Definition of Sales PromotionFitness Equipment
Definition of sales promotion
In recent years, sales promotion has been used widely to supplement and coordinate advertising and personal selling efforts. Various sales promotion tools such as free samples, premium on sale, prize contests, dealer incentives, coupons and gifts, etc., are being used to stimulate market demand for products of daily use. The basic purpose is to stimulate on the spot buying through short term and non-recurring incentives.
Sales promotion consists of all promotional activities other than advertising, personal selling and publicity that help to increase sales through non-repetitive and one-time communication. According to the American Marketing Association, sales promotion includes "those marketing activities other than personal selling, advertising and publicity, that stimulate consumer purchasing and dealer effectiveness, such as point of purchase displays, shows and exhibitions, demonstrations and various non-recurring selling efforts not in the ordinary routine."
Sales promotion and Advertising
The eventual aim of sales promotion is escalating the sales and profits. But it is different from advertising and personal selling in approach and techniques. Personal selling involves face to face contact with specific individuals while advertising is directed at a large number of potential customers. Sales promotion serves as a link between the two by focusing selling effort on selected small groups of people. Sales promotion usually involves non-recurring and non-routine methods, in contrast to the routine and recurring nature of advertising and personal selling. Under advertising, the media are not owned and controlled by the advertiser except in direct mail advertisements but sales promotion methods are controlled by the advertiser. Advertising and personal selling are essential or basic ingredients of promotion mix while sales promotion is a supporting or facilitating element of promotional strategy. Sales promotion bridges the gap between advertising and personal selling. It supplements and reinforces the personal selling and advertising efforts of the firm. Sales promotion covers miscellaneous stimulants directed to the consumers and dealers. It may stimulate consumer buying at the point of sale or improve dealer effectiveness at the retail outlets.
Objectives of sales promotion
Sales promotion activities are designed to achieve the following objectives:
(a) To introduce new products
(b) To attract new customers and stimulate demand
(c) To increase sales during slack periods
(d) To encourage dealers to carry large stocks
(e) To improve the public image of the firm
(f) To counter sales promotion campaigns of competitors.