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. It helps marketers to realize a variety of objectives. Which of the following is FALSE regarding trade allowances? Being autonomous is a common trait that many business leaders look for in a new hire. Under these circumstances, advertising messages are unable to strongly influence the consumers perceptions and create brand franchise. However there is a very important question how these two aspects will influence (counteract) each other due to the stockpiling effect. Youve been able to see their skillsets, work ethic, and cultural fit in action. i. If all the neurons in the human body were lined up, they would stretch more than 600 miles. 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. A high probability of having some form of sales effect, at least in the short run, xi. The manufacturer sometimes conveys all information about a product to the dealers, such as information relating to production processes, etc. Sales promotion is a marketing tool used to increase consumer demand, stimulate market demand, or improve product availability. Examples of promotions include discount sales, free samples . 2. How should trade promotions be structured to maximiz, A low-cost leader can translate its low-cost advantage over rivals to superior profit performance by: A. underpricing rivals and attracting quality-sensitive buyers in great enough numbers B. maintaining the present price, and using the lower-cost edge to, Which of the following is an advantage offered by co-branding? 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 Everyone approaches problems differently, but a manager should be able to resolve them calmly and creatively. Now Joe is concentrating his efforts on developing the best advertising plan for the product line. In the world of sales, the phrase 'closing a deal' offers the biggest high and for good reason, but is that all there is to the art of selling? The manufacturer offers a number of attractive terms to dealers in order to induce them to buy an article. 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. Sales promotion can be a great way to increase or create the demand for a product. Samples are freely distributed with the product purchased for the purpose of obtaining consumer acceptance. Media advertising tends to be impersonal whereas sales promotion is more personal, linking the manufacturer with the customer. C) the rate of growth and the number of national outlets. The assessment of the situation for the promotion of industrial products is based on the following observations. It is a crucial procedure that expands reach, generates interest, and leads to market sales. a. decline b. introduction c. growth d. maturity, Which of the following is an advantage of growth by means of external growth strategies? There are numerous reasons for the growth of the sales promotion. Its hard to justify promotion when the employee doesnt want it in the first place . The growth of huge supermarkets necessitated the need for aggressive selling. Customer feedback is crucial for business success, and you can combine it with a sales promotion to entice customers to give it. "Sales promotion is an integral part of the marketing mix". The advertisi, A retailer that has many people browsing in their store, but few people actually buying products, needs to strive to increase its a. innovativeness b. advertising c. conversion rate d. market segment e. consideration set, Vertical brand extensions, which extend the brand up into more premium market segments or down into more segments, are a common means of attracting. The consumer price sensitivity also excelled the growth of the sales promotion; the consumer has become more price sensitive due to inflation as consumer look for value . For a complete list of videos, visit our video library, Privacy | Terms of Use | Contact Us | Apr 18, 2023. Consumer Promotion is useful for promoting new product. D) marketing mix. In addition to serving current customers, marketers must rapidly identify. In fact, the failure rate for an internal promotion is higher than one might think. i. Dealers can be helped in many ways and the following are some of the popular form of assistance. 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. Brand equity is stabilized. This view is reflected in the number of new products introduced yearly; New Product News reports that in 1990s, there were 13,244 introductions with 10,301 introductions coming from food categories. Growth of Super markets. 34. Creates demand for products. They already have a working knowledge of company culture and processes. The reasons for this unappealing outcome are an increase in variable costs (including raw materials, packaging, and labor) required by the extra sales volume, in conjunction with a reduction in . The objective of this deal is to _____ consumers and thereby _____ the sales of the competitor's new product. By investing time and resources into succession planning and promoting from within you will have a strong team that will lead your company to success. When a new brand fails to generate the promised sales volume, some retailers charge _____ to offset warehousing costs. Sales promotion utilizes a temporary marketing campaign to stimulate customers' interest and enhance product sales. 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. e) Loss of organizational, A firm's power and prestige in domestic markets may be significantly enhanced if it competes globally A) which can translate into improved negotiating power among important groups. 2. What are the Disadvantages of Sales Promotion? d. increased media effectiveness. Google's marketing mix focuses on product, place and price for competitive advantage, although promotions also contribute to the company's success. Image Guidelines 5. 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. The target of sales promotion can be _____. D) the quality of the goods an, The main benefit of a multi-domestic strategy is that it: a. exploits scale economies in product development and marketing b. is cost-saving due to product and marketing standardization c. takes advantage of location economies d. responds quickly and effe, Shopper marketing emphasizes ___________________ between manufacturers and retailers on in-store marketing like brand-building displays, sampling promotions, and other in-store activities designed to capitalize on a retailer's capabilities and its custome, Managers regularly face the choice of increasing advertising expense or reducing price to increase sales in the Oligopoly market structure. Koutons is a brand, which established itself in the city of Kolkata though huge promotions (50% + 40%) right from the beginning. . The first one million dollars typically results in a 26% increase in awareness, while the second milli. The introduction of a certain amount of fun and excitement into promotions which customers can enjoy as participants. Which of these sales promotions should be used in this case? 6 types of sales promotions. Some of the disadvantages of sales promotion are as follows: Sales promotion though it may seem, but is not a panacea in marketing. c. increased brand loyalty. 