Sales promotion is the process of persuading a potential customer to buy the
product. Sales promotion is designed to be used as a shortterm tactic to boost
sales – it is rarely suitable as a method of building longterm customer loyalty.
Some sales promotions are aimed at consumers. Others are targeted at
intermediaries and at the firm’s sales force.
When undertaking a sales promotion, there are several factors that a business must
take into account:
• What does the promotion cost – will the resulting sales boost justify the investment?
• Is the sales promotion consistent with the brand image? A promotion that heavily
discounts a product with a premium price might do some longterm damage to a
• Will the sales promotion attract customers who will continue to buy the product once
the promotion ends, or will it simply attract those customers who are always on the
lookout for a bargain?
There are many methods of sales promotion, including:
• Money off coupons – customers receive coupons, or cut coupons out of newspapers
or a products packaging that enables them to buy the product next time at a reduced
• Competitions – buying the product will allow the customer to take part in a chance to
win a prize
• Discount vouchers – a voucher (like a money off coupon)
• Free gifts – a free