Question

Long answer type questions.

Define sales promotion. Explain role of sales promotion.

Answer 1

Sales promotion refers to the incentives that are offered to buyers to encourage them to purchase the product. It includes activities such as offering discounts, gifts, free samples, etc. Such activities supplement other promotional activities undertaken by the company such as advertising and personal selling. Sales promotion helps attract customers and induces them to immediately purchase the product. Such activities are especially useful at the time of launching a new product. They give an initial boost to sales. For example, discounts are given in the form of offering the product at a lower price than the listed price. Free gifts are offered in the form of quantity gifts (such as 20% extra or buy 2, get 1 free). Free samples are provided in the form of small packets when launching a new brand. Such incentives are offered by companies to attract more customers and boost their sales.