Product promotion is one of the best ways to build a stronger, larger and a loyal customer base. The basic mechanism on which product promotion works is to add value to a product and thus attract and entice the customer to make a purchase. In product promotion there is always an alluring factor that compels the customer to buy your product.

For instance you must have seen coffee shops dishing out coupons that entitle the customer for a free coffee upon placing an order for a certain minimum value.

And as is true for every customer, he wants more for his money. This temptation leads him into placing an order, and this trick of making a customer to buy your product in lieu for an incentive is a simple example of product promotion. What makes product promotion an effective marketing and sales boosting tool is the inherent desire in every customer to get something for nothing. And this is the basic consumer psychology that the business tries to exploit in order to boost sales.

The objective
Product promotion is a fairly economical and a very effective way of boosting sales. By practicing product promotion a business is trying to accomplish one or all of the below mentioned three things:
•    Attract and persuade new customers to make purchases
•    To increase the sales of a less selling product by bundling it up with the more selling products and thus building a consumer base for this product
•    To make new or infrequent customers to make repeated purchases, and thereby turn them into loyal customers.

Why product promotion?
As we mentioned earlier, product promotion is the easiest and the most economical way of marketing your products. Irrespective of whether yours is a B2B business or a B2C, product promotion delivers excellent results.

Its helps a business in two ways, one it instantly increases sales and two it helps the business to build a more permanent customer base, while at the same time building a positive image in the mind of the customer by giving the customer more than his moneys worth. A product promotion is in fact the best strategy to combat seasonal dips in the sales and to steal a customer’s attention from the competitor’s products.