DIFFERENCE BETWEEN SALES PROMOTION & ADVERTISEMENT

Save Share

This query is : Resolved

Avijit ghosh (Querist)
Follow

02 January 2009 Sir i am an articled clerk.Presently i am auditing in a pvt co.The co. has spent some amount for sending message through mobile and treated it as sales promotion exp.
pls explain the difference between the above duo.and kindly clarify the above mentioned situation considering FBT

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
Follow

03 January 2009 Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Many advertisements are designed to generate increased consumption of those products and services through the creation and reinforcement of "brand image" and "brand loyalty". For these purposes, advertisements sometimes embed their persuasive message with factual information. Every major medium is used to deliver these messages, including television, radio, cinema, magazines, newspapers, video games, Mobile or cell phone, the Internet and billboards.

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
Follow

03 January 2009 Sales promotion is one of the four aspects of promotional mix. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include:

* contests
* point of purchase displays
* rebates
* free travel, such as free flights

Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmick by many.

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
Follow

03 January 2009 In case business concern sending SMSs to attract potential customers, it is not more then advertisement. By sales promotion, potential customer should be benefited without purchasing anything.

**DM

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now