Marketing and selling in tough economic conditions

Innovative and creative promotions to spur sales growth:

PRASANNA PERERA, Marketing and Management Consultant, Chartered Marketer, CIM UK

In tough economic times, consumers desire to stretch their rupee. This is primarily due to limited disposable income. Hence, consumers are naturally ‘offer’ prone and receptive to special sales promotions. Through my experience I have observed that consumers now desire for ‘instant’ gratification. They are unwilling to fill out coupons and enter competitions and await the results some months later. Which type of sales promotions would work during tough economic conditions? Let me outline a few.

1. Price based promotions would naturally be the most attractive. Discounts and banded offers such as 2 for the price of 1 or branded offer price that is cheaper than purchasing both products separately.

Care should be taken to safeguard the brand image and reputation, as regular prices promotions can be detrimental.

2. Special payment terms such as 0% installment schemes, leasing and rentals.

Several product and service marketers have carried out such promotions such as automobiles and consumer durables.

3. Joint promotions with complimentary product and services. A chain of hotels could collaborate with a travel company, to introduce a special holiday package.

4. Free trial offers to induce purchase. However, marketers need to be very selective of the customers to whom the offer is granted. Higher value consumer durable products are ideally suited.

5. Introductory price offers are ideal to induce trial and speed up the decision-making process of the customer. But, offers should be for a limited period only or else, it would be difficult to increase prices.

6. Instant promotions such as scratch and win cards, try your luck deals are very popular and consumers tend to favour such offers over long-term promotions. If consumers can win a surprise gift with every purchase, the offer would be more attractive and successful.

7. When selecting prizes as gifts, consumers are now tired of caps and t-shirts and air tickets. Try and be more creative: Differentiate your gifts from the competition like gift vouchers from clothing, music and IT stores.

The type of promotions will need to be determined, based on the product and target market. The bottom line is to be different and creative to be noticed and effective.