Question

Describe the role of sales promotion.

Describe the role of sales promotion in promoting a brand.

Answer 1

1. Boosting Immediate Sales: Sales promotions quickly boost sales by offering customers immediate value, such as discounts and deals.

2. Clearing Inventory: Sales promotions can help clear out excess stock, making room for new products and reducing storage costs.

3. Creating Urgency: Limited-time offers create a sense of urgency, encouraging customers to make quick purchase decisions to take advantage of the promotion.

4. More profits: Sales promotion helps to increase the sales and thereby profits to the seller.
5. New products: Sales promotion helps to launch new products and to make immediate sales.
6. Off-season: It helps to maintain the demand even during the off-season.
7. Habit: Schemes like free sample and trial make the consumer habitual of the product.
8. Stock clearance: Sales promotion helps to clear the overdue stock.
9. Low cost: It creates mass markets and hence reduces the cost of production through the economies of large-scale production.