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NIOS Class 10 Business Studies Chapter 16 Sales Promotion and Personal Selling
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Sales Promotion and Personal Selling
Chapter: 16
NIOS TEXTBOOK QUESTIONS ANSWERS
Intext Questions 16.1
Answer the following in the space provided after each question.
(i) What is meant by ‘Sales Promotion’?
___________________________________________________
__________________________________________________
Ans:- Sales Promotion refers to all activities other than advertising and Personal selling that help to increase sales of a particular commodity.
(ii) How can advertising help sales promotion? ______________________________________________________
_______________________________________________________
Ans:- Advertising can be used as a means of communication to inform potential customers about incentives for sales promotion.
Intext Questions 16.2
State whether the following statements are true or false:
(a) Sales promotion does not help in increasing sales.
Ans:- False.
(b) Sales promotion does not help in introducing a new product in the market.
Ans:- False.
(c) Through sales promotion the consumer gets the product at a cheaper rate.
Ans:- True.
(d) Sales promotion does not help the customer to get information about the product.
Ans:- False.
(e) Sales promotions help in raising the quality of life of the consumers.
Ans:- True.
Intext Questions 16.3
Match the tools/techniques of sales promotion with their objectives.
| Tools / Techniques | Objectives |
| (i) Free Samples | (a) To induce customers to buy a product more frequently. |
| (ii) Exchange Schemes | (b) Useful for drawing attention towards product improvement. |
| (iii) Price-off offer | (c) When a new product is to be introduced |
| (iv) Trading stamps | (d) To boost up sales in the off-season. |
Ans:-
| Tools / Techniques | Objectives |
| (i) Free Samples | (c) When a new product is to be introduced |
| (ii) Exchange Schemes | (b) Useful for drawing attention towards product improvement. |
| (iii) Price-off offer | (a) To induce customers to buy a product more frequently. |
| (iv) Trading stamps | (d) To boost up sales in the off-season. |
Intext Questions 16.4
Fill in the blanks with appropriate words:
(i) Personal selling involves persuading _________ to buy the goods.
Ans:- Customers.
(ii) The ultimate objective of personal selling is ________.
Ans:- To promote sale of products.
(iii) The most important element of personal selling is ________ interaction.
Ans:- Face to face.
(iv) Supply of information to customers makes personal selling an ______ process.
Ans:- Educative.
Intext Questions 16.5
Which of the following statements are true and which are false?
(i) Personal selling helps manufacturers to improve their products based on suggestions made by sellers.
Ans:- True.
(ii) Customers do not have an immediate solution to their problems regarding a product from the salesperson.
Ans:- False.
(iii) Personal selling leads to creation of new customers only for the existing products.
Ans:- False.
(iv) Better use of products is not the result of personal selling.
Ans:- False.
(v) Customers can complain to the salesperson about a product.
Ans:- False.
Intext Questions 16.6
I. State which of the following statements are ‘true’ and which are ‘false:
(i) Knowledge of product is not necessary to make one a good salesperson.
Ans:- False.
(ii) A good salesperson should have imagination, initiative and alertness.
Ans:- True.
(iii) It is not necessary for a good salesperson that he must be accepted by the society.
Ans:- False.
(iv) A good salesperson should be loyal to the consumer but not to the employer.
Ans:- False.
(v) Impressive voice, good appearance and sound health have no place in the qualities of a good salesperson.
Ans:- False.
II.
| Multiple Choice Questions |
(i) Sales promotion is important from the point of view of manufacturers because.
(a) Increases Profit.
(b) Provides Products at Cheaper rates.
(c) Inform about quality & features.
(d) Raise the standard of living of people.
Ans:- (a) Increases Profit.
(ii) Sales promotion is important from the point of view of consumers because.
(a) It helps to increase sales.
(b) It stabilises sales.
(c) It helps to raise the standard of living.
(d) It increases profits.
Ans:- (c) It helps to raise the standard of living.
(iii) Which of thems is a tool of sales promotion?
(a) Free samples.
(b) Advertisement.
(c) Publicity.
(d) Personal Selling.
Ans:- (a) Free samples.
(iv) The ultimate objective of personal selling is.
(a) To raise standard of living.
(b) Provide better quality of products.
(c) More satisfaction to customers.
(d) Increase sale of products.
Ans:- (d) Increase sale of products.
(v) Essential element of Personal Selling is
(a) Cheap Product.
(b) Face to Face interaction.
(c) Physical fitness of salesman.
