Sales promotion is a very important component of the marketing, especially the promotion mix. In actual, it acts like an instant stimulus for prospective buyers. It focuses on encouraging the potential customers/ retailers to buy the products or services of an organization, by enhancing its value.
Sales promotion helps in increasing sales for the short-term period, however, it is not helpful enough to generate long-term customer loyalty. It is designed for potential customers, for distribution channels and also for sales force of the organization.
Meaning and Definition of Sales Promotion
According to William J. Stanton___” Sales promotion is an exercise in information, persuasion, and influence”.
According to American Marketing Association___” These marketing activities, other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness such as display shows and exhibitions, demonstrations and various non-recurrent selling effort not in the ordinary routine”.
According to Philip Kotler___” Promotion encompasses all the tools in the marketing mix whose major role is persuasive communication”.
Thus, it can be said that any action focussed towards enhancing sales as well as usage or trial of a product or service, is called ‘Sales Promotion’.
Nature of Sales Promotion
- Irregular/ Non-Recurring Activity: Sales Promotion is an Irregular and Non-Recurring Activity to increase the sales.
- Target Action: It can be targeted to three distinct audiences. The first is internal and is usually the marketer’s own salespeople. There may, however, be other employees targeted such as technical sales support people or telemarketers.
- Motivation and Extra Incentive: It involves some type of incentives that offer a reason to buy. This incentive is usually the key element in a promotional program and is an effort by which consumers, traders, and Salesforce are motivated towards maximum sales.
- Acceleration Tools: It is designed to speed up the selling process and maximizes sales volume. Sales promotion can be implemented quickly and gets sales results sooner than advertising.
- Non-Media Activity: It is referred to as a non-media activity as sales promotion is differentiated from advertising and publicity, and also includes them as part of the overall promotion mix.
- Planned Activity: It generally planned as a specific marketing event. In other words, it is a ‘stand-alone’ activity which, although incorporated into the marketer’s overall marketing communication strategy, is planned as a unique event.
- Versatile: It is extremely versatile. The different forms of sales promotion are capable of being used with various groups and designed to achieve different effects. It can be used throughout the product life-cycle.
Sales Promotion Objectives
- To Introduces New Products.
- To Attract New Customers.
- To Induce Present Customers to Buy More.
- To Help Firm Remain Competitive.
- To Increase Sales in Off Season.
- To Educate Customers.
- To Stimulate Sales.
- To Facilitate Coordination.