Special offering has multiple meanings. On the securities market it is related to additional offering of securities after the primary offering. If seller initiates the special offering, he usually takes all the costs of the offering and sells at the current market price. Special offerings often require selling/buying large quantities (blocks) of securities and are available only to limited types of investors. It is beneficial for buyers to purchase securities during special offering because they fees for them are low or zero and price is fixed.
Special offering in sales management
Special offering in sales management is a marketing action during which the company offers its customers special configuration of goods or services, that can be more beneficial for them than usual offer. Examples of special offering benefits are:
- lower price,
- free delivery,
- gift vouchers,
- additional rights (e.g. extended warranty).
The special offerings are usually limited in time and can have some strings attached, e.g. not all costs are shown, some services are not available, other services are treated as must-buy option, etc.
During the sales process the seller promise is submitted to client for acceptance. Sales person present some price, product to customer. The customer can get acquainted with the proposed offer by the seller and decide on the purchase of the product.
Currently in the world is big competition. This is cause why the sales persons and companies must they must use appropriate tools to increase sales and attract more customers.
A special offer should contain:
- Customers should find in the offer answer for sometimes unconscious, basic questions and wishes
- Sales person using offer should induce the effect in the form of specific actions of recipients - contract or order
- Sales persons should building brand's branding, observing the appropriate style of expression and graphic presentation (determined by the book's sign or the style of other company materials)
How to create effective offers?
- Focus on target markets less motivated by discounts
Good seller person should find target markets and location where the people need products which seller want to sell and he is offering it to them.
- Offer fewer but bigger discounts
During presenting offer sales person should offering one or two good quality product between between which the customer can make a choice. If the customer has too many products to choose from - he does not know what to decide and can completely give up the purchase. It is better to present fewer products, but give more discount or give a rebate to make the customer feel special.
- Increase the perceived value of Your products
Good presentation your products can help to increase value of your products. Even if you have not the lowest price, emphasizing the added value that clients get from your shops, good and long guarantees, better quality merchandise than the competition or personalized services, can convince shoppers your prices are worth.
- Instead of using sales to attract new customers, focus on loyalty discounts for existing customers
Better is to build stable customer base via by implementing loyalty programs for you loyal clients than counting for retail clients. With loyalty program - you can track how client respond to different offers and match offers to their current needs.
- Discount brand name products
A lot of potential customers won't buy a brand name product because of price. If we decrease price via discount we can attracted more client and sell more product and generally gain more income and profit.
- Know what to mark down
During establishing prices, you need to take into account trends in the industry, as well as the life cycle of the product. You need to research the market, demand and supply well and set a good price.
- Use predictive analytics
By using software, companies can better predictive and manage of inventory and price product. You can attract clients while still maintaining adequate margins.
- Reserve lower prices for special events
Make special offer and invite group of loyalty. They can make shopping for example in seller website. Seller can send some special offer via sending newsletter.
- Ferrell, O. C., Johnston, M. W., & Ferrell, L. (2007). A framework for personal selling and sales management ethical decision making. Journal of Personal Selling & Sales Management, 27(4), 291-299.
- Ferrell, O. C., Hartline J. (2012). Marketing Strategy, Cengage Learning.
- Adcock, D. Halborg, A. Ross, C. (2001). Marketing: Principles and Practice, Pearson Education.
- O.C. Ferrell, J. Hartline (2012)
- O.C. Ferrell, J. Hartline (2012)
- D. Adcock, A. Halborg, C. Ross, (2001)
Author: Patrycja Garbacik