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Sales Promotion: Definition,

Tools, Techniques, Objectives,
Examples
October 24, 2021 by Sujan

Page Contents
1. What is Sales Promotion?
2. Features

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 3. Sales Promotion Tools and Techniques
3.1. Consumer Promotion Tools
3.2. Trade Promotion Tools
3.3. SalesForce Promotion Tools
4. Objectives of Sales Promotion
5. Examples

What is Sales Promotion?

Sales promotion is a marketing strategy where a business firm
uses short-term strategies (incentives) to stimulate customers’
demand for its products or service.

Sales promotion is one of the important tools of the promotion mix.

It is temporary in nature, which aims to drastically increase the
demand for products by applying customers oriented strategies
and making offers look more attractive so that customers feel they
are getting the best deal.

It includes marketing activities other than advertising, personal

selling, or public relation that influences consumers purchases and
dealer effectiveness. The sales promotion can be done through
trade shows, coupons, demonstrations, rebates, samples,
contests, and many additional activities that bridge advertising and
personal selling.

The tools of sales promotion are of a short time nature which is

designed to stimulate the quicker and greater purchase of goods
and services. The use of sales promotion has been increasingly
increased in the modern business, due to competition in the

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 market. Sometimes, thus it is also called “aggressive marketing.

Features
The salient features of sales promotion are mentioned as below,

Short Term In Nature. As mentioned above, sales promotions are

done only for a limited time period i.e. short time period. Usually,
such promotions are only for up to a day, a week, to a maximum of
three months.

Provides Incentives. It offers certain benefits to the target

customers to attract them towards the companies offerings. The
benefits it offers may include, price off, free gifts, free samples,
containing more products in a package than before, coupons for
bulk purchases, etc.

Aims At Quick Response. Its tools are offered for short period,
hence always aim at the quick response from the target customers.
If the marketers do not get quick responses, they think their sales
promotion efforts become ineffective and try for another.

Primarily Directed At Target Customers. The primary and

ultimate goal of employing sales promotion tools is to uplift sales.
So it is always directed at target customers, who consume goods,
traders who resale goods, and sales force who helped in personal
selling.

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 Sales Promotion Tools and Techniques
The major sales promotion tools and techniques are of three types
first is for consumer promotions, trade promotions, and third is for
salesforce promotions. They are explained as follow,

Consumer Promotion Tools

When the sales promotion tools are used to stimulate the final
consumers, they are called consumer promotion tools. The most
popular sales promotion tools and techniques targeted to final
consumers are mentioned below,

i. Price-Off Promotion. The price-off promotion tool involves the

temporary price reduction of the product or service, it can be
written on the package like “Save Rs. 5 or 10”. Which is generally
done to attract customers’ attention.

ii. Rebate. Rebate is a price reduction to include immediate

purchase, to sell off-season products, or to move inventory off the
marketer. If the consumers already pay the full price they may get
money back from the manufacturer.

iii. Coupons. The coupon is a great sales promotion strategy

popularly used these days. A coupon is a certificate a buyer gets
and later he can claim the discount or the prodcut. Coupons are
provided by both producers and retailers. The coupon may be
inserted into the package, or it may be made available upon the
purchase made on a specific occasion, etc.

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 iv. Samples. To promote newly launched products a sample is
given to the customers for the trial. If the customers are satisfied
with the trial after using it, they will go for buying that product or
service.

v. Premiums. Premiums are gifts given to consumers freely or at a

relatively low cost as an incentive to purchase a particular product.

vi. Prizes. Prizes are also offered to the consumers on the basis of
purchases they made or contests, sweepstakes, or games. Prizes
are offers to win cash, or additional prodcut, or merchandise as a
result of purchasing something. Consumers may compete for
prizes by answering questions (contests), filling out forms for
random drawings (sweepstakes), or playing bingo, or missing
letters (games).

vii. Point-of-Purchase Displays and Demonstrations. Products

are displayed and demonstrated where the potential buyers are to
create their desire for products. Such activities can be organized
during,

the anniversary of the manufacture, during some of the national

festivals,
The opening of a new branch of the company.

viii. Product Warranties. Product warranty is an assurance to the

consumers that the prodcut will do what it is supposed to do for a
specified period, during which the manufacture provides services
free of charge.

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 viii. Trade Shows and Exhibitions. Sometimes manufacturers
organize trade shows and exhibitions for consumers, especially for
the promotion and sale of consumer products and home
appliances.

