Although business has been steady, the CEO believes that adding some physical stores might enhance brand recognition while increasing sales. 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. and acquire, new profitable segments to serve. B. as it becomes more costly for buyers to switch brands. The evidence is clear: retailers are confronted yearly with large numbers of introductions in a wide variety of categories. 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. Develop a disruptive marketing strategy for wine producers to market their products and turn their business around. 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. Privacy Policy 8. 7. Importance of Sales Promotion for a Company. The assessment of the situation for the promotion of industrial products is based on the following observations. This helps the salesmen a lot while selling. How can Publix use social media to assist in the develo, Which group of policies aims at discouraging rivals from starting a price war? Stabilize sales volume and fulfil short-term sales goals. Their sales literature includes literature of all aspects of sales that assist dealers in making a sale. Sales promotion has grown substantially in recent years. 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. Sales promotion is a marketing tool used to increase consumer demand, stimulate market demand, or improve product availability. Sales promotions can help to increase or reduce trade inventories. 65% of companies identified in-person tradeshows as an invaluable part of their marketing strategy. percent of total U.S. marcom expenditures. Product managers are also using sales promotion as a tool to differentiate their brand from that of competitors in the short term. 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. (Balasubramanian, Kumar 1990, Ailawadi, Farris, Parry 1997; Balasubramanian, Kumar 1997), i. 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. Problems are inevitable, so promote someone who is not scared to face them. Which of the following statements is true? 1. The "free gift with purchase" promotion is simple: a customer spends a requisite amount and gets a gift as a thank-you. Sales promotion can help to expand distribution. Ans 10: e.emphasis on short-term results in The Growth of Sales Promotion. 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. (Neslin, Quelich, Henderson 1982). Several reasons can be cited for this dramatic growth in sales promotion! Firms that use nonmonetary rewards are most likely trying to: A) reinforce achievement and sales growth. Sales promotions provide customers with a reason to buy now. They are therefore resorting to more . 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. Attractive sales promotion can help customers to find the best reasons to buy a product. While it may not be the case for your company, there is a general assumption in the consumer market that if a . A major international study conducted in Germany, Japan, the United Kingdom, and the United States found that price-related promotions have _____ impact on a brand's long-term sales or on consumers' repeat buying loyalty. In such cases, the manufacturer may reimburse the advertising expenditure borne by the dealer. 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. They are trained for arranging sales talk, sales approach and methods of meeting customers objections. CatGenie quickly develops a special price-off deal to prevent the competitor from stealing market share. As a rule, companies use sales promotions within a limited period via various channels - social media, email campaigns, websites, etc. 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. b. reduce price below cost to deter entry. a. permanently stop an established brand's declining sales trend b. All rights reserved. An increase in its customers' disposable income. A reason for the growth of sales promotion is _____. A reason for the growth of sales promotion is ____. A) pull B) push C) financial D) dedicated line E) dynamic pricing, Which of the following is an example of a strategy? 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 . It typically involves the use of tools such as promotional products, trade show displays, and more. You might use them to attract new customers, boost retention rates, offload inventory, or deepen your relationship with existing clients. Which of the following is FALSE regarding trade allowances? 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. 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 |. 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. Development of customer relationship understanding. c) Clash of corporate cultures. b) Products of the industry do not produce clear cost advantages or enhance the quality of life for buyers. They are therefore resorting to more . 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? 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? Empower and motivate other employees around you. 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 is an integral part of the marketing mix". 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. The balance of power began shifting from manufacturers to retailers when network television dipped in effectiveness as an advertising medium and, especially, with the _____. Then, identify employees who showcase some of the qualities that map to those values. Outside hires typically require higher salaries. It is a way for companies to be charitable. B. having a latter retail space an expand sales more than proportionately. a. push strategy b. skimming strategy c. multi-marketing strategy d. pull strategy. Industries where buyers have higher bargaining power are less attractive. Current produc, Q1. An increase in its financial resources. Due to sales promotions, the demand for product increases and the manufacturer can avail the benefits of Economies of scale. B. result in increased profits for the advertising firm. 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. Which of the following is NOT a manufacturer's objective for using trade-oriented promotions? 3. Copyright 10. c. Pay the highest salaries to keep high-quality employees. Manufacturers estimate that retailers pass through to consumers _____ of the trade funds that they provide to retailers. b. reinforcing brand positioning c. defending the franchise with new product features, competitive advertising. In the introduction stage of the product life cycle, marketing efforts are primarily focused on: a. building customer awareness of the product. iii. 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. Advent of optical checkout scanners. To main the high production capacity, a company may go for sales promotion to accelerate sales. A brand name, price, and distribution system have been decided. Whether it be important holidays like Christmas or more personal reasons like a birthday, giving your customers incentive to shop will give you a surge in sales. A reason for the growth of sales promotion is ____. Customer feedback is crucial for business success, and you can combine it with a sales promotion to entice customers to give it. 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. 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