Question

What is meant by sales promotion?

Hint:

Sales promotions are effective tools for boosting short-term sales and consumer engagement, but they should be used strategically to avoid diminishing the perceived value of the product.

Answer 1

Sales promotion refers to a set of marketing activities aimed at increasing the sales of a product or service in the short term. These activities are designed to stimulate consumer demand, encourage purchases, and create excitement around the product. Sales promotions often involve offers such as discounts, coupons, contests, free samples, and loyalty programs. Step 1: Types of Sales Promotions.
Sales promotions can be divided into consumer promotions and trade promotions. Consumer promotions target the end consumer directly, while trade promotions are aimed at retailers and wholesalers to incentivize them to carry and promote the product. Step 2: Short-term Strategy.
Unlike long-term marketing strategies such as brand building, sales promotions are typically short-term campaigns that aim to boost immediate sales. They are often used to clear excess inventory or to increase market share in a competitive environment. Step 3: Methods of Sales Promotion.
Some common sales promotion techniques include offering limited-time discounts, running sweepstakes or contests, providing free samples, bundling products together at a lower price, and giving away promotional gifts or loyalty points. Step 4: Impact on Consumers.
Sales promotions can influence consumer buying behavior by creating a sense of urgency and encouraging impulsive purchases. The perceived value of a product can increase when consumers believe they are getting a deal or a free bonus with their purchase.