Effective sales promotions can have positively affect revenue.
Sales promotions are classified as push or pull. Push promotions are focused on the distributors or retailers of a product, while pull strategies are focused on the end user or consumer.
Push strategies are applicable primarily to manufacturers. Distributing their products through retail channels, manufacturers must work with these channels to promote products.
Pull strategies, because they focus on the consumer, are applicable to manufacturers and retailers. Many effective strategies combine both.
Coupons
Among the most popular sales promotions, coupons are both a push and a pull promotion, since they can be distributed both directly to consumers and through retail channels. They provide support to the retailer and incentives for consumers to buy a new product, or purchase more of a familiar product.
Samples
Offering samples to consumers are another example of a push and pull strategy. Offering a sample of a new product directly to consumers can help generate demand for the product, while offering them through the retail channel creates an incentive for the retailer to promote the products in-store. Manufacturers are increasingly offering samples online in conjunction with loyalty programs.
Loyalty Programs
A pull strategy, loyalty programs offer a continuous stream of sales promotions to consumers who have signed up for such programs. Coupons, free samples, and premiums are either only offered to those in the loyalty program, or offered first to those in the program than they will be to the public at large. Awarding points for each dollar spent which can be redeemed for products is another popular feature of many loyalty programs.
Premiums
Premiums are products offered free with purchase, such as a tote bag offered to those customers whose purchase at the makeup counter reaches a minimum dollar amount. Premiums can be packaged with a product or consumers may need to mail in their receipts or labels to obtain the premium. In the latter case, offering the premium not only boosts sales, but also can grow mailing lists for future direct mail and email promotions, by offering consumers who send in for the premium the ability to opt in to the mailing list at the same time. Premiums can also have the manufacturer's or retailer's logo on them, increasing brand awareness.
Displays
Displays are an often underrated, but highly effective push strategy if deployed correctly. Manufacturers can support retailers' sales of their products by providing attractively designed displays, often in conjunction with another sales promotion, such as a premium tied to a current sponsorship or seasonal event. Displays can catch consumers' eyes and provide valuable merchandising support for smaller retailers, thus increasing the retailers' loyalty to the manufacturer's products.
Tags: push pull, sales promotions, through retail, conjunction with, directly consumers, loyalty programs