Choosing a sales promotion technique

When choosing a sales promotion technique, a business checks that it suits its target audience, is cost-effective and fits the other elements of the marketing mix — price, place and product.

Suitable for the target audience

Different groups respond to different offers. A loyalty scheme suits customers who buy regularly, such as weekly shoppers at a farm shop, because repeat visits build up the reward. A competition promoted on social media may reach teenagers who spend hours online. An offer that feels gimmicky, or needs an app the customer will not download, can put people off rather than attract them.

Cost-effective

Every technique costs money: prize funds, free stock, display materials or a sponsorship fee. The business compares that cost with the extra sales and profit it expects, so a small shop with a tight budget may choose a modest discount over an expensive sponsorship deal.

Consistent with the marketing mix

A premium-priced product can be damaged by heavy discounting, because customers may begin to doubt the quality and wait for the next sale. Place matters too: an offer only works if it reaches customers where they already are, so a money-off voucher printed on the back of a local takeaway's menu is seen by people already deciding what to eat, while a code sent to an email inbox may never be opened. The offer should also match the product — a free gift works best when it is something the customer will actually use alongside it.

For example, a family-run farm shop whose regulars call in every Saturday uses a stamp card that gives a free loaf after ten visits. It suits its audience, costs little to run and fits its everyday in-store mix, unlike a large sponsorship that would spend money on people who never shop there.