The following are the merits or benefits of sales promotion:
- Invitation – They include a distinct invitation by alluring customers to consider or try out the new product that encourages customers to make purchase of the product.
- Differentiation – Sales promotion is conducted when producers have a new product to launch which is different from the existing products. Sales promotion compels consumers to identify the new product differently through sales promotion.
- Pricing strategies – Sales promotions enable producers to adjust short-term variations of supply and demand of products. Based on this they can test the highest price they can charge on the product and the possible discount price they can offer to the customers.
- Consumer satisfaction – Customers enjoy some satisfaction from being smart shoppers when they take advantage of special prices under varied retail formats.
- Revenue generation – It attempts to create sales and revenues in the short-run for retailers especially for complementary products. For example, discounts on new tea product will increase sales of complementing goods like sugar, honey or milk.