The following statements relate to value based organisations. Choose the correct code for the statements being correct or incorrect.

Statement I: The goal of any sales promotion is to create value for both the consumer and the firm.

Statement II : Sales promotion always shifts sales from the future to now and thereby leads to short-run benefits at the expense of long-term sales stability.

The correct answer is Statement I is correct, but II is incorrect.

Key Points Statement I: The goal of any sales promotion is to create value for both the consumer and the firm.

• A sales promotion is a type of marketing activity intended to boost sales, foster client loyalty or raise brand awareness.

• Sales promotion acts as a link between advertising and personal selling.

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• Sales promotion encourages current customers to purchase more of the goods.

• Sales promotion tools increase consumer popularity of products. In the end, they improve the firm's reputation as well.

So, this statement is absolutely correct.

Statement II : Sales promotion always shifts sales from the future to now and thereby leads to short-run benefits at the expense of long-term sales stability.

• Promotional activities generate both short-term and long-term beneficial actions and do not involve any shifting of sales.

• At the consumer level, sales promotion tools include coupons, product samples, product demonstrations, contests, free trials etc.

So, this statement goes wrong.

Hence, the correct answer is Statement I is correct, but II is incorrect.