Read the following passage and answer the question numbers (a) and (b) based on it : A Garment manufacturing u

Question of 38

Q. Read the following passage and answer the question numbers

(a) and

(b) based on it : A Garment manufacturing unit is facing a problem of accumulation of obsolete stock due to frequent changes in the fashion industry. The Marketing Manager came up with an idea to clear off the excess stock lying with them. They offered ‘Free dinner coupons worth Rs. 500 on purchase of Rs. 8,000 and above.’

(a) Name the tool used and one of its limitation.

(b) Identify and explain the Marketing Management philosophy being followed by the company.

Manipur CohsemCOHSEM Manipur Higher Secondary Board (Commerce) 2026Subjective· 4mImportance★★★★★

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Concept understanding — Sales Promotion Role

Let’s start with something you already know. Imagine you walk into a supermarket and see a bright yellow shelf-talker: “Buy 2, Get 1 Free” on your favourite chips. Or you open a new app and get a pop-up: “Use code STUDENT20 for 20% off your first order.” That’s sales promotion in action. It’s the short-term push that makes you act now — not later, not maybe.

What exactly is a Sales Promotion?

In marketing, sales promotion refers to short-term incentives or activities designed to encourage the immediate purchase of a product or service. Unlike advertising, which builds a brand’s image over time, or personal selling, which relies on a one-on-one conversation, sales promotion is a direct, temporary inducement that adds extra value to the offer.

The NCERT textbook (Class 12, Business Studies, Chapter 11 – Marketing) defines it clearly:

Sales promotion includes those marketing activities other than personal selling, advertising, and publicity that stimulate consumer purchasing and dealer effectiveness.

Think of it as the “extra push” at the point of sale — a free sample, a contest, a discount, or a gift with purchase. Its job is to break the customer’s inertia and convert a “maybe” into a “yes.”

Why does it matter? The role of sales promotion

Sales promotion plays three distinct roles, depending on who it targets:

1. For the consumer (you and me)

It creates urgency and trial. A limited-time offer makes you decide faster. A free sample lets you try a new shampoo without risk. Common tools: coupons, rebates, contests, free gifts, and price-off deals.

2. For the trade (retailers and wholesalers)

It motivates dealers to stock, display, and push the product. A retailer might get an extra discount for buying in bulk, or a bonus for giving the product prime shelf space. Tools: dealer discounts, free goods, cooperative advertising, and sales contests.

3. For the sales force (company’s own salespeople)

It energises the team to meet targets. Bonuses, prizes, or recognition programmes push salespeople to work harder during a slow season or a new launch.

Important

Sales promotion is not a substitute for advertising or personal selling. It works alongside them. Advertising builds the brand; sales promotion closes the sale. If you use too many discounts, customers may stop buying at full price — that’s a real risk.

A simple way to remember the role …

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(a) The tool used is a sales promotion (coupon offer) — its limitation is that its boost to sales is only short-term. (b) The company is following the Selling Concept — pushing out existing/obsolete stock through aggressive promotion rather than designing products around customer needs.

(a) Tool used and its limitation

Offering 'free dinner coupons worth Rs. 500 on purchase of Rs. 8,000 and above' is a Sales Promotion tool — specifically a coupon/incentive offer designed to boost short-term sales and clear excess inventory.

One limitation of sales promotion: Its effects are generally short-term/temporary — sales tend to spike only while the offer lasts and often fall back to normal (or below normal) once it is withdrawn; sales promotion alone does little to build lasting brand loyalty, and can sometimes even condition customers to wait for the next discount/offer instead of buying at full price.

(b) Marketing Management philosophy being followed

…

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

Showing the 12 most recent of 26 on this concept.

CBSE 2026Set MARCH1 mark
$Q. What is sales promotion?$
›Reveal solutionSolution

Sales promotion = short-term incentives to increase sales.

In this GSEB Class-12 Commerce marketing question, sales promotion refers to the temporary incentive schemes offered to customers and dealers - such as discounts, free samples, gifts, coupons, exchange offers and contests - to stimulate immediate demand and support adv …

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CBSE 2026Set ANNUAL1 mark
$Q. "Dazzle Cosmetics was distributing small pouch in a shopping mall for free for customers to try out their newly launched cosmetic products." Identify the sales promotion technique adopted by the above company.$
›Reveal solutionSolution
The technique is Free sampling.

Among sales promotion techniques (short-term incentives to boost sales):

Rebates — temporary price reduction on existing stock.

Discounts — reduction from the list price.

Free samples/sampling — giving away a small trial quantity of the product free of cost so new or hesitant customers can try it and get convinced of its quality, often used while launching a new product. …
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CBSE 2025Set MARCH1 mark
$Q.__________ is an unpaid form of Communication.$
›Reveal solutionSolution

The blank is filled by 'Publicity'.

