Question

Read the given passage carefully and answer the following questions.

A reputed publishing company is planning to open new showrooms in some big cities in North India. The company wishes to invite celebrity novelists to inaugurate their new outlets. It also plans to invite other celebrities from the literary world and make new book releases before August. Introductory offers will be given in the form of price reductions, limited edition of autographed copies and discount coupons.

1. Identify the promotional tools adopted by the company.
2. In what way do the promotional tools adopted by the company generate sales?

Answer 1

1. Sales promotion
2. Sales promotion help to increase the sales in the following ways:
   • Creation of demand: It must have a clear cut pre-requirement to influence, capture and create a demand of the product for the existing and potential customers.
   • Creation of goodwill: Sales promotion is required to add value to the product and it can be done by communicating to the public about the superiority of the product that will effectively stimulate the prospective customers to changes their attitude for linking of the product. The sum total of this will surely create goodwill for the firm's product.
   • Education the people: It shall always strive to communicate to the customers about the goods uses of the product and shall try to highlight to features of the product without concealing the essential element for public information.