Week 11 Journal Sales Promotion

Quality image may be compromised

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Quality image may be compromised: If the promotions in a product category have been rare, the promotions could have a negative effect about its quality image. Consumers may start suspecting that perhaps the product has not been selling well, the quality of the product is true compared to the price or the product is likely to be discontinued because it has become outdated.
Let’s take a simple deal like Buy 1 get 1 free for instance, ultimately people stopped asking for the product as the on-going sales promotion strategy made the customers perceive it to be a cheap and an inferior product. So, they will wait for it to be on sale again or they will buy in bulk and not come again for a long time. This can make the stock last for a long time and specially for small retailers it is a big loss

Merchandising support is doubtful: In many cases, the dealers do not cooperate in providing the merchandising support nor do they pass on any benefit to consumers. The retailer might not be willing to give support because he does not have the place, or the product does not sell much in his shop or maybe he thinks the effort required is more than the commission/benefit derived.

Short term orientation: Sales promotions are generally for a short duration.  This gives a boost to sales for a short period. This short-term orientation may sometimes have negative effects on long-term future of the organization. Promotions mostly build short-term sales volume, which is difficult to maintain.  Heavy use of sales promotion, in certain product categories, may be responsible for causing brand quality image dilution.

So, when it comes to sales promotion it has to be very well thought off and it should be effective for long term. There are lot of disadvantages if we think beyond the short-term period. Companies should come up with strategies which are win-win and not only customer oriented as it can make them suffer.
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