Sales promotion forms all the promotion activities other than personal selling, advertising, direct selling, and public relations. It covers non-personal and non-media activities like free samples, coupons, rebates, discounts, etc. Sales promotions are used to stimulate purchasing and sales by way of giving incentives or offers, and the objectives are to increase sales by informing potential customers about new products. The potential buyers know the source of the message as the organisation which arranges the activity.
Definition –
In a specific sense, Sales Promotion includes those sales activities that supplement both Personal Selling and Advertising and co-ordinates them and helps to make them effective, such as, displays, shows and expositions, demonstrations and other non-recurrent selling efforts not in the ordinary routine – The American Marketing Association.
Most of the organisations adopt sales promotions as it is less costly as compared to the increasing Television advertising and personal selling costs. Sales promotion is widely used for creating brand awareness and liking among consumers.
Consumers are lured by the incentives of buying through sales promotion activities like discounts, rebates, contests, coupons, product samples, price promotion signs, coupons, exhibitions, setting kiosks in malls, displays, free samples, gifts, etc. The customer who buys a product sees an extra value in the purchase like a discount, etc.
Continue Reading »