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14 Types of Sales Promotion

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Sales promotion is the practice of offering sale prices and other incentives to customers. It is often coordinated with marketing activities such as advertising, promotion, sales targets, channel management and visual merchandising. The following are common types of sales promotion.


Sale prices such as a percentage discount.

Volume Discount

Volume discounts such as buy two get one free.


Free items with a purchase such as a free baseball cap with a purchase of a meal.


Contests such as prize giveaways.


Coupons are one way to implement price discrimination as price sensitive customers will be more willing to look for coupons.

Loss Leaders

Selling an item at an exceptionally low price to attract customers to a location.

Upgrades & Premiums

Free upgrades such as more memory in a mobile device.


Temporarily offering improved terms such a telecom company that offers unlimited bandwidth on new contracts for a limited time.

Free Trials

Allowing customers to try a service risk free for a period of time.

Free Samples

Samples such as a trial size of a new product that is given out to create brand awareness.

Loyalty Programs

Offering double or triple points on a loyalty program for a period of time.

Trade Allowances

Discounts given to distribution partners such as retailers to encourage them to stock up on your product. In many cases, this is done in conjunction with advertising to support sales.

Dealer Loader

A dealer loader is a reward that is given to retailers to buy a minimum amount or to install in-store displays.

Push Money

Extra commissions for salespeople and distribution partners to increase sales volumes.
Overview: Sales Promotion
The practice of offering sale prices and other incentives to customers.
Sales promotions are governed by laws and regulations that vary by country and region. For example, loss leaders or certain types of contests may not be permitted.
Related Concepts


This is the complete list of articles we have written about pricing.
Algorithmic Pricing
Bargaining Power
Benchmark Price
Price Fixing
Cost-plus Pricing
Price Gouging
Customary Pricing
Decoy Effect
Everyday Low Price
Marginal Utility
Willingness To Pay
Dynamic Pricing
High-Low Pricing
Market Value
Flat Pricing
Loss Leader
Predatory Pricing
Price Discrimination
Snob Effect
Market Price
Price Competition
Price Leadership
Premium Pricing
Price Economics
Price War
Revenue Management
Veblen Goods
Price Floor
Price Promotion
Price Sensitivity
Price Skimming
Price Umbrella
Pricing Power
Pricing Strategy
Sticky Prices
Value For Money
More ...
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