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DISADVANTAGES OF SALES PROMOTION


DISADVANTAGES OF SALES PROMOTION

        Despite its recent widespread use as the an important element of marketing campaigns the essence of sales promotion is that it is intended as a very short-term influence on ‘sales’. It has an insignificant long-term effect, but may be used as additional factor.

(1). Short-term: The effect of sales promotion is immediate. These is rarely any lasting increase in sales when sales promotion schemes are discontinued sales become immediately low. Heavy use of sales promotion may quality-image dilution.

(2). Hidden Costs: In sales promotion efforts many costs, like management sales force time and effort, do not considered in the direct costs. These costs reduce the actual benefit.

(3). Decrease in Brand Loyalty: Promotions can conflict with the main brand message, and confuse the customer as to what the image really is. Regular customer may have some doubts about quality considerations due to excessively sales promotions.

(4) Price Sensitivity: Sales promotion can persuade users to expect a lower price in future, and potentially damage ‘quality’. It is general tendency among buyers to anticipate more and more price reductions which is not good for long-term reputation of the firm.

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