UNIT – V

Unit Structure

Lesson 5.1 – Sales Promotion

Lesson 5.2 – Sales Promotion Strategies and Practices
Lesson 5.3 – Brand Equity
Lesson 5.4 – Linking Advertising and Sales Promotion

Lesson 5.1 - Sales Promotion

Learning Objectives

After reading this lesson, you should be able to:

➢➢ 
Understand the and concept meaning of sale promotion
➢➢ 
To examine the various objectives of sales promotion
➢➢ 
Familiarize with the types of sales promotion tools
➢➢ 
Differentiate between advertising and sales promotion
➢➢ 
Define Sales Force Promotion

Concept of Sales Promotion

Promotion is a key part of marketing programme and is concerned with efficiently

and effectively communicating the decisions of marketing strategy to target audiences.
It is the marketing function concerned with persuasive communication of the marketing
programme to target audience with the intent to facilitate exchange between the marketer
and the customer, which may satisfy the objectives for both the customer and organization.
Promotion is targeted to the target audiences. It is also goal oriented and the objective may
be to create brand awareness, to educate the consumers, to create a positive image, to build
preference. The ultimate goal is to sell the product or service to consumers who have a need
of it.

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 Sales promotion is one of the important components of promotion mix. The components
of promotion mix are as follows:

1. Advertising
2. Personal selling
3. Sales promotion
4. Publicity
5. Direct Marketing

Sales promotion includes several communications activities that attempt to provide

added value or incentives to consumers, wholesalers, retailers, or other organizational
customers to stimulate immediate sales. These efforts can attempt to stimulate product
interest, trial, or purchase. Examples of devices used in sales promotion include coupons,
samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes

Promotion Mix

Advertising Personal Selling Sales Promotion Publicity Direct Marketing

In a time when customers are exposed daily to a nearly infinite amount of promotional
messages, many marketers are discovering that advertising alone is not enough to move
members of a target market to take action, such as getting them to try a new product.
Instead, marketers have learned that to meet promotional method in conjunction with
advertising.

Other marketers have found that certain characteristics of their target market
(e.g., small but geographically dispersed) or characteristics of their [product (e.g., highly
complex) make advertising a less attractive option. For these marketers better results
may be obtained using other promotional approaches and may lead to directing all their
promotional spending to non-advertising promotions.

Finally, the high cost of advertising may drive many to seek alternative, lower cost
promotional techniques to meet their promotion goals.

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What is Sales Promotion?

Sales promotion describes promotional methods using special short-term

techniques to persuade members of a target market to respond or undertake certain activity.
As a reward, marketers offer something of value to those responding generally in the form
of lower cost of ownership for a purchased product (e.g., lower purchased price, money
back) or the inclusion of additional value-added material (e.g., something more for the
same price).

Sales promotions are often confused with advertising. For instance, a television
advertising mentioning a contest awarding winners with a free trip to Goa may give the
contest the appearance of advertising. While the delivery of the marketer’s message through
television media is certainly labeled as advertising, what is contained in the message, namely
the contest, is considered a sales promotion. The factors that distinguish between the two
promotional approaches are:

1. Whether the promotion involves a short-term value proposition (e.g., the contest
only offered for a limited period of time), and
2. The customer must perform some activity in order to be eligible to receive value
proposition (e.g., customer must enter contest).

The inclusion of a timing constraint and an activity requirement are hallmark of

sales promotion.

Sales promotions are used by a wide range of organisations in both consumer

business markets, though the frequency and spending levels are much greater for consumer
products marketers. One estimate by the promotion Marketing Association suggests that in
the US alone spending on sales promotion exceeds that of advertising.

Difference Between Advertising and Sales Promotion

Advertising is a message which promotes ideas, good or services communicated

through one or more media by an identified sponsor while sales promotion consists of
short –terms incentives provided by the identified sponsors to consumers and traders
to persuadethem to purchase and stock his products. The major differences between
Advertising and Sales Promotion are:

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 Advertising Sales Promotion
(i) A reason is offered to buy. An incentive is offered to buy
(ii) Theme is to build up brand loyalty Theme is to break down the loyalty to a
competing brand.
(iii) A
im is to attract the ultimate Aim is to attract not only consumers but
Consumers. retailers, wholesalers and Sales force also
(iv) Effective in the long run. Effective in the short run.
(v) H
 eavy advertising makes the brand Heavy Sales promotion leads to the product
image of the product and accords it the being perceived as having a brand image of
perception of higher quality cheaper and lower quality product.
(vii) Advertising includes messages Various types of incentives are offered for
delivered through various types of ➢➢  Consumer promotion
Media. ➢➢  Trade Promotion
➢➢ 
Sales force Promotion

