What are the risks of sales promotion? - ProProfs Discuss
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What are the risks of sales promotion?

What are the risks of sales promotion?

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Asked by Kcarter, Last updated: Sep 15, 2021

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e.Ronald

e.Ronald

e.Ronald
E.Ronald

Answered Jan 03, 2018

In stores, there are times when items will not sell. For instance, if it is near the end of the summer, a store may put their swimsuits on sale. This is because the season for swimsuits is almost over. The store wants to clear their shelves for other items. So, the store may have a sales promotion. They may reduce the price or do other methods in order to sell these products.

However, there are problems to a sales promotion even though it sounds like a good idea. Some of the problems may be that this borrows from future sales because a person may come in to buy an item, but buys the item on sale instead because of the low price. Other risks include price orientation, alienating customers and time, expense and legality.

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