In this article we will discuss about sales promotion. Learn about:- 1. Concept and Nature of Sales Promotion 2. Objectives of Sales Promotion 3. Components 4. Need and Importance 5. Planning 6. Types of Programs 7. Techniques 8. Tools and Programmes 9. Benefits 10. Limitations.
- Concept and Nature of Sales Promotion
- Objectives of Sales Promotion
- Components of Sales Promotion
- Need and Importance of Sales Promotion
- Planning Sales Promotion
- Types of Sales Promotion Programs
- Techniques of Sales Promotion
- Tools and Programmes for Sales Promotion
- Benefits of Sales Promotion
- Limitations of Sales Promotion
1. Concept and Nature of Sales Promotion:
Sales promotion is an important tool of promotion which supplements personal selling and advertising efforts. According to American Marketing Association, “Sales promotion includes those marketing activities, other than personal selling, advertising, and publicity, that stimulate consumer purchasing and dealer effectiveness, such as displays, shows and expositions, demonstration, and various non-recurrent selling efforts not in the ordinary routine.”
Sales promotion includes techniques like free samples, premium on sale, sales and dealer incentives, contests, fairs and exhibitions, public relations activities, etc. Sales promotions are those activities, other than advertising and personal selling that stimulate market demand for products. The basic purpose is to stimulate on the spot buying by prospective customers through short-term incentives. These incentives are essentially temporary and non-recurring in nature.
Sales promotion is different from personal selling which is persuasion of customers by the sales persons to buy certain products. It is also different from advertising. Except for advertising through direct mail, advertising deals with media owned and controlled by the firm itself.
Usually, sales promotion deals with non-recurring and non-routine methods in contrast to personal selling or advertising. As a matter of fact, sales promotion activities aim at supplementing and co-ordinating personal selling and advertising.
Sales promotion includes activities of non-routine nature to promote sales, e.g., distribution of samples, discount coupons, contests, display of goods, fairs and exhibitions, etc. But it does not include advertisement, publicity and personal selling.
Interrelationship of Sales Promotion and Advertising:
Sales promotion includes all those activities which promote sales such as distribution of samples, discount coupons, contests, display of goods, fairs and exhibitions, etc. Advertising, on the other hand, is any paid form of non- personal presentation and promotion of ideas, goods and services. The objectives of both sales promotion and advertising are similar and they complement each other.
They are interrelated in the sense that they are integral parts of the ‘promotion mix’ of the business. Advertising supports sales promotion activities by informing the public about such efforts of the company. Similarly, sales promotion activities remind the people of the message advertised by the business firm.
2. Objectives of Sales Promotion:
The basic purpose of sales promotion is to increase the sales of a product by creating demand. Sales promotion has a capability to complement and supplement the advertising functions of the marketing. It helps marketers to realize a variety of objectives. These objectives are for both marketers and traders.
Following are the objectives of sales promotion:
i. It improves the performance of middlemen and acts as a supplement to advertising and personal selling.
ii. It motivates sales force to give desire emphasis on new accounts, latent accounts, new products and new territories.
iii. It increases sales and makes sales of slow moving products faster and stabilize fluctuating sales pattern.
iv. It attracts channel members to participate in manufacturer promotion effort.
v. Motivating the dealers to buy high volumes of products and push more of the brands that are on promotion.
vi. Supporting and supplementing the advertising and personal selling efforts.
vii. Making consumers to switch brands in favour of firm.
viii. To overcome the seasonal fluctuation of products.
ix. Inducing retailers to promote the brand by local advertising and POP display.
x. Sales promotions motivate the salesmen to sell more and to sell the full line of products.
xi. To reduce the perception of risk associated with the purchase of a product.
Sales promotions encourage the customers to try a new product. For example, companies distribute free samples of their new product. To attract new customers distribute free sachets to households. Some companies offer a free pack with purchase of a product like free soap with purchase of detergent. Henko detergent introduced scratch card scheme in which customers usually received discount coupons so that customers buy the same product (Henko detergent) again. These encourage the customers to use the product or service and make them brand loyal.
