The Impact of Sales Promotions on Sales Volume

In today's world, sales promotion as an instrument of marketing communication is of key importance, as it establishes a connection between customers, manufacturers and sellers. With an optimal selection of sales promotion tools, a company can achieve and maintain competitiveness in the market, build on its recognition and maintain contact with customers. The diploma thesis presents the treatment of sales promotions as one of the effective methods of sales promotion. When determining the results of sales promotions, it is important how to evaluate the success of a sales promotion. Analysis of quantitative and value data tells us whether the set objectives have been achieved.

Problem

In today's world, sales promotion as an instrument of marketing communication is of key importance, as it establishes a connection between customers, manufacturers and sellers. With an optimal selection of sales promotion tools, a company can achieve and maintain competitiveness in the market, build on its recognition and maintain contact with customers.

Solution and Method

The diploma thesis presents the treatment of sales promotions as one of the effective methods of sales promotion. It encompasses theoretical foundations of sales promotion tools, substantiated by the works of various authors. It describes the impact of sales promotions on increasing sales volume and market share, as well as on greater company recognition in the market.

Using a concrete example of an actually implemented sales promotion of blood pressure monitors in company XY, she described the preparations for the sales promotion and carried out a detailed quantitative and value analysis of the sales promotion. In her work, I establish that advertising, sales promotion and sales promotions have a great impact on increasing sales and market share, and that a carefully prepared sales promotion also increases brand recognition. Every sales promotion requires thorough preparation, which must be in accordance with the company's objectives and strategy.

Just as preparation is important, so is the content of the sales promotion, which must be determined according to the target group. The sales promotion method used, directed at the end consumer, proved to be well designed and I would also recommend it for planned sales promotions. However, considering the resources invested, preparations and objectives achieved, I would recommend trade intermediaries as a target group in the future, and thus the promotion would run for both groups simultaneously.

Science and the medical and professional public have increasing understanding in the use of medical technical aids that are necessary for people's well-being. Users are becoming increasingly aware of their health and health care, which leads to increased demand and consumption of medical products. Large and rapid changes in the market, technological development and ever-increasing competition have forced management to pay attention to sales organisation, which requires greater activities and changes in the organisation than was the case in the past.

In the past, sales promotions were not their constant feature; they were more the exception than the rule. It was believed that such promotions offered goods that did not sell well otherwise. Unfortunately, many monitors have appeared on the market that do not meet the requirements.

The organisation of a sales promotion for medical devices therefore required a special approach, as we feel a great moral and ethical responsibility towards our customers. We are aware of how important a role the monitor plays for end customers. Therefore, they organised the promotion so that customers received a useful gift for the same price and quality.

• sales promotions achieve an increase in sales

Results

When determining the results of sales promotions, it is important how to evaluate the success of a sales promotion. Analysis of quantitative and value data tells us whether the set objectives have been achieved. If they have not, we look for the reasons.

A sales promotion is effective when sales increase, when the company raises its market share or if profit has increased. In general, however, a sales promotion is effective when it exceeds business results. We succeeded completely in this, but it is important that the sales of monitors continued to grow even after the sales promotion ended.

At the beginning of the diploma thesis, she highlighted claims that proved to be correct: The sales promotion exceeded the planned sales. The sold quantity of monitors increased particularly during the promotion period. The sales promotion designed in this way was responsible for the company's business success.

Thorough preparation and a comprehensive sales plan bore fruit in the quantitative measurement of the sales promotion. The market share of blood pressure monitor sales increased significantly and was maintained at the same time after the sales promotion. Since the purpose of the sales promotion is to build and strengthen brand recognition and thereby increase customer favour, the sales promotion enabled them to purchase a price-favourable high-quality blood pressure monitor.

The economic effect of the sales promotion is significantly smaller, because the costs of marketing communication mix tools are substantially higher due to the specificity of the sales article. They advertised in magazines that are accessible to the general public and also to professionals, so such advertising caused high costs. They did not merely advertise the sales promotion product, but drew attention to the importance of measuring blood pressure.

The gift was also a major expense, with which they stimulated customer interest. Detailed analysis of the sales promotion proves that the share of new customers increased, market share also increased, as did brand recognition. I believe that a company is successful when it has employed people who, with their knowledge, thinking, personal approach and willingness to cooperate within the company, also have great understanding and direct contact with customers to satisfy their needs and wishes.

Management's attitude towards customers, clients and consumers is of key importance in planning and executing set sales activities. Equally important is communication between management and other employees who participated in the sales promotion. Since they are a relatively small team, the division of work and tasks was of key importance.

The course of the sales promotion itself gave us great momentum; colleagues helped each other. Everyone helped to the best of their ability, even if it was necessary to prepare goods in the warehouse. Thus, ultimately, the sales promotion also strengthened relationships amongst employees.

As a shortcoming, however, I would highlight the beginning of the sales promotion, as the great response surprised us and they had quite a few difficulties in ensuring sufficient quantities. We import the products, and imports are carried out twice a month. However, fortunately we have a supplier with whom we have a good partnership relationship, so they resolved this quickly as well.

With the correct selection and use of marketing communication tools, we succeeded in carrying out a good sales promotion. I believe that with the use of acquired knowledge and experience and an interesting sales programme, we will succeed in this many more times.

• the economic effect of sales promotions is smaller due to increased costs in activities promoting regular sales.