Overall, sales promotions are a powerful tool to rapidly inject sales, attention and demand into your business. In addition, too many promotions can damage your business reputation because the offers no longer seem exclusive or valuable and clients begin to see your product or service as worth less than what you typically sell it for. Therefore, the definition of a good sales promotion is one that’s run strategically to work in conjunction with your sales cycle. Bidyut Bikash Das, former Demand Manager at OYO, notes that, “.when a number of competitors extensively use promotions to differentiate products or services, and other competitors copy the strategy, no differential advantage and a loss of profit margins to all.” As a result, condition consumers to wait for them and erode their price integrity.”įurther, if your competitors also run tons of sales promotions, the market itself may be negatively affected. “The trap is running constant promotions to spike sales. Howard Freidman, former CEO of Aptela (Now Vonage Business) speaks to this pain point: Make it difficult to sell products or services at your standard price point.If you consistently run promotions, your consumers may come to expect them and only buy products or services when they’re on promotion. Take the “sales promotion trap” as an example. As a result, they enter a precarious short-term marketing cycle and struggle to plan for long-term goals and growth. The downside of sales promotions is that some businesses suffer from becoming overly dependent on them in an effort to boost sales. Strategically using sales promotions helps support a variety of business interests and keep your existing audience engaged with your offers.
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