A Project on Sales Promotion Tools
Submitted by: [Your Name]
Class: [Your Class]
Subject: Marketing & Sales
Date: [Insert]
Introduction
Sales promotion is a marketing technique that uses short-term incentives to stimulate the
purchase or sale of a product or service. It is different from advertising (which builds
long-term image) and personal selling (which focuses on persuasion).
Objectives:
- Attract attention and create curiosity
- Increase immediate demand
- Encourage trial of new products
- Reward loyal customers
- Support dealers and retailers
Importance of Sales Promotion
1. Boosts Sales Quickly – leads to higher cash flow in the short term.
2. Encourages New Product Trials – reduces hesitation in buying.
3. Creates Market Expansion – helps a brand reach new customers.
4. Dealer/Distributor Support – promotions motivate middlemen to stock and push
products.
5. Clears Excess Stock – useful for perishable or seasonal goods.
Coupons
Coupons are certificates or codes that provide buyers with savings when they purchase a
product.
Features: Easy to distribute, attracts price-sensitive customers, encourages bulk buying.
Advantages: Builds brand trial, tracks customer response, increases short-term demand.
Limitations: Reduces profit margin, may attract only bargain hunters.
Example: Domino’s Pizza offering “■150 OFF on orders above ■500.”
Point of Sale (POS) Promotions
These promotions take place where the purchase is made—shops, malls, supermarkets.
Forms: Window displays, posters, buy-one-get-one schemes, discount cards.
Advantages: Influences impulse buyers, provides instant visibility, supports retailers.
Example: Reliance Trends placing discounted items at checkout counters.
Online & Web-Based Promotions
With e-commerce growth, online promotions are very popular.
Forms: Promo codes, cashback, referral rewards, free delivery offers.
Advantages: Attracts young customers, increases app engagement, easy to track.
Example: Amazon’s “Great Indian Festival” with limited-time discounts.
Free Samples
Free samples are distributed to introduce new products or attract new buyers.
Advantages: Builds trust, overcomes hesitation, lets customers test quality.
Limitations: Costly for company, may not guarantee repeat purchase.
Example: Sunsilk shampoo sachets given free with newspapers.
Contests & Lucky Draws
Contests encourage customer participation by linking purchase with a reward.
Types: Slogan writing, quizzes, scratch cards, lucky coupons.
Advantages: Creates excitement, strengthens brand recall, attracts mass attention.
Example: Pepsi’s “Yeh Dil Maange More” scratch & win contest.
Loyalty Programs
These programs reward customers for repeated purchases.
Features: Points, discounts, membership perks.
Advantages: Builds long-term relationship, increases customer retention.
Example: Starbucks Rewards app, Payback points, Flipkart Plus coins.
Trade/Dealer Promotions
Not only customers, but also retailers are targeted.
Forms: Free goods to dealers, bonus margins, sales contests.
Purpose: Motivate retailers to promote company products actively.
Example: FMCG companies offering extra margins during festive season.
Effects on Sales & Profit
Sales Volume: Promotions create instant rise in sales due to discounts and offers.
Profit Impact: Short-term reduction in per-unit margin, but overall profit increases due to
larger sales volume.
Brand Impact: Helps in product awareness, customer loyalty, and dealer motivation.
Conclusion
Sales promotions are a crucial part of modern marketing strategies. When used
effectively, they balance short-term sales growth with long-term brand building. A
combination of traditional methods (coupons, samples) and modern methods (digital
codes, loyalty apps) ensures maximum customer satisfaction and sustainable profits.
