Many techniques of sales promotion motivate prospects to test new products. For many promotions, the cost of selling was ‘greater’ than the earning from the selling. Organisations design new methods to face the competition and remain the winner in the competition. v. Sales promotion cannot overcome product problems in pricing, packaging, quality or performance. B. a rebate. If it is not according to plan he can even adjust his approach or sales presentation accordingly. The costs need to be carefully planned and monitored, or a sales promotion … The disadvantage of sales promotion though maybe the lack of effectiveness. Related: Process of Price Determination with Examples (Step by Step). Advantages of Sales Promotion. Disadvantage: Changes Customers' Price Perceptions The short-term motive of sales promotions can work against the typical long-term goals of companies, including creating customer loyalty. Sales promotion cannot compensate for a poorly trained sales force. Sales promotion can permit price discrimination. 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. Out in case of sales promotion, it is relatively easier to design and implement your activities; you can calculate your costs and its effects on the sales accordingly. This generates demand for the product. 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. Regular customer may have some doubts about quality considerations due to excessive sales promotion. Sales promotion cannot built brand loyalty or enhance brand image. The number of sales promotional activities to be performed are too many, distribution of free samples and gifts, making such offers as price off and money refund, holding contests, participating in trade fairs and exhibitions, display and demonstration of goods and so on. There is the thing that only 16% of the Trade Promotion events were profitable, based on incremental sales of brands distributed through retailer warehouses. Some other disadvantages of sales promotions are as follows: i. Customers may become too price-sensitive and wait for promotional deals to be announced by the company. Generally only short term in their effects, iv. Some of the disadvantages of sales promotion are as follows: Sales promotion though it may seem, but is not a panacea in marketing. 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. Moderately high probability of return of unsold stock from retailers and distributors at the end of promotion, ix. A sales lead is an entity that may become a client. ii. Before publishing your articles on this site, please read the following pages: 1. The Advantages of an Increase in Promotion & Advertising. 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. By using sales promotion firm may remain in the memory of the king of the market and ensure their survival. Related: 18 Major Advantages and Disadvantages of Supermarkets. Large Turnover and Huge Profits 5. iii. Possibly the biggest disadvantage of selling is the degree to which this promotional method is misunderstood. 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. more. ii. In fact, it aims to provide them with reasons to make a purchase. Related: Top 7 Powerful Techniques of Inventory Control for Stock Management. 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 cannot change basic consumer non-acceptance of the product. Good for building awareness. Disclaimer 9. Information about Different Options and Comparative Prices 6. 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