Comments
Majority of the candidates that attempted the question scored below average. The expected answers include:
Terms used in sales promotion:
(a) Price-off - This is a form of coupon or ticket included in a product to be
used in reduction of the price when the product is being purchased to
encourage a buyer to continue to patronize the product.
(b) Salesmen competition - This competition is created within salesmen
to encourage salesmen to sell more products. The incentive will be the
gift or the extra pay that will be attached. An example is the salesman
of the month allowance.
(c) Loyalty scheme - This is a form of promotion designed to encourage
a buyer to continue to patronize a product or service. In creating the scheme,
the manufacturer or the retailer will promise a gift or free product after a
number of purchases.
(d) Premium offer - This is a form of sales promotion technique in which
two or more products (complimentary) such as shoe and polish, are sold
together at a lower price than their combined prices.
(e) Trade-in-allowance - This is a form of sales promotion that allows
a buyer to bring his old items to pay part of the cost of a new product.
This apart from getting the customer to buy the same product will
ensure continuous patronage.
