“Sales promotion” refers to those marketing activities that stimulate consumer shows and expositions. It may be further defined as a vital bridge or a connecting link between personal selling and advertising.
In most cases, sales promotions come in the form of discounts. As a matter of fact, discounts affect the way consumers think and behave while shopping. Also, the type of savings and its location can affect the way consumers view a product and affect their purchase decision.
The two most common discounts are:
i) price discounts that are provided on sale items and
ii) bonus packs that are provided on bulk items.
Price discounts mean the reduction of an original sale by a certain percentage. On the other hand, bonus packs are deals in which the consumer receives more for the original price. Companies introduce different forms of discounts in advertisements to convince consumers to buy their products.
Sales promotion activities are undertaken to achieve the following objectives:
1. To boost sales by leveraging the media which are complementary to press and poster advertising.
2. To distribute information through salesmen, dealers etc., in order to ensure the product getting into satisfactory use by the targeted consumers.
3. To entice customers to make purchases at the point of purchase.
4. To incite existing customers to buy more.
5. To introduce new products and services.
6. To attract new customers.
7. To efficiently meet competition from others.
8. To check the seasonal decline in the volume of sales.
Sales promotion includes several communications activities that provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate sales.
Due to all these advantages, the importance of sales promotion has increased tremendously in the modern times. Eventually, massive amounts of money are spent on sales promotional activities to attract the consumers in our country and also in other countries of the world!