Which of the following is an example of a sales promotion?
A. A company sending direct mailers to every local resident
B. A corporation releasing a statement after receiving some negative publicity
C. A company advertising its new location on television
D. A company offering a discount on select items for a limited time
The Correct Answer and Explanation is:
Correct Answer: D. A company offering a discount on select items for a limited time
Explanation
Sales promotion refers to short-term incentives or activities used by businesses to stimulate interest in a product or service and boost sales quickly. These promotions are typically time-bound and are intended to encourage customers to make immediate purchases or take advantage of a special offer.
Option D — “A company offering a discount on select items for a limited time” — is the clearest example of a sales promotion. Discounts, coupons, buy-one-get-one-free offers, and limited-time deals are all traditional forms of sales promotions. These tactics aim to create urgency and increase demand within a specific timeframe, often leading to an immediate spike in sales. They are especially effective for clearing inventory, attracting new customers, and encouraging repeat purchases.
In contrast:
- Option A, “sending direct mailers,” is a form of direct marketing, not a sales promotion. While it can support a promotion by informing customers of a special offer, the mailing itself is a communication tool, not the incentive.
- Option B, where a corporation issues a statement after negative publicity, falls under public relations (PR). PR involves managing the company’s image and communications with the public, especially during a crisis. It doesn’t offer any direct incentive to buy.
- Option C, “advertising a new location on television,” is a form of advertising, which is paid media used to inform or persuade potential customers. While it raises awareness, it doesn’t include a promotional incentive such as a discount.
In summary, sales promotions are characterized by their short-term nature and their purpose to drive immediate sales through direct incentives. Therefore, Option D best represents a sales promotion strategy.
