Jul 072012
 

Firms may use a variety of sales promotion tools to help them increase short-term sales. Choosing from the below list of possible tools, identify which one/s would be most appropriate for:

  1. A newly launched chocolate bar
  2. Computer software (for editing digital photos)
  3. A woman’s fashion clothing store


ACTIVITY/TASK

  Sales Promotion Tools

Chocolate bar?

Computer software?

Clothing store?

1

A 20% discount      

2

20% extra free      

3

A cash-back offer (from manufacturer)      

4

A two-for-one deal      

5

Discount via a coupon (e.g. shop-a-docket)      

6

A competition (e.g. win a PS2)      

7

Extra points on a loyalty program      

8

Receive a free gift (if spending more than $X)      

9

Buy another product at a discount      

10

Access code for special web-site      

11

Give a free sample      

12

Have a big in-store display      


QUESTIONS

  1. Start this activity by completing the above table.
  2. Which sales promotion tools did you use the most? Which ones did you use least?
  3. How does your sales promotion choices compare to those of your fellow students?
  4. How effective do you think sales promotions are in generating sales and gaining new customers?
  5. Is there a danger in overusing sales promotions?
  6. Based on the above table, but you think that sales promotions are more suited to particular types of product categories?

 

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