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Q.Briefly explain any eight commonly used sales promotion activities.
Kerala DhseKerala DHSE Plus Two Commerce Board 2024Subjective· 8mImportance★★★★★
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Start your 14-day free trial to unlock the full solution →Sales promotion uses short-term incentives such as rebate, discount, refunds, product combinations, quantity gifts, instant draws/lucky gifts, usable benefits and full-finance schemes/contests to boost immediate sales. A standard 8-mark answer for Kerala Plus Two (DHSE) Commerce Business Studies (Marketing chapter).
Sales promotion refers to the short-term incentives designed to encourage buyers to make an immediate purchase of a product or service. Eight commonly used sales promotion activities are:
- Rebate (price-off) — offering the product at a special reduced price to clear excess stock or to push a slow-moving product, e.g. buy a product at a stated amount off the usual price.
- Discount — offering the product at a price lower than the list/marked price for a limited period, such as a season-end or festival discount, to attract more buyers.
- Refunds — returning a part of the price already paid by the customer on production of proof of purchase, e.g. "Rs. 5 back on returning the empty pack."
- Product combinations (bundling) — giving another product free or at a low price along with the main product, e.g. a mug free with a jar of coffee.
- Quantity gift (extra quantity) — offering extra quantity of the same product free of cost, e.g. "25% extra" or "buy one, get one free."
- Instant draws and assured/lucky gifts — schemes such as "scratch the card and win" a gift instantly, or a lucky draw on the purchase of a product, e.g. gold coins on scratching a card packed with a TV.
- Usable benefits — offering a benefit that the customer can use, such as a coupon entitling free servicing, a holiday package, or a discount on the next purchase, e.g. "Purchase goods worth Rs. 3000 and get a holiday package." …
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