In theory, a promotion requires more work and effort in a job. Sales promotions come in many forms and support a long list of objectives. The introduction of a certain amount of fun and excitement into promotions which customers can enjoy as participants. d. increased media effectiveness. Sales Promotion Strategies Target Consumer, Trade, and The Sales Force. Personal selling is highly essential in marketing. Also Read: 9 types of Consumer Sales Promotion tools. Here are some common types of sales promotions companies use to appeal to customers: 1. a. decline b. introduction c. growth d. maturity, Which of the following is an advantage of growth by means of external growth strategies? The sales promotion department assists the salesmen to contact the prospective customers. Sales promotion utilizes a temporary marketing campaign to stimulate customers' interest and enhance product sales. 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. It is highly essential because it is only through dealers that a manufacturer sells his goods. Sales promotion can obtain feature pricing, displays, and other dealer in-store support, ii. Third, the emergence of computer technology has enabled manufacturers to get rapid feedback on the results of promotions. 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. Can be used for a wide range of different objectives, xii. b. allow a manufacturer to lower the price of the product. c. D) marketing mix. As a rule, companies use sales promotions within a limited period via various channels - social media, email campaigns, websites, etc. a. b. Take the "sales promotion trap" as an example. On-the-shelf promotion is another reason for its growth. Sometimes, it prepares the ground for the salesmen to meet the prospects by sending them circular letters and sales literature. The new job will include learning and perfecting new skills. Manufacturers and marketing companies have realized the role that sales promotion can play in services marketing. An autonomous self-starter wont crunch under the pressure or get overwhelmed and will even know when its appropriate to ask for help if needed. D. when there is underproduction relative, In the context of SWOT analysis, which of the following best exemplifies a firm's external opportunity? Sales promotion may also help in increasing the effectiveness of advertising. Drive sales for the existing stock. b. retailers, manufacturers, and the sales force. Some consumers even consider advertising as an intrusion into their privacy, leading to zapping (surfing channels). Suppose you have the following information. This promotional offer of a great gift is a good way to convince customers to spend a bit more. Before publishing your articles on this site, please read the following pages: 1. Sales promotion can also be used to achieve other objectives, such as widening distribution or 'shelf facing'. How are retailers able to impose expensive slotting fees on manufacturers? B. 5. A brand name, price, and distribution system have been decided. Cons of sales promotions. Pamphlets, circulars, booklets, etc., are used to describe product features, constituent parts, its various uses, methods of operating them and so on. Sometimes, customers are given the product at a price below the normal rate. Sometimes, the manufacturer promise the dealer to take back goods if they remain unsold. If the Internet continues to grow and sales of brick-and-mortar retailers decline, how might the retailers attract, train, and retain high-quality employees if the industry is perceived as in decline? Trade promotions on average represent approximately _____ percent of total U.S. marcom expenditures. Media advertising tends to be impersonal whereas sales promotion is more personal, linking the manufacturer with the customer. c. increase brand loyalty. 3. High cost of media advertising such as newspapers and TV, is one of the main reasons to find more cost-effective forms of sales promotion. 0. According to Burn, Marshall, and Barnett, this would make the c, Making modifications to packaging or brand names involves the ____ component of the marketing mix. Often, the better alternative is to promote your next leader from within your company. requesting a deslotting agreement from the manufacturer. Extensive research has shown that the effects of short-term price promotions on sales are themselves Line short-term. Less use of incentives and price cuts to induce purchases. People who are money conscious buy such jeans. Which of the following would best benefit the development of niche marketing? Sales promotions can be used as tools to overcome consumer price resistance Changes in technology have made soles promotions more efficient The availability of more ad agencies and specialists has spurred growth in sales promotions, An appropriate . In such cases, the manufacturer may reimburse the advertising expenditure borne by the dealer. Not every internal promotion will be better than an external hire. A reason for the growth of sales promotion is _____. Sales promotion means and includes all the activities that are performed by a producer, a . Sales Promotion can be termed as a process that drives short-term promotions to increase the demand and the subsequent sales for the said product. A high probability of having some form of sales effect, at least in the short run, xi. 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. The four main tools of promotion are advertising, sales promotion, public relation and direct marketing. There are a number of reasons that are favorable to the growth of sales promotion: 1. This is an example of which type of trade promotion? Trade promotions on average represent approximately _____ 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. Regardless of stated company values, oftentimes, the real culture of an organization is created by the management team. Dayton's would have received a(n) _____ from the manufacturer. Audio-visual medium, which is considered as the most effective for short-duration ads, may cost in excess of Rs. There has been a shift from a primarily pull promotion strategy to a primarily push strategy on the part of manufacturers. Increasing advertising expenditures in those geographic re. Its hard to justify promotion when the employee doesnt want it in the first place . A reason for the growth of sales promotion is ____. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide). 11. There are numerous reasons for the growth of the sales promotion. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Sales promotion tends to produce sharp and fast increase in sales of the brand. 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. 1. B. having a latter retail space an expand sales more than proportionately. b. decreased brand parity and price sensitivity. Bonus is usually offered to salesmen who sell in excess of the quota. If theyre already seeking learning opportunities, being trained will seem like a natural and positive process for them. B. as it becomes more costly for buyers to switch brands. They may choose to reduce the price by a percentage or a specific dollar amount. 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. a. How can Publix use social media to assist in the develo, Which group of policies aims at discouraging rivals from starting a price war? That said, all sales promotions point back to the bottom line and at the end of the day, the goal is generating more revenue. Did they get frustrated or frazzled, did they expect you to give them directions or did they propose an effective solution? 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. It provides reluctant decision makers with an incentive to make choices by increasing the value . This is an example of a(n) _____ allowance. b) Increased business complexity. Joseph Mair has recorded one such policy statement in the Handbook of Sales Promotion; the policy says: 1. The use of premiums in the direct mailing and selling of financial offers or financial services. Founded in 1998, the company has expanded to include Google Search, as well as a . Most brands are being perceived by consumers to be more or less similar within a given price range because of the inability of manufacturers to develop truly differentiated products. 34. D. All of the above. Which of the following are legitimate costs of doing business for a large, multistore supermarket chain that takes on a new brand? Your manager has to be a people person, acknowledge the feelings of others, and realize some of the impulses behind behaviors. This aspect of the job drives employees the mostthe ultimate reward for dedication and loyalty towards an organization. The reason is that the manufacturer has to sell an extraordinarily high number of cases at the discounted price to cover the normal base sales that would have taken place without the promotion. A _____ strategy consists of manufacturers directing advertising and promotion at the consumers. C), Joe is developing the marketing mix for his company's new line of power tools. 3. This however is opposed by the issue of short term and long term impact of the promotion. Did the retail alterations take place in-store, online, or both, and why was this important? The behaviors that a manager displays can affect everything from employee turnover to morale. CatGenie quickly develops a special price-off deal to prevent the competitor from stealing market share. Recognizingwinning talentdoesnt have to be so stressful when you know what to look for. a. It is a way for companies to be charitable. Modern manufacturers offer a variety of management aids to dealers. The issue of sales promotion has been receiving increasing attention from both advertising and marketing professionals and academicians. d. emphasis on short-term results in corporate-reward structures. ii. 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. Historically, the manufacturer held the power in the channel of distribution. Report a Violation, Sales Promotion: Essay on Sales Promotion (645 Words). Money-refund overs are granted to purchasers. B) though this rarely results in a practical advantage. Increase sales by 10% over last year. Higher sales prices b. Market power is the power to: Select one: a. control output. Sales promotion is a marketing tool used to increase consumer demand, stimulate market demand, or improve product availability. Prohibited Content 3. Which of the following is NOT a factor accounting for the shift from consumer advertising to promotion? Plagiarism Prevention 4. Outside hires typically require higher salaries. Sales promotion. This is a characteristic of: \\ A) price wars. The tools of sales force promotion are bonus, sales force contests, and sales meetings and conferences. Retailers usually pass along to consumers the discounts they receive from manufacturers. In general sales promotions can built on brand sales more rapidly than advertising. 2. Can be used to gain attention to advertising, iv. The outlook that managers project trickles through to the team members and defines the atmosphere in the workplace. Assessment of Sales Promotion is Relatively Easy. d. help retailers tr. Sales promotion has grown substantially in recent years. How have LVMH's corporate strategy choices strengthened or weakened its competitive position in the branded of luxury products industry? You can also evaluate how the employee communicates up whether they can match their boss style of communicating. An increa, In order to increase customer traffic, you want to offer an immediate discount when a customer purchases a certain product. Which of the followin, A manufacturer wants to increase purchase rates of his product and reward those customers who make multiple purchases. They already have a working knowledge of company culture and processes. Joint promotion which link the buying of one service to another. 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. The more quantity of the product you buy, the more is the discount. Study sales promotion techniques and characteristics, as well as sales promotion examples. The downside of sales promotions is that some businesses suffer from becoming overly dependent on them in an effort to boost sales. D) penetration. Option b) It is incorrect because sales promotion increase is not related to lower brand parity or price sensitivity. An increase in its brand equity. Now Joe is concentrating his efforts on developing the best advertising plan for the product line. The growth of huge supermarkets necessitated the need for aggressive selling. Firms may offer contests to attract customers by offering substantial cash or merchandise price cuts. 