Business Studies Ch-16 Sales Promotion and Personal Selling: Tools of Sales Promotion: Free Samples, Exchange Schemes and Coupons

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Tools of Sales Promotion

To increase the sale of any product manufactures or producers adopt different measures like sample, gift, bonus, and many more. These are known as tools or techniques or methods of sales promotion.

Image of Tools of Sales Promotion

Image of Tools of Sales Promotion

Image of Tools of Sales Promotion

Free Samples

Sometimes we received free samples of shampoo, washing powder, coffee powder, etc. while purchasing various items from the market. These free samples are also distributed by the shopkeeper even without purchasing any item from his shop. These are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to popularize the product.

Premium or Bonus Offer

A milk shaker along with Nescafe, mug with Bourn vita, toothbrush with 500 grams of toothpaste, 30% extra in a pack of one kg. Are the examples of premium or bonus given free with the purchase of a product? They are effective in inducing consumers to buy a particular product. This is also useful for encouraging and rewarding existing customers.

Exchange Schemes

It refers to offering exchange of old product for a new product at a price less than the original price of the product. This is useful for drawing attention to product improvement. ‘Bring your old mixer-cum-juicer and exchange it for a new one just by paying Rs.500’ or ‘exchange your black and white television with a colour television’ are various popular examples of exchange scheme.

Price-Off Offer

Under this offer, products are sold at a price lower than the original price. ‘Rs. 2 off on purchase of lifeboy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea, Rs. 1000 off on cooler’ etc. is some of the common schemes. This type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market.

Coupons

Coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. The holder of the coupon gets the product at a discount.

Fairs and Exhibitions

Fairs and exhibitions may be organised at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products. Goods are displayed and demonstrated and their sale is also conducted at a reasonable discount.

Trading Stamps

In case of some specific products trading stamps are distributed among the customers according to the value of their purchase. The customers are required to collect these stamps of sufficient value within a particular period in order to avail of some benefits. This tool induces customers to buy that product more frequently to collect the stamps of required value.

Scratch and Win Offer

To induce the customer to buy a particular product ‘scratch and win’ scheme is also offered. Under this scheme a customer scratches a specific marked area on the package of the product and gets the benefit according to the message written there. In this way customers may get some item free as mentioned on the marked area or may avail of price-off, or sometimes visit different places on special tour arranged by the manufacturers.

Money Back Offer

Under this scheme customers are given assurance that full value of the product will be returned to them if they are not satisfied after using the product. This creates confidence among the customers with regard to the quality of the product. This technique is particularly useful while introducing new products in the market.

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