Sales promotion is one of the important components of marketing (other components are sales, advertising and public relations). Sales promotion means offering some kind of incentive to the end user (or intermediary channel members) for purchasing the company products.
Sales promotion tries to do one or all of the following – it pre-pones the buying decision or converts a product non-user into a user or motivate competition brand user into company brand user.
Sales promotion can be offered at two levels – either at end user level or intermediary levels. It really depends on the firm to devise a scheme targeted at both or one of these two entities. If the small business owner finds that the end users are shying away from the company product, it will be wiser to offer the sales promotional scheme to the end users. On the other hand, if intermediaries (retailers, dealers, etc) are getting interested in pushing competitors’ products, then the obvious choice will be to offer a promo scheme to this set of people.