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Those who work in retail, or those who have an e-commerce, or even both, have certainly already done it and, therefore, imagine that they know very well what Sales promotion is, right?
But does he really know? Worse, because he believes he knows everything, does he not make mistakes? And related to that, have you had good results or even better benefits?
If you felt confused or hesitated to answer these questions with conviction, don’t worry. We will bring light and scope to the subject.
What is Sales Promotion?
The most rushed and particularly the most experienced ones will say something like: “commercial actions to sell more”.
This type of definition is understandable, after all, the observable practice in retail and e-commerce sites, as well as the most varied definitions in the literature and in the contents of many sites, vary slightly in terms of words, but end up making the same statement .
More than that, in the overwhelming majority of cases, the promotion is characterized by granting a discount and the use of the word “sales”, suggests that the objective is to sell!
Not that it’s wrong to think so, but it’s a limiting definition to say the least.
So let’s propose an alternative definition, okay?
“Sales Promotion is the set of Marketing and Sales actions aimed at raising a brand to a higher level. It is products and services, before its existing and potential customers”.
Ah, but the first one is simpler and more practical, many will say!
We have to agree that it is true, but there are important subtleties in this “our” definition:
- Promotion is the act – or set of them – of elevating to a higher condition or status. Think of a job promotion that has a similar meaning, even if applied in another situation. Most importantly – promotion is not synonymous with a discount, or a low price, or anything like that;
- What is intended to be promoted can and/or should be the brand of the product / service, or the companies (the one that manufactures and the one that sells), or a bit of both;
- Actions are not only carried out by the Sales Department (that’s why in capital letters and not sales as an act of selling!), with support from Marketing actions and their scope of action;
- The result of the actions should affect both existing customers (eg by making them loyal or increasing their average ticket) and increasing the chances of winning new ones.
But the greatest subtlety, which is not explicit, is that selling must be a consequence of the promotion and not the objective itself!
Other goals must exist. If not, consumers will be solely and exclusively interested in price! They will only buy when the price is low or attractive. They will only enter the website or the store when they see the word “promotion”.
In practice, companies that operate based on the first definition only sell when they make “promotions”, or if you prefer, when they give discounts!
According to the definition we proposed and that if understood in depth, the consumer will have knowledge and concept of the brand, both the company that sells and the one that manufactures the product, broader than he had before. You will experience a care experience. You will get to know the establishment and the other products and not just the promotional ones.
Even if we think about supermarkets or even neighborhood markets, they all discovered and use a method of promoting their establishments – the sale of warm and fresh bread all day long.
The location of the bakery at the back of the store forces consumers to cross it all and pass through aisles with other products. In doing so, they may remember something they also need to buy, or perhaps be “seduced” by an offer, or even something appetizing and strategically placed next to the queue while waiting to be served.
The truth is that by placing the consumer inside the establishment, whether in the example above or in any other, the company can subject him to a variety of actions. This is promotion and does not necessarily involve price.
Remember, it doesn’t matter how wonderful your store or website is if you don’t have anyone visiting!
7 common sales promotion mistakes
Once we have managed to broaden our vision of Sales promotion, the time has come to break with some consolidated paradigms, inappropriate practices and associated errors, in order to aim for broader results.
Depending on how attentive you are to the topic, you may have noticed that we have already dealt with the main and most common of them…
1. Promotion is not just a discount
Discounts, price cuts, get 3 get 2, or any financial advantage given to consumers are just instruments. As we said, promotion is not synonymous with any of this, nor is it equivalent.
It may seem difficult to get used to the issue, especially since it is not usual to see any action called promotion, which is not due to the reduction in the price normally charged.
To go against the rule, it needs to involve some creativity to get out of the commonplace, as well as a good relationship with its suppliers, without having to sacrifice profit margins.
Examples of this are already common in some retail segments, such as on Customer Day and Consumer Day, which several deals extend for the entire week.
In the already known “Promoção Marcas Premiadas” or “Promoção Marcas Campeãs”, customers who buy at participating establishments are entitled to prize draw coupons for each amount spent and the purchase of products from such brands entitles them to twice as many coupons .
