\\b. a. the Davis, Weintraub, and Lasser and the promotion of muscle cell differentiation in fibroblasts by the, Risks of infectious disease increase in (a) high-density agricultural populations compared to (b) lo. A. exploit economies of scale B. target small customers C. differentiate the product D. increase switching costs E. target customers who are less sensitive to price, Advertising by monopolistically competitive firms can do all of the following except A. lower the consumers purchase price. Joint promotion which link the buying of one service to another. 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. 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 . 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. Higher sales prices b. C) high levels of direct competitio, Latia is a popular fruit juice brand in the food and beverage market. Many grocery retailers find it easy to rationalize slotting allowances on the grounds that their net profit margins in selling groceries are minuscule (typically _____ percent) and that slotting allowances enable them to earn returns comparable to those earned by manufacturers. Which of the following would best benefit the development of niche marketing? 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. A reason for the growth of sales promotion is ___. The main idea of such assistance is to help the retailers to sell more goods and buy more from manufacturer. Sales promotions can help in establishing a good buyer-seller relationship and understanding the perception of a buyer towards the product. Sales promotion. 65% of companies identified in-person tradeshows as an invaluable part of their marketing strategy. d. emphasis on short-term results in corporate-reward structures. Recognizingwinning talentdoesnt have to be so stressful when you know what to look for. All other trademarks and copyrights are the property of their respective owners. During this stage, weaker competitors begin to drop out of the category. As part of the marketing mix, promotion includes all activities that involve communicating with the customer about the product and its benefits and features. a. the increase in power for the manufacturers over the grocery stores. Related: 13 Factors Influencing the Designing of Sales Territory (With Examples) 18 Key Success Factors in Retail Business (With Examples) Temporary cost reduction. To make personal selling highly effective, sales force promotion is essential. C) skimming. 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. Many sales promotions are designed to provide benefits to the retailers. The most common users of sales promotion are _____. Think about a time when one of your team members struggled to effectively communicate an idea or issue to you. Trade promotions are most effective when _____. Growth of Super markets. Learn about sales promotion definition in marketing and understand how it works. It is an important promotional strategy to -. b. a. permanently stop an established brand's declining sales trend b. Finally, an increase in the size and power of retailers has also boosted the use of sales promotion. E. None of the above. A critical marketing task for a venture desiring high growth is to . A. Avoiding the Salary Trap for Long Term Growth . Demonstrations are conducted to inform the public or consumers in the target market about the attributes and utilities of the product. How did they deliver the news? 4. Once the brand reaches the maturity stage of the product life-cycle, its growth rate begins to decline slowly. Being autonomous is a common trait that many business leaders look for in a new hire. Let's look at this promotion example below from ActiveSkin. Option d) It is incorrect because efficient sales promotion campaigns do not rely entirely on the media. Some consumers even consider advertising as an intrusion into their privacy, leading to zapping (surfing channels). Audio-visual medium, which is considered as the most effective for short-duration ads, may cost in excess of Rs. a) Large number of buyers. iii. Attractive sales promotion can help customers to find the best reasons to buy a product. Which of the following statements is true? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. b) relying on brand loyalty. Sales Promotion - Reasons for Rapid Growth in Sales Promotion (With Criticism) The purpose of sales promotion is to increase sales. Copyright 10. Their sales literature includes literature of all aspects of sales that assist dealers in making a sale. Dealers can be helped in many ways and the following are some of the popular form of assistance. In markets with heavy competitive forces, brands must do all they can to attract and retain customers. An industrial contract will include provision for financing, for back up services and training. Problems are inevitable, so promote someone who is not scared to face them. We reviewed their content and use your feedback to keep the quality high. a. A) product line extension B) product line sharpening C) product line widening D) market p, Some manufacturers give ____ to retailers to pass on to the retailers' sales clerks to encourage aggressive selling of specific items or lines. Can be used to gain attention to advertising, iv. 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. The balance of power has shifted away from manufacturers and toward retailers. Option b) It is incorrect because sales promotion increase is not related to lower brand parity or price sensitivity. Which of the following statements regarding slotting allowances is TRUE? Disclaimer 9. He may deduct the prices of such new goods on each minimum quantity of product purchased. CatGenie quickly develops a special price-off deal to prevent the competitor from stealing market share. a. Image Guidelines 5. On-the-shelf promotion is another reason for its growth. a) Gaining access to new products and markets. 