What are the components of sales promotion?

Sales promotion has two components consumer promotion and trade promotion :

1. Consumer Sales Promotion Methods:

Consumer promotion is for the common customer, this promotion is supported by advertisements, publicity, direct selling etc. This type of sales promotion is targeted at the end consumers. Customer sales promotion is a “pull strategy” and encourages the customers to make a purchase.

i. Price-Off Promotions:
ii. Coupons:
iii. Premiums:
iv. Free Samples:
v. Money Refund and Rebates:
vi. Frequent User Incentives:
vii. Consumer Contest:
viii. Trade Shows:

2. Trader’s Sales Promotion Methods:

Trade promotion is not advertised and publicised it is for the channel members, company’s offers are for dealer, distributors, retailers and agents only main purpose is to increase sales by offering incentives to them. It is a “push strategy” and encourages the channel members to stock the product. This form of promotion is usually not advertised, as it is an internal affair between the company and its distribution network partners.

a. Trade Buying Allowance:
b. Buyback Allowance:
c. Merchandise Allowance:
d. Free Merchandise Schemes:
e. Point-of-Purchase (POP) Displays:
f. Dealer Gift:
g. Premiums:

Sales promotion is a marketing strategy where the product is promoted using short-term attractive initiatives to stimulate its demand and increase its sales.

A sale promotion is when a store offers merchandise at a discount that is usually planned well in advance even with the discount they’re usually getting a full markup Most of these promotions are planned for specific time periods in the year to generate increased floor traffic or increase sales on the Internet

This strategy is usually brought to use in the following cases –

  • to introduce new products,

  • sell out existing inventories,

  • attract more customers, and

  • to lift sales temporarily.