Sales promotion is one of the five aspects or elements of promotional mix. Promotional elements are advertising, personal selling, public relations, sales promotion and direct marketing. Sales and promotion is the fourth one. Sales promotion is a fast process that makes the people to be aware of some kind of good and services and increases their interests in buying those good or service, sales promotion is for all kind of customers. Sales promotion is one of the main characters beside advertising, public relation and public selling. According to one of the inc website The American Marketing Association (AMA) defines sales promotion as "media and non media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product quality”
Sale promotion in a short plan can not survive the company, because the customer decreases when the deal with the advertisement ends. So the company should think about converting or change customers mind from a short term plan to a long term plan to stay being customer for as much as long time possible.“If sales promotions are conducted continuously, they lose their effectiveness. Customers begin to delay purchase until a coupon is offered, or they question the product’s value. Some aspects of sales promotions also are regulated by the federal government.” (R. Kerin, S. Hartley, Eric Berkowitz and W. Rudelius) There are many kinds of sales promotion or we can say tools that are used for companies advertisement are Coupons, Deals, Rebates, Samples, Contests, Point of purchase and Sweepstakes and so on. I’m going to discuss sales promotion kinds or examples to show how the sales promotion works. Coupons
It’s a ticket or a paper that the company provides for the customers to go to the market with that kind of ticket and by the company’s product with a lower price, discount price when the customers are buying a new product. This type of Sales Promotion is used also with Rebate type, but in rebate the amount of money or the discount has been paid already. For the coupons, there are more than 9,000 companies who are currently using coupon program, and they knew that number of the customers increased right after using Coupons program. A research shows that in US 81 percent of American use coupons when grocery shopping. (R. Kerin, S. Hartley, Eric Berkowitz and W. Rudelius) Deals
The program is used sometimes when the product is new in the region, to show off the product to the customers by make a deal with them if they buy one they can get one free. This type of deal is against the competitors also is for the customers to attract them to buy this type of product. This program is a short term type of program, it doesn’t take long usually. Premiums
This type of Sales Promotion is that the services of the company will become free for a Specific program. That meant the amount that you have to pay for the advertisement you will pay it as a services for the place or the other company that you make a deal with. MacDonald’s, for example, used a free premium in a promotional partnership with Disney during the release of the movie The Incredibles. Collectable toys that portrayed movie characters were giving free with the purchase of Happy Meal. (R. Kerin, S. Hartley, Eric Berkowitz and W. Rudelius)
This kind of promotion based on a competition between the customers and makes them to use their skills and talents to get the award that the company showed off for the winner. Some times the company uses a question style to answer the question they should buy a ticket and then answer on the ticket. Also it can be used like any social competitions in the region like riding a bicycle competition. This make so many people involve with the event and it will be a big advertisement for the company’s products to show off in the event.