Question

What are the advantages and disadvantages of sales promotions and public relations?

Answer 1

Sales Promotions:

Advantage-

1) Sale promotion will increase the sale by offering discounts.

2) It will also increase the customer base for the company by furnishing attractive offers and increase customer's perception value by offering discount.

3) Able to reduce the pile up inventory for the compay which increases inventory holding cost

4) Ability to upsell and cross sell for the company product.

5) Ability to sell the slow moving good with fast moving good by combining the both category products.

Disadvantages:

1) Reduces customer loyality as changing the behaviour of customers from regular price pad customer to low price paid customer by furnishing regular discounts.

2) Margin or profit for the company will reduce.

3) Reduce brand value for high branded companies because of offering discounts reduces the brand premium of the products.

Public Relation:

Advantages-

1) It is one of most effective and cost effective marketing strategy. It is very low cost promotion compared to others.

2) Various mode/channels to communicate the same story about the product of the company such as same product launch story publish in newspaper, news channels and social media etc.

3) A well developed PR campaign see the great and fast result by targeting the most appropriate market/consumer.

Disadvantages:

1) The success of a PR campaign will be hand on good PR execute company such as new channel which can distroy the product for the company by publish the good context but with negative intention.

2) No control to exposure and hard to measure to compare and contrast impact across the published story.

3) Need to target the appropriate channel and media to target the correct segment of consumers.