What is sales promotion? Describe the role of sales promotion.

Sales Promotion — Sales promotion means short-term incentives of non-recurring nature used to stimulate consumer purchasing and dealer effectiveness. The main purpose is to obtain spot buying by offering non-recurring and non-routine incentives. According to the American Marketing Association, sales promotion refers to those sales activities that supplement both personal selling and advertising, such as displays, shows, expositions, and demonstrations.

Role of Sales Promotion:

1. Low Unit Cost — The cost of sales promotion per unit is quite low, making it an economical way to boost sales.

2. Sales Support — Sales promotion provides strong support to personal selling and advertising. It serves as a bridge between them.

3. Faster Product Acceptance — Sales promotion makes a product acceptable to consumers faster than any other technique.

4. Effective Control — Management can have an effective check on the results achieved through sales promotion schemes. The costs and benefits can be analysed.

5. Best for New Products — Sales promotion efforts are best suited for new products as they provide access to a large market and personal contacts with customers and dealers.

6. Launching New Products — Helps quickly launch new products by creating immediate awareness and trial.

7. Clearing Stocks — Helps clear overdue and slow-moving inventory through discounts and special offers.

8. Meeting Competition — Allows firms to respond to competitive pressures effectively.