3. Components of Sales Promotion:
Sales promotion has two components consumer promotion and trade promotion :
1. Consumer Sales Promotion Methods:
Consumer promotion is for the common customer, this promotion is supported by advertisements, publicity, direct selling etc. This type of sales promotion is targeted at the end consumers. Customer sales promotion is a “pull strategy” and encourages the customers to make a purchase.
i. Price-Off Promotions:
It means offering product at lower than its normal price. Company offers either a discount on the normal selling price of the product or more of the product at the same price. This type of promotion must be used with care as the increase in sales is gained at the cost of a loss in the profit. It attracts non users and act as an effective tool to counter competition.
It is a method of offering a discount offering. Coupons are the most widely used customer sales promotion technique. A coupon is a certificate that offers a price reduction for some specified items to the holder. Coupons are distributed with purchase of a product, magazines, newspapers, etc.
A few examples of coupon distribution can be coupon pasted on a package, or placed inside a package to encourage repeat purchase. Coupon books are sent out in newspapers, or offered with the purchase of an item in a given time frame.
Marketers can offer an article of merchandise as an incentive in order to sell product or service these are known as premiums, as the customer gets something in addition to the main purchase. For example, if a customer buys toothpaste, he gets a toothbrush free. Premiums are of different types like packed premium, banded premium, personality premium and container premium.
iv. Free Samples:
Offering free gifts or samples is the most expensive form of sales promotion. Marketers use this technique to increase their sales volume in the early stages of the product life cycle. It means offering a small quantity of a product free in order to persuade customer to try the product.
v. Money Refund and Rebates:
In case of money refund, the customer receives a specific amount of money (refund) after he submits a proof of purchase to the manufacturer. Manufacturers devise the strategy such that the customer qualifies for a refund only when he makes multiple purchases. It is a kind of offer of a refund of money to customer for mailing in a proof of purchase of a particular product, it induce trial from primary users and motivate several product purchase.
vi. Frequent User Incentives:
Repeat purchases may be stimulated by frequent user incentives. Hence, firms offer incentive schemes to reward their loyal customers. The best example of this is the frequent flyer scheme offered by airlines.
vii. Consumer Contest:
In this method of sales promotion, customers take part in small competitions on the basis of their creative and analytical skills. Customers are invited to compete on the basis of creative skill, such contests create brand awareness and stimulate interest in the brand, and it acquaints consumers with brand usage and benefit.
viii. Trade Shows:
A group of retailers or manufacturers conduct exhibitions and trade shows to make the customer aware of the products offered by various firms. Industrial shows and annual industrial exhibition, exhibition of home appliances, consumer goods or gym equipment, etc. are examples of this type of sales promotion.
2. Trader’s Sales Promotion Methods:
Trade promotion is not advertised and publicised it is for the channel members, company’s offers are for dealer, distributors, retailers and agents only main purpose is to increase sales by offering incentives to them. It is a “push strategy” and encourages the channel members to stock the product. This form of promotion is usually not advertised, as it is an internal affair between the company and its distribution network partners.
a. Trade Buying Allowance:
In this method there is temporary price reduction and reimbursement of expenses incurred by the dealers in full or in part. Buying allowance is a temporary price reduction offered to the retailer for purchasing specific quantity/units of the product. Such an offer acts as an incentive to stimulate short-term profit of the retailer and promote new products for the company. It encourages trade cooperation and stimulates repurchase.
b. Buyback Allowance:
In this method, intermediaries are offered a monetary incentive for each additional unit purchased after the initial deal. This method aims at stimulating the channel members to purchase additional quantities of stock that is over and above the normal stock, as the monetary incentive they receive is proportional to the amount of additional stock they purchase.
c. Merchandise Allowance:
It is an allowance to trader for providing desired sales promotion and product display. Middlemen are usually required to show the proof of the advertisement carried out by them.
d. Free Merchandise Schemes:
In this sales promotion technique, an additional amount of the product is offered without any additional cost, as an incentive to purchase a minimum quantity.
e. Point-of-Purchase (POP) Displays:
POP displays include window displays, wall displays, display racks, danglers, balloons, outside signs, etc. These items attract the attention of a customer and inform him about the product.
f. Dealer Gift:
It is a reward or gift which is offer of useful articles and attractive gift to dealers for personal, family or office use. Retailers obtain gifts only when they buy specific quantities of goods or fulfill a given sales target. Marketers use this technique when they use new distributors or they want to push products to retailers. For example – a silver tray to display a product. When the event is over, the retailer is allowed to keep the silver tray.
When an additional compensation is offered to trader for pushing additional product in market, this method is used to push a specific product or product line.
