The Sales Promotion

Sales promotions are often a good way to boost sales in the short term, they are effective in increasing sales while the sales promotion is in place. Sales promotions persuade consumer to try a product or service, they come in the form of competitions, price reductions, free gifts, coupons, samples, special displays and point of sale.

The obvious advantage to running a sales promotion is a sudden increase in sales but sales promotions can have a negative effect on a brand or business. Sales promotions often involve discounting the price of products or services to increase sales but discounting the price also discounts the brand and its values.

Things to think about before running a sales promotion:

- Its easy to damage the core values and image of a product or brand

- Often consumers switch back to their preferred brand after a sales promotion

-Some consumers will buy discounted products in bulk creating a temporary bump in sales, sales will then dip after the promotion has ended as consumer have stocked up.

The sales promotion should be used as part of a long term strategy that focuses on building and maintaining the brand, strengthening customer loyalty and winning new customers rather than the short term boost in sales.

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