A. Negative Perception of Salespeople – Possibly the biggest disadvantage of personal selling is the degree to which this promotional method is misunderstood as many view salespeople as being overly aggressive or even downright annoying, and only interested in making a quick sale. Sales promotion is one of the seven aspects of the promotional mix that adopts short term, non-recurring methods to boost up sales in different ways. Extreme use of it … By focusing the rewards on promotionally responsive customers, our promotional solutions drive volumes while protecting your margins. These are – Pull Strategy – The pull strategy attempts to get the customers to ‘pull’ the products from the company.It involves making use of marketing communication and initiatives like seasonal discounts, financial schemes, etc. b. Top 7 Powerful Techniques of Inventory Control for Stock Management, 18 Major Advantages and Disadvantages of Supermarkets, 31 Factors Affecting the Choice of Distribution Channels (Explained), Process of Price Determination with Examples (Step by Step), 18 Reasons and the Importance of Product Innovation (Explained), 15 Reasons for the Occurrence of Industrial Conflicts, How to Make a Successful Participative Management, 10 Basic Limitations of Workers Participation in Management. This generates demand for the product. ... employing a sales force has many hidden costs in addition to wages. Related: Top 7 Powerful Techniques of Inventory Control for Stock Management. Sales Promotion. Advertising. Sales promotion is an element in competitive age to survive and grow. Possibly the biggest disadvantage of selling is the degree to which this promotional method is misunderstood. Sales promotion can be targeted on specific groups especially selected retailers and their customers. Thus, now you know the advantages and disadvantages of sales promotion. In other words it is almost next to impossible achieve sustainable competitive advantage through these promotions. The disadvantage of sales promotion though maybe the lack of effectiveness. Expansion of Production 3. Wholesalers and retailers do not always deliver their promises when given incentives such as extra discounts, xii. DISADVANTAGES OF SALES PROMOTION Limited. Drives customer decision making – Limited availability offers can create a sense of scarcity in your … It provides reluctant decision makers with an incentive to make choices by increasing the value offered by a particular brand. ... Our sales promotion solutions are the smart alternative that takes care of your bottom line. It elicits a delayed consumer response. If it is not according to plan he can even adjust his approach or sales presentation accordingly. The advantages of our Sales Promotion methods. First, consumers have accepted sales promotion as part of their buying decision criteria. Hence, the increase in sales is only for a limited period of time which can negatively affect the future of these companies and organizations. It is a general tendency among buyers to anticipate more and more price reductions which are not good for long term reputation of the firm. Promotion of Sales 2. These include: Helps Create Awareness of New Products – Sales promotion is a highly effective methods for exposing customers and business partners to new products and for moving customers to take an action (e.g., sample a product). Top 10 Need & Importance of Workers Participation in Management. The biggest disadvantage of discounts is that shopkeepers exploit the mentality of customers towards discounts to their advantage by offering outdated and defective products during a discount sale and hence it is the customers who feel cheated or exploited after purchasing discounted products. By using sales promotion firm may remain in the memory of the king of the market and ensure their survival. When used moderately with careful planning, sales promotion increases sales, even after the promotions period is completed. Disadvantages or Limitations of Sales Promotion 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. d. It is difficult to differentiate from competitors' efforts. Consumers enjoy the opportunity to win something–a gift certificate, a vacation, a t-shirt, a book, or a lamp. 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. Finally, consumers and resellers have learned how to milk the sales promotion game. C. a … Target Audience. Large Turnover and Huge Profits 5. eval(ez_write_tag([[250,250],'googlesir_com-medrectangle-4','ezslot_4',101,'0','0']));eval(ez_write_tag([[250,250],'googlesir_com-medrectangle-4','ezslot_5',101,'0','1']));Sales promotions encourage consumers to buy a different brand than the one they bought on earlier occasions. Promotions offering price deals influence the attitudes of consumers towards buying the brand. It has an insignificant long term effect, but may be used as an additional factor. Notify me of follow-up comments by email. 