Read the following passage carefully and answer the questions given below-

ABC limited is a prominent soap manufacturing firm. Seeing the success of its product, it decides to manufacture washing powder. To do this, it manufactures high quality washing powder. To sell it, it dis

Question

Read the following passage carefully and answer the questions given below-

ABC limited is a prominent soap manufacturing firm. Seeing the success of its product, it decides to manufacture washing powder. To do this, it manufactures high quality washing powder. To sell it, it distributes free samples of washing powder along with its soap. To introduce the product to customers, it select three-tier distribution channel. Even after taking all these measures by the marketing manager, the sales of washing powder are not as expected.

(b) State the other sales promotion techniques.

Accepted Answer

>

> [!TLDR]
> Besides free samples, ABC could use other sales promotion techniques such as discounts/rebates, premiums, contests, money-refund offers, exchange schemes, and trade exhibitions to boost sales of the washing powder.
>
> Sales promotion covers short-term incentive techniques, aimed at consumers or at the trade, intended to encourage the purchase or sale of a product. Besides the free-sample distribution ABC has already used, other common sales-promotion techniques include:
> - Rebates/discounts — offering the product at a reduced price for a limited period, to encourage first-time trial or larger purchase quantities.
> - Premiums/gifts — offering a free item (e.g. a small gift or bonus pack) along with the purchase of the washing powder.
> - Contests — organising contests or lucky draws for consumers who purchase the product, with prizes as an incentive.
> - Money-refund offers — promising to refund the purchase price if the consumer is not satisfied with the product's performance, reducing the consumer's perceived risk of trying something new.
> - Exchange schemes/trade-in offers — allowing customers to exchange an old competing product for a discount on the new one.
> - Instalment schemes/easy credit — where relevant for bulk/trade buyers, allowing purchase on instalment terms.
> - Product warranties/guarantees — assuring customers of quality, reducing hesitation to try a new product. …

Concept understanding — Sales Promotion Role

What exactly is a Sales Promotion?

Why does it matter? The role of sales promotion

1. For the consumer (you and me)

2. For the trade (retailers and wholesalers)

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

A simple way to remember the role …

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