IMPACT ON SALES PROMOTION

What Is Sales Promotion?

Promotion tool that offers short-term incentives to encourage customers to purchase, resulting in immediate increases in sales of a product or service. Reasons for rapid growth in sales promotion:
Product managers are facing more pressure to increase current sales, Companies face more competition in mature markets, Advertising efficiency has declined, Consumers have become more deal oriented.

MEANING
Sales promotion is one of the components of promotion of mix. It is generally a short term tool used to stimulate immediate increase in demand. It supplements advertising and facilitates personal selling process.

DEFINITION
Roger A Strang defines sales promotion is short term incentive to encourage purchase or sale of a product or service A.H.R. Delenes Sales promotion means any steps that are taken for the purpose of obtaining or increasing sales

Types of Sales Promotions

Consumer Promotions
Manufacturer to consumer

Trade Promotions
Manufacturer to retailer/wholesaler

Retailer Promotions
Retailer to consumer

Business Promotions
Manufacturer to business buyer

IMPACT ON SALES PROMOTION

Increased sales volume customer loyalty Increasing the profitability of the organization Brand loyalty

Effects of Sales Promotion on Consumer Behavior

Expand category volume Cause brand switching
Cannibalization

Change purchase timing Cause stockpiling