Concepts and strategy guidelines for designing value enhancing sales promotions

Abstract

Sales promotions are probably the least understood and least analyzed of all the promotional tools, yet they are among the most costly and most frequently used. Today’s top managers are relentlessly searching for new areas in which to cut costs and increase profits, so sales promotion are coming under greater scrutiny than ever. In order to justify and skillfully use expenditures on sales promotions for different objectives and target markets, marketing managers must understand some key concepts and thoroughly examine several critical variables across markets and among sales promotion tools themselves that impact directly on sales, profitability, and value added.