Sales promotion can be defined as any activity that is used to stimulate sales of a product. It is a special promotion technique designed to encourage brand patronage. Sales promotion may be directed at customers in the form of consumer promotion or to middlemen as trade promotion.
Reasons for the use of Sales Promotion
- To encourage slow-selling hires
- To create a dealer’s interest and encourage stocking
- To encourage more frequent use of a product
- To stimulate off-peak period sales
- To introduce a new product
- To offer price competition
Forms of Sales Promotion
- Consumer Promotion – examples are free sample distribution, special price sales, premium offers, competitions, trade fans
- Trade Promotions – examples are free-goods, special discounts, co-operative advert, sales competition for sales staff.
Branding:
Branding is a general term covering brand names, designs, trademarks, symbols, which may be used to distinguish one firm’s product from that of another. Branding is the act of giving a distinctive label or name to a product.
Packaging:
This involves the development of a container and a graphic design for a product. A package can be a vital part of a product. It can make the product more versatile, safer, or easier to use.
Evaluation Questions
1. Explain the meaning of marketing
2. Mention three importance of marketing
3. Describe the marketing mix
4. Explain the methods of promotion and pricing of products.
5. List and explain five functions of marketing.
6. Explain the following terms and concepts relating to marketing;
- Marketing
- Marketing mix
- Consumer goods
- Industrial goods
- Place utilitythe state of being useful, profitable, or beneficial. More
- Time utility.
7. (a) Define marketing mix
(b) Explain the term marketing concept
(c) List and describe the four elements of marketing (WASSCE June, 2006)
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