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Reasons for Transaction Building Sales Promotions.

concept of selling
As noted above, although I caution against the overuse of transaction building sales promotions, circumstances frequently call for them.  For example, short term sales increases may be desired in response to a competitive situation requiring immediate action. Competitors may launch promotion activities aimed at one’s own customers,
in which case they must be defended.  I’ve even seen sales promotion used to disrupt a competitor’s field marketing research activities.
Transaction building sales promotion can also be used to adjust inventories.  The need for inventory adjustments can arise for many reasons.  Retailers may adjust product mixes in which case some products may be sold off to make way for others.  On occasion, manufacturers overproduce and require sales promotion to encourage consumers to buy more than necessary for immediate needs and store the excess for later use (i.e., “stock up”).  Seasonal merchandise must regularly be adjusted several times per year.
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