Question
Explain the following sales promotion activities:
(i) Discount
(ii) Product Combination
(iii) Financing
(iv) Lucky Draw.
Solution
(i) Discount: Under this method, the customers are offered products on less than the listed price. For example, giving a discount of 30% on the sale of Liberty Shoes. Similarly, givinga discount of 50% + 40% by the KOUTONS.
(ii) Product Combination: Under this method, alongwith the main product some other product is offered to the customer as a gift. The following are some of the examples:
|
Main Product |
Gift |
|
TV Shakti Bhog Atta A kilo of washing powder Natkhat Nimbu Bhujia Maggi Noodles |
Vacuum cleaner A packet of rice A 100 gm bottle of sauce A glass bowl A toy car |
(iii) Financing: Under this method, the product is sold and money is received in instalments at 0% rate of interest. The seller determines the number of instalments in which the price of the product will be recovered from the customer. No interest is received on these instalments.
(iv) Lucky Draw: Under this method, the customers of a particular product are offered gifts on a fixed date and the winners are decided by the draw of lots. While purchasing the product, the customers are given a coupon with a specific number printed on it. On the basis of this number alone the buyer claims to have won the gift. For example, ‘Buy a bathing soap and get a gold coin’ offer can be used under this method.
