Advertisements
Advertisements
Question
Discuss the advantages of sales promotion.
Advertisements
Solution
Sales promotion activities offer the following advantages:
- Low Unit Cost: The cost of sales promotion per unit is quite low.
- Sales Support: Sales promotion provides strong support to personal selling and advertising. It serves as a bridge between them.
- Faster Product Acceptance: Sales promotion makes a product acceptable to consumers faster than any other technique of promoting sales.
- Effective Control: Management can have an effective check on the results achieved through sales promotion schemes. The costs incurred in and the benefits derived from these schemes can be analysed.
- Best for New Products: Sales promotion efforts are best suited for new products. Sales promotion provides access to a large market and personal contacts with customers and dealers. Need for sales promotion activities has increased due to growing competition, proliferation of brands, trade pressures, and the need for quick returns.
APPEARS IN
RELATED QUESTIONS
Sika Ltd., a reputed industrial machines manufacture, needs Rupees twenty crores as additional capital to expand the business. Mr Amit Joshi, the Chief Executive Officer (CEO) of the company wants to raise funds through equity. The Finance Manager, Mr Narinder Singh, suggested that the shares may be sold to investing public through intermediaries, as the same will be less expensive.
Name the method through which the company decided to raise additional capital.
______ is directed towards consumers and traders with the intention to increase immediate or short-term sales.
Which function of management helps in increasing sales?
Which of the following is more of a personal medium of advertisement?
______ is non-repetitive one-time communication that helps to increase immediate sales.
Which of these best describes the objective of sales promotion?
Advertising is ______ than personal selling.
Enumerate the various promotional techniques used by business firms to boost sales.
Explain drawbacks of sales promotion.
Define the term 'promotion'.
