Sales promotions if they are so effective, why do many sales teams and retailers dislike them?

❺ Sales promotions – if they are so effective, why do many sales teams and retailers dislike them? Sales promotions enable a brand to present a value proposition, such as ‘more for the same’ or ‘more for less’. It is often explicit from on-pack offers that a company, such as the one behind the Coca-Cola brand (Coca-Cola Amatil Ltd, or CCA), is the hero when such value is added for the consumer. Retailers would like to be seen as the hero and make deep price cuts, paid for by the supplying company, to lift their unit and dollar sales. In doing so, their margin is protected by the supplying company so they make a lot more than when a marketing company diverts its centsoff budget away from the sales team’s direct control (and therefore the retailer’s margin) and into sales promotions. Thus, when the sales team loses an opportunity to maintain or enhance the relationship with retail buyers, members of the team, too, may lose sight of their company’s aim of making profitable sales. If you feel particularly brave, debate this perspective with a member of a sales team. (Learning Objective 4) (AACSB: Reflective Thinking)

Critical thinking exercises