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sales promotion

Terms in the field of economics
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Sales promotion refers to a strategy that requires customers to buy directly or ask selective questions after establishing customer trust through communication.
Chinese name
sales promotion
Definition
It refers to a strategy that requires customers to purchase directly or ask for selective questions after establishing customers' trust through communication.
Field
economics

brief introduction

Announce
edit
At this time, you have become an expert in the hearts of customers.
Example:
"May I fill out an order for you?"
"Do you buy this model or which model?
To quickly promote customers' determination to purchase. Or use a kind of euphemism to promote sales.
Example:
"Now the company is promoting sales. It would be a pity not to buy it."
"This is a seasonal commodity, and it will be sold out", etc.

effect

Announce
edit
In any socialized mass production and commodity economy, on the one hand, producers cannot fully understand who needs what goods, where they need them, when they need them, and at what price consumers are willing and able to accept; On the other hand, it is impossible for consumers to fully understand what goods are supplied by whom, where, when and at what prices. It is precisely because of the objective existence of this contradiction of "production" and "consumption" of "information separation" between producers and consumers that enterprises must pass on production, product and other information to consumers and users through communication activities, advertising, publicity reports, personnel promotion and other promotional means, so as to enhance their understanding, trust and purchase of the enterprise's products and achieve the purpose of expanding sales. With the intensification of enterprise competition and the increase of products, the increase of consumer income and the improvement of living standards Buyer's market The majority of consumers on the Internet have higher requirements for goods and more room for selection, so the communication between enterprises and consumers is more important. Enterprises need to strengthen promotion, use various promotion methods to make consumers and users deepen their understanding of their products, so that consumers are willing to spend more money to buy their products.
Sales promotion (Sales Promotion, SP for short) is a sharp sword in the process of market competition. The promotion of the market front is to push the products to enter the market and expand the market faster. We see that not every company in the market advertises, but every company promotes without exception. Therefore, we must not forget to use this powerful weapon when carrying out the task of market aggression.
From the global comparison of advertising and promotion, the growth rate of promotion expenses is at least three percentage points higher than that of advertising expenses. Take the United States as an example. In 1980, the sales promotion cost was 49 billion US dollars. By 1986, the cost had reached 102 billion US dollars. The ratio of sales promotion to advertising cost was about 64:36. By 1991, promotional expenses accounted for the whole Marketing 3/4 of the cost, or about 75%.
The reason why promotional activities have such large expenses is that people are optimistic about this sales form and benefit from the final effect. Enterprises are willing to pay for immediate results.