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Questions
Enumerate any four methods of sales promotion.
Explain the various techniques/methods of sales promotion.
Solution 1
- Samples: Many business firms distribute free samples of their products to selected consumers in order to make the products popular.
- Trading Stamps: Trading stamps are issued to customers through the retailers in proportion to the amount of purchase.
- Coupons: Coupon is a certificate that entitles its holder to a specified saving on the purchase of a specified product.
- Premium or Bonus Offer: It implies an offer of a certain quantity of the product, free of cost, on the purchase of a specified quantity of the product.
Solution 2
The main methods of sales promotion are given below.
- Distribution of samples: Under this method, free samples of products are distributed. Consumers use these samples and they purchase it regularly, if it gives them satisfaction. This method is generally used for products of daily use like tea, soap, detergents, tooth-paste etc.
- 'Money off' coupons: It is a kind of certificate telling that the product mentioned therein can be obtained at a specified discount. Possession of a coupon motivates the consumers to buy that product.
- Premium or bonus offer: A premium offer is the offer of an article free of cost on the purchase of a specified quantity of a product. For example, one bathing soap may be given free on purchase of two bathing soaps.
- Price off offers: Under this scheme, products are offered for sale at a price lower than the normal price. This offer is intended to stimulate the sales during a slump season. For example, 30% off on refrigerators or coolers during the off-season.
- Prize contests: The manufacturer of a product organises a contest among the retailers by which the retailers who cross the targeted sales are given an opportunity to take part in a contest which has prizes like Malaysia tours.
- Money refund: In this case, the seller refunds a part of price paid by the customer on the production of some proof of purchase. For example, a producer may offer to refund ₹ 10 on sending the cash memo or wrapper of the product.
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