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• Free Samples : 

Free samples of low price and repeat sales items are , distributed to selected people to gain consumer acceptance and to popularise the product.

• Contests : 

Under this, consumers are given rewards for analytical creative thinking about the product in the form of slogan writing, sentence completion, etc. Rewards are given to the successful participants in the form of cash prize or free travel.

• Rebate or price-off offer :

In order to increase sales, many producers introduce price off to the customers. The product is offered at a reduced price to the customers. The product is offered at a price lower than the normal price. 

• After-sales services :

Under this, the seller provides guarantee and warranty services for a product for a fixed duration to the customer. 

• Packaging : 

Attractive, colourful and good packaging attracts and induces a consumer to buy products. Packaging not only helps in identification of the product, but it also facilitates use of the product.

Roger A. Strong.

(a) Dealer promotion

(b)  Packaging

(c) Purchase allowance

Allowance is a compensation in cash or kind given to the dealer for providing certain services from the manufacturer.

Main allowances are: 

• Purchase allowance : 

It is given to the trader on purchase of certain quantity of goods within a given period of time from the manufacturers. 

• Advertising allowance : 

It means compensating the dealer for advertisement expenditure incurred by him for the product. 

• Display allowance : 

It compensates the retailer for arranging special display of manufacturer’s product. 

•  Shelf space allowance : 

For compensating the dealer for giving a special shelf space to the manufacturer’s brand.

Sales promotion consists of all promotional activities other than advertising, personal selling and publicity, which are used to encourage the buyers to make immediate purchase of a product or to boost its sale.

According to A.H.R. Delens : 

sales promotion means those steps that are taken for the purpose of obtaining an increased sales. Often, this term refers specially to selling efforts, that are designed to supplement personal selling and advertising, and by coordinating, helps them to become more effective.

According to Robert 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/services by the consumers from the traders. Advertisement is different from sales promotion. Although, both are used for increasing the sales of the product but both of these are different in nature.

Points of difference are explained below :

Contest is generally a competition among the customer to do better than others, usually, in which prizes are given. In consumer promotion technique, contest used to give rewards for analytical creative thinking about the product are in the form of slogan writing, etc. 

Types of contests are as follows:

To complete the sentence like – I like this video game, because 

By giving or showing picture of an object, asking its name. 

• To write the slogan for the product given. 
• Problem-solving quizzes for the consumer. 
• To take feedback of the product through letter writing, SMS, etc.

Attractive, colourful and good packaging attracts and induces a consumer to buy. Packaging not only helps in identification of the product, but it also facilitates use of the product.

An allowance is a compensation in cash or kind given to the dealer for providing certain services from the manufacturer.

 Two types : 

1. Purchase allowance 

2. Advertising allowance.

Consumer promotion techniques are directly related to consumers and they persuade them to buy more and more quantity of goods.

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. All this persuades the consumers to buy more products, which, in turn, helps in increasing sales volume.

(c) Both (a) and (b)

Dealers promotion techniques can persuade the wholesalers or the retailers to carry the brand and also induce them to promote the brand through featuring, display, etc. to push the product.

Sales promotion.

1. Sales promotion includes activities of non-routine nature to promote sales. 

2. Sales promotion consists of all promotional activities to boost up sales.

An allowance is a compensation in cash or kind given to the dealer for providing certain services from the manufacturer.

(a) Sales Promotion.

(c) Both (a) and (b).

Offering extra quantity of the product commonly used by marketeer of toiletry products, for example, a shaving cream offer of 40% extra product quantity.

(a) Consumers

Sales promotion consists of all promotional activities other than advertising, personal selling and publicity, which are used to encourage the buyers to make immediate purchase of product or to boost its sale. 

According to Roger A Strong : 

Sales promotions are short-term incentives to encourage purchase or sale of a product or service. 

According to George W. Hopkins : 

All those organised efforts which help to make advertisement and sales process effective are known as sales promotion.

Consumer promotion techniques : 

These techniques are directly related to consumers and persuade them to buy more and more quantity of goods. These sales promotion methods can be implemented at consumers’ homes, offices or shops of middlemen. 

Main consumer-oriented sales promotion techniques are :

• Free samples : 

Free samples of low-priced and repeat sales items are distributed to selected people to gain consumer acceptance and to popularise the product. These samples can be distributed in the shop or door to door. 

• Contests : 

Under this tool, consumers are given rewards for analytical creative thinking about the product in the form of slogan writing, sentence completion, problem solving, quiz, etc. Rewards are given to the successful participants in the form of cash prize, merchandise or free travel. 

