* One reason for increase in sales promotions the power shift in the marketplace from manufactures to retailers. * Retailers use information to analyze sales of manufactures’ products and demand discount and other promotional support from manufactures of lagging brands. * Ex: Wal-Mart has become the largest company in the world as well as the most powerful retailer.
* Another major advantage of sales promotion is the consumers have become less brand loyal and purchase more on convenience, value and basis of price. * Many consumers are loyal coupon user, they will purchase whatever brand is on special or they have a coupon. * Ex: Watson will offer coupons for the consumer, so that consumer will to go Watson purchase rather Guardian.
* Marketers can get the short-term focus on performance and sales through the sales promotion. * Brand managers use sales promotion not only introduce new products or defend competition but also to meet yearly sales and market share goals. * Ex: AEON Company can get a large value of sales in the AEON member day.
* Sales promotion also can increase the accountability of a company. * Many companies are demanding measurable, accountable ways to relate promotional expenditures to sales and profitability. * Ex: Managers are being held accountable to produce results often use price discounts or coupons.
* Another advantage of sales promotion is gain or maintains competitive advantage. * Many marketers more focus of their promotional budgets into sales promotions rather than media advertising. * Ex: Unilever launched its new Sunsilk hair spray line the company developed 14 different account-specific promotions to get retailers to stock and promote the brand.