(d) Good behaviour of Salesman.
Ans:- (a) Cheap Product.
| Terminal Exercise |
1. Define Sales Promotion.
Ans:- All these measures normally motivate the customers to buy more and thus, it increases sales of the product. This approach of selling goods is known as “Sales Promotion”.
2. State the importance of Sales Promotion from the point of view of manufacturers.
Ans:- Sales promotion is important for manufacturers because of the following reasons:
(i) It helps to increase sales in a competitive market and thus, increases profits.
(ii) It helps to introduce new products in the market by drawing the attention of potential customers.
(iii) When a new product is introduced or there is a change of fashion or taste of consumers, existing stocks can be quickly disposed off.
(iv) It stabilises sales volume by keeping its customers with them. In the age of competition it is quite possible that a customer may change his/ her mind and try other brands. Various incentives under sales promotion schemes help to retain the customers.
3. State the importance of Sales Promotion from the point of view of consumers.
Ans:- Sales promotion is important for consumers because of the following reasons:
(i) The consumer gets the product at a cheaper rate.
(ii) It gives financial benefit to the customers by providing prizes and sending them to visit different places.
(iii) The consumer gets all information about the quality, features and uses of different products.
(iv) Certain schemes like money back offers create confidence in the mind of consumers about the quality of goods.
(v) It helps to raise the standard of living of people. By exchanging their old items consumers can use the latest items available in the market. Use of such goods improves their image in society.
4. List any six tools used in Sales Promotion.
Ans:- The following are the tools of sales promotions:
(i) Free samples: You might have received free samples of shampoo, washing powder, coffee powder, etc. while purchasing various items from the market. Sometimes these free samples are also distributed by the shopkeeper even without purchasing any item from his shop.
(ii) Premium or Bonus offer: A milk shaker along with Nescafe, mug with Bournvita, toothbrush with 500 grams of toothpaste, 30% extra in a pack of one kg. are the examples of premium or bonus given free with the purchase of a product.
(iii) Exchange schemes: It refers to offering exchange of old product for a new product at a price less than the original price of the product. This is useful for drawing attention to product improvement.
(iv) Price-off offer: Under this offer, products are sold at a price lower than the original price. ‘Rs. 2 off on purchase of a lifebuoy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea, Rs. 1000 off on cooler’ etc. are some of the common schemes.
(v) Coupons: Sometimes, coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product.
(vi) Fairs and Exhibitions: Fairs and exhibitions may be organised at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products.
5. Explain the meaning of ‘Sales Promotion’. Why is Sales Promotion necessary?
Ans:- You may have also observed in your neighbouring markets notices of “winter sale”, “summer sale”, “trade fairs”, “discount up to 50%” and many other schemes to attract customers to buy certain products. All these are incentives offered by manufacturers or dealers to increase the sale of their goods. These incentives may be in the form of free samples, gifts, discount coupons, demonstrations, shows, contests etc. All these measures normally motivate the customers to buy more and thus, it increases sales of the product. This approach of selling goods is known as “Sales Promotion”.
Sales promotion adopts short term, non-recurring methods to boost up sales in different ways. These offers are not available to the customers throughout the year. During festivals, end of the seasons, year ending and some other occasions these schemes are generally found in the market. Thus, sales promotion consists of all activities other than advertising and personal selling that help to increase sales of a particular product.
6. Explain any two techniques of Sales Promotion, with an example of each.
Ans:- The two techniques of sales promotion with an example are discussed below:
(i) Free samples: You might have received free samples of shampoo, washing powder, coffee powder, etc. while purchasing various items from the market. Sometimes these free samples are also distributed by the shopkeeper even without purchasing any item from his shop. For example, in the case of medicine free samples are distributed among physicians, in the case of textbooks, specimen copies are distributed among teachers.
(ii) Coupons: Sometimes, coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. For example, you might have come across coupons like, ‘show this and get Rs. 15 off on purchase of 5 kg. of Annapurna Atta’.
7. Explain – “Price off offer” and “Free-Samples” as techniques of Sales Promotion.
Ans:- Under Price off offer, products are sold at a price lower than the original price. ‘Rs. 2 off on purchase of a lifebuoy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea, Rs. 1000 off on cooler’ etc. are some of the common schemes. This type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market.
Free- samples usually means a small and packaged portion of merchandise distributed free especially as an introduction to potential customers. while purchasing various items from the market. Sometimes these free samples are also distributed by the shopkeeper even without purchasing any item from his shop. These are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to popularise the product.
