Which type of promotion relies on short-term incentives to encourage purchases?

The type of promotion that relies on short-term incentives to encourage purchases is best categorized as below-the-line promotion. This form of promotion typically involves direct, targeted communication strategies and often includes methods such as sales promotions, discounts, coupons, and loyalty programs. These tactics aim to generate immediate consumer interest and response, encouraging purchases in a way that is often more measurable and controllable than broader advertising efforts.

Below-the-line promotion is particularly effective for boosting sales in the short term, as it creates a sense of urgency and encourages consumers to take action. For example, limited-time offers or special deals can drive immediate purchases while skimming through a more general advertising strategy, which may not lead to instant consumer responses. This approach is often employed to move inventory quickly or to attract new customers through enticing incentives.

In contrast, above-the-line promotions, like mass advertising campaigns, focus more on creating brand awareness and image over a longer time frame rather than generating immediate sales through short-term incentives. Direct marketing initiatives can also be used for targeted outreach but often do not carry the specific short-term incentive focus that characterizes below-the-line promotions.