Answer:
Advertising is any paid form of non-personal presentation & promotion of ideas, goods, or services by an identified sponsor. Advertising offers reason to buy, sales promotion offers an incentives to buy. Advertising is intended to persuade and to inform. Sales Promotion are short-term incentives to encourage the purchase or sale of a product or service. There are several methods of sales promotion for e.g. Price promotions, coupons, gifts with purchase, competition & prizes, money refunds, frequent user/loyalty incentives, point of sale displays namely.
Several factors contributed to this rapid growth particularly in consumer markets; they are…
• Promotion is now more accepted by top management as an effective sales tool.
• More Products managers are qualified to use sales promotion tools & Product managers are under greater pressure to increase current sales.
• The number of brands increased.
• Competitors use promotions frequently.
• Many brands are seen as similar.
• The trade has demand more deals from manufacturers.
• Advertising efficiency has declined because of rising costs, media clutter & legal restraints.
Advertising , which was once considered the most superior component of the promotion mix has recently come in encounter with a barrage of rivals, some of them being innovations of the contemporary era while the others being the respective counterparts of advertising in the conventional promotion mix. A component belonging to the latter context is sales promotion .
Sales promotion activities not only generate instant results by offering extra incentives but also become a source of motivation for people to respond. Moreover it gives bottom-line results to the marketer, has a convenient mode of evaluation and is far less expensive than the incorporation of advertising. Another very important attribute of sales promotions is the fact that it addresses the most current needs of customers thus managing to increase product value as well as brand value. Lastly sales promotion activities are the swiftest mode of promotions when it comes to the challenge of dealing with marketplace changes. Sales promotion not only gives you quicker results but also targets customers, retailers and company force. This might be the reason of its rapid growth.
Advertising is any paid form of non-personal presentation & promotion of ideas, goods, or services by an identified sponsor. Advertising offers reason to buy, sales promotion offers an incentives to buy. Advertising is intended to persuade and to inform. Sales Promotion are short-term incentives to encourage the purchase or sale of a product or service. There are several methods of sales promotion for e.g. Price promotions, coupons, gifts with purchase, competition & prizes, money refunds, frequent user/loyalty incentives, point of sale displays namely.
Several factors contributed to this rapid growth particularly in consumer markets; they are…
• Promotion is now more accepted by top management as an effective sales tool.
• More Products managers are qualified to use sales promotion tools & Product managers are under greater pressure to increase current sales.
• The number of brands increased.
• Competitors use promotions frequently.
• Many brands are seen as similar.
• The trade has demand more deals from manufacturers.
• Advertising efficiency has declined because of rising costs, media clutter & legal restraints.
Advertising , which was once considered the most superior component of the promotion mix has recently come in encounter with a barrage of rivals, some of them being innovations of the contemporary era while the others being the respective counterparts of advertising in the conventional promotion mix. A component belonging to the latter context is sales promotion .
Sales promotion activities not only generate instant results by offering extra incentives but also become a source of motivation for people to respond. Moreover it gives bottom-line results to the marketer, has a convenient mode of evaluation and is far less expensive than the incorporation of advertising. Another very important attribute of sales promotions is the fact that it addresses the most current needs of customers thus managing to increase product value as well as brand value. Lastly sales promotion activities are the swiftest mode of promotions when it comes to the challenge of dealing with marketplace changes. Sales promotion not only gives you quicker results but also targets customers, retailers and company force. This might be the reason of its rapid growth.
