‘Automobiles Ltd. offered to sell their new bike at about र 4,000 less than the usual price’ is an example of one of the techniques of sales promotion. Name the technique and explain two other techniques with examples.
The name of this technique is ‘Rebate’. Under it, in order to clear the excess stock products are offered at reduced prices. Two other techniques are given below:
(i) Full Finance @ 0%: 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.
(ii) Samples or 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.