4. Need and Importance of Sales Promotion:
Sales promotion acts as a bridge between advertising and personal selling. Due to the adversity of markets, the importance of sales promotion has increased tremendously. Sales promotion helps remove the consumer’s dissatisfaction about a particular product, manufacturer, and create brand-image in the minds of the consumers and the users.
Sales promotional devices are the only promotional devices available at the point-of-purchase. An advertising medium reaches the prospects at their homes, offices, etc. and may soon be forgotten. The sales promotional devices at the point-of-purchase stimulate the customers to make purchase promptly on the spot.
Business firms use promotional tools to achieve the following benefits:
(i) Attracting Attention:
The first aim of sales promotion is to attract the attention of the prospective buyers and inform them about the availability, characteristics and uses of a particular product.
(ii) Highlighting Utility of Product:
Promotion helps in letting the people know about the utility of the new products. It also tells them how the concerned products will be helpful in satisfying their specific demands.
(iii) Stimulation of Demand of New Product:
Promotional activities are used to create interest in the new product and to persuade people to buy the same. This helps in launching the new product.
(iv) Product Differentiation:
Promotion helps in differentiating a particular product of the firm from the competing products of other firms. A firm can also use data revealing how its product compares with the other products.
(v) Synergy in Promotional Activities:
Sales promotion activities supplement personal selling and advertising efforts of the firm. They add to the overall effectiveness of the firm’s promotional activities.
(vi) Stabilisation of Sales Volume:
In the modern age of competition, it is an important purpose of promotion to help in stabilising sales volume by reassuring the customers about the quality and price of the product. It is possible that a customer using a particular brand, may buy another because the other brand is promoted in an effective manner.
(vii) Performance Appraisal or Marketing Control:
The management of a company can keep an effective check on the results achieved through sales promotion schemes, because it is in a position to analyse the costs incurred and the benefits derived.
5. Planning Sales Promotion:
Proper planning is essential for the success of promotion plan as it involve high investment on promotion products and execution of promotion activities. With growing competition at the market place and the need to release full benefit of sales promotion, it requires an appropriate approach according to market conditions and nature of product.
The following steps are suggested for effective planning and management of the sales promotion function:
Step one is to assess and analysis of the present situation of the brand in terms of market share, major competitors and brand performance. This benchmark should then be related to the market size and the potential estimated in market. It will now pave the way for determining the roles of sales promotion in desired change in the market share of the brand. The outcome of this exercise will be the availability of desired information to set measurable an attempt and goals.
Second step deals with the identification of the alternative schemes, and the selection of the most appropriate sales promotional schemes, these schemes should match with the budget.
Third step relates is to incorporating creativity into the scheme to be offered. This is making the scheme attractive and challenging form the view point of this target group segment.
Fourth step is to ensure the legal validity of the sales promotions schemes to be offered for customers and traders. Promotional offers should not violate the land of law.
Fifth step is concerned with primary decision relating to timing and duration of the schemes to be offered locating, selection of dealers and convictions of the trade and sales force about the suitability of the scheme. It will be useful in determination of sales quota and sales targets for middlemen.
Sixth step cover the development and evolution criteria in relation to sales to be achieved cost effectiveness and turnover of promotion. It is a process of evaluation cost and output of sales promotion methods.
Seventh step relates to monitoring the offer, collection of the relevant data and for the future use as well as mid period corrections in promotion methods.
Eighth step involves evaluation of effectiveness of sales promotion in the context of the goals. Efforts must also be put into perfect the measurement, the methodology for evaluation and documentation of corporate experiences on sales promotion the errors in the existing system, corrections in procedures and the mishaps that occurred ultimately to help in improving the skills of managing the sales promotion function.
6. Types of Sales Promotion Programs:
Sales promotional activities may broadly be classified into the following:
(i) Consumers sales promotion program
(ii) Dealers sales promotion program
(i) Consumers Sales Promotion Program:
Sales promotion directed towards the consumers may be conducted either to increase the consumer’s knowledge of the product regarding its use or it may be conducted to attract new customers. In some cases, this type of programme is also conducted to retaliate against a competitors’ sales activities.
In some cases, this type of sales promotional programme becomes necessary in view of seasonal decline in sales. For example, woolens are put on discount at January-end each year, the end of the winter season.
