Sales promotion is a marketing strategy that involves using short-term campaigns to create demand and spark interest in a product, service, or other offers. The primary objective of sales promotion is to motivate buying behavior or trigger an uptick in purchases in the short term, in order to reach a benchmark or goal. Sales promotions can have many objectives and ideal outcomes, including:
- Boosting sales
- Generating new leads
- Introducing a new product, service, or feature
- Building customer loyalty
- Increasing brand awareness
- Stimulating market demand
- Improving product availability
Sales promotions can take many forms, including discounts, coupons, free trials, contests, rebates, and sweepstakes. There are 12 main types of sales promotions, including:
- Discounts
- Coupons
- Free samples
- Buy-one-get-one-free (BOGO) offers
- Rebates
- Loyalty programs
- Contests
- Sweepstakes
- Referral programs
- Bundling
- Free shipping
- Limited-time offers
Sales promotions can be used to attract new customers, hold present customers, counteract competition, and take advantage of opportunities revealed by market research. They are usually a temporary part of a larger marketing plan and should be used strategically and with a specific goal in mind. Overall, sales promotions are a powerful tool to rapidly inject sales, attention, and demand into a business.
