4+ Advantages & Disadvantages of Sales Promotions

4+ Advantages & Disadvantages of Sales Promotions | tinobusiness
4+ Advantages & Disadvantages of Sales Promotions | tinobusiness

The promotional sales are vital for every business who want to increase sales and interest to/in the company. When it’s used moderately careful planning, this promotion increases sales, even after the developments are completed. When used too regularly, emotion or urgency around them disappears.

Advantage – Creates urgency

Sales promotions draw attention to a particular product or service being offered. Distinguish one company from the competition through prices. Sales Dryden explains that when sales promotions are offered for a limited time, it creates urgency among clients because they have to act before the expiry of the promotion. As a result, the limited supply reduces the time customers have to think about the product. In most cases, they fail to compare alternatives and buy the item or service offered.


Advantage – Maintain trade flows

Maintaining trade flows between distributors and retailers is an advantage of sales promotions. This refers to products that have a certain lifespan, as well as items that do not. For business, this means that the items are regularly replenished with items that have been recently made. Also encouraged dealers to buy more of the items and make sure you always have an adequate supply of sales, says Dryden. Very often, suppliers/distributors purchase items according to how often merchandise sold. Therefore, if an article of sales are particularly slow, dealers/suppliers are less likely to buy this item regularly, so it’s more likely to run out of reserves.


Disadvantage – miscommunications


As with most sales promotions, either the distributor or the business offering the product they will not benefit as much. It is a calculated risk but needs to be planned and managed carefully to be truly effective. Sales promotions are advertised to inform customers of the special offer. If there is a discrepancy between what is published and the real deal, it will be viewed negatively by the public, says HKTDC. Retailers and distributors should ensure that any promotion is honored to be published, or special offer will act against the company, possibly tarnishing its reputation.


Cons – price sensitivity

Sales promotions are a disadvantage when offered with great regularity. The key to their success is their irregular supply, taking customer off guard and unprepared. If done too often creates sensitivity to prices among customers. Dryden price sensitivity described as the intentional expected by customers to buy things only when promoted into a sale rather than buy at the regular retail price. The benefits are reduced.

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