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Glossary of Terms - Sales Promotion

Sales promotion is a marketing technique that offers tangible reward or the opportunity to gain tangible reward in exchange for purchases, information or consideration of purchases. Sales promotion includes competitions, games, incentive schemes, special offers, free gifts and gift with purchase. Sales promotion is considered to be tactical marketing rather than strategic. Sales promotion can be used successfully for new product launches or new outlet openings, to boost sales in periods where sales would other be low, to reward and boost customer loyalty and to increase product awareness.

Most countries have strict laws on the usage of sales promotion techniques, for example in the UK sales promotion law dictates that games of chance must not have a spend requirement for entry. Sales promotion agencies are experts in developing concepts for sales promotion campaigns and also in sales promotion law. Loyalty and incentive schemes are a frequently used sales promotion technique and offer rewards such as cash, holidays and merchandise in return for spending given amounts during a set time period.

Some sales promotion techniques use premium rate telephone numbers ad the telephone as a means of entry. The promoter is therefore able to make money from the telephone calls to pay for the cost of the promotion. This area of sales promotion is highly regulated and usage has diminished in recent years.

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