Objectives of Sales Promotion

The broad aim of all sales promotion is to increase sales by giving buyers and sellers an extra reason to act at once. Behind this broad aim lie several specific objectives, which differ according to whether the promotion is aimed at consumers, at dealers or at the firm's own sales force.

A. Consumer-directed objectives

• To introduce a new product. Free samples, introductory discounts and "try-it" offers persuade cautious buyers to try something unfamiliar for the first time.
• To attract new customers. Coupons, gifts and price-off offers draw buyers away from rival brands and widen the customer base.
• To increase the rate of use. "Buy more, save more" and bonus packs encourage existing customers to buy in larger quantities and use the product more often.
• To clear surplus or seasonal stock. End-of-season sales and clearance discounts move slow-selling or out-of-season goods quickly.
• To meet competition. A well-timed offer answers a rival's promotion and holds the firm's share of the market.
• To even out seasonal sales. Off-season concessions lift sales in a slack period and steady the flow of business through the year.

B. Dealer-directed objectives

• To gain dealer support. Trade discounts, display allowances and free goods persuade wholesalers and retailers to stock the product, display it prominently and push it to customers.
• To build up dealer inventories. Bulk-purchase offers load the dealer with stock, leaving less shelf space for competing brands.
• To win new dealers and strengthen the distribution network.

C. Sales-force-directed objectives

• To motivate salesmen. Bonuses, sales contests and prizes for meeting targets spur the firm's own salesmen to greater effort. …