Limitation of Sales Promotion

Sales promotions may include certain limitations.

A sales promotion is a marketing tool where a company uses a vehicle such as a special price or discount for a limited time period to induce customers to take a desired action. While successful promotions may prove beneficial, they can also feature certain limitations.

Time Frame

Sales promotions typically last for a specified period of time. If the promotion did not attain the desired objective---such as increasing sales or luring customers from the competition during the promotional time frame---the result could be a waste of money.

Misconceptions

A sales promotion by itself is not enough to solidify a product's position in the marketplace. If the product is of poor quality or does not meet expectations, customers may be reluctant to purchase it again in the future.

Considerations

If a product's benefits aren't clearly differentiated from other competitors in the marketplace, some customers may only purchase it when the promotion results in a lower price. As a result, the overall profit margins may also be lower than desired.

Warning

If a promotion is successful, competitors may be quick to imitate it. According to the website Reference for Business, this may limit the effectiveness of the promotion due to the appearance of "clutter" to the consumer.

References

• Reference for Business: Sales Promotion