Moreover, the above-mentioned sales promotion tools and

techniques targeted to consumers are not limited, as per the need
and situation other several tools and techniques are also can be
applied.

Trade Promotion Tools

When the sales promotion is directed at resellers, channel
members, agents, or dealers, they are known as trade promotion
tools. It is important that channel members, resellers also need to
be motivated to increase sales.

It is necessary that middle channels are to be provided incentives

otherwise they will divert to the competitor product.

The popular sales promotion tools and techniques targeted to

traders are mentioned below.

i. Sales Contest. To boost up sales, sometimes producers

organize sales contests among the resellers. Under this contest,
usually, the reseller who makes a huge sales than others will be
rewarded with a cash prize or another kind. However, for the
participation of such an event, the producer may specify some
conditions.

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 ii. Credit Facilities. To help the resellers in making better and
increased sales, sometimes a producer provides a special credit
facility or an extended credit facility to his traders for a certain
period of time. And, when the traders became successful to make
more sales and profit, such credit facilities are withdrawn by the
producers.

iii. Push Money. Push money represents special bonuses paid by

a producer or marketer to an intermediary salesforce because of
selling more products through the distribution channel. This type
of promotion is offered in the marketing of medicines and medical
products.

iv. Cooperative Advertising. Cooperative advertising is when

producers, wholesalers, and retailers jointly sponsor advertising to
promote a brand. For this, the producer makes available to the
wholesaler or the retailer through a fund intended to help cover
their cost spent in advertising.

SalesForce Promotion Tools

A salesforce is a staff who is appointed by the manufacturer to sell
manufactured products to the resellers and customers through
personal selling. Salesforces establish direct contact with
customers, persuade them and sell the products.

Effective sales through salesforce are possible only when the

salesforces are motivated. Dissatisfied and lacking communication
skills salesforce can not motivate the customers to purchase any

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 products.

Sometimes manufacture thus offers sales promotion tools directed

at salesforce. Some of the popular sales promotion tools directed
at salesforce are mentioned as below,

i. Sales Contest. In a sales contest, the sales personnel who

makes more sales than other salesforces in a specified period is
rewarded cash, even gifts, travels opportunity inside and outside
the country.

ii. Bonus and Commission. Companies also include bonuses and

commissions to the salesperson who results in the maximum
volume of sales over a given period of time. Bonuses and
commissions may include cash or a certain percentage of sales.

iii. Gift Items. To motivate salesforce, the marketer also provides

some gift items like mobile, watch, pen, diary, and other motivating
and helping gifts.

iv. Trade Shows and Conventions. Similarly, so the companies

organize trade shows and conventions outside the country. Due to
this, salesforce gets a chance to travel the outside country with
their spouse which is a great incentive to the sales personnel. For
example, most of the Indian companies organized meetings and
conferences in five-star hotels in Nepal.

Objectives of Sales Promotion

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 The primary objectives of sales promotion can be mentioned as
follows,

Attract New Customers. One of the primary objectives of sales

promotion is to get the attraction of new customers. With the help
of various tools and techniques, a company can attract and make
them buy even they hadn’t used that company’s products before.

Reward Loyal Customers. Another significant objective of sales

promotion is to reward loyal customers. Loyal customers are the
most valuable asset of any marketing company. With various
incentives the loyal customers are rewarded, which is done to
maintain the market and hope the loyal customers also influence
the potential customers.

Encourage Impulse Purchase. Many customers purchase

products and services without any plan. If these customers are
convinced about the prodcut, they can buy at any instant. Sales
promotion exactly does that. Through different tools, it encourages
impulse purchase.

Create Excitement. It also aims to create a sense of excitement in

customers’ minds towards the products. Through various offers,
firms lure customers and make them believe that they are getting
the best deal.

Promote Off-Season Products. One of the major objectives of

sales promtion is to promote off-season products. Through various
sales promotion tools and techniques, marketers create a market

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 for an off-season product. The reasons for doing is twofold, first, it
creates longevity of the product, second, it helps to clear out the
stock.

Examples
Sales promotion can be done in various ways and its examples are
found all around us. Simply, when someone offers you as, if you
buy one apple, you will get one at free of cost.

In addition, other examples may be discounts, black Friday sales,

buy 1 get 1 free, coupons, free samples, gifts, etc. but these offers
are only for a short period of time.

Marketing
sales promotion, sales promotion tools and techniques, what is sales
promotion
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Public Relation: Definition, Objectives, Tools, and Examples

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