Promotions are initiated by the firm’s marketing activities such as advertising, and various other schemes.

(a)Sales increase during promotion as the consumers take advantage of promotional schemes thus leding to liquidation of inventories.
(b)Promotion can either be the deals offered to the consumers or deals offered to the trade (wholesalers/ retailers).
(c)Promotions if offered on regular basis at the same time every year will resemble a seasonal component.
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