In this campaign, the promotional cost is the responsibility of the brands involved.
Knowing how to use free samples, which is another practice that does not interfere with the prices charged, is another example of a promotion action.
2. Promotion without deadline
A direct consequence of the entrepreneur using promotion as the main sales tool, which many do not know how to work in any other way and carry out “promotions” throughout the year. In practical terms, it means that they always need to discount if they want to sell.
Promotion must be an opportunity and, therefore, it has a deadline to start and end. So much so that those who understand the associated concept usually emphasize – “Enjoy! It’s for a limited time!”.
If not, the customer thinks it’s okay not to buy now. He returns next week, next month and it will be the same. Or else, if it’s so good and everyone is enjoying it, how does it last so long?
Some promotions are even called “lightning promotions” and can last for minutes or while stocks last, with the intention of awakening precisely this sense of opportunity and urgency in the customer – “If I don’t take advantage of it now…”.
3. Lack of clear objectives
Getting rid of that merchandise that is stranded in stock is not objective.
Ok, you can even solve this problem, giving a super-discount, but always remember the bakery at the back of the store. What else can you do to leverage the action?
Whether in the physical or digital world, the first purchase by someone who didn’t know the company, the brand, is in itself an expressive result. This is an example of a more valuable and breaking goal, you “get rid” of that strand.
4. Lack of transparency
Promotions really should be promotions, which means don’t just put up shop front posters or website banners to get attention, but don’t deliver anything new.
Beware of practices that became known as “everything for half of double”, so common on Black Friday.
Customers are not fools and there are already a series of resources and services that, in seconds, help you to know if there is indeed a discount on the product offered. In fact, if it is something he wants or consumes regularly, he already knows the price that the market practices, because he has already researched and has been following prices.
Nor should you create “very special conditions” or regulations in fine print that no one reads to make someone eligible for participation.
Situations like this, in addition to not fulfilling the function of promoting the company, brand and products / services, work the other way around. A consumer who feels or is deceived will quickly and easily become a detractor.
5. Legal feasibility
Closely related to the above error is legal viability. As in the cases of campaigns with prize draws, there is specific legislation that regulates this type of action and that even requires documentation and authorizations to be carried out.
It is also necessary to pay attention to other issues that have legal support, such as those provided for in the CDC (Consumer Defense Code), such as tying sales, which is when the sale of a product / service is conditional on the acquisition of another.
Some may incur this type of error when trying to cross sell. You can sell complementary products, but never condition each other.
6. Lack of planning
Promotion planning means thinking about aspects such as those we have already seen (deadline, objective, the “rules of the game”), as well as the other precautions that are necessary for its effectiveness, such as training salespeople or guiding the service team, for example.
As simple and quick as the promotion is, it is necessary to plan it. That is, a “flash promotion” should not be confused with an impromptu promotion.
Imagine that you suddenly decided to “burn” a product, but you did not observe the time when the store has the highest flow of customers, you did not explain the conditions to the attendants, you did not enable the possibility of discounts at the cashiers, no was sure of the availability of items in stock.
In addition to failing with the action, it produced a very negative image among the few customers who wanted to take advantage of it, but had problems making the purchase.
7. Lack of preparation / infrastructure
The seventh mistake is usually a consequence of the previous one, but also a lack of experience.
In the first year that we had Black Friday in Brazil, reports of problems and complaints from customers were numerous. Sites that were offline or very slow, product delivery problems, wrong amounts when items went to the cart, among many others.
Some occurred because the companies didn’t have a backlog to draw on. Others, because companies underestimated the potential and did not prepare the necessary infrastructure. There were still those who did not agree with the commercial chain involved.
The lesson that remains is that the wider the promotional actions are, the greater the preparation – which also depends on planning – required, so that no aspect of the infrastructure involved fails or compromises the efficiency of the operation.
Consider everyone involved in the action and their responsibilities. The different commercial partners (service providers, third parties, suppliers, etc.) need to be aligned with the company and the planning that was done.
Conclusion
Sales Promotion is not pure and simple granting discounts. Facing and acting like this implies common mistakes that compromise the possible results.
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