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Question
Write a short note on the drawbacks of sales promotion.
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Solution 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.
- 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 As soon as the incentives are withdrawn, the demand also falls.
- There is a feeling that sales promotion schemes are mainly intended to sell a substandard product.
Solution 2
- Many times, it is used to sell an inadequate brand.
- It is a waste of resources; money spent on promotion could be used to lower the prices.
- It can encourage consumers to buy products which they do not need.
- Its effects are only short-term.
- It cannot create brand loyalty.
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