Marketing

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• Summary

Sales Promotion refers to the short-term use of incentives or other promotional activities which are designed to encourage the buyers to make an immediate purchase of a product service.

There mainly two limitations of Sales Promotion:

1. It reflects crisis as it gives the impression that a firm is unable to manage its sales or are no takers of its product.
2. Use of sales promotion technique also inculcates the feeling among the buyers that the product is not of good quality.

Merits of Sales Promotion:

1. It acts as an attention value i.e. it attracts the attention of people because of use of incentives.
2. It induces people to break away from their regular buying behaviour and try the new product.
3. Sales promotion activities are designed to supplement the personal selling and advertising efforts used by a firm and add to the overall effectiveness of the promotional efforts of a firm.

Commonly used Sales Promotion Activities are as follows:

1. Rebate.
2. Discount.
3. Refunds.
4. Product Combinations
5. Quantity Gift.
6. Instant Draws and Assigned Gift.
7. Lucky Draw.
8. Usable Benefit.
9. Full Finance.
10. Sampling.
11. Contests.