Trade Inv. Management Trivia

What is the primary goal of trade investment in CPG companies?

• Increase brand awareness
• Boost sales through retailer partnerships
• Enhance social media presence
• Improve employee engagement
• Pluto

Which of the following is a common type of trade promotion?

• Television advertisement
• In-store display
• Social media campaign
• Email newsletter

How does effective trade investment impact a CPG company's P&L?

• Reduces COGS
• Increases SG&A expenses
• Increases net sales
• Decreases gross profit

What is the key difference between Above-the-Line (ATL) and Below-the-Line (BTL) advertising?

• ATL targets mass audiences, BTL targets specific groups
• ATL is more expensive than BTL
• BTL is used only in digital media
• BTL is more measurable than ATL

Which metric is commonly used to measure the effectiveness of a promotional campaign?

• Net Profit Margin
• Gross Sales Value (GSV)
• Return on Investment (ROI)
• Earnings Before Interest and Taxes (EBIT)

What does the term 'trade spend' refer to in CPG companies?

• Total marketing budget
• Expenses on research and development
• Money spent on promotions and discounts with retailers
• Operational costs

How can trade promotions negatively impact the P&L statement if not managed properly?

• Increase net income
• Reduce inventory turnover
• Lead to overspending and reduced margins
• Enhance brand loyalty

Which department typically collaborates closely with sales to plan trade promotions?

• Finance
• Human Resources
• Supply Chain
• Marketing

What is a key benefit of conducting post-event analysis (PEA) on trade promotions?

• Identifying the best-performing products
• Reducing production costs
• Gaining insights to optimize future promotions
• Increasing employee productivity

Why is it important to align trade spend with overall business strategy?

• To minimize tax liabilities
• To ensure consistent brand messaging and market positioning
• To maximize shareholder dividends
• To reduce employee turnover