Promotional cannibalization refers to the negative impact on sales of a company’s existing products caused by the introduction of new, similar products. This occurs when the marketing efforts and promotions for the new product divert attention and sales from the existing products, resulting in a decrease in overall revenue. Essentially, the new product “eats away” at the sales of the existing products, hence the term “cannibalization.” This phenomenon can be detrimental to a company’s bottom line and requires careful planning and strategy to avoid.