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Sales promotion cannot built brand loyalty or enhance brand image. Although sales promotion is an important strategy for producing quick, short-term, positive results, it is not a cure for a bad product, poor advertising, or an inferior sales team.
As with most sales promotions, either the distributor or the business offering the product are not profiting as much as previously. It is a calculated risk, but one that needs to be planned and handled carefully to be truly effective. Sales promotions are usually advertised to inform customers of the special offer.
Promotions in sales are a disadvantage when they are offered too regularly. The key to making them successful is offering them irregularly, catching the customer off guard and unprepared. If they are provided too regularly then they create price sensitivity among customers.
Thanks Krishna !
The last and unique solution with sales promotion !
many disadvantages like
1- people think they shouldn't buy just wait promotion to buy
2- the days with out promotion call it in sales(lazy days)
3- the buyers calculate the prices on only promotion's price which is not real
4- forcing the company to do promotion the sell it reseeded goods
sales promotion disadvantage is I think is only is that the product not openly marketed in open market.
While sales promotion is a powerful and effective method to produce immediate short term positive results, it is not a cure for a bad product or bad advertising. In fact, a promotion is speed up the killing of a bad product.
1. Increased 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.
‘The Diwali Bonanza Offers’ on electronic goods.
2. Quality image may become tarnished:
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quality of the product is true compared to the price or the product is likely to be discontinued because it has become outdated.
The Smyle Powder offer of “Buy1 and get2 free” went on and on. 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.
3. Merchandising support from dealers 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 may be he thinks the effort required is more than the commission/benefit derived.
4. 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.
1- Sales promotion cannot compensate for inadequate levels of consumer advertising.
2- Sales promotion cannot overcome product problems in pricing, packaging, quality or performance.
3- Sales promotion cannot compensate for a poorly trained sales force.
4- Sales promotion cannot overcome poor product distribution.
5- Sales promotion cannot compensate for a lack of consumer advertising.
6- Sales promotion is generally only short term in their effects
7- Price discounting can have an adverse effect on the image of the brand and can have negative implications on brand preferences.
8- Short-term sales peak caused by sales promotions may be followed by a trough as the consumers go on using the stocks, over-purchased during the offer period
9- Customers expect promotions all the time
10- Ineffective promotion may cause the extra stock to stay too long on the shelves, so that they could be in poor condition at the time of purchase, leading to consumer dissatisfaction
Thank you all for your good answers. I may also mention a few.
DISADVANTAGES OF SALES PROMOTION.
1. It has the shortest life impact as promotion tool like advertisement..
2. It is only a supplementary device of personal selling and advertising
3. In most of the cases, too much sales promotion may damage the brand image.
4. Sales promotion techniques are non-recurring in their nature
the most important thing from my point of view is in the positioning
your product or services could be affected negatively by using sales promotions.
Selling the product at a lower margin of profit doesn't build a good financial or image of the brand.
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