be increased through a tradeshow or a coffee mug with the logo. Retailers and consumers are partial to a particular company by the influence of industry visibility. Coca-Cola earns revenue on the sales of the shirt and also uses consumers as a part of the marketing technique. Every time someone wears a shirt with Always Coca-Cola they are advertising Coca-Cola products. Trade shows are an effective marketing technique by offering displays, samples, and hand-out material.
Additional consumers can be reached by giving away promotional products, unlicensed merchandise with the company’s logo on it to create consumer recognition of the company or specific product. Promotions that emphasize on short-term price reductions or rebates that encourage people to choose a certain brand are price-based consumer promotions (Solomon, Marshall, & Stuart, 2008). Short-term price reductions are accomplished by using coupons, rebates, bonus packs, and promotions such as buy-one-get-one-free promotions.
My Coke Rewards program can also be classified under this category because it offers coupons and price deals to motivate sales. The program’s establishment is a consumer loyalty campaign to reward consumers for purchasing Coca-Cola products. Attention-getting consumer sales promotions are used to stimulate the interest for a company’s product or services (Solomon, Marshall, & Stuart, 2008). By using contest, sweepstakes, samples, and display ad and commercials companies grab the consumer’s attention and stimulate their interest in the product.
When trying to get consumer’s to try a new product, giving free samples is a great way to market the new product. The consumer feels the sample is to their benefit to sample because it is a new product that is being offered to them at no fee only their feedback on the product. Giving away free samples to consumers to share with their friends and family is also a good promotion technique. As we can see from Coca-Cola’s increasing gross profit over the years, persistent dedication to a variety of promotions makes sale promotion echniques effective. In, conclusion sale promotion techniques are an effective way to generate interest in a product or persuade a consumer to purchase a new product. Promotions generate an increased interest in a product or persuade a consumer to purchase a product. Discounts and deals benefit the wholesalers and retailers more than they do the manufactures, but with the increasing industry visibility the manufactures make-up the loss sales.
Promotional techniques such as price-based consumer sales promotion and attention-getting consumer sales promotions are used to attract new consumers. All of the techniques described helped to create a brand loyalty name for Coca-Cola.
2008 Year in Review . (2006-2009). Retrieved February 22, 2010, from The Coca-Cola Companu: http://www. thecoca-colacompany. com/ourcompany/ar/financialoverview. html Solomon, M. R. , Marshall, W. G. , & Stuart, E. W. (2008). Marketing: Real People, Real Choices. Prentice Hall.