sales promotion

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sales promotion

the measures used by firms alongside other elements of the PROMOTIONAL MIX (advertising, personal selling etc.) to increase the SALES of their products.

In the case of CONSUMER GOODS, while ADVERTISING seeks to develop and sustain sales by creating BRAND LOYALTY over the long run, sales promotions are largely used in short, sharp bursts to support, for example, the introduction of a new brand, to renew interest in a product whose sales have fallen and, periodically, to stimulate extra demand for a well-established brand. A variety of techniques are used for these purposes, including: free-trial samples, money-off packs, ‘two-for-the-price-of-one’ offers, extra quantities for the same price, product competitions offering prizes, coupons offering gifts, trading stamps, in-store demonstrations, point-of-sale displays, etc.

These methods can succeed only if the product being promoted is widely available for consumers to buy, so that it is important also to encourage retailers to stock it. This is done using various trade promotions including special cash offers on purchases, free extra quantities, gifts and prizes.

In the case of industrial products, trade fairs, exhibitions and demonstrations are used to back up the most commonly used mode, PERSONAL SELLING. See MERCHANDISING, PACKAGING.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
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