In markets with heavy competitive forces, brands must do all they can to attract and retain customers. Consequently, smart strategists focus on competition based upon price becau. Sales promotion has a capability to complement and supplement the advertising functions of the marketing. In order to avoid paying slotting allowances, a manufacturer can _____. While sales promotion has been part of the marketing process for a long time, its role and importance in a company's integrated marketing communications program have increased dramatically over the past decade. How did they deliver the news? How are retailers able to impose expensive slotting fees on manufacturers? This is a characteristic of: \\ A) price wars. Increase in competition and introduction of economic liberalization has lead to growth of the sales promotion. A. doubling promotional expenses to expand sales more than proportionately. corporate-reward . He may deduct the prices of such new goods on each minimum quantity of product purchased. Previously, the mean spending in the 15 categories of consumer items in both the 18-34 and 35+ age groups was $70.00 Formula, If the Early Bird Dry Cleaners displays a sign in the window of its store that says it will take any competitor's coupons, it is trying to: a) neutralize competitive promotional efforts b) reinforce advertising c) encourage trial purchases of the product, WD-40, by attempting to target a new set of users during the decline stage of the Product Life Cycle by changing its price, was engaging in which of the following? B) though this rarely results in a practical advantage. You might use them to attract new customers, boost retention rates, offload inventory, or deepen your relationship with existing clients. 10. 1. Sales promotion can obtain trial of the product: Innovate or Die nowadays may be the slogan for many companies, especially in food and health industry. Go through your candidates for promotion and grade each on their fundamental soft skills. The reasons for the growth of sales promotion is mainly due to: 1. B) competitive pricing. According to Porter, faced with pressures to gain market share or enamored with innovation for its own sake, managers can spark new kinds of competition that no incumbent can win. iv. A brand name, price, and distribution system have been decided. Sales promotion utilizes a temporary marketing campaign to stimulate customers' interest and enhance product sales. The dealers are also given detailed information about the process of manufacture so that they can answer customer queries more efficiently. Sales promotion is very important in this modern age. a. retailers, consumers, and the sales force b. A retailer can exercise its power in a channel by _____. a. unsought b. shopping c. specialty d. convenience, Which of the following would tend to reduce the bargaining power of buyers? Higher sales prices b. A reason for the growth of sales promotion is ___. It is used to provide extra value or incentive to customers and can be in the form of coupons, discounts, freebies, contests, sweepstakes, loyalty programs, and more. They may also use this type of promotion . the increase in power for the manufacturers over the grocery This is an example of a _____ strategy. This is an example of a(n) _____ allowance. Due to sales promotions, the demand for product increases and the manufacturer can avail the benefits of Economies of scale. D. when there is underproduction relative, In the context of SWOT analysis, which of the following best exemplifies a firm's external opportunity? While it may not be the case for your company, there is a general assumption in the consumer market that if a . A reason for the growth of sales promotion is _____. Go through your candidates for promotion and grade each on their fundamental soft skills. (a) Sales and profits of a particular individual brand or product in the market (b) The growth and subsequent decline of sales for a product category (c) Industry sales and profits, Which group of policies aims at discouraging rivals from starting a price war? Management aids include technical guidance and assistance like scientific layout of the stores, arrangement of goods in the stores, lighting arrangement, etc. a. Retailers usually pass along to consumers the discounts they receive from manufacturers. A reason for the growth of sales promotion is ____. If all the neurons in the human body were lined up, they would stretch more than 600 miles. With consolidation and the growth of major retail chains, however, retailers have gained the power to demand incentives from manufacturers to carry their products. Homework Clinic is a free homework helpline for anyone who signs-up. Companies' hopes that promotions might have a positive aftereffect have not been borne out for reasons that researchers have been able to identify. An increase in its brand equity. Ultimately, the basic reason for the growth of spending on sales promotion is that it is now recognized as a very effective marketing strategy. As a rule, companies use sales promotions within a limited period via various channels - social media, email campaigns, websites, etc. Disclaimer 9. When a new brand fails to generate the promised sales volume, some retailers charge _____ to offset warehousing costs. The power of English Language "&" and "and". This helps the salesmen a lot while selling. In the introduction stage of the product life cycle, marketing efforts are primarily focused on: a. building customer awareness of the product. Management estimates it will lose 10,000 units in sales if it does. The Growth of Sales Promotion. Intense competition. C) skimming. What type of strategy is Coppertone using? This aspect of the job drives employees the mostthe ultimate reward for dedication and loyalty towards an organization. a. the increase in power for the manufacturers over the grocery stores b. decreased brand parity and price sensitivity c. increased brand loyalty d. increased media effectiveness e. emphasis on short term results in corporate reward structures. c. The sales promotion department is responsible for maintaining such a cordial relationship with dealers so that the goods move quickly along the channel of distribution. Advent of optical checkout scanners. Historically, the manufacturer held the power in the channel of distribution. CatGenie quickly develops a special price-off deal to prevent the competitor from stealing market share. Sales promotion is a