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ADVANTAGES OF SALES PROMOTION

ADVANTAGES OF SALES PROMOTION

           Sales promotion is an essential element in this competitive age to survive and grow. In this buyer’s market era no business organisation can afford to ignore sales promotions. Advertising expenditure can be converted into revenues with the support of sales promotion efforts only. By using sales promotion firms may remain in the memory of the king of the market and ensure their survival.

1. Increase in Sales: Sales promotion helps in increasing the sales in short span of time. It can eliminate idle cycle in some specific goods.

2. Change of Attitude: Promotion offering price deals, influence the attitude of consumers toward buying the brand. Consumer’s price perception may have significant effect on attitude of consumer.

3. Brand Switching: Sales promotion encourage consumers to buy a different brand than the one they bought on earlier occasions. If the attitude toward the brand has been quite low then a sales promotion is likely to encourage a switch to the promoted brand. Displays at the point-of-purchase may induce brand switching.

(4) Target Audience: Sales promotion can be targeted on specific groups especially selected retailers and their customers. Manufacturer may apply area specific strategies for sales promotion.

(5) Specific Objectives: It can also be targeted to achieve specific objectives, such as increasing repeat purchase or stock clearing. Sales promotion can permit price discrimination.

(6) Indirect Roles: Sales promotion can also be used to achieve other objective, such as widening distribution or “shelf facing”. Sales promotion may also help in increasing the effectiveness of advertising.

(7) Reduced Costs: Due to sales promotion demand of product increase and manufacturer can avail the benefits of economies of scale. More purchase on the part of retailers and consumer, reduce inventory costs of manufacturer and increase profitability.

(8) Demand Creation For New Products: Many technique of sales promotion motivate prospect to test new products. Sales promotion techniques stimulate the desire in consumers to go for the promotion product with more quantity. This generates demand for the product.

(9) Competitive Advantages: Organisation design new methods to face the competition, and remain winner in the competition. By having focus on sales promotions the firm analyse market scenario and competitors move and accordingly prepare itself. It helps the firm to remain competitive.

(10) Goodwill: Many sales promotion schemes directly or indirectly increase the goodwill of firm in the market due to innovative sales promotion techniques. Sales promotion schemes keep the name and brand of product in the mind of people, which contribute to the goodwill of the firm.

(11) Prolong Life Cycle: Sales promotion techniques helps in increasing the life span of product different stages of product life cycle. Using sales promotions maturity stage of the product can be prolonged and the firm can generate more and more revenues.

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