Merits of sales promotion are as follows:
(i) Attracts attention It helps to attract the attention of large mass of people in a short time.
(ii) Useful in new product launch Sales promotion techniques such as sampling and product combination help in easy introduction of new product in the market.
Demerits of sales promotion are as follows:
(i) Reflects crisis Frequent use of sales promotion techniques may create an impression that the company is unable to generate any sale.
(ii) Spoils product image Excessive use of sales promotion may spoil the image of the product.