How many of the following statements about sales promotion tools are correct?
(A) Cooperative advertising and dealer discounts are sales promotion tools designed for middlemen.
(B) Dealer incentives and dealer contests are sales promotion tools designed for sales persons.
(C) Bonus and salesmen contests are sales promotion tools designed for sales persons.
(D) Free samples, discounts and contests are sales promotion tools designed for customers.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Three
(A) Cooperative advertising and dealer discounts are sales promotion tools designed for middlemen. — Correct. These tools are given to tradesmen or middlemen, so that they push the product.
(B) Dealer incentives and dealer contests are sales promotion tools designed for sales persons. — Incorrect. Dealer incentives and contests are meant for dealers, that is, middlemen. The tools for sales persons are bonus, salesmen contests and special offers.
(C) Bonus and salesmen contests are sales promotion tools designed for sales persons. — Correct. These reward the firm’s own sales staff for selling more.
(D) Free samples, discounts and contests are sales promotion tools designed for customers. — Correct. These are offered to customers, to make them buy now.
NCERT (2026-27 Edition): “Sales Promotion … Companies use sales promotion tools specifically designed to promote to customers (e.g., free samples, discounts, and contests), tradesmen or middlemen (e.g., cooperative advertising, dealer discounts and dealer incentives and contests) and to sales person (e.g., bonus, salesmen contests, special offers). Sales promotions include only those activities that are used to provide short term incentives to boost the sales of a firm.” |