• Rebate or price-off offer :

In order to increase sales, many producers introduce price off offer to the customers. Under this, product is offered at a price lower than the normal price. 

• Discount coupon : 

A discount coupon is a certificate that entitles its holder a specified saving on the purchase of a specified product. Coupons may be issued by the manufacturer either directly by mail or through sales force or by dealers.

• Quantity gifts :

Offering extra quantity of the product commonly used by marketeer of toiletry products, for example; a shaving cream offers 40% extra, etc. 

• Trade fairs and exhibitions : 

Fairs and exhibitions provide an important avenue of sales promotion to the businessmen. Businessmen can demonstrate their products, explaining their special features and usefulness. Book fair, shoe fair, etc. are the examples of these. 

• Packaging : 

Attractive, colourful, and good packaging attracts and induces a consumer to buy. Packaging not only helps in identification of the product, but it also facilitates use of the product.

• Other techniques : 

Refunds, instant draws and assured gifts, lucky draw, usable benefits, etc. 

• Other techniques : 

Refunds, instant draws and assured gifts, lucky draw, usable benefits, etc.

1. Through different sales promotion schemes, the brand image of the product increases consumer confidence and loyalty. By building goodwill, sales promotion enables a firm to obtain repeat orders. 

2. Sales promotion activities/schemes increase sales volume of the product.

In a contest, consumers are given rewards for analytical creative thinking about the product in the form of slogan writing, sentence completion, quick problem solving, etc.

Sales promotion aims at stimulating demand by encouraging and persuading new and existing customers to buy the products.

Yes, sales promotion helps in maintaining cordial relations between customers, pubic and dealers.

Main objective pf sales promotion is to attract and persuade customers or traders towards the product or service.

Sales promotion informs the prospective buyers about the availability features, uses, utility of new products.

With the help of sales promotional tools.

The seller offers guarantee and warranty services for a product for a fixed duration to the customer. The customer can save the repair, maintenance, etc. expenses.

Under this, the seller offers premium to the buyer by way of supplying a gift along with the product or inside the product package. Premium on sales helps the salesman to make effective presentation, stimulate sale in particular area, leads to enlistment of new customers and paves the way for introducing new brands in the market.

 Example : 

A toothpaste offered with another toothpaste.

The product is offered at a price lower than the normal price. This is known as rebate or price-off.

1. Sample should be truly representing the original product. 

2. Sample should be attractive and suitable for testing.

(b) Buyer’s Market.

A discount coupon is a certificate that entitles its holder a specific saving on the purchase of a specified product.

1. Rebate : 

In order to increase sales, many producers introduce price-off offer to the customers. Under this, the product is offered at a price lower than the normal price. For example: During off season (winter), coolers, refrigerators may be offered at 20% to 30% discount.

  2. Discount coupons : 

A discount coupon is a certificate that entitles its holder a specified saving on the purchase of a specified product. Coupons may be issued by the manufacture either directly by mail or through sales force or through dealers.

Product demonstration of goods is an on-sight method of publicity. Goods, can be displayed in artistically laid-down windows at the shop fronts, showrooms, etc. Generally, this is used to sell goods of technical nature. The customers also get a chance to see the design and other aspects of the product.

Free samples of low-priced and repeat sales items are distributed to selected people to gain consumer acceptance and to popularize the product. The sample may be distribute in the shop or door to door. This is an effective tool of sales promotion. It is particularly useful in introduction of new product. 

While distributing the free samples, things to be considered are : 

• Sample should be truly representing the original product. 
• Sample should be attractive and suitable for testing. 
• On the samples, “not for sale” or “sample copy” should be printed to prevent its misuse.

Definition of Sales Promotion : 

Sales promotion refers to short-term incentives offered to stimulate on-the-spot buying. Literal meaning of sales promotion is to increase the sale of any good or service. 

According to Roger A. Strong : 

Sales promotions are short-term incentives to encourage purchase or sale of a product of service. 

According to George W. Hopkins : 

All those organised efforts which help to make advertisement and sales process effective are known as sales promotion. 

Objectives of Sales Promotion are :

• Sales promotion aims at stimulating demand by encouraging and persuading new and existing customers to buy the product. 
• Builds Goodwill : 

Sales promotion helps in creating distinct identity of the product by differentiating it from competitor’s product. Superiority of the product is created to build a good image of the product and the firm.

•  Educates customers : 

Sales promotion informs the prospective buyers about the availability, features, uses, utility of new products. 

