Sales promotion includes activities of non-routine nature to promote sales. Sales promotion includes those short-term incentives which are non-recurring and nonroutine activities that stimulate demand for products. These activities supplement and reinforce advertising and salesmanship and serve as a bridge between them.

Definitions of Sales Promotions

According to American Marketing Association : 

Sales promotion includes all those marketing activities other than personal selling, advertising and publicity, that stimulate consumer purchasing and dealer effectiveness, such as displays, shows and exhibitions, demonstrations and various non-recurring selling efforts, not made in the ordinary routine.

According to Rober C. and Scott A :

Sales promotion consists of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker and/or greater purchase of particular product/service by consumers or traders.

Importance of Sales Promotion 

• Increases sales volume : 

Sales promotion activities / schemes like free samples, free coupons, free trials, etc. are designed to create interest in the product and to create brand loyalty. Sales promotion helps in differentiating a particular product of the firm from the competing products of other firms.

• To meet the challenges of competition : 

Today’s business is facing intense competition. To withstand this competition, sales promotion plays a very important role. Through new and innovative schemes/plans/programmes of sales promotion, a company can beat its competitors and can have a strong market holding.

• Increases Goodwill : 

Through different sales promotion schemes implemented from time to time, the brand image of the product increases. Consumer’s confidence and loyalty also increases for that brand as well as for the firm. 

• Entry in new markets : 

Through creative and effective sales promotion programmes, it is possible for a firm to easily enter in new markets. 

• Improves standard of living :

The consumers are offered rebates, discount, free gifts, financing, etc. under sales promotion scheme. Further, due to economics of large scale production, the consumers are able to get the product at lower price. By this, a consumer can buy more products and can improve his living standard.