Sales promotions are short-term incentives used to encourage purchase or sale of a product. There are two main types: consumer promotions, which target end-users through discounts, samples, coupons, and contests; and trade promotions, which target resellers through incentives like buying allowances, free goods, and slotting allowances to gain distribution and support. Internet promotions are also increasingly used, such as contests to attract users to advertisers' websites, and provide prizes from money to merchandise. The objective is to stimulate short-term interest and sales of products and services.

1. Sales Promotion
Dr. Gopal Thapa

2. Definition
• Sales promotion refers to many kind of incentives
and techniques directed toward consumers and
traders with the intention to produce primarily
immediate or short-term sales effects. (S H H
Kazmi & Satish K Batra)
• Sales promotions are short-term incentives to
encourage purchase or sale of a product or service.
(Roger A. Strang)

3. Features of Sales Promotion
• Short term
• Incentive tools
• Quicker response
• Various forms
• Non- recurrent in nature

4. Consumer Promotions
• Sales promotions directed at end-users are called
consumer sales promotions.
• The objective of such promotions is to stimulate
consumer interest in products, services, activities,
and special events

5. Types of Consumer Promotion
• Price Discount (also called cents-off): 20% off
• Bonus-Pack: extra quantity, buy one get one free
• Samples: goods without money
• Premiums: gift
• Refund or Rebate:
• Frequent-User Reward
• Coupons:
• Consumer Contests, Sweepstakes, and Games
• Exchange or Buy-Back Offers
• Point-of-Purchase Displays:

6. Trade Promotions
• Trade promotions are directed at resellers
(distributors, dealers, wholesalers, and retailers).
• Trade sales promotions are part of "push" strategy
of producers.
• The objectives of trade sales promotions are
different from consumer promotions

7. Objectives of trade promotions
• Build strong relations with channel members.
• To stimulate in-store merchandising support, such
as arranging displays, shelf space, feature
advertising etc.
• Gain distribution of new products.
• Gain support for existing brands.
• Manipulate levels of inventory held by wholesalers
and retailers

8. Types of trade promotion
• Trade Allowances : Incentive to middlemen
 Buying Allowances (discount for extra quantity)
 Free Goods:
 Slotting Allowances (also called stocking, or introductory allowance):
 Buy-Back Allowance
 Advertising Allowances
 Display Allowance
 Contests and Incentives
 Cooperative Advertising
 Dealer Loader (Premium)
 Training Programme

9. Internet Promotions
• The number of companies using Internet promotions is
increasing.
• Contests and sweepstakes are among the most commonly
used to motivate people to visit marketers' Internet sites.
• America Online frequently conducts prize promotions to
attract users to its advertisers' areas.
• The prizes may range between substantial sums of money to
daily prizes including merchandise decorated with the online
service's logo.
• This trend is gradually catching up in Nepal also.

10. Thank you