A sales promotion is a marketing effort other than ADVERTISING, PUBLIC RELATIONS, and PERSONAL SELLING designed to stimulate consumer sales. In the United States, expenditures on sales-promotion activities grew significantly in the 1990s, attributable to the increased power of retailers in marketing channels; slow growth in population, creating COMPETITION for existing customers; changes in computer scanner technology, allowing marketers to quickly measure the impact of sales-promotion efforts; and the fact that Americans simply like and respond to sales promotions. Sales promotions may be directed toward the final customers or toward retailers and WHOLESALERs. Directconsumer sales promotions include price deals, coupons, rebates, cross-promotions, contests, sweepstakes, games, samples, and advertising specialty PRODUCTs. Retailer and wholesaler promotions, called trade promotions, include trade allowances, dealer loaders (gifts), trade contests, point-of purchase displays, TRADE SHOWS, and training programs. Marketers use a variety of sales promotions, depending on their goal and target audience. Generally the goals of consumer sales promotions are to stimulate trial and impulse purchases, encourage repurchase, increase sales of complimentary products, and increase consumer inventory and CONSUMPTION. Price deals, temporary decreases in the price of a product, and coupons offering free or reduced prices are often used to stimulate consumers into trying products. In some categories, such as personal-care products, American consumers are very loyal to their current BRANDS. Marketers often use samples to stimulate impulse purchases and trial of alternative products. Rebates are also used to attract price-conscious consumers. Cross-promotions, also called “tie-ins,” are the collaboration of two or more firms in a sales-promotion effort. Fastfood restaurants offering children’s toys, hotels, providing discounts at area golf courses, and INTERNET sites linked to other firm’s sites are all examples of cross-promotion. Crosspromotion can be a very effective marketing method, reinforcing the image of each firm and allowing low-cost access to consumers. Sweepstakes, contests, and games create consumer interest and involvement. American consumers like opportunities to win. In addition to creating interest and awareness of a firm’s products, these sales promotions can result in low-cost lists of consumers for future DIRECT MARKETING efforts. Advertising specialty products, either given away or purchased by consumers, comprises a growing area of sales promotion. Calendars, pens, magnets, and clothing with a company’s logo and address are all used for reminder advertising. Many companies have been surprised to find how many consumers are willing to pay for such products. Word of mouth is almost always the best form of advertising, and specialty products stimulate word-of-mouth promotion. The goals of trade promotion differ slightly from consumer sales promotion. In trade promotion, marketers are attempting to build or maintain good relationships with important members of their DISTRIBUTION CHANNELS. Especially for manufacturers who do not sell directly to final consumers, trade relationships are critical to success, and trade promotions contribute to that success. Specific tradepromotion goals include gaining or maintaining distribution, influencing resellers, increasing reseller inventory, and defending against competitors. Trade allowances, or short-term special discounts, are often payment for cooperative advertising, shelf space, or volume purchases and stimulate reseller buying. Dealer loaders, gifts such as a free trip or free displays, enhance reseller relationships and provide added visibility in reseller’s stores. Point-of-purchase displays also give manufacturers added floor space in retail stores and stimulate impulse purchases. Trade contests, in which resellers win prizes and trips based on selling one firm’s products, give resellers incentives to promote one company’s products over other products they also sell. For example, a heating and air conditioning installation company sells three brands of equipment but highly recommends only one company’s brand. When asked why the one firm’s equipment is so superior to the others, one of the installation crew responds, “Oh, the boss gets a free trip to Las Vegas if he sells ten of these systems.” Trade shows, usually sponsored by an industry or professional association, are a major area of trade promotion. U.S. businesses spend billions of dollars annually to display and promote their products at trade shows. Trade shows are particularly important for firms that cannot afford a sales force and for entrepreneurs with new products to promote. Trade shows are also sometimes used to train people in the distribution channel. Whether at trade shows or at other locations, company- sponsored training programs are often needed to provide resellers with the information needed to sell products to final consumers. Sales promotion can stimulate demand, increase consumer purchases, and gain reseller cooperation, but most sales promotions are easily copied by competitors, and while sales volume may increase, copycats could hurt company PROFITs. One questionable sales-promotion practice is purchasing a retailer’s inventory of a competing firm’s products as part of a deal to gain shelf space in the retailer’s store. Sales promotions are also sometimes deceptive. The Federal Trade Commission has sometimes intervened, particularly in sweepstakes promotions.