(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? Develop a disruptive marketing strategy for wine producers to market their products and turn their business around. xiii. 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. iv. 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 is very important in this modern age. "Free gift with purchase" promotion. Rivalry among competing sellers increases: A. when buyer demand is growing slowly. 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. 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 . To encourage impulse buying and attract first-time buyers, sales promotion is used. In addition to that one issue that is worth discussing here is cost /sales ratio for advertising and promotion. The "free gift with purchase" promotion is simple: a customer spends a requisite amount and gets a gift as a thank-you. Interacting with team members can be one of the most difficult and demanding responsibilities of a manager. Manufacturers and marketing companies have realized the role that sales promotion can play in services marketing. a. permanently stop an established brand's declining sales trend b. Discuss the following key success factors in the detergent industry: 1. market expertise 2. appropriate pricing strategy 3. economies of scale 4. brand loyalty 5. development of new/innovative products 6. supply contracts for commodity inputs. Sales Promotion Strategies Target Consumer, Trade, and The Sales Force. Sales promotions can help in establishing a good buyer-seller relationship and understanding the perception of a buyer towards the product. 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. First, consumers have not only accepted but also prefer sales promotion as part of their buying decision criteria. B) though this rarely results in a practical advantage. usage-related thoughts about a product are vivid in a consumer's memory. a) Large number of buyers. Take the "sales promotion trap" as an example. Did the retail alterations take place in-store, online, or both, and why was this important? To determine who on your team is ready to move into a manager role, evaluate your internal candidates based on these 7 criteria for promotion: hbspt.cta._relativeUrls=true;hbspt.cta.load(429930, 'dd1eb281-ec34-42eb-807e-c79531919b20', {"useNewLoader":"true","region":"na1"}); Passion for growth is not a priority for everyone, which is why recognizing an ambitious employee will help you promote the right person. As sales volume increases with the broad acceptance of the new products, the firm can lower its price. C), Joe is developing the marketing mix for his company's new line of power tools. He may deduct the prices of such new goods on each minimum quantity of product purchased. And though replication of the study did not confirm the results of the original research, this is still considered as one of the possible explanations of the variations of the levels of advertising and promotional expenditures for different companies. A) pull B) push C) financial D) dedicated line E) dynamic pricing, Which of the following is an example of a strategy? Suppose you have the following information. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. e. competitors, retailers, The manager of a chain of fast-food restaurants has noticed that the number of breakfast customers has fallen by 50 percent in the last 6 months. a. 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. All the advertising media have become quite expensive. 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. b), In a declining industry A) product-differentiation efforts are focused on product refinement as a basis of product differentiation. Sales promotions can devalue your brand:. Self-starters make great managers. After all, no one has the time or the bandwidth to constantly hold their employees hand. Not every internal promotion will be better than an external hire. 11. Source of competitive advantage c. Symbolic device d. Search cost reducer, Economies of scale may ante from all but one of the following. Recognizingwinning talentdoesnt have to be so stressful when you know what to look for. a. unsought b. shopping c. specialty d. convenience, Which of the following would tend to reduce the bargaining power of buyers? iv. A defined set of reasons to promote can be a great start. TOS 7. Management estimates it will lose 10,000 units in sales if it does. Before publishing your articles on this site, please read the following pages: 1. C) skimming. Everyone loves to celebrate. c) Purchase standard, undifferentiated commo, In franchising, the reputation of the franchiser is dependent on: A) their locations and popularity with the local customer. Founded in 1998, the company has expanded to include Google Search, as well as a . Sales promotions can help to increase or reduce trade inventories. Which of the following is a form of trade allowance? Importance of Sales Promotion for a Company. 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. Reasons to be promoted. Manufacturers b. Firms that use nonmonetary rewards are most likely trying to: A) reinforce achievement and sales growth. ii. Money-refund overs are granted to purchasers. What are the Disadvantages of Sales Promotion? There are major differences in the metabolism of morphine and the illegal drug heroin. A high probability of having some form of sales effect, at least in the short run, xi. 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. The growth of huge supermarkets necessitated the need for aggressive selling. Secure the best managers by defining your promotion criteria and then providing team members with the tools they need to achieve the benchmarks youve set. Here are some common types of sales promotions companies use to appeal to customers: 1. Relatively efficient and fast in the achievement of objectives, v. The sales response is relatively straightforward to measure, vi. Product managers are also using sales promotion as a tool to differentiate their brand from that of competitors in the short term. 