Question

Write a short note on the drawbacks of sales promotion.

Answer 1

1. The incentives offered through sales promotion schemes are artificial and not real. The manufacturer is likely to recover the cost of these incentives by raising the price of products.
2. Sales promotion schemes are offered only during particular seasons. Therefore, they produce short-term results. As soon as the incentives are withdrawn, the demand also falls.
3. There is a feeling that sales promotion schemes are mainly intended to sell a substandard product.

Answer 2

1. Many times, it is used to sell an inadequate brand.
2. It is a waste of resources; money spent on promotion could be used to lower the prices.
3. It can encourage consumers to buy products which they do not need.
4. Its effects are only short-term.
5. It cannot create brand loyalty.