Sales promotion in slowdown

Yes, innovative and cost-effective sales promotion can be quite rewarding.

I completely agree with Mr.Mihir.The company cannot entirely stop the sales promotion of their product because consumers have a very short term memory and because of the invisibility of your product to them...it may happen that they will completely forget about it which will affect the sales of the product and the revenue generation.No matter how the situation is companies required to promote their products even if it means on a low scale but they need to keep the product in the sub concious mind of the customers all the time to increase the sales.

What I had meant was that offers where there is a utility value to the buyer always works! Also, Koutons or Cottons or Weekenders the offer of either a percentage off or free garments is definitely not enough to entice a consumer to rush to the store and buy... Its just not promotion! I have personally seen that in such situations the garments either have a tear somewhere or even a patch! Its also got to do with seconds being dished out to consumers under the game of 1 pe 3 free!! Its STOCK CLEARANCE for me!

But thats the way apparel industry works. Its only in the FMCG sector that you really get to see value added offers. That was my point!

Based on what is happening around me for last 10 months. Since am into domain consulting and also IT product consulting, am seeing that sales promotion is happening, but we need to build a strong business case. The deliverables need to be tangible in today's market condition. 

The companies cannot stop totally the sales promotion, as that will effect the revenue generation for this financial year and also strategy growth for years to come. But the need of the hour, for every dollor invested in sales promotion, there is atleast (minumun)  15 times revenue generation.

Also in certain industry, the customer is forced to go for sales promotion beccause of competitors stand & take. But the big dollars have stopped coming into this expense account. As the CFO of all the comapnies are now watching all the cost expenses drivers.

The offers that are thrown are not promo0tional in nature, they are basically stock clearance sales in the apparel industry. In terms of Insurance & MF's there is no gratification offered except that LIFE is secure and when the stock market goes the SOUTH direction.. well its history!

Promotions like buy and scratch & win! A soap free on Floor cleaners, Tooth brush on a tooth paste... These are promotions that offer instant gratification! These will always work wonders with consumers!

This does not mean a decrease (temporary) in MRP's but an 'EXTRA' that has some basic utility value for the consumers!

Sales Promotion in Slowdown is sensible based on the nature of product and target. in my opinion, if the target was an upper middle class family in the up market, it will not be a bad idea to target middle class or even lower middle class in the slowdown. the middle class is affected by the recession but not as much as big players. at the same time, if the product can be renegotiated for a middleclass target, they would definitely be interested in buying a brand at an effective rate. everyone wants to be with "A" Brand.

so the basic idea is to try a different target or increase the radar for the same. this will allow the brand to be able to penetrate deeper in the community and when the up market happens, it will definitely help the brand as people are already loyal to that brand since even the bad times. getting deeper into the community at this time would be a smarter idea than just trying to cut down on basic things like publicity/marketing. if marketing costs are cut down, that can also leave a negetive impression on people's mind about company being into cash crunch, secondly, if the marketing activities are cut down than the problem is with the brand recall value, which is being hampered as the rule of the jungle says, the survival of the fittest.

Marketing is the way of life ...

Sales Promotion is a conscious move to ensure product visibility in the open market at an attractive cost OR attractive gratification to the user! Its the most COST effective to physically let the brand/product do the talking that it needs to do to catch the eyeballs of non users and tempt them to GO FOR IT as well!

Promotions in lean times is a good way forward to get that product moving which normally is not much in demand as well. Success of one rubs of on another too!

Satish Ji has made a very valid point.Sales promotion of a product will definitely have an impact on the minds of the consumers and it becomes necessary to promote the product irrespective of the market condition because people's memory is very weak specially in competitive times like these and it won't take much time for your product to be erased from their memory..........So marketing and promotion of the product should be inevitable for a company in any type of market condition.

With out Sales promotions, Does anyonne think they can generate Leads :)

I think Sales promotions are again important to generate interest.

Due to slowdown people are tend to decrease the expenditure, they will think alot before spending. Sales promotion gives them the instant gratification. The word discount or price cut ceates always great impact in the mind of consumer as they have to spend less than the normal

sales promotion is down fall is still viable proposition as need and necessity are never ending. its only depends on cost effectivity of the product to the end user. and how economical is the set budget for the said promotion etc.

I think it is less investment and greater return.

Not a bad idea to go for it can create more revenue even in bad times, let people get aware of the product and it could have a good recall value that could help it to grow.