What do you understand by Sales Promotion ? Explain briefly the methods of sales promotion.

Answer – Sales promotion uses short-term incentives to stimulate buying or support dealers and sales staff.

• Rebate: a temporary price reduction to clear stock or stimulate demand.
• Discount: a stated reduction from the listed price.
• Refund: return part of the price on specified proof or conditions.
• Product combination: give another product with the purchase.
• Quantity gift: supply extra quantity for the same price.
• Instant draw and assigned gift: offer a prize or gift through a stated purchase arrangement.
• Lucky draw: select winners from eligible entries.
• Usable benefit: offer useful additional benefits, such as redeemable vouchers.
• Full finance at zero interest: provide instalment finance under clearly stated terms.
• Sampling: distribute small trial quantities.
• Contests: invite participation and reward specified winners.

Dealers may also receive trade allowances, display support or sales incentives. Customers gain trial opportunities and temporary value; businesses can attract attention, encourage switching and support slow-moving stock. Excessive dependence can weaken brand image and train buyers to wait for offers. Conditions and total costs should be transparent.