2. All the marketing & promotional
activities, other than advertising, personal
selling,& publicity, that motivate and
encourage the consumers to purchase by
means of such inducements as
premiums,samples,contests,rebates,
displays etc and also motivate retailers,
whole sellers and others by way of
incentives like awards or prizes,
allowances, trade shows etc.
John F. Luick

3. Sales promotion thus consists of all those activities
whose prime purpose is to supplement, to coordinate,
to make more effective the efforts of sales force, of the
advertising deppt. & simultaneously help to increase in
sales by stimulating the customers for buying.
It usually includes a added value or incentives to
stimulate sales.

4. CONSUMER SALES
PROMOTION
TRADE SALES
PROMOTION
 sales promotion targeted
directly on consumers
 when sales promotion is
targeted on retailers or
whole sellers

5. Stimulate trial
Increase consumer
inventory and consumption
Encourage repurchase
Neutralize competitors
Increase sales of
complementary products
Stimulate impulse
purchasing

6.  Price Deals :A temporary reduction in prices such as
50% Off.
 Sampling: consumers get one sample for free,after
trail they can decide to buy it or not.
 Loss leader:the price of a popular product is
temporarily kept low in order to stimulate other
profitable sales.
 Rebates : consumers are offered money back if the
receipt or barcode are mailed to the producer.

7.  Gain/maintain distribution
 Influence resellers to promote product
 Influence resellers to offer price discount
 Increase reseller inventory
 Defend against competitors
 Avoid reduction of normal prices

8.  Trade Allowances: short term
incentives offered to induce a retailer
to stock up a product.
 Trade Contests: a contest to reward
retailers that sell the most product.
 Point-of-Purchase Displays: used to
create a urge of “impulse "buying and
selling your product on the spot.
 Push Money: also known as
“spiffs”.an extra commission paid to
retail employees to push products.

10. S.P leads to immediate effect on sales.
Measurement of effectiveness is easier as compared to
other promotional tools.
Channels of distribution are emerging as powerful entities
and demand greater use of incentives to get desired results.
 Greater pressure from trade to liquidate stocks.
To reduce seasonal fluctuations.
To recover loss in sales.
To meet compitetion.