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What Are the Two Types of Sales Promotion?

As a small business owner, I’m always looking for ways to increase holiday sales. One effective tool is sales promotion. What are the two types of sales promotion and how can they help your business?

What Are the Two Types of Sales Promotion?

There are many types of sales promotions, divided into two broad categories. What are the two types of sales promotion?

1. Consumer Sales Promotion

When marketing strategies are targeted at the end customers, it’s referred to as consumer sales promotion. Offering 20% off certain products to current customers is one example. The main goal of consumer sales promotion is to increase sales by directly bringing in new consumers and by retaining old ones.

2. Trade Sales Promotion

When promotional activities are planned and carried out with salespeople, retailers, or wholesalers in mind, it’s called trade sales promotion. In this method, channel incentives are rewards offered to resellers, agents, distributors, and suppliers.

The goal of trade sales promotions is to get more display space in retail stores, incentivize the retailers to stock more of the brands’ items, and indirectly increase sales.

What is a Sales Promotion?

Sales promotions are marketing strategies that are designed to stimulate demand and increase sales. This is usually done through short-term attractive initiatives such as discounts or special offers.

Sales promotions are great for:

  • Launching a new product
  • Clearing out old inventory
  • Attracting new clients
  • Giving sales a boost

Why Are Sales Promotions Important?

Sales promotions are a useful way to achieve short-term business goals by convincing customers to purchase your product. This is a popular way to:

  • Spread information about a brand to a new market
  • Stabilize sales volume and fulfill short-term sales goals
  • Stimulate short-term demand by making the product look like a great deal

Top 10 Most Popular Types of Sales Promotions

How can you tell if your online marketing efforts for your store are paying off? Do you struggle to come up with ideas of what you should do and when?

To help you out, we’ve compiled a list of 10 of the most popular and effective sales promo ideas.

1. Discounted Products

A discount is a fantastic way to entice customers to make a purchase. Who doesn’t love a good bargain?

When it comes to promoting your discounted products, always think about what will look more attractive to the buyer – % or $.

Always consider your bottom line and be sure not to constantly have a sale, as people will just come to expect this as the norm.

2. Free Shipping and Free Returns

According to a study from Walker Sands, 80% of customers would buy more from Amazon if it offered free shipping. And 66% of shoppers said they’d buy if promised next-day delivery. Another 64% said they would shop if offered free returns.

Giving your customers the option of free returns and free shipping on their purchases makes them feel secure in their decision to buy from you. This sense of confidence can encourage them to buy from you.

If you are concerned about your profit margins, you could consider including the cost of shipping into the price of your products. Or you could also offer free shipping on orders over a certain price. This could give your customers peace of mind and entice them to buy more from you.

3. Flash Sale

A flash sale is an offer that is available for only a short period. This tactic is used by many online retailers to get rid of excess inventory.

By offering flash deals, you can create a sense of scarcity and encourage your customers to purchase before the promotion ends. 56% of companies agree that customers are more receptive to flash sales than regular promotions. In fact, 50% of purchases are made in the first 1 hour of a flash sale.

To successfully run a flash sale, be sure to promote it through email and on social media platforms. Also, make your sales short, so customers will feel like they need to act fast.

4. Buy More, Save More

This sale is a win-win for both you and your customers. There will be many customers who will want to purchase, but feel guilty because of the cost.

Offering them a small discount on their next purchase may just be the push they need to make a larger one. It doesn’t have to be huge, but it should be enticing enough to get them to buy more.

5. Product Giveaways/Branded Gifts

Everyone loves a free item. Not only does this give your potential customer a chance to try your product but it could also convince them to buy it.

Giving away useful, memorable, and personalized items with purchases is a great way to build brand loyalty. If your product can’t be given as a gift, try offering items like key chains, stickers, or pins.

Giving your customers a gift is a great way to show them that you appreciate their business. They’ll appreciate the gesture, and will remember you each time they see the product.

6. Loyalty Points

By rewarding your customers with points for shopping with you, you’re not only encouraging them to shop more at your business, but you’re building a fan base of loyal customers.

Providing excellent customer service and offering a loyalty program for returning customers can ensure that they’ll keep coming back again and again.

A loyalty scheme could be set up where customers gain points for buying things and can then use those points to get a discount on their next purchase. Or, if they purchase 9 products, they could get the 10th one for free.

7. Vouchers and Coupons

This is a new method of offering a discount. By sending out a virtual coupon, you can make your discount seem exclusive to customers, which will encourage them to visit your online shop.

Send out coupons for discounts to customers who have spent over a certain amount of money. Also, send out offers to visitors who experienced poor service to hopefully turn their negative experience into a positive one.

8. Competitions

Running a contest is a great way to increase your company’s visibility, generate new sales, and grow your customer base.

If potential customers are entering your competition, they’re likely already aware of your brand and are interested in your products or services. Therefore, running a competition for your customers is a great way to promote your business.

Create a buzz on social media and gain more email sign-ups.

9. Price Match Promise

A price match promise is a surefire way to promote your business and stand out from your competitors.

A price-match guarantee is when you offer to match the price of a product if a customer can find it elsewhere for a cheaper rate. This encourages your customers to shop with you, as they know they can get a refund if the same product has a lower price somewhere else.

Price-matching is a win-win situation for both you and your customers.

10. Holiday Promotions

Holidays are the perfect time to sell more products and services. People are always in the mood to spend a little more during the holidays, so take advantage of this opportunity.

You don’t have to go over the top with your promotions, but a small incentive won’t hurt you. This is the perfect opportunity to be creative with your promotions and use the holidays to your advantage.

You will sell more during the holiday season if you incorporate the theme of the holiday season into your sales.


What are the two types of sales promotion? Consumer sales promotional strategies are targeted to the end consumers while trade sales promotion activities keep in mind the dealers, distributors, and resellers. 

We hope this article has given you some ideas when it comes to running your own promotions so that you can make the most out of your discount offers!