Sales promotion is a part of the promotion mix that a business uses for stimulating the demand for products and services and also to increase brand awareness of the product or the service.
Sales promotion is used in the following cases:
1. For introducing new products to the existing market
2. To increase the sales of an existing product
3. To introduce a product to a new market
Importance of Sales Promotion
Sales promotion has the following importance in business:
1. It is used for spreading information about the brand to the customers in the market.
2. It is useful in stabilising sales volume and also required to increase short term sales of the products or services.
3. It is helpful in stimulating the demand for a product in the short term by making the product appear as a great deal for the customer.
Objectives of Sales Promotion
Following are some of the objectives of sales promotion:
1. Sales promotion is used to create a market for new products. It can be achieved by using the techniques of offering discounts, penetration pricing, etc.
2. It is used by companies for competing with the marketing strategies of the competitors.
3. It is helpful in gaining trust of the dealers by increasing the sales of the products, which results in an increase in income of the dealers.
4. It can be used for launching a product into a new market. Sales promotion strategies can be used to propel customers to try out the new product.
5. It serves as a great way of increasing brand awareness about the product in the market and among customers.
This concludes our article on the topic of Sales Promotion, which is an important topic in Business Studies for Commerce students. For more such interesting articles, stay tuned to BYJU’S.
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