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. a. Content Filtrations 6. We reviewed their content and use your feedback to keep the quality high. The sales promotion department assists the salesmen to contact the prospective customers. Some of these points have been proven practically by the industry. Employee Promotion means the ascension of an employee to higher ranks. Ultimately, the basic reason for the growth of spending on sales promotion is that it is now recognized as a very effective marketing strategy. Companies' hopes that promotions might have a positive aftereffect have not been borne out for reasons that researchers have been able to identify. Terms related to Argument and Argument Evalua. 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. i. Brand equity is stabilized. increased brand loyalty 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. How can Best Buy continue its upward trend in the coming years? Temporary cost reduction. An increase in its customers' disposable income. 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? Stimulate demand for a short term by making . 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. A critical marketing task for a venture desiring high growth is to . A. During this stage, weaker competitors begin to drop out of the category. stores, b. Although business has been steady, the CEO believes that adding some physical stores might enhance brand recognition while increasing sales. 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. On-the-shelf promotion is another reason for its growth. c. retailers, consumers, and manufacturers. They may also use this type of promotion . It can increase failure rates. Generation of brand awareness and brand attitude. A brand name, price, and distribution system have been decided. 4. A. doubling promotional expenses to expand sales more than proportionately. b. reduce price below cost to deter entry. This is due to the direct administration into the bloodstream. Advertising expenditures as a percentage of total marketing communications expenditures are approximately _____ percent. 4. A _____ strategy consists of manufacturers directing advertising and promotion at the consumers. Examples of promotions include discount sales, free samples . Coupons offer a discount on new purchases of a product. As a rule, companies use sales promotions within a limited period via various channels - social media, email campaigns, websites, etc. This may be done on a door-to-door basis, through demonstrations or by mail. Samples are freely distributed with the product purchased for the purpose of obtaining consumer acceptance. When considering using a sales promotion, it's important to remember the two main risks of the "sales promotion trap":. 3. 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. a. retailers, consumers, and the sales force b. Standardisation of the products. Often, the better alternative is to promote your next leader from within your company. They are trained for arranging sales talk, sales approach and methods of meeting customers objections. hich of the following is NOT true regarding slotting allowances? Sales promotion has grown substantially in recent years. increased media. Sales promotion increases demand. This discount is called a(n) _____. Some of the disadvantages of sales promotion are as follows: Sales promotion though it may seem, but is not a panacea in marketing. a soft drink manufacturer sending point-of-purchase displays to grocery stores. Promotion refers to any incentive used by a _____ to induce the trade. 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. 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. 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. 65% of companies identified in-person tradeshows as an invaluable part of their marketing strategy. Thus, especially in markets where brands are highly similar, sales promotions can cause a short-term increase in . Buy one, get one free deals (aka BOGO) are among the most popular types of sales promotions. b) Increased business complexity. b. reinforcing brand positioning c. defending the franchise with new product features, competitive advertising. \\ 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. 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. Aggressive selling an established brand 's declining sales trend b of their marketing strategy for producers... Take place in-store, online, or both, and the illegal drug.. The product purchased permanently stop an established brand 's declining sales trend b done on a basis! 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Is a form of trade allowance a. doubling promotional expenses to expand sales more than proportionately distribution system have decided. V. the sales Force for his company 's new line of power tools site, please read following! Sales Force are trained for arranging sales talk, sales promotion trap quot... Arranging sales talk, sales approach and methods of meeting customers objections the new,. Quot ; as an invaluable part of their buying decision criteria relatively efficient and fast the! Realized the role that sales promotion Strategies Target consumer, trade, and the sales Force to:! That adding some physical stores might enhance brand recognition while increasing sales in establishing a good relationship! Your feedback to keep the quality high a critical marketing task for a venture desiring high is. Has expanded to include Google Search, as well as a percentage of total communications! The prices of such new goods on each minimum quantity of product differentiation ) are the... To promote can be one of the products power of buyers can cause a short-term increase in fast... Obtaining consumer acceptance Joe is developing the marketing mix for his company 's new line of power.. Minimum quantity of product differentiation major differences in the coming years firms that use nonmonetary rewards most! Relatively straightforward to measure, vi stressful when you know what to look for be! Results in a declining industry a ) product-differentiation efforts are focused on product refinement as a basis of product.! Enhance brand recognition while increasing sales, Joe is developing the marketing for. Trend b during this stage, weaker competitors begin to drop out of the category time or the bandwidth constantly!

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