Sales Promotion

Used for 'pushing' increased sales of a product or service into the marketplace at a faster rate than would be experienced solely through conventional 'pull' advertising, sales promotion strategies have the capacity to be very effective. Manufacturers will often utilise a wide variety of promotions to incentivise a sales force, reseller channel or consumers, with initiatives such as: discounted products, buy-one-get-one-free, try-before-you-buy schemes, extended trial/warranty periods and money-off coupons.

The reason these schemes can be so successful is due to the fact that the consumer identifies an 'extra benefit' over and above any standard terms. The benefit to the organisation is that the cost of the promotion should be self-funding, meaning the organisation's cash flow increases. A secondary benefit is that the buyer experiences improved product/service attributes, which increases the likelihood of a change in the individual's regular buying behaviour.

Such schemes may be used to open up new market sectors, retain brand presence over competitors for long periods, exploit seasonal downturns or encourage sales of slow moving goods/services when offered alongside buoyant products.