Sales Promotion __________
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Involves offering short term incentives, which are designed to encourage the buyers to make immediate purchase of Product
Option (1) Involves oral presentation of message to prospective customers for making sales — Incorrect. This is personal selling, where the seller talks to the buyer face to face.
Option (2) Involves offering short term incentives, which are designed to encourage the buyers to make immediate purchase of Product — Correct. Sales promotion gives the buyer a short-term reason to buy now: a cash discount, a free gift, a contest or a free sample.
Option (3) Lowers promotion costs — Incorrect. Sales promotion adds to the cost of promotion; the discounts and gifts have to be paid for.
Option (4) Takes place when favorable news is presented in the media — Incorrect. This is publicity, which the firm does not pay the media for.
NCERT (2026-27 Edition): “Sales Promotion Sales promotion refers to short-term incentives, which are designed to encourage the buyers to make immediate purchase 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. …” |