Sales Promotion - Explained
What is Sales Promotion?
Written by Jason Gordon
Updated at September 28th, 2021
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
- Courses
Table of Contents
What is Sales Promotion? How do we Make Customers or Intermediaries to Take Action?What is Sales Promotion?
Sales promotion is any activity or the all the activities designed to encourage interest in trial of or purchase of a product by potential customers or intermediaries.
There are two main takeaways in the above definition. First, sales promotions tries to get people to take action. The second takeaway is that it could be targeting either customers or intermediaries (which are wholesalers and and retailers people that sell our product).
How do we Make Customers or Intermediaries to Take Action?
There are numerous promotion methods to induce customers or intermediaries to buy or sale our products. We can use coupons or discounts or sales. We can give rebates or allowances. Allowances are kind of like rebates for wholesalers and retailers. They are designed to get people to purchase now so they can get that that lower price or that money back.
Another tactic is to give out samples. The goal there, of course, is that people will try it and then decide whether to buy it.
Lastly, a major tool for sales promotion is what we call point-of-purchase displays. This is when you're in the store and you see a bunch of a particular product on display somewhere; or, maybe you see like some signs or or other things to promote a particular product. In any event, the purchase display is meant to grab the customers attention and create the impulse to buy at that moment.
Related Topics
