sales promotion

business

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July 15, 2026

Quick Summary

Sales promotion involves activities and devices designed to create goodwill and sell a product. It offers a short-term incentive to purchase, often attracting customers looking for good value. While advertising presents a reason to buy, sales promotion provides an immediate encouragement.12

These activities supplement traditional advertising and personal selling, aiming to make them more effective. Examples include displays, sampling, contests, coupons, and special sales. Sales promotions can lead to a short-term increase in sales, but their impact on long-term market share depends on the similarity of brands in the market. The use of sales promotions increased significantly in the late 20th century due to more sophisticated techniques and pressure to boost sales.12

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monopoly and competition
Monopolistic competition
…sellers is likely to involve sales-promotion costs as well as the expense of altering products to appeal to buyers. This is a competitive game that all will play but that nobody, on average, will win, and the long-run equilibrium price will reflect the added costs involved. In return, however, buyers…
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…sellers is likely to involve sales-promotion costs as well as the expense of altering products to appeal to buyers. This is a competitive game that all will play but that nobody, on average, will win, and the long-run equilibrium price will reflect the added costs involved. In return, however, buyers…
Read More

marketing
Sales promotion
While advertising presents a reason to buy a product, sales promotion offers a short-term incentive to purchase. Sales promotions often attract brand switchers (those who are not loyal to a specific brand) who are looking primarily for low price and good value. Thus,…
Read More
While advertising presents a reason to buy a product, sales promotion offers a short-term incentive to purchase. Sales promotions often attract brand switchers (those who are not loyal to a specific brand) who are looking primarily for low price and good value. Thus,…
Read More