BBA- 306 / SALES PROMOTION AND PUBLIC RELATIONS

SECTION-A: PYQ

Question 1. What do you understand by ‘Point of Purchase’? (pyq 200words)

Answer- Manufacturers give free Point of Purchase (POP) display units to stores (or Retailer to
customer) to boost specific brands or product groups. These displays come in various forms like
special racks, banners, signs, and more. The key is to design them to grab attention and boost sales
for retailers. The main aim is to make products highly visible. In places where customers spend time,
anything that makes a product stand out is valuable. POP displays not only remind consumers of
important details like the product's name and appearance but also align with the themes used in ads
and by salespeople. The goal is to create interest and increase visibility for better sales.

Trade Shows / Exhibitions: Thousands of manufacturers all over the world take part in trade shows
and exhibitions display their products / services and book orders. Exhibitions also exhibit products,
book orders and sell products.

Sales meetings, sponsored by companies, happen regionally to motivate and guide sales teams.
They're like pep talks, explaining products and promotions, and sometimes turning into friendly
contests to encourage everyone to sell more. The goal is to boost motivation and sales performance.

Push money, also called spiffs, is an extra payment given to salespeople for hitting a sales target. It's
a common and effective way for manufacturers to motivate their sales teams and resellers. By
exceeding sales quotas, individuals can earn extra cash rewards, making it a powerful incentive to
boost sales.

A deal loader is like a special reward from the manufacturer to retailers for ordering a specific
amount of a product.

Buying allowances are like bonuses that manufacturers give to resellers when they purchase a
specific amount of a product during a special time. Instead of giving cash, the manufacturer often
reduces the invoice amount. Some retailers use a strategy called 'forward buying' to make the most
of these allowances. This means they order more products than needed during the deal period and
store the extras to sell later at regular prices. It's a way to encourage larger purchases and boost sales
during promotional periods.

Free goods allowance is a type of buying allowance where manufacturers offer a certain amount of a
product for free to wholesalers or retailers if they buy a specified quantity of the same or a different
product. Instead of getting cash, the allowance comes in the form of free merchandise, as the name
suggests. It's a way for manufacturers to encourage larger purchases by providing an extra incentive
in the form of complimentary products.

Display allowances, manufacturers pay retailers extra for showcasing displays prominently at selling
points. Payment can be cash or goods. Retailers need to provide written certification of compliance
before receiving payment. They usually choose displays that lead to high sales volume. Think of it as
a bonus for making products stand out and sell more in stores. to actively promote and feature their
products.

Q2. What are trade oriented sales promotion? (pyq 200words)

Answer- Trade-oriented sales promotion refers to marketing activities and strategies that are
specifically designed to target intermediaries in the distribution channel, such as wholesalers and
retailers. The primary goal is to motivate and incentivize these resellers to promote, sell, and
distribute a manufacturer's products effectively. Unlike consumer-oriented promotions, which focus
on end-users, trade-oriented promotions aim to enhance the relationship between manufacturers
and resellers. They primarily aim to achieve four goals:

1. Develop In-Store Merchandising Support: Strengthening support at the retail store level is crucial
for building a strong connection between customers and sales.

2. Control Inventory: These promotions help in managing inventory levels, whether it's increasing or
decreasing, to maintain an optimal balance.

3.Expand or Improve Distribution: Trade promotions contribute to opening up new sales areas and
improving overall product distribution.

4. Generate Excitement among Sellers: Creating enthusiasm about the product among those
responsible for selling it is a key goal.

Common forms of trade promotions include point-of-purchase displays, trade shows, sales meetings,
sales contests, push money, deal loaders, and promotional allowances. These strategies collectively
enhance the relationship between manufacturers and resellers, ensuring effective product
distribution and market presence. (Question no1)

Q3-* What are the similarities between Publicity and *Public Relations? (pyq 200words)

Answer- Publicity and public relations (PR) share several similarities as they both aim to create a
positive image and foster communication between an organization and its target audience.

Firstly, both publicity and public relations involve managing information dissemination (circulation).
Publicity is a specific aspect of public relations that focuses on gaining media attention to create
awareness about a company, product, or event. PR, on the other hand, encompasses a broader range
of activities, including managing communication, building relationships, and shaping the overall
perception of an organization.

Secondly, both publicity and PR aim to create a favorable public image. Publicity achieves this by
securing media coverage, often through news stories or features. PR, in its entirety, focuses on
building and maintaining positive relationships with the public, media, and other stakeholders.

Thirdly, both play crucial roles in shaping public perception. Publicity generates attention through
various media channels, contributing to how the public perceives a brand. PR, being a strategic and
ongoing effort, works to influence opinions by managing communication and relationships over the
long term.

Furthermore, both rely on effective communication strategies. Whether through press releases,
events, or social media, both publicity and PR leverage communication tools to convey messages that
align with the organization's goals.

In essence, while publicity is a specific tactic within the broader scope of public relations, they share
the fundamental goal of creating a positive image, managing information, and influencing public
perception through strategic communication efforts.

Q4- *State the ethical issue in Sales promotion. (pyq 200words)

Answer- Ethics, a branch of social science, revolves around moral principles, distinguishing between
'good' and 'bad.' It addresses the moral duties and responsibilities within a society, defining what is
'right' or 'wrong.' Morality, in turn, focuses on conduct deemed 'right' or 'wrong' based on
established principles. These moral values shape societal laws, acts, and rights, adapting to changing
times and needs.

Examining sales promotion through an ethical lens, it is a tool designed to persuade buyers to make
more purchases by temporarily enhancing a product's value. Success in sales promotion is measured
by increased sales, market share, and profits. While companies may be tempted to employ deceptive
tactics to outperform competitors, sales promotion techniques like discounts, coupons, and rebates
are visible and absolute, making it easier to align with ethical values.

Unlike advertising, sales promotion aims to build enduring buyer-seller relationships, emphasizing
honesty based on accepted values. Although businesses may be tempted to prioritize short-term
gains through unethical sales promotion, societal and sales promotional ethics are often aligned.
Most businesses are compelled to incorporate social ethics into their sales promotion measures,
emphasizing the equitability of social and sales promotional ethics.

Q5- Explain the basic objectives of corporate advertising. (pyq 200words)

Answer- Advertising is a paid, non-personal promotion sponsored by an identified entity,

encompassing product advertising focused on goods and services and corporate advertising, which
aims to establish a positive public image for a company. Public service advertising, addressing issues
like AIDS awareness or child marriage, is a subset of public relations advertising.

Corporate advertising, also known as image-building or institutional advertising, plays a vital role in
shaping an organization's image. It communicates various activities undertaken by the company,
reflecting support for social causes, environmental conservation, anti-pollution measures, and
sponsorship of artists and athletes.

Key objectives of corporate advertising include promoting favorable attitudes, attracting potential
investors, building goodwill, improving employee relations, educating customers, earning dealer and
supplier goodwill, informing the government, and addressing public concerns. It can be proactive or
reactive, offering control over message timing and content through various mediums.

In essence, corporate advertising is a comprehensive strategy with the following key points:

Promoting Favorable Attitudes: Creating positive perceptions among the public.

Attracting Potential Investors: Appealing to individuals interested in investing in the company.

Building Goodwill: Establishing a positive reputation and rapport.

Improving Employee Relations and Morale: Enhancing the internal environment.

Educating Customers: Informing the public about the organization's offerings.

Earning Goodwill of Dealers and Suppliers: Cultivating positive relationships with business partners.

Keeping the Government Informed: Providing relevant information to authorities.

Removing Public Misgivings and Doubts: Addressing concerns to maintain a positive public image.