…

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CBSE 2025Set ANNUAL1 markMCQ
$Q. Costliest means of sales promotion is (A) Advertisement (B) Personal selling (C) Sales promotion (D) Public relations$
›Reveal solutionSolution

Personal selling is the costliest tool of promotion because it relies on individual, face-to-face contact.

The promotion mix includes advertising, personal selling, sales promotion and public relations. Personal selling uses a salesforce to deal with customers individually, which means high cost per contact in terms of salaries, training and time. Advertising reaches large audiences at a low cost per head, and sales promotion and public relations are comparatively …

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CBSE 2025Set ANNUAL1 mark
$Q. Answer in one word/sentence: Free samples product distribution is a technique of -$
›Reveal solutionSolution

Free sample distribution is a sales-promotion technique.

Sales promotion consists of short-term incentives offered to buyers to boost sales. Distributing free samples lets customers try a product and encourages them to buy it, so it is a tool of sales promotion (like discou …

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CBSE 2025Set ANNUAL1 mark
$Q. Name any two techniques of sales promotion.$
›Reveal solutionSolution

Sales promotion uses short-term incentives such as discounts and free samples to boost immediate sales.

Sales promotion covers short-term, non-recurring incentive activities designed to spur quick purchase or trial of a product. Commonly used techniques include: Rebates/discounts (temporary price cuts to clear stock or attract buyers), free samples or gifts (letting customers try a product at no cost), contests offering prizes, premiums (an e …

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CBSE 2025Set ANNUAL1 mark
$Q.'Customers are given an offer of "buy 2 and get 1 free", on the purchase of a product'. Name the sales promotional technique highlighted in the above statement.$
›Reveal solutionSolution
"Buy 2 and get 1 free" is a Product combination (buy-X-get-Y-free) sales promotion technique.

Sales promotion uses short-term incentive tools to encourage immediate purchase. Common techniques include:

Rebate — offered when stock needs to be cleared.

Discount — a reduction in the price for a limited period.

Refunds — part of the price is returned on proof of purchase.

Product combinations — giving an extra item free, or several items packaged together at a price lower than if bought separately (e.g., "buy 3, pay for 2," or "buy 2 get 1 free"). …
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CBSE 2025Set ANNUAL1 mark
$Q. Fill in the blank: ‘Buy one, get one free’ is an example of one of the techniques of _________.$
›Reveal solutionSolution

'Buy one, get one free' is a sales promotion technique.

Sales promotion refers to short-term, non-personal incentives used to boost sales quickly, as a supplement to advertising and personal selling. Common sales-promotion tools include discounts/rebates, 'buy one get one free' or other quantity offers, free samples, contests, coupons, and premium/gift offers. 'Buy one, get one free' works by giving the customer extra value for the same price, which prompts an immediate purchase decision — exactly the quick, temporary, incentive-driven nature of sales promotion, as opposed to advertising (which builds long-term …

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CBSE 2024Set MARCH1 mark
$Q. What is sales promotion?$
›Reveal solutionSolution

Sales promotion = short-term incentive schemes to increase sales.

Sales promotion refers to those marketing activities, other than advertising and personal selling, that provide short-term incentives to stimulate quick buying. Examples include discounts, coupons, free samples, gifts, exchange offers, contests and demonstrations. Its purpose is to attract new customers, clear stock, meet competition and give a …

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CBSE 2024Set MARCH1 mark
$Q. Offering products at less than list price is ————$
›Reveal solutionSolution

The blank is 'Rebate' — selling at a special price below the list price.

…

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CBSE 2024Set ANNUAL1 mark
$Q. Write answer in one sentence: Which technique aims at increasing current sales?$
›Reveal solutionSolution

The technique aimed at increasing current sales is sales promotion.

Sales promotion consists of short-term incentives offered to buyers (or dealers) such as rebates, discounts, free samples, coupons and contests. Its purpose is to give an immediate push to sales for a limited period. …

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CBSE 2024Set ANNUAL1 mark
$Q. Which sales promotion technique will be more suitable when a new product is introduced in the market ?$
›Reveal solutionSolution
When a new product is introduced, offering free samples is usually the most suitable sales promotion technique, because it lets customers experience the unfamiliar product risk-free and encourages trial.

When a product is new, customers have no prior experience with it and may be hesitant to spend money trying it. Free samples solve this problem by letting potential customers try the product at no cost, which:

Removes the customer's risk/hesitation in trying something unfamiliar.

Lets the product's own quality and benefits convince the customer directly, which is often more persuasive than advertising alone.

Builds initial awareness and encourages word-of-mouth once customers experience the product. …
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Q.Read the following passage and answer the question numbers

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