Third, the emergence of computer technology has enabled manufacturers to get rapid feedback on the results of promotions. Sales promotion can help to expand distribution. Due to increase in competition, companies are finding it increasingly difficult to compete on quality. a. growth of sales promotion b. decline of sales promotion c. de, For marketers, the benefits of having achieved brand loyalty include: a. less likely consumers will try the competition b. lower marketing costs associated with reaching loyal customers c. decreased price sensitivity among loyal customers d. all of the ab, Alberton's supermarket prominently displays the prices of its brands side-by-side with prices you may pay at competing grocery stores for the same brand. These are generally separated from the supply of the main product but becomes an integral part of the contract. Therefore, Spykar Jeans comes up with such discounts, which helps them in increasing their sales and also in stock clearance, Sales promotion can obtain feature pricing, displays, and other dealer in-store support, Sales promotions can help to increase or reduce trade inventories. Empirical study has shown that variation in the firm level ratio of advertising and promotion is the function of market share, market growth rate and the interaction between the two. These objectives are for both marketers and traders. usage-related thoughts about a product are vivid in a consumer's memory. C) increasing the square-footage of their retail locations. a. Drive sales for the existing stock. Each hiring opportunity will be different, so weighing the pros and cons can help you make the right choice at the right time. The first one million dollars typically results in a 26% increase in awareness, while the second milli. E. None of the above. D. All of the above. A brand name, price, and distribution system have been decided. Spread information about the brand to new customers or new market. Did the retail alterations take place in-store, online, or both, and why was this important? The sales promotion tool that critics contend is most guilty of detracting from brand equity and at the same time being detrimental to a brand franchise is: Trade promotions _____ involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial. "Sales promotion is an integral part of the marketing mix". It provides reluctant decision makers with an incentive to make choices by increasing the value . Consumer sales promotion -related spending increased from $56 billion in 1991 to nearly $100 billion in . Start by looking at the core values of your company. Interacting with team members can be one of the most difficult and demanding responsibilities of a manager. Which of the following is a factor accounting for the shift from consumer advertising to promotion? the increase in power for the manufacturers over the grocery Sales meetings and conferences are also arranged for the purpose of educating and inspiring the sales force. 34. Porter's five forces Let's look at what the 5 competitive forces mean and what factors increase/decrease their power. Your manager will have a team to lead so tasks related to the previous job will have to be done in a fast and efficient manner. If your sales promotion doesn't offer them real value, then all the targeted marketing and limited-time offers in the world won't make your sales promotion a success. Stabilize sales volume and fulfil short-term sales goals. Option d) It is incorrect because efficient sales promotion campaigns do not rely entirely on the media. a) Too many other c. The particular combination of product, place, promotion, and price is called A) marketing position. 16) Quantity Discount. stimulate demand and encourage purchases. 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 . Coupons offer a discount on new purchases of a product. The manufacturer sometimes conveys all information about a product to the dealers, such as information relating to production processes, etc. Generally, sales promotion plays a pivotal role in consumer marketing but the same is not always true for industrial marketing. 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. As a result of these perceptions of similarity among brands, marketers have no way but to compete on the basis of extra benefit offered through sales promotion. Line extension b. Repositioning c. Diversification d. Expansion, The target of sales promotion can be _____. The evidence is clear: retailers are confronted yearly with large numbers of introductions in a wide variety of categories. i. 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. The managing style of your promoted employee will lead their team to success or failure. This is an example of a _____ strategy. The growth of huge supermarkets necessitated the need for aggressive selling. b. reinforcing brand positioning c. defending the franchise with new product features, competitive advertising. Joint promotion which link the buying of one service to another. c) non-price competition. Current produc, Q1. 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 . \\ A) multiple pricing B) opportunistic pricing C) discount pricing D) price lin, Manufacturers and retailers have a difficult time selling products based primarily on a sustainability message, yet consumers believe sustainability is important. Industries where buyers have higher bargaining power are less attractive. How should edible insect companies incorporate sustainability in their consumer promotions t, Which of the following actions is unlikely to help make a company's branded footwear more competitive vis-a-vis the brands of rival firms? The behaviors that a manager displays can affect everything from employee turnover to morale. b) relying on brand loyalty. Being autonomous is a common trait that many business leaders look for in a new hire. iv. It is an important promotional strategy to -. Thus, especially in markets where brands are highly similar, sales promotions can cause a short-term increase in . 