Major Sales Promotion Tools

Sales promotion is a short term incentives to encourage the purchase or sale of a product or services. Many tools can be used to accomplish sales promotion objectives. We can describe the sales promotion tools in below ways:
• Consumer promotion tools
• Trade promotion tools
• Business promotion tools
They are summarized in below:
• Consumer promoting tools: The main consumer promotion tools include
a. Sample: A small amount of a product offered to consumer for trail.
b. Coupons: Certificate that gives buyers a saving when purchase a specific product.
c. Cash refunds (rebate): Offer to refund part of the purchase price of a product to consumers who send a proof of purchase to the manufacturer.
d. Price packets: Reduced price that is marked by the producer directly on the local or package.
e. Premium: Good offered either free or at low cost an incentive to buy a product.
f. Advertising specialist: Useful article imprinted with an advertiser's name, given as gift to consumer.
g. Patronage rewards: Cash or other reward for the regular use of a certain company's products or service.
h. Point of purchase displays and demonstration etc: Display and demonstrations that takes place at the point of purchase or sale.
• Trade promotion tools: Trade promotion are as follow:
a. Discount: A straight reduction in price on purchase during a stated period of time.
b. Allowance: Promotional money paid by manufactures to retailers in return for an agreement to feature the manufacturer's product in some way.
• Business promotion tools: Companies spend huge amount each year on promotion to industrial customers. These business promotions are used to generate business leads, stimulate purchase reward customers and motivate people. Business promotion includes many of the same tools used for consumer or trade promotion.