What is meant by sales promotion? Describe briefly the various methods of sales promotional tools used by business organizations to boost the sales. Explain any four methods of sales promotion?
What is meant by sales promotion? Describe briefly the various methods of sales promotional
tools used by business organizations to boost the sales. Explain any four methods of sales
A sales promotion is an activity geared towards increasing revenue. This activity can take a multitude of forms like: offering discounts, offering a lower finance rate, a two for one sale, a sale that says buy one at regular price and get the next half off, offering free prizes, or any number of schemes to bring customers in and entice them to buy your product.
Businesses sometimes run contests as promotions. A car dealership might invite people to come to the car lot and participate in a give-away promotion or a restaurant migth offer tokens with each purchase and give a prize to customers who collect a certain number of tokens.
Stores also use promotions like buy one get one free on inexpensive items, or, increasingly, they offer store credit for low interest rates for purchases. This can boost sales dramatically.
There are all sorts of ways that a business can promote sales. It can reduce prices on "loss leaders" to bring customers into the store. Those customers can then buy not only the loss leaders but also things with better profit margins. The business can use advertising to make customers more aware of what goods are avaiable and what their benefits are.