Question No. 19 What kind of tools can be included under sales promotion?
Sales promotion includes tools for consumer promotion (sample, coupons, cash refund offers, price off, premiums, prizes, free trials, warranties, tie-in promotions, cross-promotions, point-of-purchase displays and demonstrations); trade promotion (price off, advertising, display allowances and free goods); and business and sales-force promotion (trade shows and conventions, contests for sales representatives and specialty advertising).
Question No. 20 What do you understand by the term ‘advertising’?
Advertising is the popular tool of promotion as it communicates in a persuasive manner about organization or products or services non-personally through paid media. The advertisement should provide new information or support the information the audience already has in order to capture their attention. It should be able to persuade them and influence their attitude and purchase behaviour.
According to William J. Stanton, “Advertising consists of all the activities involved in presenting to a group a non-personal, oral or visual openly sponsored message regarding a product, service or idea.”
Question No. 21 What are the major steps involved in preparing advertising campaign.
Several steps are involved in preparing an advertising campaign. The major steps are:
- Analysing advertising target
- Defining advertising goals
- Determining advertising budget
- Selecting advertising media
- Deciding advertising message
- Evaluating advertising effectiveness.
Question No. 22 Write a short note on personal selling.
Personal selling or salesmanship is the process of contacting the prospective buyers personally and persuading them to buy the products. In other words, it is an art of convincing customers to buy the given products or services.
The objective is not only to sell the product but also to make permanent customers. This can be achieved by so presenting the product that the prospective buyers get convinced that the products being presented for sale can well satisfy their needs.
Question No. 23 What is meant by vertical marketing system?
A vertical marketing system (V.M.S.) comprises the producer, wholesaler(s) and retailer(s) acting as a unified system. One channel member, the channel captain, owns the others or franchises them or has so much power that they all cooperate.
The channel captain can be the producer, the wholesaler or the retailer. V.M.S.s arose as a result of strong channel member’s attempts to control channel behaviour and eliminate the conflict that results when independent members pursue their own objectives. V.M.S.s achieves economies through size, bargaining power and elimination of duplicated services. There are three types of V.M.S.: corporate, administered and contractual.
Question No. 24 What do you understand by corporate and administered V. M. S.?
While a corporate V.M.S. combines successive stages of production and distribution under single ownership, an administered V.M.S. coordinates successive stages of production and distribution through the size and power of one of the members.
Manufacturers of a dominant brand are able to secure strong trade cooperation and support from resellers. Thus Kodak, Gillette, Procters Gamble are able to command high levels of cooperation from their resellers on connection with displays, shelf space, promotions and price policies