Aids To Trade That Support Commerce: Advertising: Sales Promotion (Copy)
Cheat Sheet: 5.1.4 Sales Promotion
Meaning
| Term | Explanation |
|---|---|
| Sales Promotion | Short-term incentives to boost sales and attract customers |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Methods of Sales Promotion
| Method | Explanation | Example |
|---|---|---|
| Point of Sale (POS) | Displays near checkout to encourage impulse buying | Chocolate stand at supermarket counter |
| Special Offers | Discounts, “buy one get one free” | BOGO deal on shampoo |
| Sponsorship | Funding events/activities for brand visibility | Pepsi sponsoring PSL cricket |
| Displays | Eye-catching product arrangements | Giant Coca-Cola fridge display |
| Competitions | Customers enter contests to win prizes | McDonald’s Monopoly game |
| Coupons | Vouchers for discounts | KFC meal coupon |
| Sales Periods | Seasonal discount sales | Black Friday sales |
| Loss Leaders | Selling at a loss to attract buyers | Cheap bread in supermarkets |
| Free Gifts | Extra item with purchase | Free toy in cereal box |
| Free Samples | Trial products given to customers | Free perfume testers in mall |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Factors Affecting Choice of Method
| Factor | Explanation | Example |
|---|---|---|
| Business Type | Retail vs. service business | Retail → coupons, service → sponsorship |
| Competitors | Need to match or beat rivals | Telecom companies offering free minutes |
| Cost | Budget determines method | Small shop → coupons, big firm → sponsorship |
| Nature of Product | Perishable vs. durable | Food → free samples, cars → sponsorship |
| New/Old Product | New needs sampling/promotions, old needs loyalty offers | New soft drink → free samples |
| Timing | Seasonal demand affects choice | Sales period during Eid/Christmas |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Summary
| Key Idea | Takeaway |
|---|---|
| Sales promotion = short-term tools to increase demand. | |
| Methods include discounts, samples, competitions, sponsorship, free gifts. | |
| Choice depends on business type, rivals, cost, product, and timing. |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course