Trade promotions on average represent approximately _____ Consolidation of grocery store industry. In the battle for 'share of stomachs', some supermarkets are cutting costs and attempting to compete more effectively with food discounters, while others are moving upscale, providing improved store environments and higher-quality food offerings. Increase in competition and introduction of economic liberalization has lead to growth of the sales promotion. Privacy Policy 8. \\d. Assume that Coppertone invests heavily in trade allowances to encourage retailers to stock and promote QT, its skincare product designed for a quick suntanned look without the dangers of sunbathing. Source of competitive advantage c. Symbolic device d. Search cost reducer, Economies of scale may ante from all but one of the following. A) differentiation B) turnaround C) innovation D) lowest cost, 1.What are the factors affecting the intensity of rivalry in the industry in which your company is competing? This discount is called a(n) _____. Firms may offer contests to attract customers by offering substantial cash or merchandise price cuts. 3. Sales promotion can help to expand distribution. Which of the following is NOT a factor accounting for the shift from consumer advertising to promotion? (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? Consumers obtain _____ benefits when taking advantage of sales promotion offers, including a sense of being a wise shopper, and/or a need for stimulation and variety. To encourage impulse buying and attract first-time buyers, sales promotion is used. Study sales promotion techniques and characteristics, as well as sales promotion examples. Sales promotion can obtain feature pricing, displays, and other dealer in-store support, ii. B) product life cycle. They may also use this type of promotion . First, consumers have not only accepted but also prefer sales promotion as part of their buying decision criteria. Advertising expenditures as a percentage of total marketing communications expenditures are approximately _____ percent. Modern manufacturers offer a variety of management aids to dealers. This increase of attention can be explained by two major interrelated factors: first, the nature of sales promotions - it brings certain measurable (as opposed to advertising) impact on sales, which attracts many marketing managers; it also has been proven . i. C) but this can hu, Many small business owners use a {Blank} strategy to move stale, damaged, or slow moving goods or to encourage shoppers to purchase merchandise before an upcoming season. They are therefore resorting to more . 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. A _____ strategy consists of manufacturers directing advertising and promotion at the consumers. d. Adv, Defining Media Objectives Acme Advertising's best client is Econo Foods, manufacturer of Chirpee's Cheap Chips. On-the-shelf promotion is another reason for its growth. It provides reluctant decision makers with an incentive to make choices by increasing the value offered by a particular brand and also reassures the indecisive consumer. 10. Which of the following is a form of trade allowance? d. gain another firm's customers. A reason for the growth of sales promotion is _____. Sales promotion represents a variety of techniques used to stimulate the purchase of a product or brand. If you know that your employee has done that before in a previous position, theyre more likely to grasp their new responsibilities as a manager. Thus, now you know the role and nature of sales promotion. _____ refers to any incentive used by a manufacturer to encourage the sales force to aggressively sell it. Albertson's hopes to stimulate added sales inducing the perception that consumers are getting a "deal, If a product is modified by reducing its quality, the marketer's likely intent is to: a. provide new opportunities for market segmentation. Option d) It is incorrect because efficient sales promotion campaigns do not rely entirely on the media. Sometimes, the manufacturer may allow credit to dealers for a longer period of time, he can also allow high discount to dealers so that they are automatically attracted towards the attractive terms. The use of premiums in the direct mailing and selling of financial offers or financial services. There are a number of reasons that are favourable to the growth of sales promotion: Increasing Competition. Personal selling is highly essential in marketing. 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? Drive sales for the existing stock. Accessibility and availability of the products. Its hard to justify promotion when the employee doesnt want it in the first place . The outlook that managers project trickles through to the team members and defines the atmosphere in the workplace. ____ are fees manufacturers pay retailers for access to the slot, or location, that the retailer must make available in its distribution center to accommodate the manufacturer's new brand. (a) monopolies have grown (b) people are selfless (c) government is good at directing a production (d) people are typically selfish. c. retailers, consumers, and manufacturers. Increase sales by 10% over last year. a. permanently stop an established brand's declining sales trend b. 2. Coupons offer a discount on new purchases of a product. The introduction of a certain amount of fun and excitement into promotions which customers can enjoy as participants. Problems that arise in the workplace tend to be out of your control; the way you deal with them, however is in your control. b. decreased brand parity and price sensitivity. It is a way for companies to be charitable. Being a self-starter is advantageous since a lot of jobs require some level of personal responsibility. Consequently, smart strategists focus on competition based upon price becau. Sales Promotion - Reasons for Rapid Growth in Sales Promotion (With Criticism) The purpose of sales promotion is to increase sales. Relatively efficient and fast in the achievement of objectives, v. The sales response is relatively straightforward to measure, vi. a. product b. price c. distribution d. research e. promotion, The overall value of a brand to an organization, the extra money that consumers will spend to buy that brand, is called brand: a. extension b. experience c. equity d. awareness, _____ entails modifying an existing brand, directing it to a new market segment, emphasizing new product uses and benefits, or altering a brand's image. D) emphasize customer service and loyalty. Having new responsibilities will require the manager to creatively solve their own problems, as well as guide their employees towards beneficial solutions. c. control prices. Heroin has a slight affinity for opiate receptors. A reason for the growth of sales promotion is ____. 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. Under these circumstances, advertising messages are unable to strongly influence the consumers perceptions and create brand franchise. Get more customers for a product. A managers role requires even more independent thinking, whether its applied towards resolving a conflict or allocating budget for a project. Take the "sales promotion trap" as an example. the increase in power for the manufacturers over the grocery Although business has been steady, the CEO believes that adding some physical stores might enhance brand recognition while increasing sales. Firms with small budgets cannot compete with big companies, which spend huge sums of money on advertising. increased media effectiveness, e. Supershop, a 450-store supermarket chain, just ordered 90,000 cases of a new product from Smyrl Company, a relatively unknown regional manufacturer. RAPID GROWTH OF SALES PROMOTION Sales promotion tools are used by organizations, including a. The corporate structure's greater focus on short-term results has spurred the growth of sales promotion, designed to boost sales for a limited time through a temporary campaign. b), In a declining industry A) product-differentiation efforts are focused on product refinement as a basis of product differentiation. Being autonomous is a common trait that many business leaders look for in a new hire. Cons of sales promotions. Get access to this video and our entire Q&A library, Sales Promotion in the Promotional Marketing Mix, Pressure to increase short-term sales, less differentiated brands, declining advertising efficiency, and increasingly deal-oriented customers are all factors contributing to the ________. Whether it be important holidays like Christmas or more personal reasons like a birthday, giving your customers incentive to shop will give you a surge in sales. Marketing managers use sales promotions to stimulate buying and increase consumer interest in a product. Whe. ii. Samples are freely distributed with the product purchased for the purpose of obtaining consumer acceptance. 5. 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. d. help retailers tr. D) marketing mix. B) firms that are first movers can gain product-differentiation advantages based on perceived technological leadership. These tw, A company that rewards its salespeople based on the number of sales made can expect: a. Due to sales promotions, the demand for product increases and the manufacturer can avail the benefits of Economies of scale. 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. Consumer Promotion is useful for promoting new product. Identify a brand (other th, When a company spends a large amount of money on trade promotion in order to gain or hold shelf space in retail outlets, a company is using a [{Blank}] strategy. 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