Saturday, March 26, 2011

Sales Promotions and Personal Selling

Sales Promotion is marketing communication activities, other than adversting, personal selling and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value.

On my last blogpost I talked about Advertising.
ADVERTISING offers a consumer a reason to buy, while SALES PROMOTIONS offers an incentive to buy. For example, Sephora could be promotiong a new lip gloss on a commercial today and because the lip gloss is new that gives me a reason to buy it, because I would want to try out the new product. Now two weeks could pass and Sephora could be promoting the SAME product but now they could be selling it for half price, that would give me the incentive to buy it, because not only is the product still new, it is now cheaper.

There are alot of Consumers and Sales Promotion goals.

  • Type of buyer: Loyal Customers which are people who buy a certain product all the time. (I consider myself a loyal customer and I am pretty sure the staff of the Sephora on 42nd st. would agree)
  • Sales Promotion Examples: Loyalty marketing programs such as frequent buy cards or frequent shopper clubs. (I have a Sephora shopper's card and whenever I purchase anything from Sephora I am guarenteed 5% off my next purchase. I also get emails from Sephora about new products and upcoming sales.)
  • Desired Result: For the consumer to stay a loyal costumer. 
     

  • Type of buyer: Competitors customers which are people who buy a competitor's product must or all of the time.
  • Sales Promotion Examples: Sampling products so that future consumers can get a feel of the product and what a company is offering. (In Sephora stores before you purchase a product they have samplers around, and tools that you can yuse to sample a product)
  • Desired Result: To pursuade the consumer to switch to your company.


  • Type of buyer: Brand Switchers which are people who buy a variety of products in the category. (Usually these are people who don't have a preference if they like make up they will buy make up from any cosmetic store.)
  •  Sales Promotion Examples: Any promotion that lowers the price of product, such as coupons. (Lower prices may be likely to give a person the incentive to buy the product a company is selling.)
  • Desired Result: To get the consumer to buy their product.


  •  Type of buyer: Price buyers: Which are people who consistently buy the least expensive brand.
  • Sales Promotion Examples: Coupons, refunds and or trade deals that reduce the price of the brand to match that of the braind that woukd have been purchased.
  • Desired Result: Appeal with low prices or supply added value that makes price less important.


Sephora offers a lot of Sales promotions.
Sephora offers a variety of coupons, rebates and premiums.

Coupons: A coupon is a certificate that entitiles consumers to an immediate price reductions when they buy a product.
Last week when I bought my super shimmer lip gloss from sephora, I brought in a coupon that takes off $2 dollars. The lip gloss was reguarly priced at $10, so with my $2 I saved and my 5% perent reduction from using my sephora card, I only paid about $6 dollars for the lip gloss

Rebate: Rebates are similar to coupons, they offer the purchaser a price reduction, because the consumer must mail in a rebate form and some proof of purchase, the reward is not immediate.

Premiums: Premiums are an extra item offered to the consumer usually in exchange for some proof that the promoted product has been purchased. (Sometimes at Sephora when I buy a certain product or product or products I get a free gift. This past week I bought $30 worth of lip gloss and blush because of my purchases I was given a free blush brush.)

Me and my free Blush Brush I received from Sephora. Also, in case anyone is wondering I am wearing Sephora's line of "Colorful Mono Eyeshadow" the color I am wearing is "City Fog 02" it sells for $12 and the blush I am wearing is Sephora's collection of "Blush me! Mono" the color I am wearing is "Framboise Attraction 3" it sells for $12.


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