Ozayi Ltd is a new manufacturing company producing consumer goods. The company intends to gain market shares by using sales promotion a). Outline four impor...

Ozayi Ltd is a new manufacturing company producing consumer goods. The company intends to gain market shares by using sales promotion

a). Outline four importance of sales promotion to the company

b). List and explain four sales promotional tools that can be used by the company

Answer Details

a) Four importance of sales promotion to Ozayi Ltd are:

1. Increased sales: Sales promotions can attract customers to the company's products and encourage them to make purchases. This can increase the company's sales and market share.
2. Brand awareness: Sales promotions can help increase the company's brand awareness by making its products more visible to consumers. This can lead to increased brand recognition and customer loyalty.
3. Competitive advantage: Sales promotions can help the company gain a competitive advantage by making its products more attractive to consumers than its competitors' products.
4. Cost-effective marketing: Sales promotions can be a cost-effective marketing strategy compared to traditional advertising methods. They can be targeted towards specific customer groups and can generate immediate results.

b) Four sales promotional tools that can be used by Ozayi Ltd are:

1. Coupons: Coupons are vouchers that offer discounts to customers when they purchase the company's products. They can be distributed through newspapers, magazines, or social media.
2. Contests: Contests can encourage customers to purchase the company's products by offering prizes or rewards for participation. This can increase brand awareness and customer engagement.
3. Free samples: Offering free samples of the company's products can encourage customers to try them out and potentially make a purchase. This can also increase brand awareness and customer loyalty.
4. Loyalty programs: Loyalty programs can reward customers for making repeat purchases of the company's products. This can increase customer retention and loyalty. The rewards can include discounts, free products, or other incentives.