Sales are the main source of income of an organization, as it is the main source of organizations profitability. In the past sales promotion was considered as a marketing tool which was mainly concerned with short term incentives used to encourage and boost sales of a particular product or service.
With the advent of competition in the business and new players coming in the market now day’s sales promotion is viewed as a fundamental part of an organization’s profitability and a tool to achieve competitive edge over the competitors. Sales promotion is not only vital to boost sales of a product but it also proves to be helpful in drawing attention of new customers and retaining older ones (Dolak, 2009).
Sales promotion could also be defined as an action designed to enhance the sale of a product or service. Various techniques can be used in this regard like advertising campaigns, temporary reduction in price, giving free gifts, providing attractive prized etc, personal selling, telemarketing etc.
Macro economics & Sales promotion
The effect that sales promotion would have on macro economics is very much related to each other. As macro economics deals with the entire economy and the basic purpose of sales promotion is to sell the product it would be depending on the consumer’s purchasing power and eventually their income level which would be dependent to the employment level so in short it could be said that sales promotion is depending on the macro economic condition of that region. The reason why it depends on the macro economic conditions is because all the determinants that are part of the macro economic condition like the GDP, price indices, consumption, savings etc would give a picture of the overall condition of the market. Organizations should consider these factors before developing a sales promotion strategy.
Sales promotion can be done in a variety of ways like advertising campaigns, seminars, price cuts, discounts etc. the primary objective behind this strategy is to persuade the wholesalers and the distributors to bring the product on their shelf give it some space after that promote it by advertising and finally forward it to the consumers (Selling Matters, 2008).
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