8. Explain how Sales Promotion techniques help in promoting sales.
Ans:- Sales promotions increase customer acquisition by offering them discounts, free products, free trials, and more. Many potential buyers are willing to try something for a lesser price, and if they like the product they become part of your company’s loyal base.Free-samples are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to popularise the product.In Price-off-offer products are sold at a price lower than the original price. ‘Rs. 2 off on purchase of a lifebuoy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea, Rs. 1000 off on cooler’ etc. This type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market. It’s another tool or technique like coupons. The holder of the coupon gets the product at a discount. Fairs and exhibitions may be organised at local, regional, national or international level to introduce new products.In case of some specific products trading stamps are distributed among the customers according to the value of their purchase. And to induce the customer to buy a particular product ‘scratch and win’ scheme is also offered. Under this scheme a customer scratches a specific marked area on the package of the product and gets the benefit according to the message written there. Money Back offer under this scheme customers are given assurance that full value of the product will be returned to them if they are not satisfied after using the product. This creates confidence among the customers with regard to the quality of the product. This technique is particularly useful while introducing new products in the market. Thus tools or techniques help in promoting sales.
9. A toothpaste company is giving 250 grams toothpaste free with a pack of 500 gm toothpaste. Name this technique of sales promotion. What is the specific objective of this scheme? Explain two more schemes of Sales Promotion other than this.
Ans:- The name of this technique of sales promotion is premium or bonus offer. The objective of these schemes is to encourage and reward existing customers. They are effective in inducing consumers to buy a particular product.
The two schemes of sales promotions are discussed below:
(i) Scratch and win offer: To induce the customer to buy a particular product ‘scratch and win’ scheme is also offered. Under this scheme the customer scratches a specific marked area on the package of the product and gets the benefit according to the message written there. In this way customers may get some item free as mentioned on the marked area or may avail of price-off, or sometimes visit different places on special tours arranged by the manufacturers.
(ii) Money Back offer: Under this scheme customers are given assurance that full value of the product will be returned to them if they are not satisfied after using the product. This creates confidence among the customers with regard to the quality of the product. This technique is particularly useful while introducing new products in the market.
10. Define Sales Promotion. What are the objectives of Sales Promotion?
Ans:- A sales promotion is a marketing strategy in which a business uses a temporary campaign or offer to increase interest or demand in its product or service. Advertising can be used as means of communication to inform potential customers about the incentives offered for sales promotion.
The objective of sales promotion is to introduce a new product, attract new customers and also to identify new customers and attract them towards the firm’s products. The main goal of sales promotion, however, is to increase sales in the short-term,and provide important marketing information to the potential buyers. The second objective is to convince and influence the potential buyers through persuasive measures. Thirdly, sales promotion is meant to act as a powerful tool of competition. The goal of a promotion strategy is to introduce potential customers to your product and convince them to make a purchase.
11. Explain the term ‘Sales Promotion’. Discuss any four techniques of Sales Promotion?
Ans:- Sales promotion adopts short term, non-recurring methods to boost up sales in different ways. These offers are not available to the customers throughout the year. During festivals, end of the seasons, year ending and some other occasions these schemes are generally found in the market , it increases sales of the product. This approach of selling goods is known as “Sales Promotion”.
The techniques of sales promotion are as follows:
(i) Money Back offer: Under this scheme customers are given assurance that full value of the product will be returned to them if they are not satisfied after using the product. This creates confidence among the customers with regard to the quality of the product. This technique is particularly useful while introducing new products in the market.
(ii) Trading stamps: In case of some specific products trading stamps are distributed among the customers according to the value of their purchase. The customers are required to collect these stamps of sufficient value within a particular period in order to avail of some benefits. This tool induces customers to buy that product more frequently to collect the stamps of required value.
(iii) Exchange schemes: It refers to offering exchange of old product for a new product at a price less than the original price of the product. This is useful for drawing attention to product improvement.
(iv) Fairs and Exhibitions: Fairs and exhibitions may be organised at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products. Goods are displayed and demonstrated and their sale is also conducted at a reasonable discount.
12. ‘Sales Promotion is important both for manufacturers and consumers’. Explain how?
