Sales promotion is a short-term incentive tool used to encourage customers to purchase goods. It features incentive tools aimed at greater sales for the short term benefit of consumers. The goals of sales promotion include attracting new buyers, introducing new products, encouraging more product use, educating customers on improvements, drawing buyers to stores, stabilizing fluctuating sales, increasing retailer inventories, and countering competitors' incentives. Consumer promotion methods include samples, coupons, premium offers, price packs, price reductions, contests, and cash refunds. Trade promotion includes allowances, discounts, gifts for dealers, premiums, and dealer sales contests. Sales force promotion uses contests, bonuses, commissions, gifts, and trade shows.
Sales Promotion: Short Term Incentive Tools to Encourage Purchasing
1.
2. Sales promotion is a short term incentive
tool which is used to encourage the
customer to purchase the goods.
# Features of sales
promotion
1. Incentive tools
2. Short term
3. Greater sales
4. Consumers benefit
3. • To attract new buyers
• To introduce a new product
• To encourage more use of a product
• To educate customers on product
improvements
• To draw buyers to the retail store
• To stabilize fluctuating sales
• To increase resellers’ inventories
• To counter competitors’ incentives
4. A. Consumer sales promotion method
1. Sample
2. Coupon
3. Premium offer
4. Price pack
5. Price off offer
6. Contest and price
7. Cash refund offer
5. B. Trade sales promotion
method
1. Allowances
2. Discount
3. Dealers gift
4. Premium
5. Dealers sales contest
6. C. Sales force promotion tools
• Sales contests
• Bonus and commission
• Gifts and terms
• Trade shows and conversions
