Objectives of Sales Promotion
The basic objectives of sales promotion are:
i) To introduce new products
To induce buyers to purchase a new product, free samples may be distributed or money and merchandise allowance may be offered to business to stock and sell the product.
ii) To attract new customers
New customers may be attracted through issue of free samples, premiums, contests and similar devices.
iii) To induce present customers to buy more
Present customers may be induced to buy more by knowing more about a product, its ingredients and uses.
iv) To help firm remain competitive
Sales promotions may be undertaken to meet competition from a firm.
v) To increase sales in off season
Buyers may be encouraged to use the product in off seasons by showingthem the variety of uses of the product.
vi) To increase the inventories of business buyers
Retailers may be induced to keep in stock more units of a product so that more sales can be effected.
Rationale of sales promotion
Rationale of sales promotion may be analyzed under the following points.