In case of consumers sales promotion programme, an attempt is made to reach the consumer at his home or at a retail store. The techniques of promotion used are-free samples, contests, coupons, demonstrations, price reductions, counter- display cards, etc. Free samples are distributed among the prospects to arouse interest.
Sales contests are conducted to attract new customers or to introduce new products. For this purpose, an entry form is designed and the consumer is asked to forward the entry form along with the cash memo of the product or wrappers, foils, etc.
In the demonstration method, the technical experts or sale demonstrators are sent to various customers to induce them to buy the product. This technique is used by Real Value (fire-fighting equipments), Birla-Yamaha (petrol and diesel generators), etc. Sometimes, coupons are introduced either through press advertising or through the package of the product itself, which induce the consumer to buy the product at a concessional price.
(ii) Dealers Sales Promotion Program:
The products are often sold through retailers and wholesalers. In such cases, promotional activities are conducted to induce the dealers to keep a large stock with them. These activities might include extra cash or trade discount on the basis of orders placed. They are also known as Trade Promotion.
Role of Retail Stores:
Retailer takes many marketing decisions, tries to find new marketing strategies to attract and hold customers. This is achieved by providing special varieties of goods (Liberty showrooms at Connaught Place and other places in Delhi provide different varieties, shapes, styles, colours, etc.) by offering better customer service (take back goods, if not satisfied, free home delivery, order-on-phone, credit facilities, etc.) and by providing personalised services.
The retailer takes decisions concerning the target customer, services, ambience within outlet, and the decisions concerning price, place and promotion. Reputed retail stores, use timely sales promotion tactics like sales during off seasons two clearance or special prices and incentives (like buy two get one- free, credit cards accepted during sales), samples for introducing new products (to sell their own brand of tea), Gifts based on a number of visits, point of purchase displays, or visiting celebrities. Thus, retails stores try to focus customer attraction by carrying out sales promotion techniques.
7. Techniques of Sales Promotion:
The techniques of sales promotion used by business houses are discussed below:
1. Distribution of Samples:
Many big businessmen distribute free samples of their products to the selected people in order to popularise their products. Distribution of samples is popular in case of books, drugs, cosmetics, perfumes and other similar products. As the distribution of samples is very costly, this system is confined to those products of small value which have often repeated sales.
2. Rebate or Price-Off Offer:
In order to increase sale, many producers introduce price off offer to the customers. Under this, the product is offered at a price lower than the normal price. For example, during off season (winter), ceiling fans, coolers and refrigerators may be offered at 20 to 30% off price.
Rebate offer is given for a limited period only, for example, Coca cola offered 2 litre bottle at Rs. 35 only during winter 2009. Khadi Gram Udyog offers rebates on Khadi cloth and readymades to coincide with the month of Gandhi Jayanti every year.
3. Partial Refund:
A firm may use the strategy of refunding a part of the price paid by the customer on the production of some proof of purchase of its product. For instance, the buyer of two cakes of a branded soap may be refunded Rs. 5 on returning the empty packages to the dealer.
4. Discount Coupons:
A discount coupon is a certificate that entitles its holder to a specified saving on the purchase of a specified product. Coupons may be issued by the manufacturers either directly by mail through sales-force or through the dealers. The coupons are also issued through newspapers and magazines. The holders of coupons can go to the retailers and get the product at a cheaper price.
The retailers are reimbursed by the manufacturer for the value of coupon redeemed and also paid a small percentage to cover handling cost. But many retailers do not patronise this method because it involves financial and accounting problems for them.
5. Packaged Premium:
Under this, the seller offers premium to the buyer by way of supplying a gift along with the product or inside the product package. Premium on sales helps the salesman to make effective presentation, stimulate sale in a particular area, lead to enlistment of new customers and have the way for introducing new brands in the market. Premiums are generally given in the case of customer convenience goods such as packed tea leaves, blades, tooth-pastes and toilet soaps.
6. Container Premium:
Several firms use container premium to push the sale of their products. For instance, Taj Mahal tea leaves, Ariel detergent powder, Bournvita, Kissan jams, etc. are made available in special containers which could be reused in kitchens after the product has been consumed. The reusable containers for packaging often have special appeal to the consumers who don’t have to pay anything extra for the product.
There may be consumers’ contests, salesman’s contests and dealers’ contests. Contests for salesman and dealers are intended for inducing them to devote greater efforts or for obtaining new sales idea in the task of sales promotion.
