A product is considered in the context of its functional utility, its cost and its psychology. A customer establishes the relationship with a product or brand on the basis of three factors. It has to score over the competing products/brands. A customer’s attitude and behaviour must be appreciated while he buys the product. Sales Promotion is all about behaviour. We have to encourage people to go in for our products. A buyer’s attitude is thus formed or changed. It is hoped that once he tries the product by the encouragement , he will continue the relationship and become loyal to the product.

Sales Promotion is one of the several methods by which a company attempts to change or influence the behaviour of the target audience in the immediate short term. The other communication tools are advertising, publicity, direct selling and direct marketing. All these can be used either singly or in combination to get the optimum effect. Sales Promotion, whenever chosen,  may require short-term changes in all the four P’s of the marketing mix so as to bring about a change in behaviour. It is associated with risks — it can succeed wonderfully or can fail miserably. But the rewards of  success are high.

The Institute of Sales Promotion (ISP), UK defines it as :

a range of tactical marketing techniques within a strategic marketing framework to add value to a product in order to achieve specific sales and marketing objectives.

In short, SP provides temporary additional value to a brand so as to achieve specific marketing objectives.

Though it is temporary, it shoul be thoughtfully discussed how long SP should continue, so that it does not become an everyday affair. The additional value could be in terms of money ( price-off, free sample ) , kind ( gift or contest ) or intangibles ( personality associations or charity ). SP has to identify the objectives carefully.