Week 11 Journal Sales Promotion

Creates Up-sell and cross-sell opportunities

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Creates Up-sell and cross-sell opportunities: If a promotion is based around giving money off a next order or something in a similar vein, then it can hold valuable opportunity to get sales around another product.

Disadvantages of Sales promotion
Increase in price sensitivity: Consumers wait for the promotion deals to be announced and then purchase the product.  This is true even for brands where brand loyalty exists.  Customers wait and time their purchases to coincide with promotional offers on their preferred brands. Thus, the routine sales at the market price are lost and the profit margin is reduced because of the discounts to be offered during sale-season. This happens specially for luxury items like TV, Mobile phones etc. Consumers will start to wait for deals and buy only then which will decrease the overall sales of the company

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