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Discipline

Sales promotion

Short-term reasons to act now: offers, coupons, trade promotion and point of sale.

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Sales promotion gives people a short-term reason to act now: price offers, coupons, sampling, prize draws, trade promotion and point of sale. It moves sales within days and wins trial and shelf space, but much of the volume comes from people who already buy the brand, and the effect ends when the offer does. It earns its place as a short, measurable push that is checked for incremental profit, with advertising carrying the brand.

Start with the 101Sales promotion 101: the whole pictureHistory, how it works, where it is used, what it costs, the rules, its limits and when to choose it, with every claim sourced.Read the 101

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What matters when choosing

  • A mechanic that brings buyers who would not have bought anyway, such as sampling aimed at non-buyers.
  • A baseline and a holdout store, region or group to measure incremental profit.
  • An evaluation window long enough to see what happens after the spike.
  • Terms that are clear from the start, honest reference prices, and a free entry route where a draw requires one.
  • A fulfilment plan, so that prizes and refunds arrive on time.

Questions to ask vendors and agencies

  1. How much of this volume would we have sold at full price?
  2. When will we judge the promotion, and against what baseline?
  3. Which local rules apply to this mechanic, its reference prices or its prize draw, in each market?

Common mistakes

  • Repeating promotions without checking whether they made a profit.
  • Judging over too short a window and missing the dip after the spike.
  • Discounting so often that shoppers learn to wait for the deal.

What it is good at

  • Moving sales within days.
  • Getting a product tried through sampling and coupons.
  • Winning listings and displays with retailers.

What to watch for

  • The effect ends when the offer does, and much of it is sales pulled forward.
  • Trade money is large and hard to track.
  • Frequent deals can cheapen the brand and make shoppers more sensitive to price.

How it is bought and priced

The cost is mostly what is given away: margin on discounted units, including those that would have sold at full price, redeemed coupons, samples, prizes and trade money paid to retailers. Handling, printing, agency fees and independent supervision of draws come on top, usually bought campaign by campaign.

Typical disciplines Sales promotion Advertising (TV, radio, print, cinema) CRM and loyalty

Platforms that fit (1)

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  • Talon.OneCovers Sales promotion
    Strong match100