In this essay we will discuss about ‘Sales Promotion’. Find paragraphs, long and short essays on ‘Sales Promotion’ especially written for school and college students.

Essay on Sales Promotion

Essay Contents:

  1. Essay on the Meaning of Sales Promotion
  2. Essay on the Objectives of Sales Promotion
  3. Essay on the Importance of Sales Promotion
  4. Essay on the Methods of Sales Promotion

Essay # 1. Meaning of Sales Promotion:

Sales promotion is an important component of an organization overall marketing strategy. Only manufacturing the goods is not sufficient for any organization, it should also ensure quick selling of the items. There are large numbers of incentives offered by manufacturers or dealers to increase the sale of their goods.

These incentives may be in the form of free samples, gifts, discount coupons, demonstrations, shows, contests etc. All these measures normally motivate the customers to buy more and thus, it increases sales of the product. This approach of selling goods is known as “Sales Promotion”. Now-a-days sales promotion is the necessity for any organization. It is not expenditure; it is an investment which can pay rich dividends.


Some of the definitions of sales promotion are:

Sales promotion is a marketing technique designed to create sales for a product over a defined period of time.


Sales promotion means any step that can be taken for the purpose of obtaining or increasing sales.



Sale promotion is the process of persuading a potential customer to buy the product.

Essay # 2. Objectives of Sales Promotion:

a. To introduce new products.

b. To attract new customers.


c. To maintain sales of seasonal products.

d. To create interest among customers.

e. To provide information about the product.

f. To stimulate demand of the product.


g. To help firm remain competitive.

Essay # 3. Importance of Sales Promotion:

In the world of competition an organization cannot survive if its products do not sell in the market. Thus, all marketing activities are undertaken to increase sales. Producers spend a lot on advertising and personal selling. Still the product may not sell. So incentives need to be offered to attract customers to buy the product. Thus, sales promotion is important to increase the sale of any product.

The following points show the importance of sales promotion:

a. It helps to increase sales and thus, increases profits.


b. The consumer gets the product at a cheaper rate.

c. It helps to introduce new products in the market by drawing the attention of potential customers.

d. When a new product is introduced or there is a change of fashion or taste of consumers, existing stocks can be quickly disposed off.

e. It stabilizes sales volume by keeping its customers with them.


f. Various incentives under sales promotion schemes help to retain the customers.

g. The consumer gets all information about the quality, features and uses of different products.

h. Certain schemes like money back offer creates confidence in the mind of customers about the quality of goods.

i. It helps to raise the standard of living of people. By exchanging their old items they can use latest items available in the market. Use of such goods improves their image in society.

Essay # 4. Methods of Sales Promotion:

Sales promotions are short-term incentives to encourage the purchase or sale of a product or service.


The various methods of sales promotion are:

a. Coupons.

b. Exchange Schemes.

c. Sample.

d. Premium or Bonus offer.


e. Price-offs.

f. Fairs and Exhibitions.

g. Trading Stamps.

h. Scratch and win offer.

i. Money Back offer.

j. Free display.


k. Retail demonstrations.

l. Gift with purchase.

a. Coupons:

Sometimes, coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. The holder of the coupon gets the product at a discount. The reduced price under this scheme attracts the attention of the prospective customers towards new or improved products.

b. Exchange Schemes:

It refers to offering exchange of old product for a new product at a price less than the original price of the product. This is useful for drawing attention to product improvement e.g., ‘bring your old electric iron and exchange it for a new one just by paying Rs.500’ or ‘exchange your old black and white television with a flat screen colour television’ are various popular examples of exchange scheme.

c. Sample:

Usually called consumer sample, free samples and given to consumers. These are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to popularize the product. For example, in the case of medicine free samples are distributed among physicians, in the case of textbooks, specimen copies are distributed among teachers.

d. Premium or Bonus Offer:

A milk shaker along with Nescafe, mug with Bournvita, toothbrush with 500 grams of toothpaste, 30% extra in a pack of one kg are the examples of premium or bonus given free with the purchase of a product. They are effective in inducing consumers to buy a particular product. This is also useful for encouraging and rewarding existing customers.

e. Price-Offs:


A price-off is a temporary reduction in the price of a product to the consumer e.g.,Rs.2 off on purchase of a cinthol soap, Rs.10 off on a pack of 1kg Maggi Sauce etc. are some of the common schemes. This type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market.

f. Fairs and Exhibitions:

Trade shows, fashion shows or parades, fairs and exhibitions are important technique/tools of sales promotion. They provide a forum for the exhibitions or demonstration of products. Free literature can be distributed to introduce the firm and its products to the public. Fairs and exhibitions are organized usually by big firms or trade associations.

At these fairs and exhibitions, business firms are allotted stalls wherein they display their products. Customer can be attracted through gifts, special concessions and free demonstrations of technical and specialty products.

They provide an opportunity to the visitors to observe the competing products and help to promote sales. For instance, the Trade Fair Authority of India organizes trade fairs of various types in New Delhi. The National Book Trust organizes World Book Fair, where publishers of all over the world are invited to display their publications.

g. Trading Stamps:

In case of some specific products trading stamps are distributed among the customers according to the value of their purchase. The customers are required to collect these stamps of sufficient value within a particular period in order to avail of some benefits. This technique induces customer to buy their requirements from the retailers who offer such stamps. The purpose is to increase customer loyalty.

h. Scratch and Win Offer:

To induce the customer to buy a particular product ‘scratch and win’ scheme is offered. Under this scheme a-customer scratch a specific marked area on the package of the product and gets the benefit according to the message written there. In this way customers may get some item free as mentioned on the marked area or may avail of price-off, or sometimes visit different places on special tour arranged by the manufacturers.

i. Money Back Offer:


Under this scheme customers are given assurance that full value of the product will be returned to them if they are not satisfied after using the product. This creates confidence among the customers with regard to the quality of the product. This technique is particularly useful while introducing new products in the market.

j. Free Display:

There is provision of free display of material either at the Point of Purchase (POP) or at the Point of Sale (POS), depending on one’s view point. Display reaches consumers when they are buying and actually spending their money.

k. Retail Demonstrations:

These are arranged by manufactures for preparing and distributing the products as a retail sample. For example, Nescafe Instant Coffee was served to customers for trying the sample, on the spot of demonstration regarding the method of using the product.

l. Gift with Purchase:

The “gift with purchase” is a very common promotional technique. In this the customer gets something in addition to the main purchase. This type of promotion is widely used for subscription-based products (e.g., magazines), consumer luxuries (e.g., perfumes) etc.

Home››Essays››Sales Promotion››