Ans:- The primary goal of trade promotions is to encourage salespeople, retailers, and wholesalers to stock and sell more of a product. Companies use sales promotions to increase demand for their products and services, improve product availability among distribution channel partners, and to coordinate selling, advertising, and public relations.The main purpose of sales promotion is to boost sales of a product by creating demand, and The main goal of sales promotion, however, is to increase sales in the short-term. That is, both consumer demand as well as trade demand. It improves the performance of middlemen and acts as a supplement to advertising and personal selling.
13. What is meant by personal selling?
Ans:- Personal selling refers to the presentation of goods before the potential buyers and persuading them to purchase it. It involves face-to-face interaction and physical verification of the goods to be purchased. The objective is not only just to sell the product to a person but also to make him/her a permanent customer.
14. State the essential elements of personal selling.
Ans:- Personal selling consists of the following elements:
(i) Face-to-Face interaction: Personal selling involves a salesman having face-to-face interaction with the prospective buyers.
(ii) Persuasion: Personal selling requires persuasion on the part of the seller to the prospective customers to buy the product. So a salesperson must have the ability to convince the customers so that an interest may be created in the minds of the customers to use that product.
(iii) Flexibility: The approach of personal selling is always flexible. Sometimes salespeople may explain the features and benefits of the product, sometimes give demonstrations of the use of the product and also answer a number of queries from the customers. Looking into the situation and interest of the customers, the approach of the salesperson is decided instantly.
(iv) Promotion of sales: The ultimate objective of personal selling is to promote sales by convincing more and more customers to use the product.
(v) Supply of Information: Personal selling provides various information to the customers regarding availability of the product, special features, uses and utility of the products. So it is an educational process.
(vi) Mutual Benefit: It is a two-way process. Both seller and buyer derive benefit from it. While customers feel satisfied with the goods, the seller enjoys the profits.
15. Describe the importance of personal selling from the point of customers.
Ans:- Importance of Personal selling from customer’s point of view:
(i) Personal selling provides an opportunity to the consumers to know about new products introduced in the market. Thus, it informs and educates the consumers about new products.
(ii) It is because of personal selling that customers come to know about the use of new products in the market. The sellers demonstrate the product before the prospective buyers and explain the use and utility of the products.
(iii) Personal selling also guides customers in selecting goods best suited to their requirements and tastes as it involves face-to-face communication.
(iv) Personal selling gives an opportunity to the customers to put forward their complaints and difficulties in using the product and get the solution immediately.
16. Explain the importance of personal selling from the point of view of manufacturers.
Ans:- Importance of personal selling from the manufacturer’s point of view:
(i) It creates demand for products both new as well as existing ones.
(ii) It creates new customers and thus helps in expanding the market for the product.
(iii) It leads to product improvement. While selling personally the seller gets acquainted with the choice and demands of customers and makes suggestions accordingly to the manufacturer.
17. State the physical and mental qualities of a salesperson engaged in personal selling.
Ans:- Following are the physical and mental qualities of salesperson engaged in personal selling:
(i) Physical qualities: A salesperson should have a good appearance and an impressive personality. He should also have sound health.
(ii) Mental qualities: A good salesperson should possess certain mental qualities like imagination, initiative, self- confidence, sharp memory, alertness etc. He should be able to understand the needs and preferences of customers.
18. State the social qualities of salespeople engaged in personal selling.
Ans:- A good salesman must be an effective communicator, able to articulate ideas clearly and persuasively. He is to gain the confidence of the customers. He should be able to understand their needs and guide them how to satisfy those needs. His employer too should have faith in him. A salesperson should be loyal both to the employer and to the customers. A salesperson should be co-operative and courteous. Good behaviour enables one to win the confidence of the customers. He should not feel irritated if the buyer puts up many questions even if the questions are irrelevant. It is also not necessary that the person he is trying to convince buys the product.
19. What are the occupational qualities of salespersons engaged in personal selling?
Ans:- A salesperson is successful when he listens carefully to both their client’s needs and the directives of managers and company leadership. The success of the sales depends upon the communication skills of the salesman, as selling is a two-way communication process. The salesman should have a controlled voice and demand over the language. He should not give up on the customers soon. Regular and willing customers for the company can be won by the persistent efforts of the salesman.He should be able to explain the business and service record of the company. He should also have knowledge of products of rival companies. So that he can put across the superiority of his own products. It is also not necessary that the person he is trying to convince buys the product. The salesperson has to remain courteous in every case.
20. Define personal selling. Explain the importance of personal selling from the point of view of customers and manufacturers.
Ans:- Personal selling refers to the presentation of goods and services before the customers and convincing or persuading them to buy the products or services. For example, you can find such salespersons in jewellery stores, consumer goods stores, saree houses, etc.