Corporate advertising is a versatile tool, offering control over messaging and contributing to an
organization's overall success by shaping perceptions and relationships.
Q6- Explain the various purposes of promotion. What are the major factors which affect the sales
promotion. (pyq 600 words) Chapter 2

Answer- Objectives differ based on the audience—consumers, sales force, or trade partners. The
primary purpose of sales promotion is to offer added value that drives purchases. When aimed at
consumers, the goal is to stimulate their buying behavior. For trade partners, the focus shifts to
encouraging distributors to promote the product or service. When directed at the sales force, the
aim is to boost sales volume. Purposes are:

Building Product / Service Awareness: Several sales promotion techniques are highly effective in
exposing customers to products/services for the first time and serve as key promotional components
in the early stages of new product/service introduction. Additionally, as part of the effort to build
product awareness, several sales promotion techniques possess the added advantage of capturing
customer information at the time of exposure to the promotion. In this way, sales promotion can act
as an effective customer information gathering tool (sales lead generation) which can subsequently
be used as part of follow up marketing efforts.

Creating Interest: Marketers purpose of generating interest in a product or service is achieved

though sales promotion measures. In fact, creating interest is often considered the most important
objective of marketing and the same is achieved by the judicious use of sales promotion. In the retail
industry, an appealing sales promotion can significantly increase customer traffic to retail outlets.
Internet marketers can use similar approaches to bolster the number of website visitors. Another
important way to create interest is to allow customers to experience a product. Several sales
promotion techniques offer the opportunity for customers to try products for free or at low cost.

Providing Information: Informing is to educate the consumers about the products/services

availability, uses, utilities, etc. As a matter of fact, most of the sales promotion programmes do offer
customers access to product information. For instance, a promotion may allow customers to try a
free based online service for free for several days. This free access may include receiving product
information via email.

Stimulating Demand: Next to building initial product awareness, the most important purpose of
sales promotion is to generate demand by convincing customers to make a purchase. Special
promotions, especially in the form of lower prices are often employed to stimulate sales. Thus,
existing customers are induced to purchase more and potential customers are motivated to make
purchases.

Reinforcing the Brand: Once customers have made a purchase, sales promotions can be used to
encourage both additional purchasing and also as a reward for purchase loyalty. Many companies,
including petroleum, airlines and retail stores reward good or preferred customers with special
promotions like petrol-bonus, loyalty bonus, surprise price reduction at the cash register, special
deals, etc.

Maintain Sales: There are certain products like air-conditioners, winter clothes, room heaters,
sunscreen lotions, services like railways, airlines, which have seasonal demand. To maintain the sale
of these types’ products/services throughout the year, normally manufacturers and dealers provide
off season discount. This automatically boosts sales during off seasons and sales volumes are
boosted up to normal level. Similarly, during the declining stage of the product life cycle (PLC), sales
promotion acts as a booster to increase the volume of sales.

Factors affecting Sales Promotion:

1.Nature of the Product: In case of,

FMCG Products: For Fast-Moving Consumer Goods (FMCG), sales promotion, along with advertising
and publicity, is essential due to the competitive market and need for consumer awareness.

Industrial Products: For industrial products, the combination of personal selling and sales
promotion is more effective, emphasizing the importance of direct engagement in promoting these
products.

Tailored Approach: The nature of the product plays a crucial role in determining the appropriate
sales promotion strategy, guiding companies to design a package that aligns with the characteristics
and requirements of the specific product or service.

2.Packaging:

Self-Promotional Function: Packaging not only safeguards the product but also serves a self-
promotional function.

Creativity Impact: Creative packaging design adds a 'pick-me-up' appeal to the product, attracting
consumer attention.

Communication Tool: Packaging plays a role in effectively communicating the product features to
potential buyers.

Enhanced Sales Promotion: By providing an aesthetically pleasing and informative package, it

contributes to the 'extra push' that aligns with the goals of sales promotion.

3. Degree of Customisation: Standardised products and services generally require more of sales
promotional activities as compared to customised products/services because they have to satisfy
more the general needs of the customers.

4. Product Life Cycle: Product have different levels of life cycle. At the entry level as well as at the
declining stage sales promotion doses have to be more. In other words, the product/service life cycle
dictates the volume and type of sales promotion that needs to be adopted. Sales promotion is highly
needed both at the introduction stage and decline stage of the product life cycle.

5. Nature of the Market: The choice of sales promotion techniques is also greatly influenced by the
target market characteristics such as level of competition, geographic coverage and buyer readiness
stage. In highly competitive market, sales promotion is important. Similarly, where the number of
customers is large, sales promotion and advertising are required.

6. Level of Competition:

Market Competition Impact:

Sales Promotion Penetration: The intensity of market competition directly influences the
penetration strategy of a product.

Highly Competitive Environments: In highly competitive markets, effective sales promotion

techniques like trade fairs and shopping center discounts can be successfully employed.

Low Competitive or Oligopoly Situation: In situations with low competition or an oligopoly,

alternative promotional measures are utilized to distinguish the product or service.

7. Geographic Coverage:
Wide Market Coverage:

Desirable Approach: For products with broad market coverage, a combination of sales
promotional packages and advertising is desirable.

High Promotional Campaign: Extensive promotional campaigns, including sales promotions,

are necessary in these scenarios.

Local Area Presence:

Primary Role: In cases where the product or service is available locally, personal selling takes
precedence.

Localized Marketing: The focus shifts towards personalized interactions and local marketing
efforts to promote the product effectively.

8. Buyer Readiness Stage:

Dependence on Promotion Mix:

Buyers' Readiness Impact: The choice of the promotion mix often depends on the buyer's
readiness (willingness to do something) stage.

Ordering and Reordering Stage: If the buyer is already aware and convinced about the
product/service, sales promotion measures become crucial for the ordering and reordering stage.

Effectiveness of Tools:

Early Decision Process: Advertising and publicity are effective tools at the early stages of the
buying decision process when creating awareness and generating interest is vital.

Closing and Reordering Stage: In the closing and reordering stages, sales promotion and
personal selling become the most effective tools to facilitate the final decision and encourage repeat
purchases.

Q7. *What are the advantages of trade fairs and exhibitions? Explain the functions of trade fairs
and exhibition. (pyq 600words) (pyq 600w- 2018)

Answer- FUNCTIONS OF TRADE FAIRS AND EXHIBITIONS:

F1. *Meeting Potential Customers at Exhibitions and Trade Fairs:

Exhibitions and trade fairs serve as valuable platforms for exhibitors to connect with potential
customers, whether individuals or businesses. These customers, coming from diverse backgrounds,
might be challenging to reach without such events. Trade shows offer a unique opportunity for
exhibitors' sales teams to engage with potential customers on a personal level.

The personal interactions facilitated by trade shows contribute to the improvement of customer
relations. Rather than incurring the high costs and time associated with individual sales visits, a brief
conversation at the exhibition stand becomes a convenient and effective means to establish contact.
This not only streamlines the process but also fosters more profound business relationships. Overall,
exhibitions provide a cost-effective and efficient way for exhibitors to meet, interact, and build
connections with a diverse range of potential customers.

F2. Introducing a New Product at Exhibitions and Trade Fairs:

Exhibitions and trade fairs serve as invaluable arenas for gauging customer feedback on new
products, ideation, and modifications to existing offerings. These events provide an excellent
opportunity to assess the reception of a new product or prototype in a comfortable setting.

Customers attending these exhibitions can actively engage with the product, witnessing its operation
or directly using it. This hands-on experience enables them to provide immediate feedback to the
company, creating a dynamic feedback loop at the event itself. The reactions and responses gathered
from the visitors serve as priceless insights for future market research initiatives. In essence,
exhibitions and trade fairs emerge as crucial platforms not only for unveiling new products but also
for obtaining real-time, customer-driven feedback that is instrumental in shaping the future direction
of product development.

F3. Make a Sale:

It is quite common for many industries to arrange exhibitions and trade fairs with a view to having
direct sales. Through this may not be a major objective of the company but many such occasions
results in increasing the sale.

F4. Demonstrate Products:

The customers (both present and prospective) have an opportunity to see the product in operation.
Many industrial goods are heavy, complicated to set-up and at the same time difficult to demonstrate
at each prospect’s place. In such circumstances, the only alternative left to the manufacturer is to
display such products at a trade fair / exhibition. The visitors are also able to examine the suitability
and usefulness of such products in person.

F5. Stimulate the Needs of Customers:

Product demonstration is a very effective method of stimulating needs. When a customer sees the
benefits of a product, few of his hidden or suppressed needs can become manifest. May visitors who
may walk in with only casual interest develop genuine interest in the product after the product
demonstration and operation.

