The truth about effects of sales promotions
It is generally accepted that promotions help to attract new buyers of FMCG products and help to reward existing buyers. Therefore manufacturers spend yearly millions to gain and retain the consumers’ trust. On the one hand managers should consider whether all these efforts have the desired effect, especially during periods of economic downfall and increasing pressure on marketing budgets. On the other hand the wallet of the consumer is limited and promotions might just pull him over to buy a certain product or influence their future in-store decision behaviour.