Comparison of Sales Promotion with Others

Advertising Sales promotion Personal selling Publicity

Timeframe Long-term Short-term Short/long-term Long-term
Primary appeal Emotional Rational Rational Emotional
Primary objective Image / br and Sale Sale/relationship Good will
building
Contribution profit Moderate High High Low

Objectives of Sales Promotion

Sales promotion is a tool used to achieve most of the five major promotional objectives

➢➢ 
Building Product Awareness- Several sales promotion techniques are highly effective
in exposing customers to products for the first time and can serve as key promotional
components in the early stages of new product introduction. Additionally, as part of
the effort to build product awareness, several sales promotion techniques possess the
added advantage of capturing customer information gathering tool (i.e., sales lead
generation), which can then be used as part of follow-up marketing efforts.

➢➢ 
Creating Interest- Marketers find that sales promotions are very effective in creating
interest in a product. In fact, creating interest is often considered the most important

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 use of sales promotion. In the retail industry an appearing sales promotion can
significantly increase customer traffic to retail outlets. Internet marketers can use
similar approaches to bolster the number of website visitors. Another important
way to create interest is to move customers to experience a product. Several sales
promotion techniques offer the opportunity for customer try products for free or at
low cost.

➢➢ 
Providing Information- Generally sales promotion technique are designed to make
customers to some action and are rarely simply informational in nature. However,
some sales promotions do offer customers access to product information. For
instance, a promotion may allow customers to try a fee-based online service for free
for several days. This free access may include receiving product information via
e-mail.

➢➢ 
Stimulating Demand- Next to building initial product awareness, the most important
use of sales promotion is to build demand by convincing customers to make a
purchase. Special promotions, especially those that lower the cost of ownership to
the customer (e.g., price reduction), can be employed to stimulate sales.

➢➢ 
Reinforcing the Brand- Once customer have made a purchase sales promotion can
be used to both encourage additional purchasing and also as a reward for purchase
loyalty. Many companies, including airlines and retail stores, reward good or
“preferred” customers with special promotions such as e-mail “special deals” and
surprise price reductions at the cash register.

Definitions of Sales Promotion

It is difficult to define sales promotion in a precise manner because it involves with a

variety of activities and techniques. sales promotion refers to many kinds of incentives and
techniques directed toward consumers and traders with the intention to create an immediate
sales effects. There is no single definition of sales promotion which is universally accepted
by one and all. There is a wide spectrum of views and different experts have defined sales
promotion in different ways.

The definition given by American Marketing Association (AMA,1960)

“In a specific sense, sales promotion include those sales activities that supplement
both personal selling and advertising and coordinate them and help to make them effective,
such as displays, shows and expositions, demonstrations and other non-recurrent selling
efforts not in the ordinary routine”

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 As per AMA definition it is inferred that all those promotional activities, which don’t
fall under the category of personal selling, advertising and publicity, should be considered
under the head of sales promotion.

Roger A. Strang has defined sales promotion in a few words as:

“Sales promotion is short-term incentives to encourage purchase or sale of a product

or service.”

According to Philip Kotler

“Sales promotion consists of a diverse collection of incentive tools, mostly short-

term, designed to stimulate quicker and/or greater purchase of particular product/services
by consumers or the trade”

Sales promotion defined by Kazmi and Batra as

“Sales promotion includes incentive offers and interest creating activities which are
generally short term marketing events other than advertising, personal selling, publicity and
direct marketing. The purpose of sales promotion is to stimulate, motivate and influence
the purchase and other desired behavioural responses of the firm’s customers.”

Types of Sale Promotion

Promotion may be broadly classified either immediate or delayed. Those that offer an
immediate reward tend to be more effective because of their immediacy, which is consistent
with the short-term tactical nature of promotions. Immediate reward promotions include
such things as price reduction, bonus packs, and coupons. Delayed promotion techniques
delay the reward, usually until after the target audience takes some action. Delayed reward
promotions include such things as sweepstakes, rebate offers, and frequent flyer programmes.