F6. Marketing Communication:

Participation in trade fairs and exhibitions are able to focus media attention on the company and its
products. Besides, the company comes in direct contact with customers and distributors and thereby
gets an opportunity to create a positive impression.

F7. Gathers Competitive Intelligence:

Competitors’ products are also displayed in the exhibition and it is easy to study the features and
benefits of their products. It is also possible to meet employees of the competitors and learn more
about their marketing plan.

F8. Deal with Service and other Customer Problems:

Trade fair and exhibition provide an excellent platform for the customer to appraise the company of
their service requirements and specific problems that they might have observed with the product.
Since executive of the company remain present in fairs and exhibitions this is a good opportunity for
them to get face-to-face communication of customers‟ problems.

ADVANTAGES OF TRADE FAIRS AND EXHIBITION:

(i) Exhibitions and trade fairs bring entirely new business to the company.
(ii) Buyers on visiting exhibitions may be tempted to buy the goods that are on
display.
(iii) Buyers get an opportunity to compare the competitive lines which are
displayed in close proximity to one another.
(iv) An opportunity is provided to buyers to buy all their occasional
requirements, such as machinery, fittings, utensils, furnishings, etc., for
exhibitions are generally held annually during the particular season/time of
the year.
(v) Trade Fairs and Exhibitions help particularly to sell industrial goods, for they
are the basis of the sellers‟ sales campaigns.
(vi) Exhibitions enhance friendship with regular customers. In this way, old
customers are retained by the company.
(vii) Customers, who find no time visit the shops of businessmen, may be tempted
to visit the exhibition and may make a closer acquaintance with the new lines
developed by their suppliers. They may also learn of new ideas on the
handling and merchandising of the lines they regularly stock.
(viii) A well-arranged exhibition creates a good impression of the exhibitors‟
reputation in the trade and so enables them to capture a wider market for the
goods that are exhibited.
(ix) Exhibitions help salesmen to learn many things. Equipped with such varied
experience, they are in a better position to handle their customers.
(x) The contacts established at the exhibitions between different representatives
of the various firms give rise to many trades related activities which are
advantageous to the company.
(xi) An exhibition generally generates friendly rivalry among competitors and
gives them a better understanding of one another. This is indeed a great
achievement in the field of healthy business.
Q8. *Define trade promotions. Discuss the various tools of trade promotions used by the
manufactures. (pyq 600words)

Answer- Trade sales promotions target resellers, including wholesalers and retailers, who play a
crucial role in distributing manufacturers' products to end consumers. These promotions have
distinct objectives compared to consumer-focused strategies, primarily aiming to motivate dealers
and achieve specific goals:
1. In-Store Merchandising Support:

- Develop robust in-store merchandising support to strengthen the crucial link between customers
and sales at the retail level.

2. Inventory Control at the Trade Level:

- Manage inventory effectively at the trade level by either increasing or depleting stock, thereby
helping manufacturers mitigate seasonal fluctuations.

3. Distribution Enhancement:

- Utilize sales promotion methods to expand and enhance distribution networks, opening up new
sales areas for the products.

4. Generate Excitement Among Sellers:

- Create excitement about the product among those responsible for selling it, including
wholesalers, distributors, retailers, and stockists, fostering enthusiasm and engagement.

5. Strengthen Manufacturer-Trader Relationship:

- Improve and fortify the relationship between manufacturers and traders, ensuring a collaborative
and mutually beneficial partnership.

Trade-oriented sales promotions, therefore, go beyond merely boosting sales volume; they
strategically address aspects of inventory management, distribution, and relationship building within
the supply chain. By aligning with the goals mentioned, manufacturers can create a dynamic and
supportive trade environment that contributes to overall business success.

TRADE PROMOTIONS TOOLS ARE:

T1. Retail Displays T2. Price Discounts T3. Trade Allowances

T1. Retails Displays:

Effective sales promotion begins with capturing consumer attention, and in the retail landscape, the
physical environment of the store plays a pivotal role. Retail displays emerge as a highly impactful
tool for drawing attention to promotional offers, making them a cornerstone of successful retailing.

1. Significance of Retail Displays:

Retailers recognize that their primary strength in selling lies in attracting attention through displays.
The success of a promotion often hinges on the retailer's ability to make their display stand out
amidst the crowd.

2. Types of Displays and Consumer Attention:

Displays featuring discount offers, price-offs, premiums, introductory offers, sampling, and new
product showcases, such as test-driving automobiles, attract considerable consumer attention,
providing a boost to sales volume.

3. Display Material Sources:

Organized retailers can create their own display materials, while smaller retailers rely on
manufacturers to supply them. Manufacturers are eager to provide attractive and professional
display materials to facilitate effective merchandising.

4. Selection of Display Locations:

The choice of in-store display locations depends on factors such as the importance of retail
promotion, the nature of the promoted product, manufacturer-offered trade deals, and the
availability of display space.

5. Front of Store Displays:

Larger and organized retailers strategically design their store layouts, reserving large open areas near
entrances for retail displays. This front-of-store location is highly valued due to its visibility to
customers entering the store.

6. End-Cap Displays:

Endcaps, located at the ends of shelving aisles, represent valuable retail display space after the front
of the store. These areas, particularly those near cash counters and staircases, are sought after for
high-profile promotions, product launches, and distribution of promotional materials.

7. In-Aisle Displays:

While in-aisle displays are less desirable due to lower customer traffic and space limitations
compared to other locations, they can still serve as effective spaces for reminder promotions,
especially for products in the maturity stage.

Understanding the dynamics of different display locations allows retailers and manufacturers to
strategically deploy their sales promotion efforts, ensuring optimal visibility and impact within the
store environment.

T2. Price Discounts:

The age-old strategy of offering products at a discount remains a powerful retail-level promotion
employed by traders to motivate consumers. Shopkeepers, throughout history, have leveraged the
fundamental principle of price and demand by reducing the prices of commodities. In the modern
retail landscape, this technique is still widely used, albeit with a more scientific and professional
approach.

Presentation of Discounts:

1. Regular and Discounted Price Display:

Retailers often present both the regular and discounted prices together, allowing consumers to
calculate the discount themselves. For instance, a refrigerator originally priced at Rs.25,000 might
now be presented as Rs.18,000. This approach provides transparency by showcasing both prices.

2. Difference Presentation:

Another method involves presenting the reduced price as the difference between the regular and
discounted prices. For instance, instead of stating a 2 percent discount on an expensive item like an
automobile, retailers might highlight a savings of Rs.30,000.
3. Percentage Difference Presentation:

Discounts can be presented as a percentage difference between the regular and discounted prices.
For example, if an item is reduced from Rs.500 to Rs.250, presenting the discount as "save fifty
percent" could be more effective than stating the monetary amount saved.

4. Increased Purchase Power Presentation:

Retailers may emphasize the increased purchasing power by framing the price reduction in terms of
additional items consumers can buy at the reduced amount. For instance, promotions like "buy three
get one free," "buy three for Rs.50," or "get three at the price of two" can be employed.

Consumer Response:

Research in sales promotion indicates that among these methods, the presentation focusing on
increased purchase power tends to elicit the strongest sales response from consumers at the retail
level across various product categories. This method effectively taps into consumer psychology,
making the promotion more enticing and compelling.

T3. *Trade Allowances:

Trade allowances are a crucial aspect of manufacturers' strategies to incentivize retailers and
resellers for promoting and featuring their products. Various types of allowances serve specific
purposes, contributing to effective trade promotion.

1. Display Allowance:

Definition: Manufacturers offer display allowances to encourage stores to showcase their products
prominently.

Example: A store receives a display allowance for featuring cards on its shelves, signaling the launch
of a new brand or a special low-price promotion.

2. Advertising Allowance:

Definition: Manufacturers may pay an advertising allowance to retailers featuring their brands in the
retailer's advertising.

Example: Retailers receive compensation for including the manufacturer's products in their
advertising campaigns.

3. Buying Allowance:

Definition: A bonus paid by manufacturers to resellers based on the quantity of product purchased
within a specific timeframe.

