Explain the following sales promotion activities:
(i) Refunds
(ii) Instant Draw and Assigned Gifts
(iii) Full Finance
(iv) Sampling
(i) Refunds: Under this method, some part of the price of an article is refunded to the customer on showing proof of purchase. For example, refunding an amount of Rs 5/- on showing the empty packet of the product priced Rs 100/-.
(ii) Instant Draw and Assigned Gift: Under this method, a customer is asked to scratch a card on the purchase of a product and the name of the product is inscribed thereupon which is immediately offered to the customer as a gift. For example, on buying a car when the card is scratched such gifts are offered — TV, Refrigerator, Computer, Mixer, Dinner Set, Wrist Watch, T-shirt, Press, etc.
(iii) Full Finance: 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) Sampling: Under this method, the producer distributes free samples of his product among the consumers. Sales representatives distribute these samples from door-to-door. This method is used mostly in case of products of daily-use, e.g., Washing Powder, Tea, Toothpaste, etc. Thus, the consumers willy-nilly make use of free sample. If it satisfies them, they buy it and in this way sales are increased.