Importance of Personal selling from customer’s point of view:
(i) Personal selling provides an opportunity to the consumers to know about new products introduced in the market. Thus, it informs and educates the consumers about new products.
(ii) It is because of personal selling that customers come to know about the use of new products in the market. The sellers demonstrate the product before the prospective buyers and explain the use and utility of the products.
(iii) Personal selling also guides customers in selecting goods best suited to their requirements and tastes as it involves face-to-face communication.
(iv) Personal selling gives an opportunity to the customers to put forward their complaints and difficulties in using the product and get the solution immediately.
Importance of personal selling from the manufacturer’s point of view:
(i) It creates demand for products both new as well as existing ones.
(ii) It creates new customers and thus helps in expanding the market for the product.
(iii) It leads to product improvement. While selling personally the seller gets acquainted with the choice and demands of customers and makes suggestions accordingly to the manufacturer.
21. What is meant by personal selling? Explain the essential elements of personal selling.
Ans:- Personal selling is also known as face-to-face selling in which one person who is the salesman tries to convince the customer in buying a product. It presents goods and services before the customers and convinces or persuades them to buy the products or services.
Personal selling consists of the following elements:
(i) Face-to-Face interaction: Personal selling involves a salesman having face-to-face interaction with the prospective buyers.
(ii) Persuasion: Personal selling requires persuasion on the part of the seller to the prospective customers to buy the product. So a salesperson must have the ability to convince the customers so that an interest may be created in the minds of the customers to use that product.
(iii) Flexibility: The approach of personal selling is always flexible. Sometimes salespeople may explain the features and benefits of the product, sometimes give demonstrations of the use of the product and also answer a number of queries from the customers. Looking into the situation and interest of the customers, the approach of the salesperson is decided instantly.
(iv) Promotion of sales: The ultimate objective of personal selling is to promote sales by convincing more and more customers to use the product.
(v) Supply of Information: Personal selling provides various information to the customers regarding availability of the product, special features, uses and utility of the products. So it is an educational process.
(vi) Mutual Benefit: It is a two-way process. Both seller and buyer derive benefit from it. While customers feel satisfied with the goods, the seller enjoys the profits.
22. Do you think that to be a successful salesperson only personal and mental qualities are sufficient? Give reasons in support of your answer.
Ans:- No, I do not think that to be a successful salesperson, a person must only possess personal and mental qualities. There is a need to understand the product or service as well. A salesperson should be co-operative and courteous. Good behaviour enables one to win the confidence of the customers. He should not feel irritated if the buyer puts up many questions even if the questions are irrelevant. A good salesperson should be good in conversation so that he can engage the person he is attending in conversation.A salesperson should have full knowledge of the product and the company he is representing. He should be able to explain each and every aspect of the product i.e. its qualities, how to use it, what precautions to be taken, etc. Thus, only physical and mental qualities are not sufficient.
23. Describe the different qualities of a salesperson engaged in personal selling.
Ans:- The qualities of salesperson engaged in personal selling are discussed below:
(i) Physical qualities: A salesperson should have a good appearance and an impressive personality. He should also have sound health.
(ii) Mental qualities: A good salesperson should possess certain mental qualities like imagination, initiative, self-confidence, sharp memory, alertness etc. He should be able to understand the needs and preferences of customers.
(iii) Integrity of character: A good salesperson should posses the qualities of honesty and integrity.
(iv) Knowledge of the product and the company: A salesperson should have full knowledge of the product and the company he is representing. He should be able to explain each and every aspect of the product i.e. its qualities, how to use it, what precautions to be taken, etc.
(v) Good behaviour: A salesperson should be co-operative and courteous. Good behaviour enables one to win the confidence of the customers. He should not feel irritated if the buyer puts up many questions even if the questions are irrelevant.
(vi) Ability to persuade: A good salesperson should be good in conversation so that he can engage the person he is attending in conversation. He should be able to convince him and create the desire in the mind of prospective customers to possess the commodity.
24. A salesperson need not possess any quality if the product is good. Do you agree with the statement? Give a reason.
Ans:- No, a salesperson needs to possess the quality even if the product is good. They’re responsible for identifying a customer’s needs, pitching relevant products or services, and ensuring they have a positive experience from start to finish. They ensure that the customer is satisfied and adequately taken care of while making a purchase. He should be able to convince him and create the desire in the mind of prospective customers to possess the commodity.
