Which Sales Promotion Tool?

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 ToolsChocolate bar?Computer software?Clothing store?

1A 20% discount

220% extra free

3A cash-back offer (from manufacturer)

4A two-for-one deal

5Discount via a coupon (e.g. shop-a-docket)

6A competition (e.g. win a PS2)

7Extra points on a loyalty program

8Receive a free gift (if spending more than $X)

9Buy another product at a discount

10Access code for special web-site

11Give a free sample

12Have 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 effective do you think sales promotions are in generating sales and gaining new customers?

4.Based on the above table, but you think that sales promotions are more suited to particular types of product categories?