Final answer:
The growing power of retailers due to the rise of technology and globalization has driven the increase in sales promotion activities. This competition requires differentiated marketing strategies, and sales promotions are vital for building brand identity and loyalty in a global market.
Step-by-step explanation:
The increase in sales promotion activities over the last decade can largely be attributed to the growing power of retailers. This is due to two interconnected shifts: the improvement of communications technologies and globalization.
The development of the internet and business-to-business websites has allowed buyers and suppliers to connect globally, increasing competition for local retail businesses and leading to the need for differentiated marketing strategies, such as sales promotion, to capture consumer attention.
Furthermore, the rise of national brands and the need for a consistent product have also emphasized the importance of protecting brands from the potential avarice of sales staff, encouraging companies to use sales promotions to build brand identity and loyalty.
Sales promotions have become a critical component of marketing strategies due to their ability to immediately impact consumer behavior and gain market share in the highly competitive, global marketplace.