Define and state the objectives of sales promotion. Sales promotion consists of those marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value. The main objectives of sales promotion are to increase trial purchases, consumer inventories, and repeat purchases. Sales promotion is also used to encourage brand switching and to build brand loyalty. Sales promotion supports advertising activities.

1 What is the primary factor that determines sales promotion objectives? Name some different types of sales promotion techniques, and explain the type of customer they are intended to influence.

2 You have recently been assigned the task of developing promotional techniques to introduce your company’s new product, a Cajun chicken sandwich. Advertising spending is limited, so the introduction will include only some low-budget sales promotion techniques. Write a sales promotion plan that will increase awareness of your new sandwich and allow your customer base to try it risk-free.