• Stabilises sales : 

In the modem days of competition, sales promotion activities help in stabilising the sales volume. It helps to maintain sales during off season and in facing the competitors.

•   Maintains relations : 

It helps in maintaining cordial relations with customers, public and dealers.

• Facilitates marketing control : 

It is possible to analyse the cost incurred and benefits derived from sales promotion. Therefore, the management of a company can keep an effective check on the results achieved through sales promotion schemes.

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.

Sales promotion methods are of three types.

In narrow sense, sales promotion means all those activities which are supportive in personal selling.

Main concern of sales promotion is to persuade more and more customers and traders, (wholesaler/retailers). Field of sales promotion is very vast. 

There are various methods of sales promotion,some of them are discussed below :

• Discount : 

Under this tool, products are given at lesser price than MRP, for example. A car manufacturer may offer a discount of 10,000 for a limited period to its buyers.

• Deductions : 

Under this, products are given at a price with a fixed percentage waiver on its price, like mobile offered offered for sale at 20% lesser price.

• Return : 

This has become very common these days. Under this, the product you bought can be returned back to the buyer within a fixed duration of time. This is common in on-line purchasing.  

• Product mix :

To enhance the sale of product, on buying one product, you will get another product as a gift, free of cost.

• Immediate draw and Gift :

In this, on buying a particular good, you set scratch a card. On scratching it, you will get a particular gift mentioned on it. 

• Lucky draw : 

A coupon is given along with the product to all the buyers. Afterwards, on a fixed day, all the coupons are gathered in a box and one coupon is picked. The holder of that coupon gets a gift or prize already decided. 

• Zero % financing :

Sometimes, the manufacturer provides the product on monthly installment without charging any extra amount or interest. This is commonly known as zero % finance.

• Distribution of samples :

Before launching of any new product in the market, the company distributes its fixed amount of products as samples in the market free of cost, just to introduce it and to make the people aware.  

• Usable gain : 

Under this, the consumer gets usable benefits along with purchasing of any fixed amount of commodities, like on purchase of ₹ 2000, you will get discount vouchers worth ₹ 210.

Trade promotion techniques : 

Trade promotion or dealer’s promotion tools can persuade the wholesalers or the retailers to carry the brand and also induce them to promote the brand through featuring, display, etc. to push the product. 

Tools used for sales promotion are :

(1) Contest : 

Many manufactures hold contests for the retailers for the purpose of trade promotion. Sales target are fixed for the retailer. If a retailer exceeds the target, he would be given certificate of appreciation and a prize. This is organised by manufacturers to persuade the retailers to sell more. 

(2) Allowances : 

An allowance is a compensation in cash or kind given to the dealer for providing certain services from the manufacturer. 

Main allowances paid are : 

• Purchase allowance, 
• Advertising allowances,
• Display allowances, 
• Shelf space allowances,
• Marketing research allowances.

(3) Meetings and conferences : 

Manufacturers organise meetings, conferences from time to time, so that the dealers can put across their problems, and through mutual discussions, solutions can be found out. Such efforts help in enhancing cooperation and support, which is helpful in sales promotion. 

(4) Training programmes : 

Manufacturers give special or general training to their trade partners or dealers which proves to be useful for increasing sales volume. In general, they are given training first, which is very important for sales promotion. On the other hand, special training is imparted in relation to technical goods. 

(5) Fashion shows :

To advertise the goods sold by retailers, the manufacturers organise fashion shows. In fashion shows, the goods are presented in an attractive way, so that customers take interest in buying them. 

(6) Premium or free goods : 

The manufacturer of a product may give a premium to the dealer if he buys a specified quality. Manufacturer may offer free goods which are extra cases of merchandise to middlemen who buy certain quantity of items. 

(7) Management assistance :

Manufacturers also provide information and suggestions on issues like new management techniques, government policies, etc., so that the dealers may improve their efficiency and can make best use of available resources. 

(8) Push money and novelities : 

Manufacturers may offer push money which is in cash or gifts to dealers or their sales force to push the manufacturer’s goods.

Sales promotion means all those activities which are undertaken for increasing sales.

Sales promotion refers to short-term incentives offered to stimulate on-the-spot buying.

Sales promotion methods can be categorised under three categories.

Sales promotion activities/schemes like free samples, free coupons, free trials, fashion shows, etc. are desgined 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 product of the other firm. A firm can also use data revealing how its product compares with and outperforms the other product. All this persuades the consumer to buy new products, which, in turn, helps in increasing sales volume.

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