buy one get one free, free coupon, prize draw, loyalty card, rebate, bulk discount, free sample, and display windows. Apart from the heavy expenditure to be incurred on advertisement and personal selling, the business may have to spend further on sales promotion. Also enter your email address at the bottom of the site to ‘Join us’ free for our newly published articles and newsletters. In this buyer’s market era no business organization can afford to ignore sales promotions. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Sales promotion leads to low unit-cost, due to large-scale production and large-scale selling. Companies need to clear them out very quickly. 3. The marketer cannot use any sales promotional tool at any time. 2. 8. Likewise, companies can use sales promotion to reduce inventory rapidly in situations where the replacement of some products and services are necessary. When compared with advertising, sales promotional activities can create better and quicker impact. Popular brands move fast in the market without much effort. Customers feel that they must act to get the benefit from sales promotion before the expiry of deadline. 3. Sales promotion has its own advantages and disadvantages. Sales promotion is an element in competitive age to survive and grow. Some products have a very limited shelf-life e.g. You may also like reading Sales promotion – techniques of sales promotion and Advantages and disadvantages of doing business online. Sales promotion is generally required to promote sales of those brands which are not so very popular. 9. M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. Disadvantages of sales promotion. One can, therefore, say that sales promotion satisfies the ‘A I D A formula’ to a greater extent. As far as the various types of discounts (cash discount, off-season discount and festival discount etc.) When compared with advertising and personal selling, sales promotional activities are less expensive. It enables both the dealers and the consumers to enjoy certain tangible benefits, e.g., free samples, gifts, price reductions, etc. Free sample, gifts, demonstrations etc., can induce the consumers to act fast. This may not be possible in the case of advertisement and personal selling. It helps the salesman and makes his effort more productive. 1. 8. 6. Advertising expenditure can be converted into revenues with the support of sales promotion efforts only. The major sales promotion advantages are briefly explained below: Getting New Customers for Existing Product: Every organization strives to acquire more customers for their existing products. By: M Rahman | Tags: Marketing Essentials, Advantages and disadvantages of sales promotion. Whereas sales promotional activities involve both direct and indirect approaches. When sales promotion is overdosed, the emotion or the need that surrounds them disappears. It may turn out to be too costly if done too much without careful planning. Advantages of Sales Promotion. For instance, having a buy one and get one free offer helps personal sales force convince customers to make a purchase. Such an approach may not benefit all. Moreover, companies can use sales promotion to support other marketing techniques. Advantages & Disadvantages of Sales Promotions | Bizfluent. Measuring the effectiveness of sales promotion can be easy when compared to measuring the effectiveness of advertising and personal selling.. 1. Similarly, they may also become suspicious about the quality of the products. 10. The financial aspects, in particular, pertaining to sales promotion can be effectively managed. One of the ways to do that is by offering sales promotion on those products. Sales Promotion – Advantages and Disadvantages. If you liked any of these articles, please feel free to share with others by clicking on the icons below. Sales promotion can prove useful for marketers in several ways. There is no doubt that companies use different types of sales promotion very often to increase sales and beat competition. BPP Learning Media (2010) Marketing Principles, BPP Learning Media, London, Smithers, R. (2015) Majority of goods sold in UK stores on promotion, finds study, available at: https://www.theguardian.com/business/2015/nov/02/majority-of-goods-sold-in-uk-stores-on-promotion-finds-study-multi-buys (accessed 30 August 2019). 10. According to the American Marketing Association (AMA), sales promotion is a marketing pressure used for a limited time frame to stimulate trial, increase consumer demand, or improve product availability. Personal selling requires efficient and committed salesmen. Likewise, it is extremely difficult (if not impossible) for a company to achieve sustainable competitive advantages over its competitors through sales promotion. Some customers may start believing that the products/services concerned may not be doing well in the market; hence the sales promotion. The marketer has to select the most appropriate tool of sales promotion and the same shall be introduced at the right time. Copyright ©2017 - 2025. They may, at the most, need the help of the dealers only. Brand popularity can be secured mainly by means of advertisement and personal selling. It is an effective supporter of sales. 7. Advertising approaches the buyer indirectly and personal selling approaches the buyer directly. We hope the article ‘Advantages and disadvantages of sales promotion’ has been helpful. Whereas, in the case of advertisement, media are required, e.g., Radio, TV and Indiscriminate use will not produce the expected results. 1. Most of the sales promotional activities can be undertaken by the manufacturers themselves. This is because everyone loves to buy things for cheaper. Sales promotion is a short-term tactic used by companies to persuade customers to buy their products and services. As the sales promotional activities are short-lived, the results of such activities will also be short-lived. For example, you could display some excess t-shirts near a more expensive blazer, and offer the t-shirt free with every blazer sold. Doing so creates price sensitivity among customers. newspapers. advantages and disadvantages of sales promotion Sales promotion is used to entice customers to buy a product/service. Measuring the effectiveness of sales promotion can be easy when compared to measuring the effectiveness of advertising and personal selling. It is worth noting that different sales promotion techniques are likely to be used in different B2C and B2B contexts. One of the biggest aims and advantages of sales promotion is that it helps boost the sales of a company. Pamphlets distributed to the consumers also provide useful information.