Marketing and selling in tough economic conditions:

Creative and innovative sales promotions

Series by: Prasanna Perera, Marketing and Management Consultant, Chartered Marketeer, CIM U.K.

Consumers today want instant gratification

During this festive season, many organizations are conducting sales promotional programs to increase sales. However are these promotions attractive to customers and innovative? In this brief article, I will endeavour to share some insights.

1. Why are Sri Lankans receptive to sales promotions?

Since we are a developing country, disposable incomes are very limited. Hence consumers are always looking for bargains to stretch their rupees!! Globally consumers by nature are bargain hunters.

2. Which types of promotions work best in Sri Lanka?

Basically, promotions that offer unbeatable value to consumers work best. For example, straight discounts with no hidden agendas, free gifts / merchandise and instant lucky dips (draws).

3. What advice do you offer marketers in planning sales promotions?

Firstly, you need to consider the nature of your product / service and the target consumer group. Any promotion planned must be logical in terms of these factors. Secondly, consider the duration of the promotion. Thirdly, the available budget and seasonal factors. Finally, and most importantly, how the results will be measured and evaluated.

4. In your opinion, what is the ideal time period for promotions? (Duration)

I personally believe that promotions with a short time frame are effective, since they create a sense of urgency amongst consumers. Consumers today want instant gratification i.e. buy something and get rewarded. They are not willing to wait for months to get rewarded.

5. Can loyalty programs be considered as sales promotions?

To some extent, the answer is yes. In a loyalty program you are rewarding customers for their loyalty. The only difference is that the rewards are for both the short-term and the long-term.

My advice would be to integrate loyalty programs into sales promotional campaigns, to obtain synergistic impacts.

6. Are price discounts effective in Sri Lanka?

Largely yes, since Sri Lankans are bargain hunters. However, overdoing discounts can damage the image and equity of brands and organizations. My advice would be to offer discounts selectively i.e. for slow moving products, to increase the frequency of purchase of certain products.

7. Are consumer competitions effective?

Yes, provided the prizes offered are innovative and valuable. For example cash bonanzas, luxury vehicles, overseas vacations, gold jewellery etc., Also keep the duration of the competition to one month, rather than three months.

8. What types of free merchandise are attractive to Sri Lankan consumers?

It depends on the nature of the product / service and the profile of the target consumer. In general, merchandise that can be used in the household are sought after by housewives / working women. In the case of men, they prefer pens, office stationery, t shirts, caps etc.,

9. Do you need a licence to conduct sales promotions in Sri Lanka?

If the promotion is targeted at the general public using mass media, then a licence must be obtained from the authorities, prior to the commencement of the promotion.

If the promotion is only for private audiences, then licences are not generally required. If you have a doubt, it is always better to check with the relevant authorities.

10. Should consumer promotions be combined with dealerpromotions?

Yes, it would create greater synergy and impact. The dealers would PUSH, while the consumers would PULL. A perfect combination indeed!! Integrated sales promotions always generate better results, than disoriented promotions.