SALES PROMOTIONAL STRATEGIES Flashcards
(16 cards)
What is Sales promotional?
Strategies are short-term incentives used by seller to encourage customers to buy their products or services.
What are the Sales promotional strategies?
- Temporary price reduction
- Free gifts
- Giving samples
- Product demonstration
- Prizes and contests
- Exhibition and trade shows
- Trading stamps
- Self liquidation devices
- Loss leader
- Cash and Trade discounts
What is Temporary price reduction?
The price of the article, item or product is slashed down by a certain percentage for a certain number of days.
What is Free gifts?
It is a method adopted by businessmen whereby customers who make purchases above a certain minimum amount is given a gift free of charge.
What is ?
This means the distributing of small portions of the product free of charge to consumers so that they will give their opinion about the product. It also gives them an idea of the product. Example soap, wine, perfumes, etc.
What is ?
This is done when salesmen demonstrate to consumers how the product is used. Example lawn mowers, vacuum cleaners, etc.
What is Prizes and contests?
This means that for every fixed sum of money spent, a ticket is given for a draw.
What is Exhibition and trade shows?
This is an exhibition or a show organised whereby many producers display or sell their products. Customers are allowed to visit, purchase and make orders. Samples and brochures are distributed at that show.
What is Trading stamps ?
These are stamps given to customers every time they purchase up to a certain value. When they have collected a certain maximum amount, they turn them in for a variety of items or a discount.
What is Self liquidation devices?
This is when customers are asked to redeem empty boxes, wrappers, bottle tops or even tooth paste tubes, etc. to shops, and in return they get reduction in prices, free gifts,etc.
What is Loss Leaders?
This is a practise of offering goods or services for sale below their cost price, in order to bring in customers who may then make other purchases so that in total, a profit is made.
What is Cash discounts?
A cash discount is a reduction in the invoice price given to a buyer as an incentive for early payment.
What are the key points of Cash discounts?
- Encourages prompt payment.
- Usually offered as a percentage (e.g., 2% discount if paid within 10 days).
- Applied after the invoice is issued.
- Reduces the amount the buyer has to pay if payment is made quickly.
- Common in credit transactions.
What is Trade discounts?
A trade discount is a reduction in the listed price of goods, given by a seller to a buyer (usually a reseller or wholesaler) for buying in bulk or for business purposes.
What are the key points of Trade discounts?
- Offered before the invoice is issued.
- Not shown separately on the invoice—it’s deducted before invoicing.
- Encourages bulk buying or long-term trade relationships.
- Not affected by payment timing.
