Theory question 102
Sales Promotion(a) State five reasons companies conduct marketing research. (b) Explain the following sales promotional tools: (i) price-off; (ii) salesman competition; (iii) free gifts; (iv) premium offer (v) samples.
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(a) Any five: to understand customers' needs; to solve marketing problems; to test new products; to set suitable prices; to measure advertising effectiveness; to forecast sales; to know competitors; to find new market opportunities; to reduce business risk.
(b)(i) Price-off: a temporary cut in the normal price to boost sales.
(ii) Salesman competition: a contest that rewards the salespeople who sell the most.
(iii) Free gifts: items given free to buyers of a product.
(iv) Premium offer: an extra item given free or cheaply with a purchase, e.g. a cup with a tin of beverage.
(v) Samples: small quantities of a product given free so people can try it.
Give each point as a full sentence, with an example where possible.