Contests for consumers may centre around writing a slogan on the product. Such slogan centres around the questions as to the liking of a customer for the product, or formulation of new advertising idea for the product. Such contests are held through radio, T.V., newspapers, magazines, etc.
8. Public Relations:
Public relations activities strive for creating a good image of the enterprise in the eyes of the customers and the society. These activities are not aimed at immediate demand creation. It is very common that big business enterprises convey their greetings and thanks to the people through newspapers and other media.
9. Free Gift:
The customer does not get any benefit at the time of purchase, rather he gets it through mail. For this he has to send the proof of purchase (e.g., cash memo and wrapper) to the manufacturer to claim the gift which might be a diary or book or any other item. The gift is sent by the manufacturer by mail or through courier.
10. Exchange Offer:
It means exchange of an old product with the new one after payment of the exchange price fixed by the manufacturer. Such offers are very common these days in case of electric irons, TVs, refrigerators, scooters, gas stoves, washing machines, etc.
11. Product Combination or Gift:
It refers to giving a free gift on purchase of a product. Generally, the free gift is related to the product but it is not necessary. For example, Mug free with Bournvita, Toothbrush free with Toothpaste, DVD free with TV, Vacuum cleaner free Fridge, etc.
12. Instant Draws and Assured Gifts:
Some sectors offer instant draws and assured gifts to their customers when they make purchases. The scheme may be like – “Scratch a card (or burst a cracker) and instantly win a car, A.C., fridge, T.V., computer or electric iron on the purchase of a T.V.”
13. Full Finance @ 0%:
Manufacturers of durables like bikes, T.V., A.C., etc. offer easy financing schemes even at 0% rate of interest e.g., “Pay Rs. 10,000 in cash and Rs. 30,000 in 12 equal instalments of 2,500 each by post-dated cheques and get a bike on the spot.” This tool of promotion misleads the customers and so should be avoided by the marketers.
8. Sales Promotion Tools and Programmes:
Sales promotion techniques are known as promotion tools and the mode of their application is known as sales programme.
These tools and programmes are divided under two heads:
1. Tools and programmes for consumer sales promotion.
2. Tools and programmes for dealer/distributor sales promotion
1. Tools and Programmes for Consumer Sales Promotion:
Also known as consumer sample or free samples and given to consumers to introduce a new product or to expand the market. The consumers are expected to be convinced to use the product.
ii. Demonstrations or Instructions:
These are instructions given to aware the consumers about using the product. This method may be used in products like washing machine.
It is a certificate that reduces the price. When a buyer gives a coupon to the dealer or retailer he gets the product at lower price. It gives expected result.
iv. Money-Refund Orders:
The technique indicates refund of full purchase price if the buyer so wants. It is helpful in the introduction of a new product. Refund offer creates additional interest and increases sales considerably. It is a good device for creating new user and to strengthen the brand loyalty.
These are temporary price reductions, which appeal to bargain instinct. Towels, dinner ware, hair-brushes, key-chains, artificial flowers, ball pens, toilet soaps, bathing soaps, blades, are given as in-pack premiums. BUY ONE GET ONE, BUY TWO GET ONE FREE are the usual offers made to the customers to appeal them.
The price off label is printed on the package that is a certain amount is reduced from the actual price to woo the customers. It gives a temporary discount to the consumers.
vii. Contests or Quizzes:
These are held to stimulate consumer’s interest in the product. In these contests, participants compete for prizes on the basis of their skill or creative ideas. In this type of sales promotion, prizes are offered in kinds (especially the products of the company) and sometimes a payment is given to the participants.
viii. Trading Stamps:
Trading or Bonus stamps are issued by retailers to customers who buy goods from there. The number of stamp given to a buyer depends upon the amount of purchases made by him. Stamps are issued at predetermined percent rate of the purchase amount.
These stamps are given free of charge and the customers can redeem them to obtain products out of the specified list. This technique induces customer to buy their requirements from the retailers who offer such stamps. The purpose is to increase customer loyalty.
ix. Fairs and Exhibitions:
Trade shows, fashion shows or parades, fairs and exhibitions are important technique/tools of sales promotion. They provide a forum for the exhibitions or demonstration of products. Free literature can be distributed to introduce the firm and its products to the public.
