What are Methods/Techniques of Sales Promotion? Class 12 Business Studies
Following are the methods used by business houses are discussed below:
- Rebate- In order to increase sale, many producers introduce price off offer to the customers. It means offering products at special prices, to clear off excess inventory. The product is offered at a price lower than the normal price.
- Sample Distribution – free samples are distributed in order to launch or popularize their products. This is done to make customers try the product and learn about it. Example – sample of cosmetics, perfumes, surf, books, etc. As the distribution of samples is very costly, this system is confined to those products of small value which have often repeated sales.
- Discount and discount coupons – It means offering products at less than list price. A certain percentage of the price is reduced as a discount. Example: Buy 2 shirts and get a discount of 30% on the second shirt; Clarks’ offer discount of 50%. A Discount coupon is a certificate that entitles its holder to a specified saving on the purchase of a specified product. Customers redeem coupons after purchasing the product.
Watch and learn with recorded lectures on Sales Promotion Techniques through CBSE Class 12 Business studies online classes.
- Product combination – Offering combination of two products, means on the purchase of one good, and another product offered as a gift. Example: 100g gm pouch of Kissan jam with 500 gm of Kissan tomato ketchup.
- Refund – It means refunding a part of the price paid by a customer of purchase of its product. SMS code is given on the cap of Coke bottle and gets cash back of Rs.10.
- Quantity gift – It offering some extra quantity of the product as a gift to the customers. For example – 20% Extra or Buy 2, Get 1 Free.
- Lucky draw – It refers to taking out a draw on the purchase of the product and giving a gift to the winner. Example Lucky draw on the purchase of a specific model of car.
A detailed explanation of Sales Promotion, objectives and limitations are available at Class 12 Business studies.
- Instant draw and assigned gifts – Scratch a card and instantly win a car, refrigerator, laptop, on the purchase of a LED Tv.
- Usable benefit- Purchase goods worth Rs. 100000 and get a tour package of Rs 20000 free. Discount vouchers on a purchase of Rs.10000.
- Full Finance @ 0% – It is the technique of sales promotion in which easy financing schemes are offered. Manufactures of such products like cars, bikes, TV, AC, etc offer easy financing schemes even at 0% rate of interest.
- Other methods – contests, exchange offer, packaged premium.
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