For the company growing, to increase the sales is the key to profitability. Through strong forceful promotion, the firm is possible to increase its brand awareness and reputation, also to expand market share, and to gain an advantageous position among the competition by using the alternative strategies, such as: Advertising; Personal Selling; Sales Promotion and Public Relations. In the following section, it will shows the advantage and disadvantage of each strategy, and the most appropriate strategy to successfully market a new backpack.
Promotion Strategy ------------Advertising:
Advertising is a method used by businesses, companies and other organisations, which is a activity of producing information for promoting the sale of commercial …show more content…
It enables the manufacturer to expand his market and helps in exploring new markets for the product and retaining the existing markets. Also, it is greatly helpful in meeting the forces of competition prevalent in the market. In other hand, it increase the goodwill. It introduces the manufacturer and his product to the people. Repeated advertising and better quality of products brings more reputation for the manufacturer (Smriti Chand, 2015) and enhances goodwill for the concern.
Disadvantage:
Advertising lead an organisation has to spend large amount of money, hence it increases the cost of the backpacks. To meet this expenditure, price of the product is raised. No manufacturer pays for the advertising expenses out of his pocket (Saritha Pujari, 2015). Therefore, leads to unnecessary rise in prices.
Promotion Strategy ------------Personal …show more content…
It designed to stimulation of sales achieved through discounts, demonstrations or trade shows, etc.
Advantages
Sales promotions are effective way to achieve a quick boost to sales, and it drives customer decision making, encourages customers to trial the product or switch brands. The most important thing is it is a great way to build year-over-year and month-over-month revenue growth.
Disadvantages
Sales promotions are generally for a short duration. Which gives a boost to sales for a short term, however, sometimes it may lead to negative effects on long-term. Such as increased price sensitivity, consumers may wait for the discount then buy the product, which make the routine sales (normal price) are lost and the profit margin reduce because of the discount to be offered during sale-season. In other hand, it may caused the tarnish on quality image, and damage the brand image.
Chosen
Promotion Strategy ------------Advertising:
Advertising is a method used by businesses, companies and other organisations, which is a activity of producing information for promoting the sale of commercial …show more content…
It enables the manufacturer to expand his market and helps in exploring new markets for the product and retaining the existing markets. Also, it is greatly helpful in meeting the forces of competition prevalent in the market. In other hand, it increase the goodwill. It introduces the manufacturer and his product to the people. Repeated advertising and better quality of products brings more reputation for the manufacturer (Smriti Chand, 2015) and enhances goodwill for the concern.
Disadvantage:
Advertising lead an organisation has to spend large amount of money, hence it increases the cost of the backpacks. To meet this expenditure, price of the product is raised. No manufacturer pays for the advertising expenses out of his pocket (Saritha Pujari, 2015). Therefore, leads to unnecessary rise in prices.
Promotion Strategy ------------Personal …show more content…
It designed to stimulation of sales achieved through discounts, demonstrations or trade shows, etc.
Advantages
Sales promotions are effective way to achieve a quick boost to sales, and it drives customer decision making, encourages customers to trial the product or switch brands. The most important thing is it is a great way to build year-over-year and month-over-month revenue growth.
Disadvantages
Sales promotions are generally for a short duration. Which gives a boost to sales for a short term, however, sometimes it may lead to negative effects on long-term. Such as increased price sensitivity, consumers may wait for the discount then buy the product, which make the routine sales (normal price) are lost and the profit margin reduce because of the discount to be offered during sale-season. In other hand, it may caused the tarnish on quality image, and damage the brand image.
Chosen