Sales promotion refers to short-term
incentives, which are designed to
encourage the buyers to make
immediate purchase of a product or
service. These include all promotional
efforts other than advertising,
personal selling and publicity, used by
a company to boost its sales. Sales
promotion activities include offering
cash discounts, sales contests, free gift
offers, and free sample distribution.
Sales promotion is usually undertaken
to supplement other promotional
efforts such as advertising and
personal selling.
Companies use sales promotion
tools specifically designed to promote
to customers (e.g., free samples,
discounts, and contests), tradesmen
or middlemen (e.g., cooperative
advertising, dealer discounts and
dealer incentives and contests) and
to sales person (e.g., bonus, salesmen
contests, special offers). Sales
promotions include only those
activities that are used to provide
short term incentives to boost the
sales of a firm.