"Companies use sales promotion tools specifically designed to promote, like product combinations, dealer discounts and dealer incentives".

Which tool of promotion is highlighted in the aforesaid statement?

Sales Promotion

The correct answer is option 2- Sales Promotion.

Sales Promotion is highlighted in the given statement.

Sales promotion refers to short- term incentives, which are designed to encourage buyers to make immediate purchases of a product or service. These include all promotional efforts other than advertising, personal selling and publicity, used by a company to boost its sales. Sales promotion activities include offering cash discounts, sales contests, free gift offers, and free sample distribution. Sales promotion is usually undertaken to supplement other promotional efforts such as advertising and personal selling. 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 salesperson (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.

OTHER OPTIONS

• Advertising is perhaps the most commonly used tool of promotion. It is an impersonal form of communication, which is paid for by the marketers (sponsors) to promote some goods or service. The most common modes of advertising are ‘newspapers’, ‘magazines’, ‘television’, and ‘radio’. Advertising is a medium through which a large number of people can be reached over a vast geographical area. For example, an advertisement message placed in a national newspaper daily reaches lakhs of its subscribers.

• Personal selling involves oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making sales. It is a personal form of communication. Companies appoint salespersons to contact prospective buyers and create awareness about the product and develop product preferences with the aim of making sale.

• Public Relations (PR) involves a variety of programs and activities designed to maintain and enhance the company's image and the perception of its products or services in the eyes of the public. PR efforts might include press releases, sponsorships, events, media relations, and other strategies aimed at creating a positive public image and fostering good relationships with stakeholders.