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Exercises · Q1

Q.What do you mean by sales promotion? State its main features.

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Meaning. Sales promotion refers to those marketing activities — other than personal selling and advertising — that stimulate consumer buying and improve dealer effectiveness by offering a short-term extra incentive to buy. Everyday examples are "buy two, get one free" offers, free samples of a new product, discount coupons and lucky-draw contests. It is one of the three tools of the promotion mix, the other two being personal selling and advertising.

Main features:

  1. Short-term in nature — an offer runs for a limited period (a festival, a season, a launch) and is not permanent.
  2. An extra incentive — it offers something more than the normal terms: a gift, a discount, a sample or a chance to win.
  3. Supplementary, not a substitute — it supports advertising and personal selling; advertising creates awareness, sales promotion converts it into an immediate sale.
  4. Aimed at three targets — the consumer (to buy), the dealer (to stock and push), or the firm's own salesmen (to sell harder).
  5. Non-recurring devices — samples, coupons, contests and displays are occasional efforts, not a routine feature of every sale.

Because it acts quickly, sales promotion is especially useful for launching a new product, clearing surplus stock, meeting a competitor's move and lifting sales in a slack season — it is the bridge that carries a customer from interest to action.

✓Final answer

Sales promotion is the set of marketing activities, other than personal selling and advertising, that stimulate buying through a short-term extra incentive (samples, discounts, gifts, contests, displays). Its main features are: short-term duration, an extra incentive over normal terms, a supplementary role, three possible targets (consumer, dealer, sales force), and the use of occasional, non-recurring devices.

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