Promotions are usually thought of as aimed at consumers, but in fact much more money
is invested in promotion to the trade than to the consumers. There are three fundamental
types of promotion: consumer promotion, retail promotion and trade promotion. They are
used to get consumers to try or to repurchase the brand and to get the retail trade to carry
and to “push” the brand. Finally retailers use promotions to clear their inventory of slow
moving, out of season, or shelf-unstable products. Retailers thus run their own promotions
aimed at consumers, such as price off, displays, frequent shoppers programme and so on.

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Consumer Oriented Promotions

Consumer will not make a distinction between trade promotions delivered at retail
outlets, retail promotions, and consumer promotions. If they see a special display in the
store or have a coupon or see a price special, they are not concened with whether it was
the brand or the retailer that was responsible. But, from the brand’s perspective, there is a
world of difference. Consumer promotions are initiated by the brand, not the retailer, and
the brand controls the content.

As it happens, consumers tend to have a pretty good idea about how often brands are
promoted. This is important to the brand, because it will affect consumer buying strategy
for the brand in the light of the perception of the brand’s availability on promotion. so, even
if you donot have control over retail promotions that includes your brand, it is essential that
you have knowledge in your promotion strategy. There are six fundamental consumer can
be considered: coupons, refund and rebates, sampling, loyalty sweepstakes and premiums.
Six basic consumer promotions

Coupons Are low cost, and the most common form of promotion
Refund and Offers large price discounts, usually with more expensive products
rebates
Sampling Provides an opportunity to try or use brand at little or no cost
Loyalty Encourages repeat purchase
Sweepstakes Helps create excitement and reinforce brand image at a relatively low cost
Premiums Helps facilitate purchase by offering reward or bonus

Coupons

A coupon is a price reduction offer to a consumer. This could be a percentage off

on the retail price of the merchandise or an offer for the future. Coupons can be of various
kinds, each with a specific objective. Instant redemption coupons can be redeemed with a
purchase to reap the benefit instantly. Some coupons are offered after a purchase has taken
place for a repeat purchase. Such a coupon can be given at the time of delivery or could be
in the package.

Refunds and Rebates

This scheme offers 100% refund in case of dissatisfaction after a purchase. Rebates
can be a one-time purchase or could be a coupon issued for the next purchase. This ensures

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that the shopper returns for the second purchase to avail of the rebate. Fast food giants use
this scheme often.

Sampling

Giving people free samples or trial pack is another promotional technique and is
an excellent way to get consumers to try a product. This form of consumer promotion
is found to be especially useful when one is introducing a product for the first time. It is
commonly used in the case of fast moving consumer goods such as detergent, soft drinks,
confectionaries etc. In this case a small quantity of the product is given as a sample. These
samples are distributed either at the residence of the consumer or even at the retail outlet.
Today some of the companies are attaching the samples to the popular magazines targeted
on the group or with some of the products of the company’s product range.

Loyalty Programmes

Loyalty programmes are initiated by companies to express their bond with loyal
customers. Loyalty points are added by airlines, credit card companies. Indian Airlines have
loyalty programme ‘frequent flier’ offer for those flier who continuously purchase Indian
Airlines tickets.

Contests and Sweepstakes

These schemes offer a chance for participants to get something for nothing, based
on some sort of skill or ability. These are run to create an excitement amongst the target
segment. Sweepstakes require that participants submit their names which are included in
a draw or other chance selection. Contests are normally advertised extensively and test
more often than not the knowledge of the consumer on the product or some other skill. For
example, contest may involve completion of sentence which might say” I like this product
because…….” or it could involve developing a slogan.

Premiums

These are prizes, gifts, and special offers that the consumer are offered at the time
of purchase. Getting an fairness cream along with face wash could work as an attractive
premium for women, or a hair conditioner with shampoo.

Premium can be of varying kinds, including in-mail premiums. In case, the prospect
is required to send proof of the purchase to receive the gift. Sometimes the agent may

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even bring the entry form. Many magazines have subscription schemes that offer various
premiums such as pen sets, sun glasses, planners, etc.

Retail Promotion

Price Off

This kind of promotion offers a consumer a certain percentage discount that is

generally reflected on the price tag. The old price is crossed out and the discounted price
stamped in to assure the customer of the value transfer on purchase. A price off is simple and
attractive phenomenon and attracts prospective buyers. Price-ofs are generally announced
with end-of-season sales, specially at places that experience strong variation between
winters and summers for instance. It makes sense for marketers to dispose of merchandise
in the same season rather than store them for the next year, which costs money; besides’
fashion may change by then.

