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Solution for Advertising and Promotion: An Integrated Marketing Communications Perspective 10th Edition Chapter 16, Problem 1

by George E. Belch, Michael A. Belch
343 Solutions 22 Chapters 53904 Studied ISBN: 9780078028977 Art and Architechture 5 (1)

Chapter 16, Problem Additional_Discussion_Questions 1 : 13. Discuss how sales promotion can be used...

13. Discuss how sales promotion can be used as an acceleration tool to speed up the selling and/or purchasing process and maximize a company’s sales volume. (L01)

 

Step-By-Step Solution

13. There are several ways sales promotion can be used as an acceleration tool to speed up the sales process and maximize sales volume.  Consumer promotion tools such as premiums, bonus packs, and price-off deals provide an extra incentive that may motivate consumers to take more immediate action.  Coupons usually have expiration dates that require consumers to use them during a specific time period, which is another way of accelerating the purchase process. Marketers often use techniques such as in-store sampling programs that may be accompanied by a discount coupon and thus encourage immediate purchase. Trade promotions can also accelerate the selling process with retailers.  For example, retailers who take advantage of an off-invoice allowance often pass the savings on to consumers in the form of a price reduction, which encourages them to purchase the brand.  Promotional allowances are given to retailers for performing certain promotional or merchandising activities such as providing special displays, running in-store promotional programs or including the marketer’s brand in an ad.  These activities will help generate sales volume and encourage immediate purchases by consumers.

 

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