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. The behaviors that a manager displays can affect everything from employee turnover to morale. This includes raising awareness through different mediums to increase sales, as well as to create and . That way, difficult situations will be solved effectively, and tasks will be delegated to the right team members. The new job will include learning and perfecting new skills. B) foster an internally competitive climate. emphasis on short-term results in corporate-reward structures. 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. In the introduction stage of the product life cycle, marketing efforts are primarily focused on: a. building customer awareness of the product. Management aids include technical guidance and assistance like scientific layout of the stores, arrangement of goods in the stores, lighting arrangement, etc. . A manufacturer of fruit juice has to pay retailers a fee if they want to get their new product onto the retailer's shelves. Firms with small budgets cannot compete with big companies, which spend huge sums of money on advertising. On-the-shelf promotion is another reason for its growth. 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? increased media effectiveness, e. All rights reserved. In addition to that one issue that is worth discussing here is cost /sales ratio for advertising and promotion. 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. \\c. How can Best Buy continue its upward trend in the coming years? a. the increase in power for the manufacturers over the grocery stores. The tools of sales force promotion are bonus, sales force contests, and sales meetings and conferences. 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. 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. e. emphasis on short-term results in corporate-reward structures. Which of these sales promotions should be used in this case? D) emphasize customer service and loyalty. 2. Under these circumstances, advertising messages are unable to strongly influence the consumers perceptions and create brand franchise. c) non-price competition. It is a crucial procedure that expands reach, generates interest, and leads to market sales. Hiring from within saves costs of recruiting, interviewing, and onboarding. Advertising expenditures as a percentage of total marketing communications expenditures are approximately _____ percent. The growth of huge supermarkets necessitated the need for aggressive selling. A _____ strategy consists of manufacturers directing advertising and promotion at the consumers. Did the retail alterations take place in-store, online, or both, and why was this important? A reason for the growth of sales promotion is _____. C. Healthier profit margins than in a mass-market segment. Option c) It is incorrect because increased brand loyalty does not require sales promotion. Pamphlets, circulars, booklets, etc., are used to describe product features, constituent parts, its various uses, methods of operating them and so on. For these small budget firms, sales promotion is a more cost-effective promotion method to produce sales results. 10. The following promotions work very well in services marketing. Many supervisors analyze employee performance to determine if they deserve to be promoted to higher roles. Modern manufacturers offer a variety of management aids to dealers. The objective of this deal is to _____ consumers and thereby _____ the sales of the competitor's new product. That said, all sales promotions point back to the bottom line and at the end of the day, the goal is generating more revenue. The issue of sales promotion has been receiving increasing attention from both advertising and marketing professionals and academicians. Problems that arise in the workplace tend to be out of your control; the way you deal with them, however is in your control. There are major differences in the metabolism of morphine and the illegal drug heroin. Creates demand for products. If theyre already seeking learning opportunities, being trained will seem like a natural and positive process for them. The first one million dollars typically results in a 26% increase in awareness, while the second milli. vi. the increase in power for the manufacturers over the grocery Fewer competitors than in a mass market. corporate-reward . c. retailers, consumers, and manufacturers. 24. Retailers have exclusive products that cannot be purchased from competitors. Trade promotions on average represent approximately _____ percent of total U.S. marcom expenditures. 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. What is the difference between the "old" and "new" accounting procedures with respect to promotion? c. Pay the highest salaries to keep high-quality employees. While it may not be the case for your company, there is a general assumption in the consumer market that if a . (Balasubramanian, Kumar 1990, Ailawadi, Farris, Parry 1997; Balasubramanian, Kumar 1997), i. 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. To main the high production capacity, a company may go for sales promotion to accelerate sales. (Desiraju 2001) Obviously in these conditions one of the best ways to get your product noticeable to consumer and to make them switch from other brands is sales promotions techniques. retailers, consumers, and the sales force. 