Example: If a reseller buys a certain quantity, such as 15 cases, they receive a buying allowance,
usually in the form of a reduction in the face value of the invoice.

4. Slotting Allowance:

Definition: Controversial but popular, retailers charge fees for shelf or warehouse space, and
marketers pay slotting allowances to secure prime placement.

Example: Marketers pay extra to ensure their products occupy prominent positions on shelves,
increasing visibility among consumers.
5. Free Goods Allowance:

Definition: Manufacturers offer extra cases of merchandise for free to resellers who meet specific
purchase or sales targets within a defined period.

Example: Resellers receive additional cases at no cost for reaching a certain sales volume, effectively
countering competition.

Trade allowances play a pivotal role in fostering collaboration between manufacturers and
retailers, aligning their interests to drive product visibility and sales. Each type of allowance serves a
unique purpose, contributing to the overall success of trade promotions in the competitive retail
landscape.

Q9. *Explain the process of planning a sales promotion programme. What factors should be taken
into account for the effective sales promotion? (pyq 800words)

Answer- Effective Management of Sales Promotion:

In the fiercely competitive marketplace, harnessing the full potential of sales promotion demands a
professional and systematic approach. To ensure success, it is essential to undertake concurrent
steps in planning and managing the sales promotion function.

1. Assessing the Current Situation:

Begin by analyzing the brand's present situation, considering market share, major competitors, and
brand performance. This benchmark, related to market size and potential, informs the role of sales
promotion in achieving desired changes. This step facilitates setting measurable and attainable goals.

2. Goal Setting and Scheme Identification:

Once goals are established, proceed to identify alternative schemes. Select the most appropriate
sales promotion scheme(s) that align with the goals and fit within the available budget.

3. Incorporating Creativity:

Inject creativity into the selected scheme, making it novel, attractive, and challenging for the target
audience, whether consumers, the trade, or the sales force.

4. Ensuring Legal Validity:

Verify the legal validity of the sales promotion scheme. Adhere to regulations, obtaining necessary
permissions, and ensuring compliance with acts like the Prize Competition Act, 1955, and the MRTP
Act to avoid legal complications.

5. Strategic Decision-Making:

Decide on critical factors such as timing, duration, location-wise dealer selection, and convincing the
trade and sales force about the scheme's appropriateness. Schedule procurement, production,
advertising, and logistics-related aspects strategically.

6. Development of Evaluation Criteria:

Establish criteria for evaluating the effectiveness of sales promotion goals. Determine what, when,
how, and for how long to measure. Focus on measuring incremental sales arising from promotions.

7. Monitoring the Offer:

As the sales promotion offer commences, monitor its progress, collect relevant data, and gain
insights for future use. Implement mid-period corrections if needed.

8. Evaluation of Effectiveness:

In the final step, rigorously evaluate the effectiveness of sales promotions against their goals. Refine
measurement methodologies and conduct research on factors like deal-prone consumers, incentive
scheme effectiveness, and attitudes of the trade and consumers. Document corporate experiences,
including pitfalls and mishaps, to continually enhance the professional management of the sales
promotion function.

IMPORTANT FACTORS FOR EFFECTIVE SALES PROMOTION:

F1. Target Your Efforts:

Sales promotions can achieve various objectives, such as spurring purchases by established
customers, inducing new customers, drawing customers from competitors, and stimulating business
during slow periods.

Rarely can one promotion accomplish all these objectives simultaneously, so management must
decide on the most important objective and concentrate efforts accordingly, choosing from options
like frequent purchases, large volume purchases, attracting customers to new offerings, luring new
customers, attracting old customers, or boosting business during specific times.

F2. Plan the Incentive:

- Well-thought-out promotions should prompt customer action.

- Incentives may include price savings (discounts, coupons, added value offers), samples or trial
offers, and events or experiences to generate enthusiasm, sales, and publicity.

- Price offers must be attractive to consumers yet financially viable for the business. Avoid
uninspiring small discounts and deep discounts unless they attract valuable new customers.

- Coupons, whether printed or distributed digitally, remain popular across customer categories.

- Samples provide a low-risk opportunity for customers to try products before buying, and they
work well for both product and service-based businesses.

- Events and experiences, when done wholeheartedly, draw customers for celebrations, product
launches, or presentations.

F3. Know Your Target:

- Promotions are effective when customers are pleasantly surprised, often needing a jolt to make a
buying decision.

- The promotion manager must set clear objectives, such as additional sales, increased rupee value,
gaining new customers, or changing buying patterns.

In summary, effective sales promotion involves defining clear objectives, targeting efforts based on
those objectives, planning enticing incentives, and understanding the target audience to create
promotions that drive desired actions.

Q10. **What is the role of public relations in a business organisation? Discuss briefly the major
tools of public relations. (pyq 800words) 2018, 2022
Answer- Definition: Public relations (PR) is a vital part of an organization's promotional mix, involving
communication and relationship-building with various stakeholders such as customers, shareholders,
employees, government, and the media. It focuses on creating a positive corporate image, managing
rumors, and addressing unfavorable events. PR employs two-way communication to engage with
public opinion. This communication form has been beneficial globally, fostering understanding,
caring for public sentiment, and fulfilling social responsibilities for different types of organizations.

ROLE OF PUBLIC RELATION:

R1. Creating Markets: In challenging situations where entry to a market is difficult, PR helps convince
both the government and local communities about the benefits of a company's presence. It acts as a
facilitator for marketing activities, especially in unfamiliar or potentially hostile environments.

R2. Influencing Non-Consumer Groups: While marketing typically focuses on consumers, PR takes
care of influential groups or individuals who may not be directly involved in the buyer-seller
relationship. For example, medical representatives inform physicians about products without directly
selling to them, relying on PR to indirectly influence their recommendations.

R3. Undertaking crisis management: Communication during crisis is very crucial for business
organizations and such crisis communications with appropriate bodies are undertaken through PR
exercises. For example, excessive chemical content in soft drinks, germ affected chocolates in the
recent past have made media headlines. Equally competent public relation exercises by the
respective companies have been able to dousing public and legal outrage effectively. Thus, public
relation has emerged as an effective instrument of marketing in such crisis situations.

R4. Influencing the dealers and sales people: The middlemen and sales people are vital links in the
marketing of goods and services. As a matter of fact, it is the trade and the sales people who make all
the efforts to move the products from the point of production to the point of consumption. In view
of this, it is always important to exercise cordial relations with the middlemen and company’s own
sales force. Dealer conferences, conventions, sales contests, gifts, sales people meet, etc. are all such
PR tools to achieve dealer support and sales force cooperation.

R5. Influencing direct consumer through PR: In situations where traditional promotional tools like
advertising and personal selling face constraints, PR exercises become valuable. For instance,
companies may sponsor community events, health camps, or cultural activities as PR tools, especially
useful for smaller organizations with budget limitations.

MAJOR TOOLS OF PUBLIC RELATION:

T1. The Press

T2. TV
T3. Radio
T4. Oral Communication
T5. Printed Literature
T1. The Press:
The press throughout the world has remained a fundamental institution which reflects and moulds
public opinion.
Public Relations through Press / Print Media: The Public Relations Department or Manager must
strategically determine the "how" (media) and "when" (timing) for projecting the organization's
activities, policies, and programs to the public through the press. This communication can include
press releases, features, articles, backgrounders, etc. It is crucial to consider the newsworthiness and
timing of these communications, as organizations vie for press coverage, ensuring optimal
publication.
News Releases: News releases, commonly known as press releases, are a prevalent form of publicity
for organizations. They involve sharing news, events, and developments related to the organization,
serving as a source of information for the media. These releases should feature events or facts that
captivate readers' interest, whether they involve planned occurrences like plant expansions, new
product launches, or key appointments, or unplanned events such as accidents or disruptions in
operations.
Key considerations for crafting effective news releases include:
1. Clear Identification: Clearly indicate the organization's name, address, telephone number, and
email address, along with the sender's name and designation.
2. Release Date: Specify the date for the release, providing a temporal context for the information.
3. Newsworthiness: Ensure that the content is newsworthy, free of errors, and presented in a
journalistic style that resonates with the media.
4. Conciseness: Keep the content brief, unambiguous, and to the point, allowing for easy
consumption and understanding.
5. Headline: Include a compelling headline that encapsulates the essence of the news, grabbing the
reader's attention.
Crafting news releases with these considerations enhances their effectiveness in capturing media and
public interest.
Editorials / Articles / Features: Editorials, articles, and features provide organizations with an avenue
to communicate newsworthy and socially relevant information. When an organization selects a news
item with broader social implications, it has the potential to secure a place in the editorial section of
newspapers, journals, or magazines. Events such as special occasions, anniversaries, significant
achievements, major policy changes, or controversial issues often serve as themes suitable for
editorials.
Letters to the Editors: Organizations can engage in effective public relations by utilizing letters to the
editor as a means to express their views and inform the public. These letters serve the purpose of
addressing public doubts or misgivings, correcting wrong impressions about the organization, and
offering feedback. Due to their nature as a form of public feedback, letters to the editor are often
easily published in the press, providing significant publicity value for the organization.