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). Advertising expenditure can be converted into revenues with the support of sales promotion efforts only. 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. One disadvantage of personal selling is that you cannot reach as many customers as quickly. Enter your email below to get access to Our All helpful Tips and Articles, advantages and disadvantages of sales promotion. A manufacturer may apply area-specific Strategies for sales promotion.eval(ez_write_tag([[300,250],'googlesir_com-box-4','ezslot_13',120,'0','0'])); It can also be targeted to achieve specific objectives, such as increasing repeat purchase or stock clearing. The second disadvantage of personal selling is the high cost in maintaining this type of promotional effort. Sales promotion could not be a substitute to compromise in quality and effectiveness of marketing. In case of consumer oriented deals: i. There are several reasons for this dramatic growth in sales promotion. Sales promotion has grown substantially in recent years. It is two-way communication. Sales Promotion Strategies. What are the Disadvantages of Sales Promotion? CODES (4 days ago) Some of the disadvantages of sales promotion are as follows: Sales promotion though it may seem, but is not a panacea in marketing. There is the thing that only 16% of the Trade Promotion events were profitable, based on incremental sales of brands distributed through retailer warehouses. If the attitude toward the brand has been quite low then a sales promotion is likely to encourage a switch to the promoted brand. Some other disadvantages of sales promotions are as follows: i. Related: 31 Factors Affecting the Choice of Distribution Channels (Explained). i. Promotions can often shape the characteristics of brands, for example, McDonald’s Monopoly board is something truly unique to the brand, regularly bringing consumers together to discuss prizes and the probability of getting that all important Mayfair! The Advantages of an Increase in Promotion & Advertising. In fact, it aims to provide them with reasons to make a purchase. The costs need to be carefully planned and monitored, or a sales promotion … Some of the disadvantages of sales promotion are as follows: Sales promotion though it may seem, but is not a panacea in marketing. Bring about a competitive response leading to more promotional activity, xi. Disadvantages of Discounts. (5 days ago) Sales Promotion Advantages And Disadvantages. Therefore, it will take longer to build awareness of your brand and products, especially if you use personal selling exclusively. Not suitable if there are thousands of important buyers. It has the following disadvantages: It is for a short-term. ii. Sales promotion cannot compensate for inadequate levels of consumer advertising. 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. Sales promotion cannot reverse a declining sales trend: According to research done probability of repurchase after purchasing on deal will vary according to the type of sales promotion and the cues that these promotion sent (Sawyer and Dickson 1984). Sales promotion may also help in increasing the effectiveness of advertising.eval(ez_write_tag([[250,250],'googlesir_com-leader-2','ezslot_9',107,'0','0']));eval(ez_write_tag([[250,250],'googlesir_com-leader-2','ezslot_10',107,'0','1'])); Due to sales promotions, the demand for product increases and the manufacturer can avail the benefits of Economies of scale. v. Sales promotion cannot overcome product problems in pricing, packaging, quality or performance. Sales promotion cannot built brand loyalty or enhance brand image. Advertising is a major component of promotion, and includes all messages you pay … Sales promotion cannot overcome poor product distribution. Related: 18 Reasons and the Importance of Product Innovation (Explained). In sales promotion efforts many costs, like management/ Salesforce time and effort, do not consider in the direct costs. Disadvantages of Sales Promotion Posted on May 31, 2008 by Drypen | 0 Comments 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. Promotions can conflict with the main brand messages, and Confuse the customers as to what the image really is. Can cause problems with marketing intermediaries regarding issues like payment, ii. In fact, promotion is speeding up the killing of a bad product. Sales promotion has its own advantages and disadvantages. So the selling agent can get instant feedback from the prospective buyer. Who doesn’t love free stuff? Disadvantages. (b) When there is no product improvement. Disadvantages of Sales Promotion. And brands have the opportunity to grow their fan bases, build awareness, and engage with their target audiences. Advantages. There is the thing that only 16% of the Trade Promotion events were profitable, based on incremental sales of brands distributed through retailer warehouses. 