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 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. Thus, now you know the role and nature of sales promotion. Reasons for the Rapid Growth of Sales Promotion: This is due to several factors which contribute to the rapid growth of sales promotion, particularly in consumer markets. If one of your top leaders left your organization tomorrow, what would happen? With consolidation and the growth of major retail chains, however, retailers have gained the power to demand incentives from manufacturers to carry their products. C) develop responsibility among employees. b. allow a manufacturer to lower the price of the product. Some of the qualities to look for in the candidate for promotion are empathy and willingness to connect with others. What are the Disadvantages of Sales Promotion? Many sales promotions are designed to provide benefits to the retailers. Manufacturers b. Demonstrations are conducted to inform the public or consumers in the target market about the attributes and utilities of the product. 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. 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. 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. Copyright 10. There are certain potential white spots of sales promotion and several researches have been conducted some of which have some of which indicates that very interesting findings may come out. Management estimates it will lose 10,000 units in sales if it does. Sales Promotion Strategies Target Consumer, Trade, and The Sales Force. Sometimes, the manufacturer promise the dealer to take back goods if they remain unsold. New technology gives the opportunity for more sophisticated promotions like printed coupons at point-of-purchase to reward loyal shoppers or attack rival brands. 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. 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. Explain your reasoning. a. Reduced Costs. Price-sensitivity of the consumers. Advent of optical checkout scanners. iii. 4. The main drawback of a multi-national strategy is that it does not allow a company to: a. exploit scale economies in product development or marketing b. closely monitor buyer preferences in each local market c. modify its products except for the most supe, Why might penetration pricing potentially impact brand image and product positioning in the long run? In case of bulky and costly goods which cannot be displayed physically, display materials, posters, show cards act as promotion materials. c) Clash of corporate cultures. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide). Sales promotion can help to expand distribution. Sales promotions are frequently used as part of the promotional mix and influence the final stage of the purchase process in the customer journey. 6. a. the increase in power for the manufacturers over the grocery stores. 6 types of sales promotions. A reason for the growth of sales promotion is _____. Sales promotions are short-term incentives to buy products. Operations Management questions and answers, 10. Empower and motivate other employees around you. 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. Which of the following is least related to the product life-cycle pattern? Founded in 1998, the company has expanded to include Google Search, as well as a . The regular selling price per case is $24, but Supershop received a 15 percent discount off the regular case price. Consider all extra benefits and make priority of these benefits with a view to offering these to customers depending upon a particular sales situation. 5. He decides to use a consumer-oriented sales promotion that has an expiration date and requires the purchaser to submit proof of purchase, A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Assessment of Sales Promotion is Relatively Easy. emphasis on short-term results in corporate-reward structures. Brand equity is stabilized. C. Discounts arising fr, Frequent price cutting by firms in an industry, frequent introduction of new products by firms in an industry and intense advertising campaigns are indications of A) high power of buyers. Sales promotion may also help in increasing the effectiveness of advertising. Answered! The introduction of a certain amount of fun and excitement into promotions which customers can enjoy as participants. Advertising Has Become More Expensive and Less Effective. In theory, a promotion requires more work and effort in a job. b. retailers, manufacturers, and the sales force. Sales promotion can be effected in several ways. Its hard to justify promotion when the employee doesnt want it in the first place . Look for someone who delivers clear and concise messages within the team but does it in a friendly and transparent manner. You might use them to attract new customers, boost retention rates, offload inventory, or deepen your relationship with existing clients. a. By inducing more sales through sales promotion, inflow, of cash increases; This could be one of the objectives of the firm. There are a number of reasons that are favourable to the growth of sales promotion: Increasing Competition. Our experts can answer your tough homework and study questions. A reason for the growth of sales promotion is _____. Less use of incentives and price cuts to induce purchases. Option a) It is incorrect because sales promotion is a marketing approach that disregards the producers' leverage over retailers. Creates demand for products. Ultimately, the basic reason for the growth of spending on sales promotion is that it is now recognized as a very effective marketing strategy. Let's look at this promotion example below from ActiveSkin. 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