Sales Promotion
Definition:
Sales promotion refers to short-term incentives or activities aimed at encouraging the
purchase or sale of a product or service.
Objectives of Sales Promotion:
1. Increase sales in the short term.
2. Encourage product trial by new customers.
3. Boost brand visibility and awareness.
4. Retain existing customers and encourage repeat purchase.
Types of Sales Promotion:
1. Consumer-Oriented Promotions:
○ Discounts: Temporary reduction in price.
○ Coupons: Vouchers for price reduction.
○ Samples: Free product trials.
○ Contests & Sweepstakes: Engage consumers and attract attention.
2. Trade-Oriented Promotions:
○ Trade Allowances: Discounts or incentives for retailers.
○ Point-of-Purchase Displays: In-store promotional displays.
○ Dealer Contests: Motivate distributors and retailers.
Advantages of Sales Promotion:
● Boosts short-term sales.
● Encourages product trials.
● Helps in launching new products.
● Strengthens retailer relationships.
Disadvantages of Sales Promotion:
● Effects are short-lived.
● Can reduce perceived brand value if overused.
● May lead to price wars with competitors.
Definition:
Sales promotion refers to short-term incentives or activities aimed at encouraging the
purchase or sale of a product or service.
Objectives of Sales Promotion:
1. Increase sales in the short term.
2. Encourage product trial by new customers.
3. Boost brand visibility and awareness.
4. Retain existing customers and encourage repeat purchase.
Types of Sales Promotion:
1. Consumer-Oriented Promotions:
○ Discounts: Temporary reduction in price.
○ Coupons: Vouchers for price reduction.
○ Samples: Free product trials.
○ Contests & Sweepstakes: Engage consumers and attract attention.
2. Trade-Oriented Promotions:
○ Trade Allowances: Discounts or incentives for retailers.
○ Point-of-Purchase Displays: In-store promotional displays.
○ Dealer Contests: Motivate distributors and retailers.
Advantages of Sales Promotion:
● Boosts short-term sales.
● Encourages product trials.
● Helps in launching new products.
● Strengthens retailer relationships.
Disadvantages of Sales Promotion:
● Effects are short-lived.
● Can reduce perceived brand value if overused.
● May lead to price wars with competitors.
