Sales promotion in Australia: a review of current industry practice

Introduction: Sales promotion is defined and current knowledge discussed. Objectives: Claimed objectives, actual techniques and measurement tools are examined, with the hypothesis that managers claim to use sales promotion for brand enhancement, but really, use it to pursue competitive goals. Methodology: 200 managers were surveyed to determine behaviour and beliefs about sales promotion. Analysis was based on frequency distribution, factor and correspondence analysis. Results: Managers frequently use a range of techniques, most commonly product sampling, point of purchase displays, free product and cut prices. Key objectives are to attract customers, improve brand awareness and stimulate sales. Conclusions: Techniques and objectives consistently support the use of sales promotion as a tool to enhance brand/market position although priced based promotions which are more associated with competitive retaliation are also commonly used. Measures of effectiveness only focus on sales.