Sales promotion has become an important promotional element in modern marketing. It is the only promotional method that can make use of ‘pull’ and ‘push’ strategy to motivate consumers, traders and sales force simultaneously in creating sales.

Defining sales promotion precisely is difficult as it includes a wide variety of activities and techniques. These activities and techniques are generally related to stimulating short-term sales by offering some kind of incentives. Sales promotion add value to the product or service that is extra and not built into the product or service and have a direct effect on the behaviour of consumers and the trade.

There are several reasons that have fuelled the growth of promotion. Some of the more important factors include increasing intensity of competition, consumers, sensitivity to price, standardized products, expensive advertising which is less effective, and also promotions produce quick sales response as compared to any other element of the promotion mix. Marketers also find themselves in a promotional trap and there seems to be no easy way to get out of this “ Prisoner’s dilemma”. Some experts believe that promotions adversely affect a brand’s equity.

A marketer’s decisions to use “pull” or “push” strategy to achieve its objectives affects sales promotion decisions. In case of pull strategy, promotions are directed at the ultimate consumer, while push promotions are directed at resellers. In many situations, a combination of pull and push is used and resulting effect of promotion is more pronounced.