Techniques of sales Promotion:
(i) Free samples : Free samples of low priced and repeat sales items are distributed to selected people to gain consumer acceptance and to popularies the product. The sample may be distributed in the shop or door-to-door. This is an effective device of sales promotion as consumers can test the product before buying it. It is particularly useful in the introduction of new products.
(ii) Coupons : A coupon is a certificate that entitles its holder to a specified saving or discount on the purchase of a particular product. The holders of coupons present their coupons to retailers and get the product at a reduced price. The manufacturer reimburses the retailers for the value of coupons redeemed by them in addition to some commission to cover handling costs.
(iii) Premium or Free Gifts : A sales premium or bonus offer is the offer of an article free of cost or at a nominal price on the purchase of a specified product. For instance, one 'Lux' toilet soap may be given free on the purchase of an economy pack of 'Surf' detergent powder. A premium is also known as a combination offer. It is a practical persuasion to buy that helps to increase immediate sales. Premiums are used in case of convenience goods like detergents, tooth paste, toilet preparations which are bought frequently.
Premiums can be of following types :
(a) With pack premium in which the bonus item is included either inside or outside the package, e.g., one spoon free in the packet of Horlicks.
(b) Price of premium implies a reduction in price on the purchase of a large or economy pack.
(iv) Trade fairs and exhibitions : Trade shows, fashion shows, fairs and exhibition are important techniques of sales promotion. They provide a forum for the exhibition or demonstration of the product. Free literature can be distributed to introduce the firm and its products to the public. Customers can be attacked through free gifts, special concessions and free demonstrations of technical and speciality products. They provide an opportunity to the visitors to observe the competing products and help to promote sales.
(v) Exchange offers : In this method, customers are offered the facility of exchange old products with new.In this method, customers are offered the facility of exchange old products with new.