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A conclusion can be drawn that reflect a sales promotion incentives and prizes to get customers to buy the companys
products at the present time as opposed to buying later. Sales promotion generates consumer response faster in sales. Growth of
sales promotion may reflect higher corporate priority, it relates to sales compared with the establishment of the brand in the long
term. Sales promotion can be directed to customers, retailers and other salespeople. Customers will be happy to buy our products if
given coupons discounts, pricing packages and other gifts. Retailers also would work harder if given offer price discounts, as
well as display ads, and free products. Retailers will operate more viable if the holding contests with prizes for the best performance.
2. Measurement of Sales Promotion
According to Kotler and Armstrong 2014: 503-504 Consumer promotions include a wide range of tools
—from samples, coupons, refunds, premiums, and point-of-purchase
displays to contests, sweepstakes, and event sponsorships. a. Samples are offers of a trial amount of a product. Sampling is the
most effective —but most expensive—way to introduce a new
product or create new excitement for an existing one. b. Coupons are certificates that give buyers a saving when they
purchase specified products. Most consumers love coupons.. Thus,
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most major consumer goods companies are issuing fewer coupons and targeting them more carefully.
c. Cash refunds or rebates are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet.
The customer sends a ―proof of purchase‖ to the manufacturer, which then refunds part of the purchase price by mail.
d. Price packs also called cents-off deals offer consumers savings off the regular price of a product. The producer marks the reduced
prices directly on the label or package. Price packs can be single packages sold at a reduced price or two related products banded
together. Price packs are very effective —even more so than
coupons —in stimulating short-term sales.
e. Premiums are goods offered either free or at low cost as an incentive to buy a product.
f. Advertising specialties, also called promotional products, are useful articles imprinted with an advertiser‘s name, logo, or message that
are given as gifts to consumers. Typical items include T-shirts and other apparel, pens, coffee mugs, calendars, key rings, mouse pads,
matches, tote bags, coolers, golf balls, and caps g. Point-of-purchase POP promotions include displays and
demonstrations that take place at the point of sale. Chances are good that you were tripping over aisle displays, promotional signs, ―shelf
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talkers,‖ or demonstrators offering free tastes of featured food products.
h. Contests, sweepstakes, and games give consumers the chance to win something, such as cash, trips, or goods, by luck or through extra
effort. A contest calls for consumers to submit an entry —a jingle,
guess, suggestion —to be judged by a panel that will select the best
entries. A sweepstakes calls for consumers to submit their names for a drawing. A game presents consumers with something
—bingo numbers, missing letters
—every time they buy, which may or may not help them win a prize. Such promotions can create considerable
brand attention and consumer involvement. i. Event marketing or event sponsorships they can create their own
brand-marketing events or serve as sole or participating sponsors of events created by others. The events might include anything from
mobile brand tours to festivals, reunions, marathons, concerts, or other sponsored gatherings.
From the perspective of sales promotional tools used towards customers, Solomon et. al 2010 in Dainora 2010. Indicated
three major types the explanation of each type of sales promotional tool will be explained with illustrations from the practice in
Lithuanian supermarkets, as investigated by the author, using the method of observation. See Figure 2.1:
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Figure 2.1 Promotional Techniques for Customers
Source: From Solomon et. al 2010 a. Price or value discount promotion tools include:
1 Coupons for packaged-goods products Solomon et. al 2010. These days in Lithuania, various supermarkets
offer from 20-45 or more discounts on weekends or holiday season for consumables.
2 Rebates, companies place in newspapers, send by mail or by mobile phone, or offer on a Web site, a marketer may
offer a temporary price reduction at the store or offer a rebate Solomon et. al 2010. A rebate refunds part of the
purchase price Solomon et. al 2010 in Lithuania a person does not have to fill in any requested forms as most of
Lithuanian supermarkets have introduced loyalty cards,
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where a percentage of the purchase amount is being accumulated over the time and a customer can use the
accumulate sum up on the next purchase. 3 Bonus packs deliver more of the same product without any
extra cost for a customer. Usually hygiene and cosmetics products tend to adopt this strategy, e.g. 20 extra
toothpaste in the packaging for the same price of 250ml toothpaste tube. But it also works very well with foods.
b. Visibility-increasing promotion tools include: 1 Premium, which is a free item you receive if you purchase
another item Solomon et. al 2010. Premiums are very popular in hygiene products market, e.g. a pack washing
powder could be blocked together with a free fabric conditioner small size of course; or a bottle of washing up
liquid Fairy might have a free washing sponge attached to the bottle; or a bottle of shampoo with a free hair
conditioner. 2 Contests and sweepstakes offer the opportunity to win an
exciting prize Solomon et. al 2010, not actually connected to the place of shopping. The difference
between the two is that a contest is a test of skill, whereas a sweepstakes is simply based on luck Solomon et. al
2010.
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c. Volume-increasing promotion tools for customers could include:
1 Sampling is a popular though expensive promotional tool Solomon et. al 2010. Food and beverage companies often
provide free samples to consumers to give them a chance to try a new product for free Solomon et. al 2010.
2 Loyalty programs reward consumers for their frequent, continuing purchase of a product Solomon et. al 2010. As
observed in Lithuanian supermarkets, they all issue loyalty cards for customers, though the loyalty programmers do
differ amongst themselves. Usually a customer attains 1 of the total purchase value on to the loyalty card, this valid
for the newly introduced RIMI loyalty card.
D. Customer Satisfaction