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. Everyone loves to celebrate. b. reduce price below cost to deter entry. All four of these elements combine to make a successful marketing strategy. In many cases, consumers have reached a point of boredom due to excessive advertising on TV. Competing companies struggle to capture market share by using every tool likely to bring sales success. B) competitive pricing. However, industrial marketing may not use advertising so much as consumer marketing, but sales promotion efforts are present in industrial marketing also. 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. 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. e. emphasis on short-term results in corporate-reward structures. Would you characterize the rivalry and jockeying for better market position, increased sales, and market share among the companies in your industry as fierce, very strong, strong, moderate, or relativ, Which of the following is a reason why brands matter to manufacturers? 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? Increasing Competition. Consider all extra benefits and make priority of these benefits with a view to offering these to customers depending upon a particular sales situation. A. doubling promotional expenses to expand sales more than proportionately. Those sales promotions used as a form of price discount must now be treated as reductions in sales revenues. The relative penetrating power of alpha, beta, and gamma radiation. B) product life cycle. b. Explain your reasoning. 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. Problems are inevitable, so promote someone who is not scared to face them. Sales promotion definition . Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people. The basic purpose of sales promotion is to increase the sales of a product by creating demand. Their sales literature includes literature of all aspects of sales that assist dealers in making a sale. 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 . copyright 2003-2023 Homework.Study.com. Content Guidelines 2. In case of consumer oriented deals. Although business has been steady, the CEO believes that adding some physical stores might enhance brand recognition while increasing sales. Advent of optical checkout scanners. 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. When all is said and done, the customer is interested in just one thing from your organization: value. Retailers have exclusive products that cannot be purchased from competitors. The growth of huge supermarkets necessitated the need for aggressive selling. They are therefore resorting to more . Media advertising tends to be impersonal whereas sales promotion is more personal, linking the manufacturer with the customer. 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. Let's look at this promotion example below from ActiveSkin. Get more customers for a product. You might use them to attract new customers, boost retention rates, offload inventory, or deepen your relationship with existing clients. A reason for the growth of sales promotion is _____. With this promotion, companies lower the cost of an item for a specific period. i. 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. Being autonomous is a common trait that many business leaders look for in a new hire. They have been criticized as representing a form of bribery. That way, difficult situations will be solved effectively, and tasks will be delegated to the right team members. increased brand parity and price sensitivity. 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. C) high levels of direct competitio, Latia is a popular fruit juice brand in the food and beverage market. One way for a country to obtain an absolute advantage in marketing a product outside its borders is to _______. xiii. On-the-shelf promotion is another reason for its growth. It typically involves the use of tools such as promotional products, trade show displays, and more. C. as the products of rival sellers become more strongly differentiated. Temporary cost reduction. Employee Promotion means the ascension of an employee to higher ranks. A defined set of reasons to promote can be a great start. vi. All posted questions are reviewed and answered by dedicated volunteers (students and teachers) from around the globe. a. the increase in power for the manufacturers over the grocery stores. c) non-price competition. Sales promotion: definition. corporate-reward . c. An increase in its customers' disposable income. Buy one, get one free deals (aka BOGO) are among the most popular types of sales promotions. A reason for the growth of sales promotion is ____. decreased brand parity and price sensitivity, d. Many sales promotions are designed to provide benefits to the retailers. Sales promotion represents a variety of techniques used to stimulate the purchase of a product or brand. 4. A reason for the growth of sales promotion is _____. They are trained for arranging sales talk, sales approach and methods of meeting customers objections. \\c. \\d. (Balasubramanian, Kumar 1990, Ailawadi, Farris, Parry 1997; Balasubramanian, Kumar 1997), i. This may be done on a door-to-door basis, through demonstrations or by mail. c. Pay the highest salaries to keep high-quality employees. Reasons for the Growth of Sales Promotion Sales Managers are Under Great Pressure to Produce Results Quickly. a. c. retailers, consumers, and manufacturers. a. undermining competitive competencies b. building customer loyalty c. milking the market for product desires d. renewing a customer ba, Trade Promotions: Why do manufacturers such as Kraft and Sara Lee offer trade promotions? -Price matching and randomized pricing -Price matching, brand loyalty, and commodity bundling -Randomized pricing, pri, For years, Publix Grocery Stores have attempted to develop a strong brand image and has recently started to develop a strong brand relationship. As a result, they enter a precarious short-term marketing cycle and struggle to plan for long-term goals and growth. Avoiding the Salary Trap for Long Term Growth . Sales Promotion - Reasons for Rapid Growth in Sales Promotion (With Criticism) The purpose of sales promotion is to increase sales. Repositioning Improving Advertising Increasing the promotion