T2. TV
Television, a powerful medium of mass communication, combines sound, sight, motion, and color to
create a persuasive impact worldwide. Organizations leverage television for public relations through
sponsored programs, development features, interviews, and discussions. The emphasis is on
providing information and education rather than heavy persuasion.

Public Relation through Television: While accomplishing the job of public relations through the mass
medium of television, the following points are essential:
1. The subject matter should be newsworthy

2. Identify a producer for the purpose

3. Allow the TV Team on major landmarks, achievements, crisis situation, disaster

for coverage and provide background information about the occasion.

T3. Radio:
Radio still remains a potent medium for public relations across various organizations. Its mobility and
flexibility set it apart, and despite being a mass medium, radio communicates with the qualities of a
direct personal medium, using spoken words and human voices to convey messages.
Public Relations through Radio: Radio is fast emerging as a popular medium of communication for
all strata of the society. Since news bulletins are broadcasted through radio at regular intervals, news
about company’s performances, achievements, and developments can easily be inserted which
enjoys credibility with the listeners.
 Radio news releases should be written in radio style which requires little editing.
 Popular programmes like agriculture, development, social issues like dowry, child labour, girl child,
pulse polio can be sponsored by the company.
 Current affairs panel discussions, industry news is some of the programmes through which the
publicity job can be undertaken for the company.
T4. Oral Communication
Oral communication in public relations targets various stakeholders such as employees, stockholders,
customers, suppliers, government, local community, financial community, and the press. It effectively
publicizes company policies and programs, especially through mediums like meetings, telephone
calls, public address systems, panel discussions, counseling, email, SMS, and video conferencing.
While it is speedy and cost-effective, its limitations include the potential for quick forgetting or partial
understanding.

Meeting: Meetings serve as gatherings of two or more individuals, ranging from department heads
to formal committees. They are organized to brief, inform, resolve conflicts, or gather reactions.
Formal meetings involve sending prior notices with agendas, ensuring convenience for attendees,
and making arrangements for smooth conduct. Listening is crucial, and participants should be given
the opportunity to speak. The chairman guides discussions, facilitates conclusions, and aims for a
win-win outcome. Meetings serve as effective communication tools in various organizational
contexts.

Speeches: Speeches represent a swift means of conveying information, often managed by the Public
Relations Department. Preparation involves having comprehensive knowledge about the
organization. Speech content should be newsworthy and of public interest. Timing and venue
considerations are essential. Crisis messages require composed delivery, while positive messages
should be conveyed joyfully. Balancing speech length is crucial, avoiding extremes. Overall, speeches
serve as effective communication tools, demanding careful planning and delivery.

T5. Printed Literature

Organizations, irrespective of their nature, require public relations support through various forms of
publicity literature such as house journals, annual reports, brochures, and more. The primary goal of
this printed literature is to inform or persuade the target audience about the organization's products,
services, or ideas.

Annual Reports: Annual Reports, once focused solely on presenting financial accounts, have evolved
into vital Public Relations tools for corporate communication. Despite the primary responsibility for
financial reports lying with the accounts and finance department, the Public Relations Department
now plays a pivotal role in advising management on the report's overall approach, the chairman’s
statement theme, and presentation format. Modern Annual Reports, enriched with glossy paper,
graphics, and professional guidance, project the organization's profile through attractive visuals,
charts, diagrams, and photographs, emphasizing development and welfare activities. While primarily
aimed at shareholders, Annual Reports also cater to diverse stakeholders, including the financial
press, investors, banks, suppliers, government agencies, and the broader business community. This
transformation highlights the strategic importance of Annual Reports as comprehensive
communication tools.

House Journals: A house journal serves as a targeted and personalized communication medium, with
internal and external variants. The internal house journal is crucial for fostering employee-employer
relationships, while external versions target specific external stakeholders. A combination approach
can also address both employees and external audiences. Functioning as a vital link between the
organization and stakeholders, a carefully produced house journal promotes harmony and
understanding. The format of a house journal can vary based on management philosophy,
objectives, and available resources. It may take the form of a newspaper, booklet, or magazine.
Additionally, house journals can be categorized as open or closed. Open house journals encourage
contributions from all employees, showcasing achievements and viewpoints across different
organizational levels. In contrast, closed house journals present a one-way channel of
communication, typically emphasizing the perspectives of top executives.

Brochures: A brochure is a multi-panel publication that covers information usually on a specific

subject. It is also called a pamphlet, a flayer or a folder. Booklets have much the same purpose as
brochures except that they contain more pages that may be stapled together rather than folded.
Brochures and Booklets are prepared for a number of reasons. Major reasons are as follows

 To announce a new programme

 To explain a new process

 To launch a new product / service

 To announce about a new plant / building

 To inaugurate a laboratory

 To ask for donations

 To sell a product by describing its virtues

 To publicise the corporate social responsibility

 To counter offensive propaganda against the company

Q11. What are Public Service Activities?

Ans : Public Service Activities (PSAs) encompass a diverse array of initiatives, campaigns, and
endeavours undertaken by organizations, governmental bodies, non-profits, and individuals to serve
the public good, promote social welfare, and address crucial societal issues. These activities, often
non-commercial in nature, aim to benefit communities, raise awareness, educate, and encourage
positive behavioural change.

At their core, PSAs focus on advancing the well-being of society, fostering civic engagement, and
addressing various challenges faced by communities. They manifest in different forms and serve
multifaceted purposes, contributing to the enhancement of public health, social justice,
environmental sustainability, education, and more.

**Awareness Campaigns:**

One prominent facet of PSAs involves creating awareness about pressing issues. These campaigns
disseminate information to the public, addressing topics like health concerns (e.g., vaccination
awareness, disease prevention), environmental conservation (e.g., recycling, conservation of natural
resources), safety precautions (e.g., fire safety, disaster preparedness), or social justice causes (e.g.,
anti-discrimination, human rights).

**Education Initiatives:**

Public service activities frequently involve educational endeavors. These programs aim to educate
individuals and communities, focusing on areas such as literacy campaigns, financial literacy
workshops, life skills training for marginalized groups, and educational programs designed to
empower and uplift underprivileged communities.

**Promotion of Positive Behavior:**

PSAs actively encourage positive behavior and discourage harmful actions. They encompass
campaigns against substance abuse, efforts to combat bullying, initiatives promoting safe driving
practices, and activities fostering healthy lifestyle choices. These endeavors seek to influence
behavior positively and promote a more harmonious and responsible society.

**Community Service and Volunteerism:**

Engagement in community service and volunteer work forms a vital part of public service activities.
These initiatives involve individuals or groups dedicating their time and efforts to serve their
communities. Volunteer projects, community clean-ups, free service offerings, and efforts to address
local needs fall under this category, contributing directly to the betterment of society.

PSAs are often driven by governmental organizations, non-governmental organizations (NGOs),

charitable foundations, civic groups, and concerned individuals. They operate at local, national, and
international levels, tailoring their approaches to suit specific communities or address global
concerns. The success of these activities is measured not in commercial gain but by their impact on
society, the awareness they generate, and the positive changes they effect.
By raising awareness, fostering education, encouraging participation, and advocating for change,
PSAs play a pivotal role in shaping attitudes, influencing behavior, and creating a more informed,
engaged, and empowered society. Their significance lies in their capacity to address societal
challenges, enhance public welfare, and drive positive transformations for the collective benefit of
communities and humanity at large.

