What is sales promotion?

Sales promotion relates to short term incentives or activities that encourage the purchase or sale of a product or service. Sales promotions initiatives are often referred to as “below the line” activities.

Sales promotion activities can be targeted toward final buyers (consumer promotions), business customers (business promotions), retailers and wholesalers (trade promotions) and members of the sales force (sales force promotions). Here are some typical sales promotion activities:

Consumer promotions

  • Point of purchase display material
  • In-store demonstrations, samplings and celebrity appearances
  • Competitions, coupons, sweepstakes and games
  • On-pack offers, multi-packs and bonuses
  • Loyalty reward programs

Business promotions

  • Seminars and workshops
  • Conference presentations
  • Trade show displays
  • Telemarketing and direct mail campaigns
  • Newsletters
  • Event sponsorship
  • Capability documents

Trade promotions

  • Reward incentives linked to purchases or sales
  • Reseller staff incentives
  • Competitions
  • Corporate entertainment
  • Bonus stock

Sales Force Promotions

  • Commissions
  • Sales competitions with prizes or awards
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