Sales Promotion:

Sales promotion involves attempts to stimulate sales by use of incentives. These incentives may include free samples, special discounts, bonus for sales people, temporary price reductions, bargain packs, gifts, point of sale demonstrations etc.

When directed at consumers, sales promotion has the following objectives:

                        i.           Draw attention to new products

                        ii.          Encourage sales of slow moving products

                        iii.         Stimulate off peak sales

                        iv.         Increase usage of products

Sales promotion can also be directed at traders with the following objectives:

                        i.           Encourage dealer/retailer cooperation

                        ii.          Persuade dealers/retailers to devote increased shelf space to the company's products

                        iii.         Develop goodwill of dealers/retailers