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Class 12 Business Studies - Methods/Techniques of Sales Promotion

Class 12 Business Studies - Methods/Techniques of Sales Promotion

Following are the methods used by business houses are discussed below:
  1. Discount and discount coupons – It means offering products at less than list price. A certain percentage of the price is reduced as a discount. Example: Buy 2 shirts and get a discount of 30% on the second shirt; Clarks’ offer discount of 50%. A Discount coupon is a certificate that entitles its holder to a specified saving on the purchase of a specified product. Customers redeem coupons after purchasing the product.
  2. Product combination – Offering combination of two products, means on the purchase of one good, and another product offered as a gift. Example: 100g gm pouch of Kissan jam with 500 gm of Kissan tomato ketchup.
  3. Sample Distribution – free samples are distributed in order to launch or popularize their products. This is done to make customers try the product and learn about it. Example – sample of cosmetics, perfumes, surf, books, etc. As the distribution of samples is very costly, this system is confined to those products of small value which have often repeated sales.
  4. Rebate- In order to increase sale, many producers introduce price off offer to the customers. It means offering products at special prices, to clear off excess inventory. The product is offered at a price lower than the normal price.
  5. Quantity gift – It offering some extra quantity of the product as a gift to the customers. For example – 20% Extra or Buy 2, Get 1 Free.


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