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managementparadise.com
Powerful and Effective Method -
Sales Promotion
http://www.managementparadise.com/forums/introducti...
managementparadise.com
While sales promotion is a powerful and effective
method to produce immediate short term positive
r...
managementparadise.com
Quality image may become tarnished
If the promotions in a product category have been rare,
or the p...
managementparadise.com
Merchandising support from dealers is
doubtful
One of the trade promotions tool is to offer promoti...
managementparadise.com
Download Disadvantages of
Sales Promotions
http://www.managementparadise.com/forums/intr
oduction-a...
managementparadise.com
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Powerful and effective method sales promotion

  1. 1. managementparadise.com Powerful and Effective Method - Sales Promotion http://www.managementparadise.com/forums/introduction-advertising/204689- disadvantages-sales-promotions.html
  2. 2. managementparadise.com 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. In fact, a promotion is speed up the killing of a bad product. Increased price sensitivity Frequently promoted brands in the product category, especially on the basis of price, make consumers and traders more price sensitive not only for the promoted brands but for other brands as well in the same product category. Consumers wait for the promotion deals to be announced and then purchase the product. This is true even for brands where brand loyalty exists. Customers wait and time their purchases to coincide with promotional offers on their preferred brands.
  3. 3. managementparadise.com Quality image may become tarnished If the promotions in a product category have been rare, or the product happens to be of high involvement category, the promotions could have a negative effect about its quality image. Consumers may start suspecting that perhaps the product has not been selling well, the quality of the product is true compared to the price or the product is likely to be discontinued because it has become outdated. Dealers forward buy and divert stocks In case of deals for the trade, many dealers forward buy, in excess of their inventory requirements. This is particularly happens if a product is low bulk, much in demand and the inventory holding costs are favourably low. This is true both for wholesalers as well as retailers. Forward buying of excessive stocks on deals or quantity discounts can lead to diversion of some of the stocks in non-deal areas. Forward buying of excessive stocks on deals or quantity discounts can lead to diversion of some of the stocks in non- deal areas.
  4. 4. managementparadise.com Merchandising support from dealers is doubtful One of the trade promotions tool is to offer promotional allowances to trade people to motivate them to provide merchandising support and to pass on some benefit to consumers. This generally is the condition attached with such promotional allowances. In many cases, the dealers do not cooperate in providing the merchandising support nor do they pass on any benefit to consumers. The retailer might not be willing to give support because he does not have the place, or the product does not sell much in his shop, or maybe he thinks the effort required is more than the commission/benefit derived.
  5. 5. managementparadise.com Download Disadvantages of Sales Promotions http://www.managementparadise.com/forums/intr oduction-advertising/204689-disadvantages-sales- promotions.html
  6. 6. managementparadise.com
  • lesina95

    Jul. 3, 2021

Download Disadvantages of Sales Promotions http://www.managementparadise.com/forums/introduction-advertising/204689-disadvantages-sales-promotions.html

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