Fairs and exhibitions are organized usually by big firms or trade associations. At these fairs and exhibitions, business firms are allotted stalls wherein they display their products and attract the customers through gifts, special concessions and free demonstrations of technical and specialty products.
x. Public Relations Activities:
These include greetings or thanks in newspapers, donating space for noble causes, offer of Privileged Citizen Card, etc. Their purpose is not to create immediate demand or to increase sales. They are designed to create a good image of the firm in the society.
xi. Exchange Scheme:
This technique offers to exchange the old product with new one in payment of a fixed amount which is less than the original price. For example, exchange of old Black & White Television for Colour Television by paying rupees 8000 only (original price is rupees 10000) was offered by a particular producer of colour TV sets.
2. Tools and Programmes for Dealers/Distributors Sales Promotion:
i. Free Display:
There is provision of free display of material either at the point of purchase (POP) or at the point of sale (POS), depending on one’s view point. Display reaches consumers when they are buying and actually spending their money.
ii. Retail Demonstrations:
These are arranged by manufactures for preparing and distributing the products as a retail sample, for example, Nescafe Instant Coffee was served to consumers for trying the sample on the spot of demonstration regarding the method of using the product.
iii. Trade Deals:
These are offered to encourage retailers to give additional selling support to the product, e.g., tooth paste sold with 30% to 40% margin.
iv. Buying Allowance:
Sellers give buying allowance of a certain amount of money for a product bought.
v. Buy-Back Allowance:
It is offered to encourage repurchase of a product immediately after another trade deal. A buy back is a resale opportunity.
vi. Advertising and Display Allowance:
These are also offered to retailers to popularise the product and brand name of the manufacturer.
Sales contests are held for salesmen. These are usually aimed at increasing the performance of the sales persons.
viii. Dealer Loader:
A gift for an order is a premium given to the retailer for buying certain quantities of goods or for special display done by the retailer.
ix. Training for Salesmen:
Periodical training programmes are conducted by dealers and distributors for salesmen to give them a better knowledge of a product and its usage. Dealer sales promotion provides the selling devices. Sales promotion devices at the point of purchase inform, remind, and stimulate buyers to purchase products.
People who see these devices are in a buying mood and thus they can be easily persuaded to buy those products. Tell tags are informative labels affixed on the product, describing in detail the features of the product and its unique selling points. Counter, top racks, posters, mechanised signs are other point-of purchase displays.
9. Benefits of Sales Promotion:
(i) Creates differentiation – When you launch a new product or ask customers to engage with your business in a new way, this sets you apart from your competition. Promotion planning compels you to identify something new or different that offers value to your customers;
(ii) Creates new content and communication opportunities – One of the easiest way to create new content for your customers is to create news by using sales promotion.
(iii) Creates upsell and cross sell opportunities – When you package or bundle products around a theme or solution, you can often generate sales of multiple items rather than a single item.
(iv) Drives customer decision making – Limited availability offers can create a sense of scarcity in your customers that get them to act. If you can add sampling of your promotional item to the mix, you can create compelling reasons to buy.
(v) Creates word-of-mouth opportunities – Promotions can often get your regular customers a new reason to be surprised and delighted by your business which gets them to talk about your product to their friends;
(vi) Creates training opportunities for staff – Promotions give a chance to train, prepare and re-engage the sales staff in what’s new in the business;
(vii) Creates testing opportunities – Promotion gives a limited time window to test new ideas and new products and to measure them. This will help to figure out whether they warrant additional investment of time and money to make them permanent products or services;
(viii) Grows revenue – Sales promotions are a great way to build year-over-year and month-over-month revenue growth.
10. Limitations of Sales Promotion:
Sales promotion activities are often criticised on the following grounds:
(i) No Real Incentives:
The incentives offered through sales promotion schemes are fictional, and not real. It is said that the manufacturer will realise the cost of these incentives by raising the price of goods.
(ii) Shoddy Products are Passed-off:
Only products which are lacking in quality, or are not likely to be favoured by consumers, require sales promotion efforts.
(iii) Short Term Perspective:
The sales promotion schemes are carried out during particular seasons and not on a permanent basis; the results achieved through them are generally short-lived. As soon as the incentives offered under such schemes are withdrawn, the benefit in terms of increased sales may also vanish.
(iv) Switching of Demand:
Sales promotion shifts demand from one brand to another. It does not create new demand.
(v) Reflection of Crisis:
Frequent use of sales promotion activities may lead consumers to think that the product is of inferior quality. They may not, therefore, prefer to buy such products.