BM4323 Tut 10 A&P

Buyers play an important and supportive role in Advertising & Promotion. Which of the following best describes their roles?

• Choose merchandise to be featured & Supply information to augment merchandise

• Apportion allocated budget for use & Negotiate with vendor for cooperative advertising allowances

• Prepare request form & arrange for special events & promotion

• All the above

Answer explanation

Yes! Buyers play a role in all aspects of promotion.

The following are likely considerations for promotional budget, EXCEPT:

• Supply Chain Management

• Past Sales Volume

• Projected Sales Figure

• Competition

Answer explanation

Other considerations include Size of company, Potential for expansion, Long term objectives

and Economic conditions

Identify the type of advertisement - Cold Storage

(a)  

Answer explanation

Promotional ads are also known as product or merchandise ads. They are most widely used. Call attention to specific merchandise or promotion.

Identify the type of advertisement - Novita

(a)  

Answer explanation

Combination ads Combine both promotional & institutional concepts. Hopefully will result in greater sales for specific merchandise.

Identify the type of advertisement - Ikea

(a)  

Answer explanation

Institutional ads strive to improve on retailer’s image by focusing on areas such as company services, charity work, social issues

O Don’t usual take from buyer’s budget

O Difficult to measure success

O No immediate results

O Longer term investments

Special events could be in the form of (a)   .

Answer explanation

Special events could be cooking demonstration by famous chef, Appearance of designer/ author, Trunk show, Fashion show.

(a)   events help to increase general store traffic and promote store’s image.

Answer explanation

Institutional Events help to increase general store traffic and promote store’s image. They are not necessarily designed to sell specific merchandise but to generate consumer interest.

The following are key aspects of Advertising, EXCEPT:

• Paid form

• Non-personal presentation

• Face to face

• Identified sponsor

List the considerations for cooperative advertising.

• negotiation power of the buyer

• potential purchase amount

• long term relation with the supplier

• history of brand

Answer explanation

Cooperative advertising is whereby Vendor agrees to share in merchant’s advertising expenses. Usually on condition of purchasing, esp. for significant potential purchase.

List the downsides of cooperative advertising.

• Buyers might concentrate too much on the allowance & end up getting poor selection

• Buyers may overbuy to gain extra advertising allowance

• Buyers may be charged of bribery