What is sales promotion? What are the various factors that have contributed to the rapid growth of sales promotion in consumer markets?

Question

What will be an ideal response?

Answer 1

Sales promotion consists of short-term incentives to encourage the purchase or sale of a product or service. Several factors have contributed to the rapid growth of sales promotion, particularly in consumer markets. First, inside the company, product managers face greater pressures to increase current sales, and they view promotion as an effective short-run sales tool. Second, externally, the company faces more competition, and competing brands are less differentiated. Increasingly, competitors are using sales promotion to help differentiate their offers. Third, advertising efficiency has declined because of rising costs, media clutter, and legal restraints. Finally, consumers have become more deal oriented. In the current economy, consumers are demanding lower prices and better deals. Sales promotions can help attract today's more thrift-oriented customers.