All kind of promotional activities except advertising, personal selling and public activities which help to increase the sales can be termed as sales promotion. The feature of sales promotions is that it is not repetitive in nature and is a one- time communication method. The marketing activities which can prompt the consumer to purchase a particular product and the dealer to effectively promote the product are kind of sales promotion. For instance the purchase displays, exhibitions and demonstrations are sales promotion methods. The approach and the method of sales promotion are different from advertising and personal selling, but all of it aims in the sales and profit maximization.
Generally, sales promotion focuses on small groups of people specially the prospective customers and the dealer groups. Thus the main two distinction of sales promotion are
- Sales promotion- consumer
- Sales promotion- dealer
The buying motive of a consumer is stimulated in the former and the latter focus on the effectiveness of a dealer in promoting the product. The final consumer is aimed by giving many privileges and offers. It includes encouraging trial of the products, brand loyalty and the consumption of other products of same brand. The sample, demonstrations, coupons, money refund schemes, premium offers, price off, contests, quiz, exhibitions are some examples of consumer promotion for sales increase.
The response of wholesalers and retailers to a product in the market plays an important role in the sales increase. In the past days, the marketing muscle of the companies was used as a tool for the movement of product by trading sectors. But today retailers demand certain benefits for the promotional activities since the competition in the market has increased incredibly. The trade deals, buying allowances to distributors, display allowances to retailers, slotting allowances for the promotion of new products, sales support are some examples of trade sales promotion activities.