6 Steps to Create a Sales Promotion Program

Sales Promotion Program is a promotional activity carried out by providing various short-term incentives to encourage the desire to try or buy a product or service. This Sales Promotion is one part of the Promotion Mix.

Sales promotions are usually done to attract potential customers to want to buy or feel the product right away. Various methods are used, such as by giving large discounts, direct gift-giving, shopping coupons, and even product samples that can be given free of charge.

Creating a Sales Promotion program must be carefully considered and carried out by marketers from the beginning so that everything that has been planned can run smoothly and effectively.

1. Determine the amount of incentive

Determining the number of incentives is very important when conducting a sales promotion program because this will greatly affect the sales response. The higher the incentives provided will usually increase the interest of potential consumers to buy the products offered. But the higher the incentives provided, of course, the costs incurred by the company are also greater. For example, giving a 75% discount would certainly be more interesting than just giving a 10% discount.

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2. Determine the conditions of participation

Determining conditions for participation is usually done in order to target more specific market segments or limit the number of participants who can enjoy sales promotion incentives. In this way, incentives are usually only offered to those who fulfill certain conditions. For example, Buy 2 Disc10% Buy 3 Disc30%, Free 5$ for every Purchase, 50% Discount for Students by showing a valid student card, and others.

3. Determine the duration of the promotion

Determining the duration of the promotion is also important to do; this is related to the opportunity for consumers to be able to enjoy incentives from the promotional program that is run. If the duration of the sales promotion is too short, usually only a few consumers can take advantage. If the sales promotion is carried out too long, it will lose its appeal to persuade consumers.

4. Determine distribution facilities for promotion

There are many distribution facilities that can be used to provide incentives for sales promotion programs. It can be through coupons distributed through packaging, incentives can also be included in the package (for example buying washing soap in which there is a glass), or consumers must come directly to the store to be able to enjoy incentives, even there are incentives that must be sent by post. Every method and means used will usually affect the wide distribution of promotional distributions.

5. Determine the right time

Determining the right time to do the promotion is also important; this is related to the ongoing momentum in the community. The right time for the promo usually also depends on the product, for example, giving Lebaran day discounts and Christmas for clothing and food sales. In determining the right time, usually, marketers have made a promotional calendar that is made as a reference in conducting promotions every year.

6. Determine the total sales promotion budget

Determine the amount of the budget for the promotion carried out in order to know with certainty the various costs that must be incurred in the sales promotion program. Determining the amount of these costs can be determined based on various things such as the number of incentives, duration of time, means of promotion, distribution reach, and other unexpected factors. With proper budget planning, it is expected that promotional activities can run effectively and are comparable with all costs incurred.