What is the Importance of Sales Promotion in a Globalized Market?

In a global economy, countries have different companies, all of which are focused on get the most out of a fiscal period.

This usually generates competition between companies which must be healthy and regulated by the States whose territory is home to these companies. This is very important in the massification of the products and in the massive distribution of advertising.

This need for advertising means that companies have different ways of getting their product to buyers, either through radio, television, telephone advertisements, etc.

This is because in the modern world, the way to get them to buy your product is incentivizing the buyer to return to your product.This is achieved through advertisements and promotions, and they occur worldwide.

Thanks to globalization, the markets that were previously closed to foreign companies have changed a lot, and the participation of foreign companies is common in all the markets of the countries of the world.

This is because all economies grow, and the more they do, more effects these cause in their surroundings. Some examples of this are the economies of the United States and Japan, from which companies that regulate the world market with their decisions come out.

Today’s companies they can become multinational, and be present in different markets. One of these examples are foreign companies that have Foreign Direct Investment, which is a type of investment that entails certain advantages and disadvantages to the economy of the countries in which they are present.

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What is a promotion for sale, examples

A promotion is when a seller offers a series of benefits or advantages that come with the purchase of a service or product. These are incentives that seek to get the buyer to return to the store in case of wanting to repeat the purchase. This is very important at the time of completing the lucrative ends that a company has.

These promotions can take many forms of presentation. Among the most common is the classic “2 for 1” or “Two for the Price of One”. This is an old trick used by sellers, usually when the product is starting to expire and they prefer to increase sales volume rather than profit in order to get rid of an old lot.

Also, companies can offer packages offering special credits. Among these, Kohl’s, the Department Store line, offers a way to obtain a Kohl’s credit card which has many benefits within the virtual store.

Another example is the method used by banks. These are the reward points on credit cards, which serve to alleviate the burden of debt on the card and have various ways of being used to obtain coupons and other promotions such as merchandise discounts and interest discounts.

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Importance of sales promotions in globalization

These are important because when a company is competing on an international stage it must have the best opportunities to get its product to the customer, and the best way for customers to remember where to return is through the use of promotions and gifts, souvenirs and discounts.

Promotions allow people to create a connection with the company, leaving a positive impression of the product and helping to improve its position in the market.

Usually, global companies are distributors of different services or products. Among these, Amazon and Alibaba can be highlighted, which also have premium services.

These have discounts and benefits delivery specials which make them promote their service and make the user leave with a positive impression of the company, in order to achieve a benefit for both.

Without special services, one service would not be distinguished from the other. And without it, a market would have no competition. When the services are distinguished from each other, create an environment of healthy competition in which it is about who benefits their customers the most, so that we, the users, see and receive the advantages of this.

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