Displays and Point-of-Purchase Material:

Point of purchase (POP) displays are an important promotional tool because they
can help a manufacturer obtain more effective in store merchandising of products. Point-
of-purchase displays are very important to marketers since many consumers make their
purchase decisions in the store. In fact, some studies estimate that nearly two-thirds of
consumer’s buying decisions are made in retail store. Thus it is very important for marketers
to get the attention of consumers, as well as to communicate a sales or promotional, messages
through POP displays.

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 Many companies run display contest in order to get good exposure for their products,
particularly during the seasonal period, Dealers are expected to buy a a minimum quantity
of stock during the display period and display them prominently in the show windows of
the shop and in other prominent places. Company representatives then visit their shops and
judge these display and award prizes to them.

Point-of-sale material: Trades are given attractive point-of-sale material for displaying
the company’s product. For example coca cola gives attractive cold storage refrigerator for
its product; Cadbury’s give attractive dispensers, etc.

Cooperative Advertising

The final form of trade-oriented promotion we examine is cooperative advertising,

which involves the sharing of cost of local advertising by the dealer and the company. The
dealer then has the name of the outlet printed below the advertisement and gets mileage in
terms of consumer enquiries.

The most common form of cooperative advertising is the trade-oriented form,

vertical advertising, in which a manufacturer pays for a portion of the advertising a retailer
runs to promote the manufacturer’s product and its availability in the retailer’s place of
business. Manufacturers generally share the cost of advertising run by the retailer on a
percentage basis (usually 50/50) up to a certain limit.

Trade Oriented Promotions

Trader promotion takes up a significant proportion of most marketing communication

budgets. Whether the promotion directly affects pricing or indirectly affects volume through
merchandising material, the trade views trade promotions from the manufacturer as a way
to move more money to its bottom line. Trade promotions are those that a company runs to
elicit better and quicker response from the trade. These can be done when introducing a new
product. to ensure enhanced stocking proceeding a good season, or to block a competition.
Trade promotions are normally part of a push strategy, the assumption here being that if
the trader has excess stock bought during a trade scheme he will be motivated to push the
product in order to recover his investment as soon as possible.

Trade promotion is designed to improve relations with the trade in order to gain
and hold new distribution, to build inventory with the trade, or to obtain trade cooperation
and merchandising support. There are three basic categories of trade promotion that can be
considered are: allowances promotions, display material promotions, and trade premiums
and incentives

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 ➢➢ 
Allowance promotions provide the trade with a monetary allowance of some kind in
return for buying or promoting a specific quantity of a brand, or for meeting specific
purchase or performance requirements.

➢➢ 
Display material promotions are when the manufacturer actually provides special
display material to be used in featuring the brand, often in conjuction with a trade
allowance.

➢➢ 
Trade incentives are special gifts or opportunities to earn or win valuable trips or
prizes in return for purchasing specified quantities of the brand or meeting specific
sales quotas.

Allowance Promotion

The type of allowance offered to the trade can take many forms: everything from
reduced prices across the board, to reduce prices according to purchase volume, to free
goods.

On-Consignment Sales

This tool is normally used by companies that are new entrants and are not known
in the market place. Such companies encourage the trade to stock their product on an “on-
consignment” basis and pay only when the products move off the shelves. This is a rather
risky process and companies would do this only on a selective product and only with such
traders who have excellent credential in the market place.

Dealer Contests

This is normally linked to the amount of merchandise the dealer purchases.

Participating dealer are ranked across the region by the volume of sales in a particular time
frame and get substantial gifts which may include car, refrigerator, TV sets or even a trip
abroad for them and their family.

Dealer Gifts

Some companies regularly give gifts to their dealers to maintain good relations with
them. These could be wall clocks, calendars, diaries even some items for personal use at
home.

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Shop Board Painting

Some companies such as the Samsung provide attractive signage for shops which
could either be printed or made of acrylic material.

Dealer Discount

Many companies run trade scheme, which can be in the form of discount on bulk
purchases or free goods such as “buy ten get one free.”

