Commercial Applications
Write short notes on : (a) Drawbacks of sales promotion, (b) Publicity
Advertising
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Answer
(a) Drawbacks of Sales Promotion:
Sub-standard Products — There is a feeling that sales promotion schemes are mainly intended to sell substandard products that are difficult to sell otherwise.
Wastage of Resources — Money spent on sales promotion could be used to lower prices instead.
Encourages Unnecessary Buying — Sales promotion can encourage consumers to buy products which they do not really need.
Cannot Create Brand Loyalty — Sales promotion creates only temporary interest, not lasting brand loyalty.
(b) Publicity:
Publicity means non-personal stimulation of demand for a product, service, or business unit by planting commercially significant news, that is not paid for by the sponsor. For example, when a Minister inaugurates a new factory, the news is reported by newspapers and television, improving the image of the company.
Publicity is an inexpensive, timely, and credible method of promotion. However, the organisation has no control over publicity. Just as good publicity can enhance the image of an organisation, bad publicity can spoil it.
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