In this section, we will look at both sales promotion and direct marketing. Sales promotion may be described as a range of short-term tactical tools used to add extra value to a product or service. It is an extra inducement to buy or try it.

Sales Promotion Techniques

There are a number of sales promotion techniques that a can be used to acquire, retain or reactivate customers. Some of these are:

• Buy one, get one free - This is aimed at loading up the customer with your products as a means of making them less sensitive to the competition as they will have enough of the product stocked up.
• Free mail-in - The consumer can claim the gift, free of charge in return for proofs of purchase and possibly postage.
• Save - This gives immediate price reductions, which is a short-term measure to gain competitive advantage.
• Win - Usually in the form of a competition or prize draw.
• Free prize draw - This is easy to administer and can generate a lot of interest. It is also a quick way of building a database.

There are five types of prize promotions namely, competitions, free draws, instant wins, games and lotteries, which are regulated by the British Codes of Advertising and Sales Promotion and by the Lotteries & Amusements Act 1976. It is vital to understand the legal terms of the different types of prize promotions, as failure to do so could result in a fine. Full information can be found at The Institute of Sales Promotion.

Direct Marketing
Direct Marketing is not junk mail. Junk mail is only junk if it badly targeted. Direct marketing may be described as the personalised direct approach. In recent years there has been a rapid growth of direct marketing, which has essentially been brought about by the changing demographics, and lifestyles (particularly more women working), increased customer confidence and media fragmentation.

Direct marketing techniques
These include direct mail, direct response advertising, mail order, telemarketing and teleshopping.

• Direct mail - Material distributed through the postal service to the recipients' home or business address to promote the product or service. You can either compile or buy the lists of names and addresses.
• Direct response advertising - Designed to generate a direct response, whether it is an order or an enquiry for further information or a personal visit.
• Mail order - Usually catalogues sent from companies to a highly targeted marked offering specific goods. Women are usually the main targets.
• Telemarketing - Specifically covers the use of the telephone as a means of creating a direct link between the company and the customer.
• Teleshopping - This is basically home shopping by telephone or television.

You will find useful information at The Direct Marketing Association, which offers its members advice and expertise.