Which term refers to special incentives that encourage the purchase of a product?

The term that refers to special incentives encouraging the purchase of a product is called sales promotions. Sales promotions include various short-term incentives, such as discounts, coupons, buy-one-get-one-free offers, and contests designed to stimulate immediate sales. These strategies are targeted at consumers or retailers to increase the likelihood of purchase in a shorter time frame, differentiating them from other marketing efforts that may focus on building long-term brand awareness or customer loyalty.

Public relations involves managing and disseminating information about a company or brand to build a positive image and maintain a favorable public perception, but it does not typically involve direct financial incentives to purchase a product. Advertising is the broader practice of communicating a brand’s message to potential customers through various media, aiming to inform and persuade but not structured as immediate incentives. Direct marketing targets specific consumers directly to generate responses or transactions but does not inherently include incentives like sales promotions do. Thus, the correct answer aptly encapsulates the concept of using incentives to drive purchases.