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Many academics consider that sales promotion is, essentially, a short-term, tactical device which has no lasting effect on the brand franchise. Why is this view flawed, and what are the longer-term strategic benefits of sales promotion?
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- 2899
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- Mon Feb 16 2004
Have a little read: ... Many academics consider that sales promotion is, essentially, a short-term, tactical device which has no lasting effect on the brand franchise. Why is this view flawed, and what are the longer-term strategic benefits of sales promotion? During the last two decades, the allocation of promotional sterling has moved increasingly from advertising to sales promotions. In the 1960s and the 1970s managers channelled as much as 60 percent of their budget to advertising, compared with today companies spend as much as 70 percent of their promotional budget on sales promotion (Ghosh, 1997) and the total spending in the UK is some £300 million per annum (Admap, 2003, March). There are a number of reasons this shift has taken place, such as the escalating media costs, managerial short-term focus, the increasing demand for managerial accountability and changes in consumer decision making (Stewart et al, 1998). Another factor that has contributed in tipping the
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