question_answer

Vansh was appointed as the marketing head of Automobiles Ltd, manufacturers of cars and bikes. His sales target for a newly introduced bike was 20,000 units a month. For this, he involved new channels of distribution. But, he found that the target could not be achieved. Therefore, finally, Automobiles Ltd offered to sell their new bike, at about Rs. 4,000 less than the usual price'. It is an example of one of the techniques of sales promotion. Name the technique and explain any two other techniques with examples.

Answer:

The name of this technique is 'rebate'. Under it, in order to clear the excess stock, products are offered at reduced prices. Two other techniques are explained below: (i) Finance @ 0% Under this method, the product is sold and money is received in instalments at 0% rate of interest. The seller determines the number of instalments in which the price of the product will be recovered from the customer. No interest is received on these instalments, e.g. Bajaj offers a bike of Rs. 40,000 in 10 easy instalments of Rs. 4,000 each. (ii) Samples Under this method, the producer distributes free samples of his product among the consumers. Sales representatives distribute these samples from door -to-door. This method is mostly used for products of daily use e.g. washing powder, tea, toothpaste, etc.