Question
Explain briefly any six techniques of Sales Promotion.

Answer

Following are some of the major activities in respect of sales promotion:
  1. Rebate: Under it, in order to clear the excess stock the products are offered at some reduced prices. For example, giving a rebate by a car manufacturer to the tune of ₹ 12,000 for a limited period of time.
  2. Discount: Under this method, the customers are offered products on less than the listed price. For example, giving a discount of 30% on the sale of Liberty Shoes. Similarly, giving a discount of 50% + 40% by the KOUTONS.
  3. Refunds: Under this method, some part of the price of an article is refunded to the customer on showing proof of purchase. For example, refunding an amount of ₹ 5 on showing the empty packet of the product priced ₹ 100.
  4. Product Combination: Under this method, alongwith the main product some other product is offered to the customer as a gift. The following are some of the examples:
S. No.
Main Product
Gift
i.
TV
Vacuum cleaner
ii.
Shakti Bhog Atta
A packet of rice
iii.
A kilo of washing powder
A 100gm bottle of sauce
iv.
Natkhat Nimbu Bhujia
A glass bowl
v.
Maggi Noodles
A toy car
  1. Quantity Gift: Under this method, some extra quantity of the main product is passed on as a gift to the customers. For example, 25% extra toothpaste in a packet of 200 gm tooth paste. Similarly, a free gift of one RICH LOOK shirt on the purchase of two shirts.
  2. Instant Draw and Assigned Gift: Under this method, a customer is asked to scratch a card on the purchase of a product and the name of the product is inscribed thereupon which is immediately offered to the customer as a gift. For example, on buying a car when the card is scratched such gifts are offered- TV, Refrigerator, Computer, Mixer, Dinner Set, Wrist Watch, T-shirt, Press, etc.

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