हिंदी

Promotion Mix - Sales Promotion

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Estimated time: 14 minutes
CBSE: Class 12

Introduction

  • Sales promotion means giving short-term offers or benefits to customers so that they buy a product or service immediately.
  • It includes extra promotion activities other than advertising, personal selling and publicity that help to increase sales.
  • Common methods are cash discounts, contests, free gifts and free samples.
  • It is used along with advertising and personal selling to make promotion more effective.
CBSE: Class 12

Scope

  • Sales promotion tools are used for customers, middlemen and sales persons.
  • Customers get free samples, discounts and contests.
  • Middlemen get cooperative advertising, dealer discounts and dealer incentives or contests.
  • Sales persons get bonus, special offers and sales contests.
CBSE: Class 12

Merits

  • Attracts attention of customers because of extra benefits or incentives.
  • Helps in launching new products as people are willing to try them due to offers.
  • Supports selling and advertising and makes overall promotion stronger.
CBSE: Class 12

Limitations

  • If used too often, it may look like the firm is facing problems in selling its products.
  • Continuous offers can spoil product image and make customers feel that quality or price is not proper.
CBSE: Class 12

Common Sales Promotion Activities

  • Rebate – Special temporary price to clear extra stock, such as a car at ₹10,000 less for a short time.
  • Discount – Price lower than list price, like “Discount Up to 50%” or “50+40% Discount” on products.
  • Refunds – Returning part of the price on proof of purchase, often used by food companies.
  • Product combinations – Free related product with purchase, like rice with aatta, memory card with digicam, vacuum cleaner with TV, sauce bottle with detergent.shalaa
  • Quantity gift – Extra quantity free, such as “40% extra”, extra night stay in hotel at low price, or “Buy 2 Get 1 Free”.
  • Instant draws and assigned gift – Scratch cards or similar schemes where the customer instantly wins items like refrigerator, car, T-shirt or computer with purchase.
  • Lucky draw – Chance to win prizes like gold coin, free petrol or car based on a coupon given with purchase.
  • Usable benefit – Extra useful offers like free holiday package equal to purchase amount or discount voucher on accessories.
  • Full finance @ 0% – Easy instalment schemes for durables, for example 24 instalments with some paid upfront; file charges may actually be advance interest.
  • Sampling – Free samples of products like detergent or toothpaste given at the time of launch to encourage trial.
  • Contests – Quiz or question-based competitions where customers use skill or luck.
CBSE: Class 12

Key Points: Sales Promotion

  • Sales promotion gives short-term incentives to push immediate buying.
  • It works with advertising and personal selling but is different from them.
  • Tools are planned separately for customers, middlemen and sales persons.
  • It is useful for attracting attention and introducing new products.
  • Overuse can create a feeling of crisis and harm product image.
  • Rebate, discount, refunds, free gifts, extra quantity, draws, usable benefits, finance offers, sampling and contests are widely used methods.
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