Q12. Explain different Price Based Sales Promotion methods oriented at consumers.

Ans. Consumer-oriented price-based sales promotion methods are strategies designed to attract
customers by offering discounts, incentives, or pricing strategies aimed at influencing consumer
behavior and driving sales. These methods leverage pricing as a tool to entice buyers, increase
purchase volume, and enhance brand loyalty. Here are several price-based sales promotion methods
oriented toward consumers:

**1. Coupons:**

Coupons offer discounts on specific products or categories and are distributed through various
channels like newspapers, online platforms, mobile apps, or direct mail. They encourage customers
to make immediate purchases by providing price reductions or incentives on future buys, fostering
repeat purchases and customer loyalty.

**2. Discounts and Rebates:**

Discounts and rebates involve reducing the price of products either at the point of sale or through a
reimbursement process after purchase. For instance, markdowns at the checkout counter or mail-in
rebates where consumers receive a refund after submitting proof of purchase.

**3. Bundling:**

Bundling involves offering multiple products or services together at a reduced combined price
compared to purchasing each item separately. This strategy encourages customers to perceive
greater value, incentivizing larger purchases and often clearing inventory of slower-moving items.

**4. Flash Sales or Limited-Time Offers:**

Flash sales are short-duration promotions offering significant discounts for a limited time. Creating a
sense of urgency, these promotions drive immediate action from consumers, capitalizing on the fear
of missing out (FOMO) to stimulate purchases.

**5. Loyalty Programs:**

Loyalty programs reward repeat customers with discounts, exclusive offers, or points that can be
redeemed for future purchases. By offering incentives to loyal customers, these programs encourage
continued patronage and foster a sense of appreciation, strengthening the customer-brand
relationship.

**6. Seasonal or Holiday Sales:**

Seasonal or holiday sales capitalize on festivities, seasons, or special occasions by offering discounts
or special promotions. These events drive consumer traffic, capitalize on celebratory spending, and
create excitement around shopping during these periods.

**7. Price-Matching Guarantees:**

Price-matching guarantees assure customers that they will receive the lowest price available for a
product. If they find the same item at a lower price elsewhere, the retailer matches that price,
ensuring consumers feel confident about making purchases without searching for better deals.

**8. Free Samples or Trials:**

Offering free samples or trial versions of products allows customers to experience a product's
benefits before making a purchase. This strategy creates familiarity, generates interest, and
potentially leads to full-priced purchases in the future.

**9. Clearance Sales:**

Clearance sales involve discounting items to clear excess inventory or discontinued products. These
promotions attract price-sensitive consumers and incentivize purchases while enabling businesses to
make space for new merchandise.

**10. Volume Discounts:**

Volume discounts incentivize bulk purchases by offering reduced prices for larger quantities. This
method encourages customers to buy more to take advantage of cost savings, benefiting both
consumers and businesses.

These consumer-oriented price-based sales promotion methods leverage pricing strategies to attract
and retain customers, drive immediate sales, and create value perceptions, ultimately contributing to
increased revenue and market share for businesses.

Q13. Describe the methods of evaluating sales promotion. (2018 800w)

Ans. When evaluating sales promotions, multiple methods are utilized to assess their effectiveness,
impact on consumer behavior, and return on investment (ROI). These evaluation methods offer
insights into the success of promotional strategies, enabling businesses to make informed decisions.
Here’s an in-depth look at the main methods used to evaluate sales promotions:
**1. Sales Data Analysis:**

Analyzing sales data before, during, and after a promotion is a fundamental method. It involves
tracking metrics such as sales volume, revenue, units sold, and customer traffic during the
promotional period. Comparing these figures against baseline or historical data helps quantify the
promotion’s impact on purchasing behavior.

**2. Consumer Surveys and Feedback:**

Direct feedback from consumers through surveys, interviews, or focus groups provides qualitative
insights. Questions about awareness, appeal, effectiveness, and the influence of the promotion on
purchasing decisions help gauge consumer perceptions and satisfaction.

**3. Experimental Designs:**

Controlled experiments or A/B testing isolate the impact of a promotion. This method involves
offering different promotional strategies to similar groups and analyzing their responses. It helps
establish causality, attributing changes in sales directly to the promotion itself.

**4. Financial Metrics:**

Evaluating financial metrics like Return on Investment (ROI), Gross Margin Return on Investment
(GMROI), and incremental sales quantifies the promotion’s profitability. Calculating the costs
involved in running the promotion against the additional revenue generated offers a clear
understanding of its financial impact.

**5. Redemption Rates and Conversion Metrics:**

For promotions involving coupons, discounts, or vouchers, tracking redemption rates provides
insights into customer engagement. Analyzing conversion metrics, such as the percentage of
promotional leads that convert into actual sales, helps evaluate the promotion’s effectiveness in
driving conversions.

**6. Brand Metrics and Loyalty:**

Measuring changes in brand awareness, perception, and customer loyalty before and after a
promotion helps understand its impact on brand equity. Assessing if the promotion positively
influences customer loyalty or shifts brand perception aids in determining its long-term effects.

**7. Post-Promotion Analysis:**

Conducting a comprehensive post-mortem analysis identifies strengths, weaknesses, and areas for
improvement for future promotions. This involves examining what worked well, what could be
optimized, and any unexpected outcomes.
**8. Market Research and Competitive Analysis:**

Understanding market trends and analyzing competitor promotions helps benchmark the success of
a promotion within the industry. This evaluation method helps identify market shifts, competitive
advantages, and areas for improvement.

**9. Segmentation Analysis:**

Assessing how different customer segments respond to promotions helps tailor strategies for specific
target audiences. Analyzing the effectiveness of the promotion among different demographics or
customer groups aids in optimizing future marketing efforts.

**10. Long-Term Effects Assessment:**

Evaluating if promotions lead to sustained increases in customer retention, brand loyalty, or market
share provides insights into their long-term impact. Monitoring post-promotion effects over an
extended period helps gauge lasting success.

These evaluation methods have distinct strengths and limitations. While sales data analysis provides
quantitative insights, surveys offer qualitative feedback. Experimental designs establish causality, yet
they might not entirely mirror real-world scenarios. Combining multiple evaluation methods offers a
comprehensive view, enhancing the understanding of a promotion’s impact from various
perspectives. This holistic approach enables businesses to refine their promotional strategies,
maximize effectiveness, and optimize returns.

Q14. Why ethics is important in Public Relation? Describe the benefits of ethics in sales promotion.
(2018 800w)

Ans. Ethics play a crucial role in Public Relations (PR) as they define the standards and guidelines that
guide responsible communication, relationships, and conduct between organizations and their
stakeholders. In sales promotion, ethics similarly hold significant importance as they ensure fair and
transparent practices in promotional activities. Let's delve into the importance of ethics in PR and the
benefits they bring to sales promotion:

**Importance of Ethics in Public Relations:**

1. **Trust and Credibility:** Ethical conduct in PR builds trust and credibility with stakeholders.
Maintaining honesty, integrity, and transparency in communication fosters stronger relationships,
enhancing the organization's reputation.
2. **Positive Reputation:** Ethical PR practices contribute to a positive brand image. When
organizations operate ethically, they demonstrate commitment to societal values, which can bolster
their reputation and attractiveness to consumers and investors.

3. **Effective Communication:** Ethical PR ensures that messages are truthful, accurate, and
respectful. This results in clearer and more effective communication, reducing the risk of misleading
or deceptive information being disseminated.

4. **Stakeholder Relationships:** Ethical PR prioritizes fostering meaningful relationships with

stakeholders by considering their interests, concerns, and feedback. This engagement leads to
stronger connections and a better understanding of stakeholder needs.

5. **Crisis Management:** Ethical PR practices prepare organizations to handle crises effectively. A

reputation built on ethical behavior helps in mitigating damage during challenging times by
demonstrating a history of responsible conduct.

