According to research undertaken by Price Waterhouse Coopers, trade promotions can add 10-15% to … Respond to at least two of your classmates’ posts. These promotions require the selling of a large number of goods for smaller profit margins. Key Points. In fact, a promotion is speed up the killing of a bad product. 15 Main Advantages and Disadvantages of Sales Promotion . Coupons and rebates provide useful information about how pricing influences consumers’ buying behavior. These include: Helps Create Awareness of New Products – Sales promotion is a highly effective methods for exposing customers and business partners to new products and for moving customers to take an action (e.g., sample a product). 2. Can cause problems with marketing intermediaries regarding issues like payment The Disadvantages of Promoting From Within | Bizfluent. The Trade Act of 1974 first gave trade promotion authority to President Nixon. Benefits of Trade Show: These six key benefits of trade show are: 1. 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Marketing and promotional strategies can provide businesses with a number of benefits, ranging from upticks in sales to brand building and increased market share. Advantages of Sales Promotion. A motivated distribution channel will push to the end customer. Heavy use of sales promotion, in certain product categories, may be responsible for causing brand quality image dilution. You can use trade promotions to enhance your sales and increase your market placement. Expert Answer . The following two tabs change content below. Happy Maharana Pratap Jayanti 2014 SMS, Sayings, Quotes, Text Messages, Status For Facebook, WhatsApp Messages. Customers wait and time their purchases to coincide with promotional offers on their preferred brands. An increase in order size. Incorporate concepts and examples from this week’s lecture in your post. List of the Advantages of a Promotional Pricing Strategy. Forward buying of excessive stocks on deals or quantity discounts can lead to diversion of some of the stocks in non-deal areas. Trade promotion decisions are often rushed and based on … For many promotions, the cost of selling was ‘greater’ than the earning from the selling. 4 Second, controlling purchase quantities for temporary off-invoice allowances and other special discounts is problematic. Increased price sensitivity : Frequently promoted brands in the product category, especially on the basis of price, make consumers and traders more price sensitive not only for the promoted brands but for other brands as well in the same product category. This articles lists the various Objectives of Trade Promotions and advantages of trade promotions. The retailer might not be willing to give support because he does not have the place, or the product does not sell much in his shop, or may be he thinks the effort required is more than the commission/benefit derived. 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