6. Once a company has worked on the product and price elements, it is time to start a conversation with the consumer about the product. So for example, a single soap may cost $1 but a combined package of 5 units of soap might cost you $4, giving you a 20% discount on the purchase. B) firms that are first movers can gain product-differentiation advantages based on perceived technological leadership. iii. Copyright 10. Premiums are merchandise offered at relatively low prices. The following promotions work very well in services marketing. Offering two of an in-demand product at a reduced price and for a short time creates a sense of urgency that can boost sales. Manufacturers estimate that retailers pass through to consumers _____ of the trade funds that they provide to retailers. 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 . Product managers are also using sales promotion as a tool to differentiate their brand from that of competitors in the short term. Can be used to gain attention to advertising, iv. a. As part of the marketing mix, promotion includes all activities that involve communicating with the customer about the product and its benefits and features. Sales promotion can introduce a new or improved product or different packaging, v. Sales promotion can be used to neutralized competitive advertising or sales promotion. Joint promotion which link the buying of one service to another. Lower sales prices c. No sales d. All of the above, If one of the reasons P&G acquired Gillette was to gain greater market power in key industries, this would be an example of [{Blank}] economies. What new strategies did Best Buy undertake to reverse the steady loss of sales? When considering using a sales promotion, it's important to remember the two main risks of the "sales promotion trap":. Supershop, a 450-store supermarket chain, just ordered 90,000 cases of a new product from Smyrl Company, a relatively unknown regional manufacturer. b) relying on brand loyalty. Promotion refers to any incentive used by a _____ to induce the trade. Intense competition. Being a self-starter is advantageous since a lot of jobs require some level of personal responsibility. C) skimming. Would you start looking for an outside replacement even though the process is tedious, and youre never absolutely sure that a candidate will be the right fit? Answered! An increase in its financial resources. People who are money conscious buy such jeans. 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. a) Large number of buyers. increased brand parity and price sensitivity. a. retailers, consumers, and the sales force. \\c. Sales promotions can help to increase or reduce trade inventories. Dayton's Department Stores featured a manufacturer's brand in their advertisements. c) non-price competition. A reason for the growth of sales promotion is _____. B. Temporary cost reduction. Finally, an increase in the size and power of retailers has also boosted the use of sales promotion. Whe. Related: 13 Factors Influencing the Designing of Sales Territory (With Examples) 18 Key Success Factors in Retail Business (With Examples) There are many unbranded jeans sold at shopping malls and places like linking road, bandra which are bought at half the price of actual branded jeans. The power of English Language "&" and "and". Knowing the responsibilities in and out and performing them with confidence will ensure a smooth transition into a manager for two reasons: A managers job includes a great deal of communicating up and down within the organization. c. control prices. 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. a. the increase in power for the manufacturers over the grocery stores. Self-starters make great managers. Our own desires are great self-motivators. Consolidation of grocery store industry. d. wholesalers, retailers, and manufacturers. Econo Foods is very interested in ensuring that media buying for the chips is strategic, Generally, when advertising to consumers, the objective of an advertising campaign is: a. to offset sales promotion costs b. to maximize media planning c. a pull strategy: to get the product into stores by having consumers demand it d. a push strategy: to, A retailer believes that its new advertising strategy will increase sales. d. Adv, Defining Media Objectives Acme Advertising's best client is Econo Foods, manufacturer of Chirpee's Cheap Chips. During this stage, weaker competitors begin to drop out of the category. 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. ____ 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. Some of the qualities to look for in the candidate for promotion are empathy and willingness to connect with others. As it was shown in the above mentioned research (see also Gupta 1988), purchase acceleration is predominantly exhibited in increased purchase quantities rather than shortened interpurchase times. Did they get frustrated or frazzled, did they expect you to give them directions or did they propose an effective solution? Privacy Policy 8. A reason for the growth of sales promotion is ___. A _____ strategy consists of manufacturers directing advertising and promotion at the consumers. If someone hasnt mastered the skill of their current job, they are not ready for promotion. It involves an increase in salary, position, responsibilities, status, and benefits. The luxury market is characterized by: A. Audio-visual medium, which is considered as the most effective for short-duration ads, may cost in excess of Rs. Sales promotion definition . 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. Firms with small budgets cannot compete with big companies, which spend huge sums of money on advertising. 