What are sales promotions?

Sales promotions are short-term incentives designed to stimulate the purchase of a product or service. This tactic encourages consumers to take immediate action, such as making a purchase or trying a new product, often leading to a quick increase in sales. Sales promotions can include various strategies, such as discounts, coupons, buy-one-get-one-free offers, contests, and other limited-time offers. Their purpose is to create urgency and persuade customers to act quickly, which contrasts with long-term strategies aimed at building brand loyalty or customer retention.

While long-term marketing strategies focus on establishing a lasting relationship with customers, sales promotions are specifically time-bound and directly tied to improving sales figures in the short run. This is what distinguishes them from permanent price cuts or ongoing customer service efforts aimed at retaining clients, which are more about sustaining engagement and satisfaction over time rather than immediate sales boosts.