Question

Define sales promotion and discuss its advantages and disadvantages in comparison to advertising.

Answer 1

sales promotion is element of the promotional mix it refers to the action that we take to make the customer buy the product orr services.It is used to increase the sales of the company.

following are the methods of sales promotion--

• free gifts
• discounted pricing
• free samples
• financing options
• coupons or vouchers
• joint promotions
• promotional offers like buy 1 get 1 free

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Advantages of sales promotion over advertising--

• in sales promotion manufacturers who sell their goods and services directly to the customers can increase their sales volume by using the promotional techniques like coupons , offers etc .
• in sales promotion unlike the advertising we focus on quality and customers satisfaction and this results in increase in sales.
• In sales promotion the seller can use their representatives who can interact directly with the customers unlike the advertising which repeats a message through broadcasting media.

Disadvantages of Sales promotion over advertising-

• sales promotion would not be able to spread much awareness among the customers whereas advertising is a method which percieves the minds of the customers and creates a need for the product or service.
• Sales promotion is a short term advantage to the company it is not suitable for the long term
• sales promotion could increase the sales but on the other hand the revenue generation can be less,