bud, In mass retailing, big-box companies like Walmart, Best Buy, and Sears are A) gaining a competitive advantage over smaller stores. b) Products of the industry do not produce clear cost advantages or enhance the quality of life for buyers. As part of the marketing mix, promotion includes all activities that involve communicating with the customer about the product and its benefits and features. Which of the following is FALSE regarding trade allowances? Porter's five forces Let's look at what the 5 competitive forces mean and what factors increase/decrease their power. a. retailers, consumers, and the sales force b. Sales promotion can help to expand distribution. _____ refers to any incentive used by a manufacturer to encourage the sales force to aggressively sell it. One reason that market economies have been so successful in promoting growth is that _______. Creates demand for products. Promotion based on price creativity, where additional benefits are informed through price adjustments as used in restaurants, clinics and hospitals. B) the brand name recognition and appeal. He may deduct the prices of such new goods on each minimum quantity of product purchased. b. decreased brand parity and price sensitivity. When considering using a sales promotion, it's important to remember the two main risks of the "sales promotion trap":. Go through your candidates for promotion and grade each on their fundamental soft skills. There are a number of reasons that are favourable to the growth of sales promotion: Increasing Competition. The main idea of such assistance is to help the retailers to sell more goods and buy more from manufacturer. Experts are tested by Chegg as specialists in their subject area. The introduction of a certain amount of fun and excitement into promotions which customers can enjoy as participants. b) relying on brand loyalty. The company that ow, Distribution, price, promotion, and product are all elements of: a. a target market b. a marketing strategy c. the marketing mix d. a consumer good e. a business strategy, Which of the following is NOT a tactic for reducing the bargaining power of customers? The manufacturer sometimes conveys all information about a product to the dealers, such as information relating to production processes, etc. B) firms that are first movers can gain product-differentiation advantages based on perceived technological leadership. Old stocks and old models are also taken back by the manufacturers. 2 Offer extra benefits perhaps with marginal price, and the customer will be satisfied with your efforts.. 3. (Neslin, Quelich, Henderson 1982). A reason for the growth of sales promotion is ___. A reason for the growth of sales promotion is _____. Mass marketers utilized national advertising to get directly to consumers, creating a demand for the heavily advertised brands that stores could not afford to ignore. Intense competition. Second, the increasing tendency of businesses to focus on short-term results has helped spur growth in sales promotion, which can provide an immediate boost in sales. Some of these points have been proven practically by the industry. The _____ strategy consists of a manufacturer directing personal selling, trade advertising, and trade-oriented sales promotion to wholesalers and retailers. An industrial contract will include provision for financing, for back up services and training. Several reasons can be cited for this dramatic growth in sales promotion! Company culture cant always be defined in simple terms and is usually described by employees differently depending on their own core values and beliefs. iii. i. Encourages switching from competitor brands, viii. Marketing managers use sales promotions to stimulate buying and increase consumer interest in a product. Sales Promotion of Industrial Products, 9 types of Consumer Sales Promotion tools, Point of Purchase & Direct Mail Advertising | Merits & Demerits, Advertising and Publicity | Differences | Similarities, 10 Positive Social Effects of Advertisements, Control of Salesmen | Meaning | Need | Methods of Control, Advantages of a Good Salesmen Training Programme, 8 Important Functions of Advertising Agencies, Accountlearning | Contents for Management Studies |. Sales promotions provide customers with a reason to buy now. Which of the following is a factor accounting for the shift from consumer advertising to promotion? A critical marketing task for a venture desiring high growth is to . A. The evidence is clear: retailers are confronted yearly with large numbers of introductions in a wide variety of categories. Sales promotion has a tactical, rather than strategic role in marketing communications and brand strategy, it is also a form of advertisement used within a short period of time.Researchers Farhangmehr and Brito, reviewed the definitions of sales promotions in . Line extension b. Repositioning c. Diversification d. Expansion, The target of sales promotion can be _____. This helps the salesmen a lot while selling. In a product/market extension, the objectives include: A) eliminating capacity, gaining market share, and increasing efficiency B) synergy of similar but expanded product lines or geographic markets C) efficiency of larger operations D) anticipation of. Firms with small budgets cannot compete with big companies, which spend huge sums of money on advertising. Sales promotion can encourage repeat usage of the product or increase product usage by loading consumers: The first part of this argument is supported by Neslin, Quelich, Henderson 1982 the results of their research show that acceleration of purchase quantity is stronger among heavy users that light users. First, consumers have not only accepted but also prefer sales promotion as part of their buying decision criteria. 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? 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 Due to increase in competition, companies are finding it increasingly difficult to compete on quality. 10. B) foster an internally competitive climate. 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. Our own desires are great self-motivators. Which of the following statements is true? Option c) It is incorrect because increased brand loyalty does not require sales promotion.

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