Exam 18: Sales Promotion Overview and the Role of Trade Promotion

Assume that Coppertone invests heavily in trade allowances to encourage retailers to stock and promote QT,its skincare product designed for a quick suntanned look without the dangers of sunbathing.What type of strategy is Coppertone using? 

Explain how everyday low pricing (M)reduces the usage of diverting and forward buying.

Consumers obtain _____ benefits when taking advantage of sales promotion offers,including a sense of being a wise shopper,and/or a need for stimulation and variety.

Companies in the restaurant industry are the biggest users of sales promotion.

Pay-for-performance programs reward the retailer for buying the brand at an off-invoice price.

What can promotion accomplish? 

The practice of _____ consists of retailers purchasing enough products on one deal to carry them over until the manufacturer's next regularly scheduled deal.

The XYZ chain of grocery stores purchases enough products on one deal to carry them over until the manufacturer's next regularly scheduled deal.This practice is known as _____.

In order to avoid paying slotting allowances,a manufacturer can _____.

The objectives of trade allowances for retailers often conflict with the objectives of manufacturers.

Manufacturers pay slotting allowances to retailers to get the retailer to purchase the product.

Large retail chains,unlike smaller chains,are able to merchandise their own _____ brands,and because these brands can be sold at lower prices than manufacturers' comparable brands,large chains are able to use their brands to satisfy the needs of price-sensitive consumers while selling manufacturers' brands at their normal price and pocketing the trade allowance as extra profit.

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.

The _____ strategy consists of a manufacturer directing personal selling,trade advertising,and trade-oriented sales promotion to wholesalers and retailers.

While manufacturers incur increased costs due to forward buying,their margins are increased to off-set the price discounts.

The effects of promoting higher- and lower-quality brands are symmetric.

Account-specific practices include radio tie-in advertising.

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.This is an example of which type of trade promotion? 

Slotting allowances are the fees that manufacturers pay retailers for access to more or better shelf space for existing brands.

_____ is a form of pricing whereby a manufacturer charges the same price for a particular brand day in and day out.