Which of the following statements about sales promotion are correct?(…

Which of the following statements about sales promotion are correct?

(A) Sales promotion activities attract the attention of people because of the use of incentives.

(B) Sales promotion activities are designed to supplement the personal selling and advertising efforts of a firm.

(C) Sales promotion activities are used to provide long-term incentives to boost the sales of a firm.

(D) If a firm frequently relies on sales promotion, it may give the impression that it is unable to manage its sales.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → (A), (B) and (D) only

(A) Sales promotion activities attract the attention of people because of the use of incentives. — Correct. Offers such as discounts, free gifts and contests catch people’s attention. This merit is called attention value.

(B) Sales promotion activities are designed to supplement the personal selling and advertising efforts of a firm. — Correct. Sales promotion adds to the effect of advertising and personal selling, so the total promotion works better. This is synergy.

(C) Sales promotion activities are used to provide long-term incentives to boost the sales of a firm. — Incorrect. Sales promotion gives short-term incentives. A discount or free sample is offered for a limited time to make buyers buy at once.

(D) If a firm frequently relies on sales promotion, it may give the impression that it is unable to manage its sales. — Correct. Too many offers suggest that the product has few takers. This limitation is called reflects crisis.

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.”

“Merits of Sales Promotion (i) Attention Value: Sales promotion activities attract attention of the people because of the use of incentives.
(ii) Useful in New Product Launch: Sales promotion tools can be very effective at the time of introduction of a new product in the market. It induces people to break away from their regular buying behaviour and try the new product.
(iii) Synergy in Total Promotional Efforts: Sales promotion activities are designed to supplement the personal selling and advertising efforts used by a firm and add to the over all effectiveness of the promotional efforts of a firm.”

“Limitation of Sales Promotion (i) Reflects Crisis: If a firm frequently rely on sales promotion, it may give the impression that it is unable to manage its sales or that there are no takers of its product.”