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. Before publishing your articles on this site, please read the following pages: 1. Multiple Choice A disadvantage of sales promotion is that: A) it does not add immediate value to a brand. Good for building awareness. The term sales lead also refers to the data that identifies a potential buyer of a product or service. – Answered! Sales promotion can prove useful for marketers in several ways. TOS 7. 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. Your email address will not be published. Sales Promotion and Publicity; Advantages of Personal Selling. iii. Sales promotion has its own advantages and disadvantages. Price discounting can have an adverse effect on the image of the brand and can have negative implications on brand preferences. It draws their attention to the products/services being offered. By having focus on sales promotions the firm analysis market scenario and competitors move and accordingly prepare itself.eval(ez_write_tag([[580,400],'googlesir_com-large-mobile-banner-1','ezslot_3',108,'0','0'])); eval(ez_write_tag([[336,280],'googlesir_com-leader-3','ezslot_11',124,'0','0']));Many sales promotion schemes directly or indirectly increase the Goodwill of a firm in the market due to Innovative sales promotion techniques. Advantages of Sales Promotion. Difficulty in exciting consumers with clichéd promotional offers. The classic research done by Dobson, Tybout and Sternal (1978) argued that use of promotion decrease the brand evaluation. Personal selling involves an oral presentation of the message in the form of conversation with one or more prospective customers for the purpose of making sales. Sales promotion is used to entice customers to buy a product/service. Following are the disadvantage of sales promotion: The effect of sales promotion is immediate. Advantage of … 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. When sales promotion overdoses, the emotion or the need that surrounds them disappears. Sales promotion cannot compensate for a poorly trained sales force. Sales Promotion Disadvantages. 2. It does not provide short-term increase in sales. Moderately high probability of return of unsold stock from retailers and distributors at the end of promotion, ix. eval(ez_write_tag([[468,60],'googlesir_com-large-mobile-banner-2','ezslot_6',123,'0','0']));More purchase on the part of retailers and Consumers, reduce inventory costs of the manufacturer and increase profitability. Sales promotion can be targeted on specific groups especially selected retailers … Regular customer may have some doubts about quality considerations due to excessive sales promotion. Disclaimer 9. 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. Hence they wait for discounts, stock clearing sales, monsoon sales, festive promotion deals, etc. Advantages of Advertising – 1. Disadvantages of sales promotion 1. When sales promotion is overdosed, the emotion or the need that surrounds them disappears. Social media contests are win-win opportunities for consumers and brands. What is Collective Bargaining and Why it is Important to Workers? Related: 18 Major Advantages and Disadvantages of Supermarkets. Customers expect promotions all the time, viii. Image Guidelines 5. Updated on: September 25, 2019 Leave a Comment. Sales promotion helps in increasing sales in a short span of time. Promotion refers to all marketing and communication tactics used to convey messages about your company or brand. Offer Details: The disadvantage of sales promotion though maybe the lack of effectiveness. Copyright 10. B. a rebate. A sales lead is an entity that may become a client. Sales promotion strategies can be divided into three broad types. This was supported by self-perception theory – psychological model of response to sales promotion suggested by Sawyer and Dickson (1984). Second, the increasing tendency of businesses to focus on short-term results has helped spur growth in sales promotion, which can provide an immediate boost in sales… Which of the following is a disadvantage of sales promotion as a promotional strategy? Under such circumstances, it becomes critical to understand how consumers evaluate promotions at different promotional benefit levels, vi. Can stimulate quick increases in sales by targeting promotional incentives on … more. In this buyer’s market era no business organization can afford to ignore sales promotions. Customers may become too price-sensitive and wait for promotional deals to be announced by the company.