**Benefits of Ethics in Sales Promotion:**

1. **Consumer Trust and Loyalty:** Ethical sales promotion builds trust with consumers. Fair and
transparent promotions that deliver on promises cultivate customer loyalty and long-term
relationships.

2. **Brand Reputation:** Ethical sales promotions contribute to a positive brand image. When
promotions are conducted transparently and honestly, it enhances the brand's reputation, increasing
its attractiveness to consumers.

3. **Compliance and Legal Adherence:** Ethical sales promotions ensure compliance with legal
regulations and industry standards. Adhering to ethical guidelines minimizes the risk of legal issues or
backlash from consumers or regulatory bodies.

4. **Long-Term Success:** Ethical sales promotion strategies focus on creating genuine value for
customers rather than short-term gains. This approach tends to result in sustained success and
customer satisfaction, fostering repeat business.

5. **Reduced Risk of Backlash:** Unethical sales promotions, such as deceptive advertising or false
claims, can lead to public backlash, damaging the brand's reputation. Ethical practices mitigate these
risks and maintain consumer goodwill.
In essence, ethics in PR and sales promotion are essential for fostering trust, maintaining a positive
brand image, complying with regulations, and building long-term relationships with stakeholders and
consumers. Operating ethically not only aligns with societal expectations but also contributes to the
sustainable success of organizations by fostering credibility and loyalty.

Q15. Define Price Off. (200w 2017)

Ans. “Price off” refers to a sales promotion strategy where the retail price of a product or service is
reduced or discounted by a specific amount or percentage for a limited time. This reduction in price
aims to entice customers to make a purchase by offering them a monetary saving or discount on the
regular selling price of the item.

For example, a product with an original price of $50 may have a price off promotion, reducing its
price to $40 for a limited period, indicating a $10 discount or 20% off the regular price. This strategy
is often used to stimulate sales, clear inventory, attract price-sensitive consumers, or encourage
immediate purchases.

Q16. How do you measure the performance of sales promotion?

Ans. Certainly! Here’s a concise overview of methods used to measure the performance of sales
promotions:

1. **Sales Metrics Analysis:** This involves tracking sales data before, during, and after a
promotion to quantify its impact on sales volume, revenue, units sold, and customer traffic.
Comparing these figures against historical data helps assess the promotion’s success in
driving sales.

2. **Redemption Rates Evaluation:** Monitoring redemption rates for coupons, vouchers, or

discounts provides insights into customer engagement and the promotion’s effectiveness in
encouraging purchases.

3. **Consumer Behavior Assessment:** Studying changes in consumer behavior during the

promotion, such as increased purchase frequency, larger basket sizes, or new customer
acquisition, helps gauge the promotion’s impact on customer actions and spending patterns.

4. **Financial Metrics Calculation:** Utilizing financial metrics like Return on Investment (ROI)
or Gross Margin Return on Investment (GMROI) measures the promotion’s profitability by
comparing costs against additional revenue generated.
 5. **Brand Metric Analysis:** Assessing alterations in brand metrics like awareness,
perception, or loyalty before and after the promotion reveals its impact on brand equity and
consumer perceptions.

6. **Post-Promotion Analysis:** Conducting a thorough post-mortem analysis identifies

strengths, weaknesses, and areas for improvement. This assessment helps refine strategies
and maximize effectiveness for future campaigns.

Each method offers a distinct perspective on the promotion’s effectiveness. Sales metrics provide
quantitative insights, redemption rates indicate customer engagement, and consumer behavior
analysis shows the impact on buying habits. Financial metrics measure profitability, while brand
metrics gauge the promotion’s impact on brand perception and loyalty. Post-promotion analysis aids
in continuous improvement.

These methods collectively provide a holistic understanding of a promotion’s success, guiding

businesses in making informed decisions, optimizing future strategies, and allocating resources
effectively to drive sales and maintain a competitive edge in the market.

Q17. Discuss major tools of Sales Promotion with recent Example.

Ans. Certainly! Sales promotion tools are varied methods or strategies used by companies to
incentivize customers to purchase their products or services. Here are some major tools of sales
promotion with recent examples:

**1. Coupons:** Coupons offer discounts on specific products or categories. An example is a beauty
brand providing a 20% discount coupon for its new skincare line to encourage customers to try the
products.

**2. Discounts:** Temporary price reductions or discounts are commonly used. For instance, a
clothing retailer offering a ‘Buy One, Get One 50% Off’ deal on selected items.

**3. Contests and Sweepstakes:** Engaging customers through contests or sweepstakes, like a
beverage company hosting a sweepstake where customers can win a vacation by purchasing their
products and entering a code online.

**4. Free Samples:** Offering free samples allows customers to try products before buying. A pet
food brand providing small sample packs for pet owners to test its new formula.
**5. Loyalty Programs:** Rewarding customers for repeated purchases or engagement. An airline
offering frequent flyer miles for every flight taken, encouraging customer loyalty.

**6. Rebates:** Offering cashback or refunds after purchase. An electronics company providing a
$50 rebate for customers purchasing a specific TV model.

**7. Product Bundling:** Selling multiple products together at a discounted price. A gaming console
sold with a bundle of games and accessories at a reduced combined price compared to buying them
separately.

**8. Point-of-Purchase (POP) Displays:** Promotional materials or displays placed near checkout
counters to encourage impulse purchases. A candy brand introducing an eye-catching display of new
flavors at the supermarket checkout.

**9. Limited-Time Offers:** Short-term promotions create urgency. An online store providing a ’24-
Hour Flash Sale’ with heavily discounted items for a limited time.

**10. Mobile Marketing:** Utilizing mobile devices for promotions. An app-based food delivery
service sending exclusive discount codes to users via push notifications.

These tools aim to stimulate immediate sales, increase customer engagement, foster brand loyalty,
and drive traffic. They can be used individually or combined for more impactful campaigns. The
examples illustrate how these tools are implemented in real-world scenarios to attract customers
and boost sales for various products and industries.

Q18. Consumer oriented sales promotion vs Trade oriented sales promotion.

Ans. Certainly! Here's a comparison between consumer-oriented sales promotion and trade-oriented
sales promotion:

**Consumer-Oriented Sales Promotion:**

1. **Focus:** Targeted towards end consumers or customers.

2. **Objective:** Influence consumer behavior, increase purchases, and build loyalty.

3. **Target Audience:** End consumers or individual customers.

4. **Promotional Tools:** Coupons, discounts, free samples, loyalty programs, contests, etc.

5. **Goal:** Create consumer awareness, generate demand, and encourage purchases.

6. **Impact on Sales:** Directly affects end-user purchases and brand loyalty.

7. **Relationship Building:** Aims at establishing and fostering a direct relationship with consumers.

8. **Timing of Promotion:** Often implemented at the retail level and focused on specific periods.

9. **Examples:** Coupons distributed to consumers, loyalty programs, free samples.

**Trade-Oriented Sales Promotion:**

1. **Focus:** Aimed at intermediaries or businesses within the distribution chain.

2. **Objective:** Stimulate wholesalers, retailers, or distributors to push products.

3. **Target Audience:** Retailers, wholesalers, distributors, or other business entities.

4. **Promotional Tools:** Trade allowances, point-of-purchase displays, incentives to retailers, etc.

5. **Goal:** Encourage retailers to carry the product, promote it, and secure shelf space.

6. **Impact on Sales:** Indirectly influences product availability and visibility.

7. **Relationship Building:** Focuses on building relationships with intermediaries in the supply

chain.

8. **Timing of Promotion:** Implemented before product launch or to secure shelf space for
products.

9. **Examples:** Trade discounts, co-op advertising, slotting allowances.

These approaches differ in their targets, objectives, tools used, and impact on sales. Consumer-
oriented sales promotions focus on end consumers, aiming to influence their buying behavior and
foster brand loyalty. In contrast, trade-oriented sales promotions target intermediaries within the
supply chain, seeking to encourage them to promote and carry the product. Both types of
promotions play essential roles in influencing purchasing decisions and distribution channels

Q19. Roles of Sales Promotion in Marketing?