Trade fair participation: Sometimes companies fund partly or fully the participation
of their exclusive dealers to trade meets such as the Inside Outside Fair, in India International
Trade Fair, etc. They also provide promotional materials for display.

Dealer Meets

Some companies organize regular dealers meet at exotic locations within or outside
the country. The expense for such dealers meet is normally paid for by the companies.
These dealer meets recognize star performers through awards and also set target for the
coming year.

Display Material Promotion

Display material can be in the form of either a display allowance or actual

merchandising material. Perhaps the primary use of display promotions is to help reinforce
consumer promotions, although they also play an important role in the introduction of new
products and line extensions. Given that many purchase decisions are made at the point
of purchase, especially with FMCG brands, display promotion can be an important part
of an integrated marketing communication programme. Good display material leads to
better attention, especially important for brands driven by recognition awareness. Here you
can appreciate the need of for a fully integrated programme. The display material must be
consistent with consumer promotion and advertising, with the same ‘look and feel’, in order
to heighten recognition at the point of purchase.

Good in-store merchandising material can also be a good way to effect cross-
merchandising, where two different brands are being promoted together. The use of display
promotion has the advantage of generally being implemented quickly when needed, and
the ability to support consumer promotion and advertising at the point of purchase. The
disadvantage, as with all trade promotions, but especially here, it is the need for trade

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cooperation. Unlike trade allowances or trade premium and incentives. If it does not receive
wide spread trade support, it will not be effective.

Trade Incentives

Various Marketing Objectives and Suitable Consumer Promotions

Retain/load Build brand

Promotions Induce product trial
consumers equity
Immediate ➢➢ 
product sampling ➢➢ 
Price-off deals ➢➢ 
Events
value ➢➢ 
Coupons ➢➢ 
Bonus packs ➢➢ 
In-pack or
➢➢ 
In-store rebates ➢➢ 
In-pack, on-pack on-pack
premiums premiums
➢➢ 
Loyalty
programmes
Delayed ➢➢ 
Mail or media ➢➢ 
In-pack or on- ➢➢ 
Self liquidating
value distributed coupons pack coupons premiums
➢➢ 
Mail-in rebates ➢➢ 
Mail –in rebates ➢➢ 
Free in-mail
➢➢ 
Free in-mail premiums ➢➢ 
Loyalty ➢➢ 
Contests and
➢➢ 
Internet delivered programmes sweepstakes
coupons

Sales Force Promotion

Sales force promotion normally undertaken to stimulate the sales force to better
performance. This is also part of a push strategy because it results in better stocking at the
trade level. In some product categories it can also be part of pull strategy. For Example; In
the case of pharmaceutical business the trade stocking happens when prescriptions flow
from a doctor.

The consumer, in this case the patient, does not have any say in the product that the
consumers, except perhaps in the case of an over-the-counter product. The sales force has
to do a good selling job at the doctor level and good stocking job at the trade level. So he not
only has to pull the product at the doctor level but also push the product at the trade level.
Any sales force promotion scheme developed for such a field force has to recognize this fact.

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There are several ways for motivating the field force. some of the important tools are:

Incentive Scheme

Most sales force of today is incentivized in terms of their sales performance.

Performance bonuses are awarded for sales over the target. These are normally worked out
as a percentage increase over-and-above the budgeted sales.

Star Awards

Many companies recognize their start performers and reward them handsomely.
These could be a trip abroad for family or substantial cash rewards. Some companies have
functions where even the spouses of the star are invited for a company paid holiday.

Sales Meet

Many companies organize sales meets in attractive places like Goa, Kashmir,
kodaikenal, etc. for their sales force. these are normally no holds barred meets where the
field force is able to let their hair down along with their senior managers.

This acts as a tremendous motivational pill for these young salesmen. At these meets
the targets for the subsequent period are also set.

Local ad Budgets

Some companies delegate advertising budgets to their sales staff. they have authority
to negotiate directly with their trade and local ad agencies and release ads for their territory.
They also get budgets for local trad4e fairs, sampling, merchandising etc.

Promotional Aids

Most companies provide their field staff with promotional aids. Pharmaceutical
companies provide their representatives with attractive leather bags and ties, FMCG
companies provide them with T-shirts, caps etc.

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Advantages and Drawback of Sales Promotion

Advantages

Sales promotion has a significant effect on the behavior of consumers and resellers.
Such promotion can bring in more profits for the manufacturer because they permit price
discrimination.

