Disadvantages or Limitations of Sales Promotion
Sales promotions are vital for companies to increase sales and project their brand names. Sales promotion has its own advantages and disadvantages. When sales promotion is overdosed, the emotion or the need that surrounds them disappears.
(i) Reflects Crisis: If a firm frequently rely 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) Miscommunications: As with the majority of sales promotions, either the dealer or the business that offer the product do not benefit as much like before. Sales promotion is a calculated risk, but it needs to be carefully planned and managed to be truly effective. Sales promotions should be advertised to let the customers know of the special offer.
(iii) 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.
(iv) Price sensitivity: Sales promotions can be disadvantageous when they are offered quiet regularly. The key to success with an effective sales promotion is its irregular supply, and when it is a surprise for the customer. If it is done too often, it creates price sensitivity among customers.
(v) Spoils Product Image: Continuous use of sale promotion tools also affects the product image. The customer may develop an impression that “products sold through sales promotion are overpriced & of poor quality etc.”