Theory question 104
Sales PromotionOzayi Ltd is a new manufacturing company producing consumer goods. The company intends to gain market shares by using sales promotion. (a) Outline four importance of sales promotion to the company.
(b) List and explain four sales promotional tools that can be used by the company.
Show the model answer
(a) Any four: increases sales quickly; makes people try the new products; attracts customers from competitors; builds awareness and brand loyalty; encourages middlemen to stock the products; supports advertising; helps clear stock.
(b) Any four, explained: free samples; coupons; price-off/discounts; premium offers/free gifts; bonus packs; contests and sweepstakes; loyalty rewards; demonstrations; trade allowances to dealers.
Give each point as a full sentence, with an example where possible.