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How Promotions in Retail Business Can Help in Gaining Profits

29 Nov
How Promotions in Retail Business Can Help in Gaining Profit

How Promotions in Retail Business Can Help in Gaining Profits

When you listen to this word “promotion,” what is the first thing that comes into your mind? Is it really a raise in your job or it is something related to what you buy? Well if you ask me it has nothing to do with that type of work you do, but it has everything with the type of things you buy and want to get more of it without spending that much of money, promotions are those features of retail business which are offered quarterly, annually, and seasons as well.

Normally offered throughout the year at different times, promotions in retail businesses have a lot of importance especially, in a market where you are competing with different people and competitors without knowing their strategy and their goals, promotions affect the businesses Both small and medium-sized businesses. a very famous businessman once said: “you cannot progress in the market until and unless you understand it’s trends.” A businessman with such a vision after saying those words must have something very positive about retail business and investments, that’s why he was so certain about promotional activities in a business.

In our previous blog, we thoroughly put light on Important Modules of ERP Software and what impact they can put in your business operation if they are utilized. We also discussed the modules in detail, highlighting the importance and share the knowledge regarding it with users.

Promotions in a Business, Its Significance & Necessity:

With the market scenario changing, it is quite evident that the promotional activities and marketing of a brand should go together, if it is said like, promotional activities and marketing of a brand are parts and parcel of each other then it would be justified. It is imperative that these two things should coexist in order to get success and loyal customer support for brands and businesses. Promotions are so important for a business, or we should say without promoting your brand, you cannot get the initial push to launch your product.

To understand what promotions really are, we have to go through a common phrase which states: “the more you blow the balloon, the bigger it gets.” By understanding the phrase, we can conclude that the more you spread about your product, the more ears it reaches, the more ears it reaches, the more your brand becomes familiar to the people, and that’s what is required in a retail business.

A Tool for Brand Supremacy:

It is a common understanding now while running a retail business, or big franchise-based business in a highly comparative market. You got to promote your brands in order to gain more and more customers for the long-term success of your business. Although it depends upon how you promote your brand as well as the strategy to compete with the competitors.

Your strategy is the key to the success because if you don’t strategize, The way you promote your brand and keep on going the Mary way, you will soon find yourself alone in the race because everyone else is already on a new level, just to jog your memory we can take the example of Nokia.

Once considered as the giant in the cellular phone business. After the arrival of Android, Nokia initially planned to stick with their initial developers but the rest of the brands which were gaining some good ground at that time by acquiring Android as their sole developing OS started getting good revenues by having Android market and their promotional activities merged with cell phone brand.

Nokia tried to sustain itself in the market, but it was all too late, and the drop scene of this story was seen with a press conference of CEO, Nokia where he was found in tears with these words:” we failed to match the pace of the industry.”

Selecting the Right tool to Promote:

Promotion of a brand also depends upon the medium through which it is being promoted, for example, if you are the owner of a retail business in a shopping mall, how will you promote your brand probably not with a loudspeaker in your hand & shouting about the things you sell, the same goes with the online promotion of brand, while doing this you must have this approach of subtlety and intelligence altogether.

By saying this I mean, you must have the courage to speak about your product in a way that it makes sense and sound interesting back to back& it gives respect to the medium it is being promoted from, as a common trends these days especially, at this time of the year when the end of year sales and Black Friday sales are near, you will find different advertisements of different brands promoting their products on different websites which makes you remember the old cringe time when no adblocker existed. Although it sounds funny, the promotion is done regardless of the fact that the viewers have to go through the pain of canceling the tab.

Targeted Promotions:

While promoting your brand, you must know who you are addressing to, know your audience, know your people to whom you want to sell your product. You should be aware of the people living in the area, where you do your business, you must know their likes and dislikes, you must know how they would respect your brand and how they will react and respond to the type of brand you promote.

Know your game plan and strategy, device your promotional activities according to your plan, if your promotions and marketing activity is loosely planned, it will be a sorry case for you as far as the promotions are concerned, because the customers will lose their interest in buying your product as they are misinformed or less informed, and for this sorry case, you are responsible because you are the promotional center of the brands who are paying you to do the job.

This misinformation is commonly known as informational inertia, which should not exist in brand promotions. Not knowing your customer is something different, but if there is informational inertia in your workflow, then it will not only affect the way you process, but it will also affect the outcome of your promotional activities.

Strategic Promotions:

While promoting your brand you must know what you are promoting, and how the promotion should go to the viewers, this is the promotional strategy opted by the leading brands in the world, which includes the entertainment industry, the food chain industry, and the publishing industry as well with the latest global swing in the retail market, the online delivery applications are also using this strategic promotional stuff to polish their sales and to get some good revenue.

For example, most of you are used to of watching different things daily on YouTube, Netflix, etc. you will find numerous ads while surfing around the videos or watching the long episode on the websites, some of the promotions are pretty much according to the things you are watching at that time and some of them would be really different to what you are Viewing. This is the strategic promotion I was talking about.

Just take another example, suppose you are watching a cricket match live on the TV and during that match, there is an advertisement from any food services company, offering good deals during the world series and or whatever the tournament is going on currently. That is where brands play with your psychology because while watching your favorite team winning or struggling in the match, the adrenalin from the brain flows both positively and negatively and consequently, both of the symptoms can ignite hunger in you if that advertisement of the brand can fill your tummy and satisfy your pocket you may grab the phone and order it asap. That is another example of the strategic promotion of the brands.

Good Promotions Can Bring Loyal Customers:

It is a real-world fact while running a retail business in a highly competitive market, the most important tool after the effective brand promotion is the loyal customer force you have. By saying this, I mean, your customer is your wealth, having your loyal customers with you, your retail business will always show you, high signs of profits, good signs of positivity, and long-term success as well.

Now, here we have to go towards a diverse meaning of promotions. As mentioned above. We have seen the strategic promotions, targeted promotions, but here the promotions are pretty much localized. Yes, we are talking about the promotion in a local business or a local market, suppose you launch a brand, and you want customers to come and buy your product, the first thing you would do is to promote your brand and produce good offers from it. Here, I will say again. Your customer is your wealth and the key to success because it is a customer who buys your thing.

They evaluate it by using it according to their needs and see if there is something extra or what we have mentioned a hundred times above, any promotion or any benefit that we give to our customers with the purchase and if they are satisfied they will recommend your product to other fellows colleagues.

This could also result in getting some good customer satisfaction feedback, because if you are going for expansion or you decide to expand your business, it is the customer satisfaction reports and reviews that revolve around the web or in the local area, about the product you sell. Having a positive image in your customer’s eye and the market, it can guarantee great success and a huge plus in the sales and revenue section of your business.

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