Share this content. This could then have a negative impact on your sales anytime that you are not running a promotion. The consumers may only be waiting for the time of sales promotion for them to purchase the product and thereafter not purchase it again so the company will use a lot of its resources which will not bring returns at the end hence the sales promotion not being effective. Using co-branding wisely can help diversify the risks, increase sales, generate brand awareness, and get cost benefit. Drypen provides action-oriented intelligence for management professionals that's smart, useful, crisp and just a click away. The Smyle Powder offer of “Buy 1 and get 2 free” went on and on. The company may organize for a sales promotion that may at the end be of negative impact to the company as it may end up tarnishing the quality of the image that will result in a company running at a loss. This gives a boost to sales for a short period. You have more control over your working hours. This is true even for brands where brand loyalty exists. You could also send out coupons so that you have some control over who can take advantage of your sale. When there is a promotion on a product, many people will go for it and this will make the government get high revenue as there will be high sales. Customers will no longer associate your business with quality, but will instead associate it with bargains. 6 Price-based Sales Promotion Methods: Pros and Cons. These events could also hurt the company's sales at other times of the year. Sales promotions are generally for a short duration. Customers wait and time their purchases to coincide with promotional offers on their preferred brands. Co-branding has gained immense importance in the recent years. Consumers wait for the promotion deals to be announced and then purchase the product. Although you’re essentially on the clock wherever you go in the community, the actual time at your office is something you can typically control in a sales job. 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 may be he thinks the effort required is more than the commission/benefit derived. Your customers might start waiting until they see that you are having a sale to come in. McMillan Digital Art/Photodisc/Getty Images. The Pros & Cons Of Using Coupons For Your Business ... JC Penney tried to break consumers of the coupon habit in 2012 and quickly saw a 23% drop in sales … If they know that they can get a better price at a different time, they might be inclined to hang onto their money. This may mean promoting for the general public or a specific market. Pros and cons: Sales Promotion - PHDessay.com. Sales contests are mostly used to attract new customers or to introduce new products in the market. The customers may not really know about the product during that time and that may make the company not boost its sales through that short time. Another benefit of running sales promotions is that you can often get help from your suppliers. Advantages and disadvantages of internal promotion.

Sales promotion will be a better way of doing it so that it cannot go on waste. The information contained in the prosdecons.com is purely informational and educational only. If the promotions in a product category have been rare, the promotions could have a negative effect about its quality image. Heavy use of sales promotion, in certain product categories, may be responsible for causing brand quality image dilution. Sales promotion needs to be planned well so that it may create returns to the company as they are likely to use a lot of resources in it. Pros. If you get in the habit of running sales promotions, customers will become aware of it. The Pros & Cons of Internal Promotion and External Promotion. 3. All Rights Reserved. get custom paper. In addition to writing informative articles, he published a book, "Modern Day Parables," in 2008. This short-term orientation may sometimes have negative effects on long-term future of the organization. Pros of Sales Promotion. As a business owner, there are several ways to run a sales promotion. Advantages & disadvantages of loyalty cards, Drypen: Disadvantages of Sales Promotions. Blogger . It is normally designed as a short term tactic that is to be used to boost sales of a certain product.

Sometimes a company may have excess inventory and it wants to clear it or reduce it. You could also market only to specific target markets and discount only certain items. Written by: Luke Arthur. The most obvious advantage of marketing is that a general interest is created about the product or service that is being offered by its promotion. One of the benefits of using sales promotions is that you can influence customer behaviour. When a company decides to do sales promotion, it is usually for a specified period of time which is in most cases a short time. Your suppliers want you to succeed so that they can keep selling you goods. In fact, a promotion is speed up the killing of a bad product. The main purpose of sales promotion is to boost sales of a product by creating a high demand in the market. You could potentially advertise in many venues and visibly mark down the prices of everything in your store for a large sale. 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. Luke Arthur has been writing professionally since 2004 on a number of different subjects. With sales promotion, there is no guarantee that the sales are going to increase after that hence it is not a sure way of boosting sales of a product.

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