Promotions to encourage sales can be classified according to the recipient and its scope:
Promotions for the consumer (end user):
These promotions are usually based on discounts on a group of products and for a short period. Other forms of promotion, which are not clearly price reductions, are sweepstakes, gifts, point accumulation programs, altruistic promotion with donations, contests, product demonstrations, etc.
Promotions for the distribution channel:
“They constitute an effective means in certain circumstances: launchings and re-launchings, plan of increase of distribution and / or volume of sales, construction of stocks out of season, blocking of competitive promotional activity, creation, maintenance or improvement of relationships “.
Promotions made about the sales force:
“Its objectives may be: to develop the sale of certain products, increase sales to certain customers or territories, increase efficiency, obtain information”.
These commercial promotion tools are usually based on discounts, which are direct reductions in the price of the good during a predefined period.
In some cases, other forms of promotion are used, such as contests, raffles, coupons, point accumulation programs, and merchandise delivered on consignment. Price offers for the channel can be dangerous because they can be taken as a custom, and then considered almost as a right. A speculative purchase can also occur when buying at a discount and it is not transferred to customers, not taking the promotion to the market or over-stocking this merchandise on sale.