Page 178 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes Stocking Allowance: Money paid to the retailers to stock new products
Trade Promotions: Sales promotions directed at resellers

9.7 Self Assessment

State whether the following statements are true or false:
1. Schemes like ‘buy two and pay for one’ are known as premiums.

2. Giving 10 candies free in a jar of 200 candies is a promotion offer directed usually at
consumers.
3. Immediate price discounts are more beneficial if you want consumers to switch brands.

4. ‘Point of Purchase’ displays are more effective for impulse products like candies and chips.
5. Companies often give buying allowance to the consumers to attract them towards their
brands.

Fill in the blanks:
6. If a company is directing sales promotions to you as a shop owner then the promotion is
said to be based on …………………… strategy.

7. When you pay a sales boy at a store to take special care to push your products’ sales, the
incentive is called ………………………….
8. If a product carries a tag which says ’25% extra free’, such type of sales promotion offer is
called …………………………...
9. ……………….testing of promotion is done while the promotion is still on.
10. If the company wants to match the promotion budget of its competitive, it uses
the……………………….method of budget allocation.

9.8 Review Questions

1. “Sales Promotions are more effective when both ‘push-pull’ strategies are used at the
same time”. Discuss
2. Critically analyse the planning process of a sales promotion programme.
3. Explain how sales promotions can be useful to gain short term competitive advantage.
Give Examples.
4. Suppose you are the marketing manager of a car manufacturing company. Determine the
promotional plan directed at consumers and dealers.
5. If you were the marketing manager of a FMCG company, how would you allocate the
promotional budget?

6. Analyse the benefits of using sales promotions. Can they be beneficial in the long run?
7. Do you think that price discounts can attract customers towards a brand for long term?
Why or why not?

8. Is giving allowances to the traders a good promotional strategy? Justify your answer.
9. Explain different methods that are used for sales promotion budget allocation.

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