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To coupon or not to coupon

We are going to be continuing our look at the different types of promotional tools. Previously,

we have delved into Advertising and Personal Selling as different ways to promote your business.

Promotional Tool 3: Sales Promotion

Sales promotion refers to the use of any tools such as coupons, samples, contests, discounts, premiums and others. As with the other promotional tools we employ, there are some advantages and disadvantages of using sales promotions.


- Attracts customer attention by offering a strong incentive to purchase.

- Promotes and rewards quick response decisions.

- Create up-sell and cross-sell opportunities.

- Creates excitement about a product or service


- Short lived.

- Not as effective at building long term brand recognition.

- Cannot build brand loyalty or enhance brand image.

- Difficult to continue consumer excitement if offered too frequently or if offer is seen as not worth it.

A good example of an effective sales promotion, is the development of a rewards program for your customers. Offering them a reward for their continued patronage creates an incentive for them to return to your business for their purchases.

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