Sales promotion refers to a variety of short-term marketing activities designed to encourage immediate customer response, such as making a purchase, trying a product, or increasing brand engagement.
- It is usually temporary and intended to boost sales quickly, complementing advertising and personal selling efforts.
Key Characteristics:
- Short-term focus: Aimed at quick results.
- Incentive-based: Offers added value like discounts, freebies, or rewards.
- Stimulates demand: Encourages customers to act now.
- Supports other promotional tools: Enhances the effectiveness of advertising or personal selling.
📝 Example: A supermarket offering a “Buy 1 Get 1 Free” deal for a weekend.
Objectives of Sales Promotion:
1.) Encourage Trial or Purchase:
- To motivate customers to try a product for the first time or make an impulse buy.
2.) Attract New Customers:
- To draw new buyers by offering something extra or reducing the perceived risk of trying the product.
3.) Clear Excess Inventory:
- To help companies sell off old or excess stock, especially during off-seasons or before launching new versions.
4.) Reinforce Other Promotional Activities:
- To complement advertising, personal selling, or direct marketing by giving customers an additional reason to purchase.
Sales Promotion Tools and Techniques:
1.) Discounts and Coupons:
- Price reductions or coupon codes that offer savings on purchase.
Example: 20% off on a clothing item or ₹100 off with a promo code.
2.) Free Samples:
- Giving customers a small portion of a product for free to try before buying.
Example: Sample sachets of shampoo distributed in newspapers.
3.) Contests and Sweepstakes:
- Customers enter competitions or lucky draws for a chance to win prizes.
Example: “Share and win a smartphone” contest on social media.
4.) Buy-One-Get-One-Free (BOGO) Offers:
- Encouraging purchase by doubling value—buy one item and get another free.
Example: Buy one pizza, get one free.
5.) Loyalty Programs:
- Rewarding repeat customers with points, discounts, or exclusive offers.
Example: Supermarket loyalty card offering cashback or reward points.
6.) Trade Allowances:
- Special incentives to retailers or distributors to stock and promote a product.
Example: Extra discount to retailers for buying large