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 . Go through your candidates for promotion and grade each on their fundamental soft skills. Marketing managers use sales promotions to stimulate buying and increase consumer interest in a product. Firms may offer contests to attract customers by offering substantial cash or merchandise price cuts. 3. b) Products of the industry do not produce clear cost advantages or enhance the quality of life for buyers. Suppose you have the following information. Generally, sales promotion plays a pivotal role in consumer marketing but the same is not always true for industrial marketing. Our own desires are great self-motivators. The target of sales promotion can be _____. The Growth of Sales Promotion. 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. 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 . hich of the following is NOT true regarding slotting allowances? c. increase brand loyalty. d. An increase in i, A ______ is when manufacturers direct their promotional efforts toward channel partners to convince them to order and stock products. decreased brand parity and price sensitivity, d. Which of the following is least related to the product life-cycle pattern? There are both a buyer's and a seller's market and different types of goods available in these markets. 16) Quantity Discount. b. Several reasons can be cited for this dramatic growth in sales promotion! There has been a shift from a primarily pull promotion strategy to a primarily push strategy on the part of manufacturers. Go through your candidates for promotion and grade each on their fundamental soft skills. Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis. You can also evaluate how the employee communicates up whether they can match their boss style of communicating. Cost-Effective. Money-refund overs are granted to purchasers. The store will sell other groceries to the same cu. 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. 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 |. How have LVMH's corporate strategy choices strengthened or weakened its competitive position in the branded of luxury products industry? Ans 10: e.emphasis on short-term results in 2. It can increase failure rates. 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. 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. Price-sensitivity of the consumers. 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. C) increasing the square-footage of their retail locations. This however is opposed by the issue of short term and long term impact of the promotion. Prohibited Content 3. Brand equity is stabilized. D), Why might a supermarket advertise low prices on certain high-profile items and sell them at a loss? b) Increased business complexity. Ultimately, the basic reason for the growth of spending on sales promotion is that it is now recognized as a very effective marketing strategy. 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. There are numerous reasons for the growth of the sales promotion. 5. All the advertising media have become quite expensive. Consider all extra benefits and make priority of these benefits with a view to offering these to customers depending upon a particular sales situation. Reasons for the Growth of Sales Promotion Sales Managers are Under Great Pressure to Produce Results Quickly. 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? Sales promotion has grown substantially in recent years. The downside of sales promotions is that some businesses suffer from becoming overly dependent on them in an effort to boost sales. The growth of huge supermarkets necessitated the need for aggressive selling. 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. a. unsought b. shopping c. specialty d. convenience, Which of the following would tend to reduce the bargaining power of buyers? 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. Employee Promotion means the ascension of an employee to higher ranks. Given the risk, why would a marketing manager use penetration pricing? General Mills periodically offers a deal to the trade that permits retailers to deduct 15 percent from the invoice merely by placing an order during the period which General Mills is "dealing" a brand. a. b. decreased brand parity and price sensitivity. Sales meetings and conferences are also arranged for the purpose of educating and inspiring the sales force. 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. c) Purchase standard, undifferentiated commo, In franchising, the reputation of the franchiser is dependent on: A) their locations and popularity with the local customer. Extensive research has shown that the effects of short-term price promotions on sales are themselves Line short-term. Generation of brand awareness and brand attitude. 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. 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. Sales Promotion Strategies Target Consumer, Trade, and The Sales Force. Can be used for a wide range of different objectives, xii. 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More cost-effective promotion method to produce sales results first one million dollars typically results in a new.. Life-Cycle, its growth rate begins to decline slowly the square-footage of their respective owners a short time a. Shopping c. specialty d. convenience, which of these sales promotions are designed to provide benefits the. Sell more goods and buy more from manufacturer % increase in the coming years while the second milli idea such! Cost in excess of Rs influence the consumers the following are some the...