Commercial Applications
Answer
A premium or bonus offer implies an offer of a certain quantity of the product, free of cost, on the purchase of a specified quantity of the product. It also refers to a free gift on the purchase of specified products.
A premium offer can be of three types:
- With-pack premium — A free product given along with the product purchased (e.g., one spoon free with a packet of Surf).
- Reusable container — A container that has utility for the customer after the product is consumed (e.g., detergent powder offered in a plastic bucket).
- Free-in-the-mail premium — A free gift the customer can obtain after sending proof of purchase (e.g., a Bluetooth speaker free on purchase of a large refrigerator).
Related Questions
Advertising leads to a variety in consumption and use of better-quality products. The advantage of advertising is related to:
- Manufacturers
- Society
- Consumers
- Government
Enumerate any four methods of sales promotion.
State any two objectives of advertising.
Distinguish between sales promotion and publicity.