Question

What is Sales Creation?

What is difference between Cannibalization and Sales Crearion?

Answer 1

Sales are activities related to selling or the number of goods or services within a given time frame. Sales creation refer the activities or methods through which one can improve or increase sales. Sales can be created through number of ways such as advertisement, direct selling and through other promotional activities. In simple terms, sales creation refers to increase in sales volume, sales revenue and increase in market share of the product or service.

cannibalization is a marketing strategy which refers to a reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer. Normally a company which uses e-commerce will try this strategy to reduce the retail sales by offering price discounts to the online products.

Difference of the Sales creation and cannibalization

Sales creation means direct activities or strategies related to increase in sales but cannibalization refers strategy to reduce the sales for raising other sales. If the strategic intent of an extension is to capture a larger market of a different market segment notwithstanding the potential loss of sales in an existing segment, the move to launch the new product can be termed as "cannibalization strategy". So we can summarize that sales creation is all about increasing the sales of existing product but cannibalization refers to increase the sale of a another product by reducing sale of other product which is indirect way of increasing overall sales in long term.