Unit 3

All the following are objectives of Sales promotion EXCEPT for one.

• Counter competitive pricing.

• Trial of product / service.

• Re-purchase of product / service.

• Increased purchase of product / service.

Name two (2) sales promotional tools used for Middlemen and their sales force, e.g. product demonstrations

Answer explanation

Trade shows and exhibitions

Point of purchase displays

Free goods

Advertising allowances

Training middlemen’s sales forces

Contests for sales people

Advertising specialties

Hosen launched a new canned peach on supermarket shelves last year, the sales is increasing quickly and Hosen is investing more budget on advertising to increase consumer awareness and fight competition.

They also spend some on sales promotion.

Which stage of the product life cycle is this product in?

• Introductory.

• Growth.

• Maturity.

• Decline.

Dealer loyalty is important in which stage of the Product Life Cycle?

• Introductory Stage.

• Growth Stage.

• Maturity Stage.

• Decline Stage.

List two (2) ways which a company use to set their promotional budget?

Answer explanation

what they spent last year, plus a little bit more for inflation and any expected market growth.

a fixed percentage of turnover, established over time for the company and industry.

the same as, or in ratio to, what major competitors spend.

the amount needed to achieve particular defined marketing objectives.

Managing the time available for each sales promotion stage depends on all the following factors EXCEPT for one.

• Time constraints of intermediaries like printer.

• Time constraints of supplier like manufacturer of the product.

• Promotion should be longer during Summer and winter school holiday periods.

• The purchase frequency of your product or service.

The following refers to "occasions" to engage in sales promotion activities EXCEPT for one.

• Festive seasons.

• Summer and Winter school holiday periods.

• During economic downturn.

• During school exam period when sales is dull.

Below are examples of effective sales promotional methods used in target customers - business users, EXCEPT for one.

• Coupons.

• Consumer exhibitions.

• Premiums.

• Paid samples.

Sales are low and sales promotion activities aimed primarily at trade to maintain shelf space.

Which stage of the product life cycle is this?

• Introduction.

• Growth.

• Maturity.

• Saturation.

What is NOT important for the following sales promotion methods: coupons, contests and telemarketing.

• Target customers.

• Timing of Sales Promotion.

• Location of Sales promotion.

• Objective of Sales Promotion.