Question

Enumerate any four methods of sales promotion.

Explain the various techniques/methods of sales promotion.

Answer 1

1. Samples: Many business firms distribute free samples of their products to selected consumers in order to make the products popular.
2. Trading Stamps: Trading stamps are issued to customers through the retailers in proportion to the amount of purchase.
3. Coupons: Coupon is a certificate that entitles its holder to a specified saving on the purchase of a specified product.
4. 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.

Answer 2

The main methods of sales promotion are given below.

1. Distribution of samples: This strategy involves distributing free product samples. Consumers use these samples and repurchase them if they are satisfied. This approach is commonly used for daily-use products such as tea, soap, detergents, toothpaste, etc.
2. ‘Money off’ coupons: It is a type of certificate that indicates that the product described therein can be acquired at a specific discount. Possession of a coupon encourages people to purchase that product.
3. Premium or bonus offer: A premium offer is one that provides an item for free in exchange for the purchase of a specific amount of a product. For example, one bathing soap may be provided free with the purchase of two bathing soaps.
4. Price off offers: This program offers things for sale at a cheaper price than the standard price. This deal is meant to boost sales during a slow season. For example, refrigerators and coolers are 30% off during the off-season.
5. Prize contests: The manufacturer of a product organizes a contest among stores in which retailers that exceed their target sales are offered the opportunity to participate in a contest with prizes such as Malaysia trips.
6. Money refund: In this case, the vendor refunds a portion of the customer's purchase price upon production of evidence of purchase. For instance, a producer may provide a ₹10 return upon sending the product's payment memo or wrapper.