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Question
Discuss the advantages of sales promotion.
Solution
Sales promotion activities offer the following advantages:
- Low Unit Cost: The cost of sales promotion per unit is quite low.
- Sales Support: Sales promotion provides strong support to personal selling and advertising. It serves as a bridge between them.
- Faster Product Acceptance: Sales promotion makes a product acceptable to consumers faster than any other technique of promoting sales.
- Effective Control: Management can have an effective check on the results achieved through sales promotion schemes. The costs incurred in and the benefits derived from these schemes can be analysed.
- Best for New Products: Sales promotion efforts are best suited for new products. Sales promotion provides access to a large market and personal contacts with customers and dealers. Need for sales promotion activities has increased due to growing competition, proliferation of brands, trade pressures, and the need for quick returns.
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