Sales Promotion Class 12 Notes | Merits and Limitations of Sales Promotion

Sales Promotion Class 12 explains the techniques used by firms in promoting their product so that sales can be increased. The concept, merits and limitations of sales promotion are given below.

Sales Promotion Class 12

Sales promotion is the method of promotion in which incentives are given to potential buyers so that they make an immediate purchase and become actual buyers. This method is useful for boosting the sales of the products. These are the nonroutine incentives that are offered to attract customers and also dealers.

There are several sales promotion techniques that are commonly used for a long time now. These include free samples, contests, discounts, additional products, bonuses, dealer discounts, dealer competitions, special offers, etc.

Merits of sales promotion

There are various benefits of sales promotion for customers, organizations, and middlemen. They are as under:

Attention value

According to sales promotion class 12, People are likely to get attracted to customers because of the incentives offered. We have seen a large number of people outside the store where the sale gets started; this is because of the attraction of people towards the offer.

Useful in new product launch under Sales Promotion Class 12

People are usually afraid to try out new things and new products and to remove this constraint it becomes important to give them some incentive to try out something new. During the launch of new products or the introduction of new services, sales promotion activities give huge benefits.

Synergy in total promotional efforts 

It is not necessary to only go for one promotional tool. Many organizations use a mix of various promotional techniques and sales promotion will help in boosting the effectiveness of other techniques.

Limitations of sales promotion Class 12

The limitations of the sales promotion class 12 are as under:

1. Spoils product image: sales promotion technique means giving incentives to people so that they get attracted towards the product. This can spoil the image of the company as the customers may get the thought that products are either not of good quality or are not rightly priced and that is the reason that the company is offering them for sale or giving additional products.
2. Reflects crisis: frequent use of sales promotion techniques is not good for the company as it gives an impression that the company is not in a position to manage the sale of the product or the product is not of good quality.

Sales promotion class 12 explains both the merits and limitations of sales promotion class 12 and concludes that sales promotion techniques should be used wisely as to get the maximum benefit from them.

BST Chapter 11 – Marketing

1. Marketing Management
2. Marketing Management Philosophies
3. Functions of marketing
4. Marketing mix
5. Products – Classification of Products
6. Branding
7. Packaging – Levels , Functions & Importance
8. Labelling
9. Pricing – Factors affecting Price of a Product or Service
10. Components of Physical Distribution
11. Channels of Distribution
12. Advertising – Benefits, Limitations, Objections
13. Personal selling
14. Sales promotion
15. Publicity – Characteristics and Objectives