Commercial Applications
Which of these best describes the objective of sales promotion?
- To generate a short-term sales increase
- To allow consumers permanent discounted pricing
- To reduce the amount of inventory on hand
- To encourage consumers to choose one retailer as a preferred distributor
Answer
To generate a short-term sales increase
Reason — Sales promotion means short-term incentives of non-recurring nature used to stimulate consumer purchasing and dealer effectiveness. The main purpose is to obtain spot buying by offering non-recurring and non-routine incentives, thereby generating short-term sales.
Related Questions
Which of the following is not an advantage of branding?
- It helps consumer to identify and recognise the product.
- It differentiates the product from the rival products.
- It ensures standards of quality and design to consumers.
- It is not the basis of advertising and other techniques of mass selling.
Which of the following techniques of sales promotion can be used at the time of important festivals or other occasions?
- Merchandise aids
- Free offer
- Distribution of free samples
- Clearance sale
Money spent on advertisement is sheer wastage because:
- It does not add to the utility of products and services.
- Most of the advertisements are either ignored or escape the attention of consumers.
- Either (1) or (2)
- Both (1) and (2)
"To enhance the goodwill of the firm by promising better quality at fair prices" …………… .
- Is the objective of advertising
- Is the importance of advertising
- Is the disadvantage of advertising
- It is the effect of advertising