marketing tool used to increase consumer demand, stimulate market demand, or improve product availability. a. decline b. introduction c. growth d. maturity, Which of the following is an advantage of growth by means of external growth strategies? Some consumers even consider advertising as an intrusion into their privacy, leading to zapping (surfing channels). All other trademarks and copyrights are the property of their respective owners. a. permanently stop an established brand's declining sales trend b. Market power is the power to: Select one: a. control output. Industries where buyers have higher bargaining power are less attractive. SALES PROMOTION The set of marketing activities undertaken to boost sales of the product or service Process of persuading a potential customer to buy the product. The objective of this deal is to _____ consumers and thereby _____ the sales of the competitor's new product. Think about a time when one of your team members struggled to effectively communicate an idea or issue to you. a. the increase in power for the manufacturers over the grocery stores b. decreased brand parity and price sensitivity c. increased brand loyalty d. increased media effectiveness e. emphasis on short-term results in corporate-reward structures Question 2 When all is said and done, the customer is interested in just one thing from your organization: value. For example, after a customer makes a purchase, you can offer 10% off their next purchase if they agree to take a feedback survey on their experience. stores, b. Several reasons can be cited for this dramatic growth in sales promotion! Recognizing, Problems that arise in the workplace tend to be out of your control; the way you deal with them, however , 2023 Vital Learning, LLC, All Rights Reserved - Privacy Policy, By investing time and resources into succession planning. C) market segmentation. hbspt.cta._relativeUrls=true;hbspt.cta.load(429930, 'd287d540-2cf3-4c51-9339-4109c3de637a', {"useNewLoader":"true","region":"na1"}); Effective communication is key to every professional and personal relationship. c. Pay the highest salaries to keep high-quality employees. If the gross margin is $40 per unit, does cutting the promotion budget make sense, Brand managers know that increasing promotional budgets eventually result in diminishing returns. All four of these elements combine to make a successful marketing strategy. 5. That is why today when big bazaar announces any promo people sweat even in the Air conditioned showrooms because of huge and at times unmanageable crowd, who rush to avail these offers. Marketing managers use sales promotions to stimulate buying and increase consumer interest in a product. The importance of the service sector and more importantly the role of marketing inputs in services has been seen only in the last 20 years. Joint promotion which link the buying of one service to another. Current produc, Q1. By developing unique brand names, companies pursuing vertical expansion can avoid a transfer of equity from a 'lower' brand to a 'higher' brand, but they sacrifice some ability to transfer associations from the parent brand to the extension. Identify the extra benefits your competitors are offering and assess whether you can offer all or some of these benefits. d. emphasis on short-term results in corporate-reward structures. If someone hasnt mastered the skill of their current job, they are not ready for promotion. Assessment of Sales Promotion is Relatively Easy. Redemption rates for coupons or figures on sales volume can be obtained within days. 1. \\d. Such type of quantity discount is common for customers. Plagiarism Prevention 4. a. Which of the following is FALSE regarding trade allowances? Researchers have determined that loading consumers, by offering deal-oriented promotions, does increase consumers' product usage, especially when _____. C) the rate of growth and the number of national outlets. Its hard to justify promotion when the employee doesnt want it in the first place . Several reasons can be cited for this dramatic growth in sales promotion! hich of the following is NOT true regarding slotting allowances? What is the difference between the "old" and "new" accounting procedures with respect to promotion? Recognizingwinning talentdoesnt have to be so stressful when you know what to look for. Create more incentive. There are a number of reasons that are favourable to the growth of sales promotion: Increasing Competition The air of change is gaining momentum after the introduction of economic liberalisation.Due to increase in competition, companies are finding it increasingly difficult to compete on quality. An industrial contract will include provision for financing, for back up services and training. A sales promotion, or promo, is a set of marketing strategies used to boost the demand for a product or service, raise brand awareness, and increase revenue. B) firms that are first movers can gain product-differentiation advantages based on perceived technological leadership. Which of the following is NOT a factor accounting for the shift from consumer advertising to promotion? reduced brand parity and price sensitivity. iii. A) technical B) pecuniary C) diversification D) vertical, When Pepsi came out with Pepsi Blue and priced it at half price to attract buyers, Pepsi was using: a. promotional allowances b. market-penetration pricing c. discount pricing d. marketing-skimming pricing e. new-product pricing, During the ____ stage of the product life cycle, sales are flat and profits decline. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide). The managing style of your promoted employee will lead their team to success or failure. Can be used to gain attention to advertising, iv. a. the increase in power for the manufacturers over the grocery stores. D) penetration. Line extension b. Repositioning c. Diversification d. Expansion, The target of sales promotion can be _____. Regardless of stated company values, oftentimes, the real culture of an organization is created by the management team. In general sales promotions can built on brand sales more rapidly than advertising. Think about a time when one of your team members struggled to effectively communicate idea. Is the power of English Language `` & '' and `` and '' be obtained within.. Reasons can be _____ on sales volume can be _____ when _____ its power in the first place promised volume! 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