Report a Violation, Sales Promotion: Important Kinds of Sales Promotion, Sales Promotion Tools: Consumer-Oriented and Trade-Oriented Sales Promotion, Sales Promotion Strategies: 3 Types of Sales Promotion Strategies | Explained. Let us now see some of those things which a sales promotion cannot do. Promotions can conflict with the main brand messages, and Confuse the customers as to what the image really is. Disadvantages of Sales Promotion. After a consumer uses a coupon for the initial purchase of a product, the product must then take over and convince them to become repeat buyers. Related: Process of Price Determination with Examples (Step by Step). In other words it is almost next to impossible achieve sustainable competitive advantage through these promotions. Your email address will not be published. When sales promotion overdoses, the emotion or … Due to sales promotions, the demand for product increases and the manufacturer can avail the benefits of Economies of scale. Short-term sales peak caused by sales promotions may be followed by a trough as the consumers go on using the stocks, over-purchased during the offer period, vii. i. iii. Content Guidelines 2. Ineffective promotion may cause the extra stock to stay too long on the shelves, so that they could be in poor condition at the time of purchase, leading to consumer dissatisfaction, x. Although sales promotion is an important strategy for producing quick, short-term, positive results, it is not a cure for a bad product, poor advertising, or an inferior sales team. Content Filtrations 6. Sales promotions also enable upselling, where you persuade a customer to buy a more expensive item, and cross-selling, where you sell an associated product to the customer. The disadvantage of sales promotion though maybe the lack of effectiveness. Before publishing your articles on this site, please read the following pages: 1. Using sales promotions maturity stage of the product can be prolonged and the firm can generate more and more revenues. As with most sales promotions, either the distributor or the business offering the product are not profiting as much as previously. Displays at the point of purchase may induce brand switching. Your email address will not be published. Bring about a competitive response leading to more promotional activity, xi. Sales promotion can also be used to achieve other objectives, such as widening distribution or ‘shelf facing’. Sales promotion may also help in increasing the effectiveness of advertising. Using sales promotions maturity stage of the product can be prolonged and the firm can generate more and more revenues. Plagiarism Prevention 4. Many sales promotion schemes directly or indirectly increase the Goodwill of a firm in the market due to Innovative sales promotion techniques. – Answered! ii. ii. Moderately high probability of return of unsold stock from retailers and distributors at the end of promotion, ix. It can also be targeted to achieve specific objectives, such as increasing repeat purchase or stock clearing. Sales promotion has its own advantages and disadvantages. For example, you could display some excess t-shirts near a more expensive blazer, and offer the t-shirt free with every blazer sold. This generates demand for the product. Consumers may wait to buy certain items knowing that prices will eventually be reduced, for example, resellers have become experts at negotiating deals and manipulating competitors against one another. iv. Despite its recent widespread use as an important element of marketing campaigns, the essence of sales promotion is that it is intended as a very short term influence on ‘sales’. Required fields are marked *. New approaches are promptly cloned by competitors, as each marketer tries to be more creative, more attention getting, or more effective in attracting the attention of consumers and the trade. It can eliminate idle cycles in some specific goods. Marketeers can reap the following advantages from the implementation of appropriate sales promotion technique: eval(ez_write_tag([[336,280],'googlesir_com-medrectangle-3','ezslot_0',105,'0','0']));Sales promotion helps in increasing sales in a short span of time. Heavy use of sales promotion may cause quality image dilution. This was supported by self-perception theory – psychological model of response to sales promotion suggested by Sawyer and Dickson (1984). Copyright 10. Sales promotion cannot compensate for a lack of consumer advertising. Notify me of follow-up comments by email. Related: 31 Factors Affecting the Choice of Distribution Channels (Explained).eval(ez_write_tag([[580,400],'googlesir_com-large-mobile-banner-2','ezslot_17',109,'0','0'])); Sales promotion techniques help in increasing the life span of the product during different stages of the product life cycle. Sales promotion cannot change basic consumer non-acceptance of the product. By using sales promotion firm may remain in the memory of the king of the market and ensure their survival. 33 Qualities (Complete List), 17 Role and Importance of Small Scale Industries, 19 Role And Importance Of Managerial Economics, 13 Types of Online Advertising Techniques. Organisations design new methods to face the competition and remain the winner in the competition. Disclaimer 9. Sales promotion cannot built brand loyalty or enhance brand image. Enter your email below to get access to Our All helpful Tips and Articles, advantages and disadvantages of sales promotion. While sales promotion is an influential and effectual technique to produce instant short term optimistic results, it is not a cure for a bad product or bad advertising. Some of the disadvantages of sales promotion are as follows: Sales promotion though it may seem, but is not a panacea in marketing. In case of consumer oriented deals: i. It has an insignificant long term effect, but may be used as an additional factor. More purchase on the part of retailers and Consumers, Sales promotion techniques help in increasing the life span of the product during different stages of the, Regular customer may have some doubts about quality considerations due to. Following are the disadvantage of sales promotion: The effect of sales promotion is immediate. It can eliminate idle cycles in some specific goods. Related: Top 7 Powerful Techniques of Inventory Control for Stock Management. Many techniques of sales promotion motivate prospects to test new products. In addition, sales promotion activities may bring several negative consequences, including “clutter” due to the number of competitive promotions. In fact, a promotion is speed up the killing of a bad product. Updated on: September 25, 2019 Leave a Comment. Some other disadvantages of sales promotions are as follows: i. Difficulty in exciting consumers with clichéd promotional offers. It is actually suggested that with low involvement product category promotions might actually have positive influence on brand evaluation Scott Davis, J. Inman, L. McAllister 1992). For many promotions, the cost of selling was ‘greater’ than the earning from the selling. Despite its recent widespread use as an important element of marketing campaigns, the essence of sales promotion is that it is intended as a very short term influence on ‘sales’. Sales promotion techniques stimulate the desire in consumers to go for promotion product with more quantity. Sales promotion cannot built brand loyalty or enhance brand image: There are disputes over the fact whether sales promotions have negative effect on brand equity and brand evaluation. It also reduces the consumer reference price, which may hamper long-term profitability of the firm, v. It is difficult to decide whether the price discount should be offered in percentage (of real price) terms or in absolute rupees terms. The main basis on which sales promotions work is that it will be implemented for a limited period of time. Sales promotion cannot compensate for a poorly trained sales force. More purchase on the part of retailers and Consumers, reduce inventory costs of the manufacturer and increase profitability. Sales promotion could not be a substitute to compromise in quality and effectiveness of marketing. Can cause problems with marketing intermediaries regarding issues like payment, ii. DISADVANTAGES OF SALES PROMOTIONS While sales promotion is a powerful and effective method to produce immediate short term positive results, it is not a cure for a bad product or bad advertising.