Purpose of Sales Promotion

Sales promotions tools vary in their specific objectives, A free sample stimulate consumer trial, while a free management-advisory service cements a long-term relationship with a retailer.

Sales promotion offer attract brand switches. Brand switchers are primarily looking for low price, good value or premiums. Sales promotions used in markets of high brand similarly produce a high brand similarity produce a high sales response in short run. In market of high brand dissimilarity, sales promotions can alter market shares more permanently. Sales promotions yield faster responses in sales than advertising does. Sales promotions enable the manufacturers to adjust a short term variations in supply and demand. They induce consumers to try new products instead of never straying from their current ones.