There are four components of the "marketing mix," also called the Four Ps: the product, its price, the place of sale and the tactics used to promote it. Sales promotion is an element of the promotion component, and takes place at the point of sale.


Sales promotion tactics intend to arouse consumer interest in the company’s product or products. These tactics include customer discounts, gifts and free samples. Such initiatives prompt the customers to purchase items.


When a company expands into new markets, it uses sales promotion schemes to comprehend the acceptability of the product. The company’s sales and profits increase as more customers are lured into purchasing its products. Customers benefit because they are able to try the product before they make their final purchase.


Sales promotions fall into three main types. Customer-based sales promotions inform consumers that a product exists. Companies spend a lot of time, money and effort on these strategies. Sales force-based promotions give the sales team bonuses and incentives to motivate them into selling as much as possible. Retail sales promotion tactics offer commissions to retailers who sell and promote a company's products.