Advertisements
Advertisements
Question
Write short notes on Drawbacks of sales promotion.
Advertisements
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 As soon as the incentives are withdrawn, the demand also falls.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
Write a short note on the drawbacks of sales promotion.
- 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.
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.
Mansi took her niece, Ridhima, for shopping to 'Mega Stores' to buy her a bag for her birthday. She was delighted when on payment of the bag she got a pencil box along with the bag free of cost.
Identify the technique of sales promotion used by the company.
______ is directed towards consumers and traders with the intention to increase immediate or short-term sales.
"It consists of all promotional activities other than advertising, personal selling and publicity that helped to increase sales through non-repetitive and one time communication". What is it?
Which function of management helps in increasing sales?
Define sales promotion.
Give any two advantages of Direct Mail Advertising.
Which of the following is the sales promotion tool?
What is meant by 'premium offer'?
Describe the role of sales promotion.