3. a. permanently stop an established brand's declining sales trend b. On-the-shelf promotion is another reason for its growth. Sales promotions often attract brand switchers (those who are not loyal to a specific brand) who are looking primarily for low price and good value. Reasons to be promoted. No one wants to be forced into a new job, and thats exactly what you want to avoid when promoting an employee to a management position. a. retailers, consumers, and the sales force b. The dealers are supplied with sales literature by the manufacturers. a. price b. promotion c. market d. distribution e. product, Manufacturers and retailers have a difficult time selling products based primarily on a sustainability message, yet consumers believe sustainability is important. A. a decline in the cost of advertising on radio and newspapers enabling firms to more efficiently reach a wide audience B. a supreme court ruling that limits the market share i, Woof.com is an online seller of products for dogs. 10. d. Can be used for a wide range of different objectives, xii. Content Guidelines 2. Manufacturers b. 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. (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? Operations Management questions and answers, 10. Sales Promotion Strategies Target Consumer, Trade, and The Sales Force. b) Increased business complexity. Reduced Costs. 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 evidence is clear: retailers are confronted yearly with large numbers of introductions in a wide variety of categories. c) Purchase standard, undifferentiated commo, In franchising, the reputation of the franchiser is dependent on: A) their locations and popularity with the local customer. a. Start by looking at the core values of your company. xiii. Sales promotion. Advertising Has Become More Expensive and Less Effective. All rights reserved. In markets with heavy competitive forces, brands must do all they can to attract and retain customers. 1. b. Retailers receive a(n) _____ for featuring the manufacturer's brand in advertisements or for providing special displays. Diversify the product line to appeal to more people. d) Antitrust implications. Many sales promotions are designed to provide benefits to the retailers. Which of the following is NOT a factor accounting for the shift from consumer advertising to promotion? All other trademarks and copyrights are the property of their respective owners. E) marketing leverage. Management estimates it will lose 10,000 units in sales if it does. Let's look at this promotion example below from ActiveSkin. A retailer can exercise its power in a channel by _____. b. decreased brand parity and price sensitivity. requesting a deslotting agreement from the manufacturer. The issue of sales promotion has been receiving increasing attention from both advertising and marketing professionals and academicians. In contrast to advertising, which typically, though not always, is relatively long term in orientation and best suited to enhancing buyer attitudes and augmenting brand equity; promotion is more short-term oriented and capable of influencing _____. Learn about sales promotion definition in marketing and understand how it works. The more quantity of the product you buy, the more is the discount. b. b. A reason for the growth of sales promotion is _____. In the introduction stage of the product life cycle, marketing efforts are primarily focused on: a. building customer awareness of the product. To main the high production capacity, a company may go for sales promotion to accelerate sales. 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? TOS 7. Generation of brand awareness and brand attitude. B) participating in a dramatic shift to becoming bigger. Increase sales by 10% over last year. Sales promotion can ____. Given the risk, why would a marketing manager use penetration pricing? This helps the salesmen a lot while selling. A reason for the growth of sales promotion is _____. CatGenie quickly develops a special price-off deal to prevent the competitor from stealing market share. It typically involves the use of tools such as promotional products, trade show displays, and more. Which of the following is least related to the product life-cycle pattern? Would you characterize the rivalry and jockeying for better market position, increased sales, and market share among the companies in your indust, A monopolistically competitive firm maintains its market share through a) artificial product differentiation. Bookmarks. Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people. decreased brand parity and price sensitivity, d. B. as it becomes more costly for buyers to switch brands. They might have to continue performing familiar tasks while having to learn and execute additional responsibilities. When all is said and done, the customer is interested in just one thing from your organization: value. A manufacturer of fruit juice has to pay retailers a fee if they want to get their new product onto the retailer's shelves. In order to avoid paying slotting allowances, a manufacturer can _____. Cost for Results In This Industry Are Relatively Low. Companies' hopes that promotions might have a positive aftereffect have not been borne out for reasons that researchers have been able to identify. Plagiarism Prevention 4. increased media effectiveness, e. How can Publix use social media to assist in the develo, Which group of policies aims at discouraging rivals from starting a price war? d. An increase in i, A ______ is when manufacturers direct their promotional efforts toward channel partners to convince them to order and stock products. A critical marketing task for a venture desiring high growth is to . A. If someone genuinely wants to become a manager, they will demonstrate that they are willing to take up new responsibilities. Reasons for the Growth of Sales Promotion Sales Managers are Under Great Pressure to Produce Results Quickly. Sales Promotion is a marketing discipline that utilizes a variety of incentives techniques to structure sales related programs targeted to consumers/trade/ and or sales level, that generate a specific measurable action or response for a product/ service. A reason for the growth of sales promotion is ____. Sales promotions come in many forms and support a long list of objectives. In some cases, the manufacturer and the dealer may undertake cooperative advertising campaign. Management aids include technical guidance and assistance like scientific layout of the stores, arrangement of goods in the stores, lighting arrangement, etc. Suppose you have the following information. The most common users of sales promotion are _____. The outlook that managers project trickles through to the team members and defines the atmosphere in the workplace. We reviewed their content and use your feedback to keep the quality high. Price-sensitivity of the consumers. iv. Personal selling is highly essential in marketing. 4. Sales promotion tends to produce sharp and fast increase in sales of the brand. 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.