Ans. Sales promotion plays several vital roles within the broader scope of marketing strategies. Here
are its key roles:

1. **Boosting Sales:** One of the primary objectives of sales promotion is to increase

immediate sales volume. Through discounts, coupons, limited-time offers, or other
promotions, it stimulates purchases, drives consumer interest, and generates short-term
sales spikes.
2. **Creating Brand Awareness:** Sales promotions can introduce new products or reinforce
brand visibility. Promotional activities like contests, free samples, or demonstrations help
create awareness and familiarity with products or services among consumers.

3. **Encouraging Trial and Adoption:** Offering free samples or trial versions allows customers
to experience products or services, reducing the barrier to trial. This strategy aims to convert
trial users into regular customers.

4. **Differentiation and Competitive Advantage:** Unique and attractive sales promotions help
differentiate a brand or product from competitors. It can be a key factor influencing a
consumer’s decision when choosing between similar products or services.

5. **Clearing Excess Inventory:** Promotions such as clearance sales or special discounts are
effective in clearing out excess inventory. This helps prevent stock obsolescence and ensures
a continuous flow of new products.

6. **Customer Retention and Loyalty:** Loyalty programs, discounts for repeat purchases, or
exclusive offers for existing customers encourage retention and foster brand loyalty. They
incentivize customers to continue choosing a particular brand over others.

7. **Facilitating Relationship Marketing:** Sales promotions aid in building and maintaining

relationships with customers by offering personalized deals, discounts, or rewards, leading to
stronger connections and repeat business.

8. **Supporting Product Launches:** Promotions can be instrumental in launching new

products or services. By offering introductory discounts or bundle deals, they create
excitement and attract attention to the new offering.

9. **Driving Traffic and Footfall:** Promotions like limited-time offers or flash sales attract
consumer traffic both online and in physical stores, resulting in increased footfall and
potential sales.

10. **Data Collection and Market Research:** Promotions that require registration or
participation often gather valuable customer data. This information helps in understanding
consumer behavior, preferences, and market trends.
Sales promotion, when strategically employed, complements other marketing efforts, contributes to
short-term sales objectives, and aids in achieving broader marketing goals such as brand building,
customer engagement, and market expansion.

Q20. What are the factors that lead to the formation of public opinion?

Ans. Public opinion is shaped by a myriad of factors that influence how individuals perceive and form
views on various issues, events, or entities. Several key factors contribute to the formation of public
opinion:

1. **Media Influence:** Mass media, including news outlets, television, social media, and online
platforms, significantly shape public opinion. The information, framing, and narratives presented by
the media influence how people perceive events and issues.

2. **Personal Experience:** Individual experiences, interactions, and firsthand encounters play a

pivotal role in shaping opinions. Personal experiences often hold substantial weight in influencing
perspectives on specific issues or topics.

3. **Social Environment:** Peer groups, family, community, and social circles significantly impact
opinions. Discussions, debates, and interactions within these social environments contribute to the
formation of shared beliefs and viewpoints.

4. **Education and Information:** Access to education, information sources, and the quality of
information received contribute to opinion formation. Well-informed individuals tend to form
opinions based on a broader understanding of issues.

5. **Cultural Background and Values:** Cultural norms, traditions, and societal values greatly
influence how individuals perceive events and issues. Cultural backgrounds shape perspectives and
opinions on various social, political, and moral issues.

6. **Political and Religious Affiliations:** Affiliation with specific political parties, ideologies, or
religious beliefs strongly influences opinion formation. Individuals often align their opinions with the
views advocated by their political or religious groups.

7. **Economic Factors:** Socioeconomic status, financial well-being, and economic interests also
impact public opinion. Economic factors may influence opinions on policies, taxation, and social
welfare issues.
8. **Leadership and Opinion Leaders:** Influential figures, leaders, or opinion influencers have the
power to shape public opinion through their speeches, endorsements, or public stances on various
matters.

9. **Psychological Factors:** Emotions, biases, and psychological tendencies like confirmation bias
(preferring information that aligns with pre-existing beliefs) significantly impact opinion formation.

These factors interact and intertwine to shape the collective beliefs, attitudes, and viewpoints held
by society. The dynamic interplay of these elements continually influences the ever-evolving
landscape of public opinion on a wide range of issues.

Q21. How public relation maintains or enhances goodwill with the company’s various publics?
Explain with example.

Ans. Public relations (PR) plays a critical role in maintaining and enhancing goodwill between a
company and its various publics by fostering positive relationships, effective communication, and
strategic engagement. One way PR achieves this is through transparent communication, addressing
concerns, and building trust.

For instance, consider a multinational corporation facing accusations of environmental negligence. A

well-executed PR strategy might involve:

1. **Open Communication:** The PR team transparently communicates the company's commitment

to environmental stewardship and addresses concerns raised by environmental groups or the public.

2. **Stakeholder Engagement:** Engaging with stakeholders, including environmental organizations,

local communities, and regulators, to address grievances and collaborate on sustainable initiatives,
showcases the company's dedication to responsible practices.

3. **Educational Campaigns:** Implementing educational campaigns to inform the public about the
company's environmental efforts, such as adopting eco-friendly technologies or supporting
conservation projects, helps shape a positive narrative.

4. **Crisis Management:** In case of a crisis, the PR team swiftly responds, provides accurate
information, and takes responsibility, demonstrating accountability and a proactive approach to
resolving issues.
5. **Highlighting Positive Actions:** Showcasing the company's positive contributions to the
environment through media releases, events, or partnerships reinforces its commitment to
sustainability.

Through these actions, PR not only mitigates negative perceptions but also cultivates goodwill. By
effectively communicating the company's values, initiatives, and efforts to address concerns, PR
helps build trust, credibility, and a positive image among its various publics, thereby enhancing
goodwill and fostering long-term relationships.

SECTION-B: IMPORTANT QUESTIONS

CHAPTER-1

Q1. State the importance of sales promotion from the point of view of manufacturers.

Q2. Explain the importance of Sales Promotion.

Q3. State the importance of sales promotion from the pov of consumers

CHAPTER-2

Q4. *Mention three major factors which affects sales promotion. (Q6 from pyq)

CHAPTER-3

Q5. *‘Coupon’ Is a technique of consumer-oriented sales promotion. Discuss with examples.

Q6. What is ‘Deal Loaders’ Give examples.

CHAPTER-4

Q7. As a marketer of a leading consumer durable company selling refrigerators and televisions,
what are the sales promotional methods you would like to adopt to attract the consumers?

Q8. *Coupons are the best method of attracting consumers to the Point of Purchase (PoP). Discuss.

Q9. Write notes on (i) Contest and sweepstakes (ii) Refund or Rebate.

CHAPTER-5

Q10. Point out three major functions of trade affairs. (Refer SA- Q7)

Q11. Describe the planning of an exhibition relating to FMCG products.

CHAPTER-6

Q12. What is Display? State the various forms of retail displays.

Q13. What is Trade allowance? Mention the various forms of trade allowances.

Q14. Point out the various modes of incentives directed at the sales force.

CHAPTER-7

Q15. State the reasons for evaluating sales promotion.

Q16. At the pre-testing stage evaluating sales promotion is essential. Discuss.

CHAPTER-8

Q17. In recent times, Sales Promotion in service marketing is gaining importance. Discuss.

Q18. Point out the critical issues in developing a promotional strategy.

CHAPTER-9

Q19. What are the functions of Public Relations?

Q20. State the features of Public Relations?

Q21. Describe the role of Public Relation in marketing function.

Q22. State two similarities between Publicity and Public Relation.

CHAPTER-10

Q23. Indicate some of the tools of communication to reach customers ‘Publics’.

Q24. State three major medium of Oral Communications.

Q25. What are the major Pre-Requisites of a meeting to be successful?

Q26. State some of the basic objectives of Corporate Advertising.

CHAPTER-11

Q27. Point out some major tools of media relations.

Q28. State some of the limitations of fairs and exhibition as a public relation tool.

CHAPTER-12

Q29. Describe the benefits of ethics in sales promotion.

Q30. State the unethical acts in public relations.

Q31. Explain two main guidelines to maintain ethical standards in public relation.