Page 5 - Lesson Note 7
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(ii) Useful in New Product Launch: Sales promotion tools can be very effective at the time
of introduction of a new product in the market. It induces people to break away from
their regular buying behavior and try the new product.
(iii) Synergy in Total Promotional Efforts: Sales promotion activities are designed to
supplement the personal selling and advertising efforts used by a firm and add to the
overall effectiveness of the promotional efforts of a firm.
Limitation of Sales Promotion
(i) Reflects Crisis: If a firm frequently relies on sales promotion, it may give the impression
that it is unable to manage its sales or that there are no takers of its product.
(ii) Spoils Product Image: Use of sales promotion tools may affect the image of a product.
The buyers may start feeling that the product is not of good quality or is not
appropriately priced.
