A Description of the Sales promotion:
Sales promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service. Sales promotions are varied such as sampling, couponing, contest and sweepstake and on. The type of promotion vehicle that I want to talk about in this case is the premiums. A premium is an offer of an extra item of merchandise or service either free of at low price that is used as an incentive for purchase. Although there are two types of premium which are free premiums and self-liquidating premiums, but they have the same purpose is to increase sales and revenue. Premiums are consumers most preferred types of promotions and have high impulse value and can provide consumers with extra incentives to purchase a product. Premiums can be used to create interest in a brand and goodwill that may enhance that brand’s image and they can be a way of generating trade interest and support. Besides all the benefits of the premiums, there are several cons that the corporations have to deal with: premiums can have high costs, there may be restrictions on the use of premiums, the redemption rates of mail in premiums are low and consumers may not perceive the premium offer as a value.
The yellow tags in Best Buy that written “$40 off on regular printer and $60 off on wireless printers with any desktop or laptop computers purchase” is the premium sale promotion’s vehicle of Hewlett Packard in the purpose of increasing their printer’s sale.
The tag is a non-franchise-building promotion because it accelerates the customer’s purchase decision process and generates an immediate sale. A customer may not want a printer or he already has one, but he has almost 50% off on the wireless printer while he is buying a computer, so why not? Objective of this Sales Promotion:
The main objective of this sales promotion is to increase sales, creates strong Hewlett...