Advertising versus Promotion
Sales promotion expenditures increased as a percentage of budget expenditure for a number of
years, although its growth has recently slowed. Several factors contributed to this growth, particularly
in consumer markets. Promotion became more accepted by top management as an effective
sales tool, the number of brands increased, competitors used promotions frequently, many brands
were seen as similar, consumers became more price-oriented, the trade demanded more deals from
manufacturers, and advertising efficiency declined.