Question : Case Study:
ABC Electronics offers special deals and discounts to its distributors who achieve a certain sales target within a specific period. What sales promotion technique is illustrated here?
Option 1: Price Bundling
Option 2: Trade Allowances
Option 3: Referral Programs
Option 4: Coupons
Correct Answer: Trade Allowances
Solution : The correct answer is (b) Trade Allowances.
Trade allowances involve offering discounts or special deals to distributors or retailers based on achieving specific sales targets within a given period. In this case, ABC Electronics is providing special deals and discounts to its distributors who meet a particular sales target, which aligns with the concept of trade allowances. Price bundling, referral programs, and coupons are distinct sales promotion techniques with different incentives and strategies.
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