Sales promotion refers to the set of marketing activities undertaken to boost sales of the product or service. It is implemented to attract new customers, to hold existing customers, to offset competition and to take advantage of opportunities that are revealed by market research. It is made up of activities, both outside and inside activities, to increase company sales. Outside sales promotion activities include advertising, publicity, public relations activities, special sales events, etc. Inside sales promotion activities includes window displays, product and promotional material display and promotional programs such as premium awards and contests. Some of the devices used in sales promotion include freebies, coupons, samples, premiums, Point-of-Purchase (POP) displays, discounts, demonstrations, contests, rebates, sweepstakes, product samples, exhibitions or trade shows, giveaways, etc.
The term “Sales Promotion” has been defined by following eminent authors: –
- American Marketing Association: – “Sales promotion refers to 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-recurrent selling efforts not in the ordinary routine.”
- H. R. Delens: – “Sales Promotion means any steps that are taken for the purpose of obtaining or increasing sales. Often this term refers specially to selling efforts that are designed to supplement personal selling and advertising and by coordination helps them to become more effective.”
- Philip Kotler: -“Sales Promotion encompasses all the tools in the marketing mix whose major role is persuasive communication.”
- George H. Hopkins: – Sales Promotion is an organized effort applied to the selling job to secure the greatest effectiveness for advertising and dealer’s help.”
- J. Stanton: -sales promotion as all those activities other than advertising, personal selling, public relations and publicity that are intended to stimulate customer demand and improve the marketing performance of sellers.
- Mason and Bath: – “Sales Promotion consists of those activities that are designed to bring a company’s goods or services to the favourable attention of consumers.”
- K Johnson: -“Sales Promotion consists of all those activities whose purpose is to supplement to co-ordinate and to make more effective the efforts of the sales force of the advertising department, and of the distributors and to increase the sales and otherwise stimulate consumers to take greater initiative in buying.”
- William J. Stanton: – “Sales Promotion is an exercise in information, persuasion and influence.”
- Roger A. Strong: “Sales promotion includes all forms of sponsored communication apart from activities associated with personal selling. It, thus includes trade shows and exhibits, combining, sampling, premiums, trade, allowances, sales and dealer incentives, set of packs, consumer education and demonstration activities, rebates, bonus, packs, point of purchase material and direct mail.”