1. Price discrimination: Producers can introduce price discrimination through sales

promotion. They can charge different prices to different consumer and trade
segments varying in their price sensitivity. Coupons, special sales events, clearance
sales and discount are examples of it.

2. Effect on consumer behavior: As sales promotion are mostly announced for a short
period, customers may feel a sense of urgency and stop comparing the alternatives.
They are persuaded to act now rather than later. For many customers, who feel
time-pressured, buying on deal is a simple decision rule and many consumers may
also consider buying on deal as smart move. In our over communicated society and
because of selective attention, it is not uncommon to ignore many advertisements.
Sales promotional deals, such as discounts, rebates, coupons, or premiums etc. also
increase the attention –getting power of advertisement using promotions, marketers
can reach the deal prone customers and encourage brand switching. Consumers, who
buy on promotional deals, consider themselves as intelligent and smart shoppers.

3. Effect on Trade Behaviour: Short-term promotions present an opportunity and

encourage dealers to forward-buy. This forward buying ensures that retailers won’t
go out of stocks. As dealers have more than normal stocks, they think it advisable to
advertise in local media, arrange display and offer attractive promotional deals to
consumers. These actions help in increasing the store traffic. The aim is to speed-up
the consumer purchasing from their outlet. Point of Purchase (POP) display attract
customers, serve as reminders and lead to impulses or unplanned purchases. More
customers get exposed faster to new product introductions and retailers perceive less
risk in stocking the new products. Some customers buy new brands and if satisfied,
may become loyal users and repeat purchaser.

Drawbacks

There are certain limitations of sales promotion and they may also produce negative effects.\

While sales promotion is a powerful and effective method to produce immediate,

short-term positive results, it is not cure for a bad product, or bad advertising. In fact, a

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promotion may speed-up the killing of a bad product. A consumer may be motivated to try
a new product because of the incentive, but after this the product itself must take over.

1. Decrease in brand loyalty: The major objective of many sales promotions is to

encourage brand switching. This is especially true in case of low-involvement
category products, or where there is little or no significance differentiation among
brands and the unit value is low. Sales promotion announced by marketers thus
counter the brand-image building efforts of competitor’s brands, for which they
develop expensive advertising campaigns. There is agreement among most managers
that sales promotion expenditure have decreasing effect on brand-image and this
lead to decreasing brand loyalty

2. Increased price sensitivity: Frequently promoted brands in a product category,

especially on the basis of price, make consumers and traders more price sensitive, not
only for the promoted brand but for the brands as well in the same product category.
Consumers wait for the promotional deals to be announced and then purchase the
product. This is true even for the brands where brand loyalty exists.

3. Quality image may become tarnished: If the promotions in a product category

have been rare, or the product happens to be of high-involvement category, the
promotions could have a negative effect about its quality image. Consumers may
start suspecting that perhaps the product has not being selling well, the quality of
the product is low compared to the price, or the product is likely to be discontinued
because it has become out dated.

4. Merchandising support from dealers is doubtful: One of the trade promotion tools
is to offer promotional allowances to trade people to motivate them to provide
merchandising support and to pass on some benefit to consumers. This is generally
the condition attached with such promotional allowances. In many cases the dealers
do not cooperate in providing the merchandising support, nor do they pass on any
benefit to consumers and in this practice India is no exception.

5. Short-term orientation: Sales promotions are generally for a short duration. This
gives a boost to sales for a short period. This short-term orientation may sometimes
have negative effect on long-term future of the organization. Heavy use of sales
promotion, in certain product categories, may be responsible for causing brand-
quality-image dilution

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Summary

Sales promotion describes promotional methods using special short-term techniques

to persuade members of a target market to respond or undertake certain activity. It includes
several communications activities that attempt to provide added value or incentives to
consumers, wholesalers, retailers, or other organizational customers to stimulate immediate
sales. Sales promotions are often confused with advertising. The difference between sales
promotion and advertising is that, advertising is a message which promotes ideas, good
or services communicated through one or more media by an identified sponsor while
sales promotion consists of short –terms incentives provided by the identified sponsors to
consumers and traders to persuade them to purchase and stock his products. Sales promotion
has a significant effect on the behavior of consumers and resellers. Such promotion can
bring in more profits for the manufacturer because they permit price discrimination. There
are certain limitations of sales promotion and they may also produce negative effects.

****

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