Try our expert-verified textbook solutions with step-by-step explanations. According to new research, the industry has grown 21% over the past three years. ... there is an almost organic growth that occurs that is almost inexplicable,” says the founder of Marine-Chain. Tourism Growth, Development and Impacts ... and this implies some strong motivating factors. ii. Sales promotion is an important and specialized function of marketing. To make the factors easier to understand, they are divided into two groups – leadership and management. Hence it is the only device which is available to the consumers at the point of purchase. Ever-increasing competition, amongst the manufacturers, in the same line, creates further increasing of sales promotion in almost all the product fields. Consumers fails to understand it. Looking at the historical purchasing habits of your consumers can uncover which past promotions … It helps to defeat competitors’ promotional activities. They can be classified as Internal Sales factors or external sales factors. The word promotion, originates from the Latin word ‘Promovere.’ The meaning is “to move forward” or to push forward or to advance an idea. After the nature of the product is decided, its price fixed and the methods of distribution adopted, the producer has to take effective steps in meeting the consumers in the market. FACTORS THAT AFFECT THE GROWTH AND DEVELOPMENT OF SMALL, ... Small Business Promotion (CSBP), Ntsika Enterprise Promotion Agency and Khula Enterprise Finance, the failure rate in newly established South African small and medium-sized enterprises is as high as 60%. SOCIAL FACTORS: Rising trend of healthy and sustainable options has influence the working of Woolworths. 2. Use of Product: Product may be industrial product, consumable and necessity product, or may be luxurious product that affects selection of promotion … To start with, the promotion planners must first consider the corporate policy with regard to sales promotion. The rapid growth of sales promotions in consumer markets is most likely the result of all of the following factors EXCEPT _____. Similarly, sales force contests are arranged to stimulate the efforts of the salesmen. Push factor. Which of the following factors has most likely contributed to the rapid growth of sales promotion, particularly in consumer markets? According to George W. Hopkins, “Sales Promotion is an organised effort applied to the selling job to secure the greatest effectiveness for advertising and for dealer’s help.”, According to John F. Luick and Willian L. Ziegler, Sales promotion is an activity and/or material that acts as a direct inducement offering added value or incentive for the product, to resellers, sales persons or consumers.” It can be said that “sales promotion is any action or decision that will promote or help to promote sales. A key factor affecting the growth of the population is the death, or mortality, rate. The aim of production is sales. A company can use variety of promotion techniques including advertising, personal selling, sales promotion, direct marketing and public relations to achieve the company’s communication objectives. (Intense competition). For many of the companies, sales promotion budgets are far outweigh advertising budgets. Media advertising tends to be remote whereas sales promotion is more personal. These promotions will facilitate the progress of the organisation as a whole. Factors which have accounted for this rapid growth are: Sales promotion is more accepted by top management of companies as an effective sales tool; More product-level managers are qualified to use sales promotion … The importance of sales promotion increase is due to the thinking of new ideas for creating a favourable condition of selling, promoting sales and future expansion of sales. Sales promotion becomes a fashion and luxury. declining advertising efficiency _____ are like coupons except that … To make personal selling highly effective, sales force promotion is essential. Examples include corrections when the rapid growth may actually supply a population that wouldn't have existed to contribute otherwise. It aims in creating demand. However, various economic factors such as recession has impacted the financial position of Woolworths by causing the factors that led to the closure of retail stores in UK. These temporary inducements are offered usually at a time and place, the buying decision is made.”. 9 success factors of any good brand strategy These easy steps will make you reconsider your brand strategy a brand is a set of expectations, memories, stories and relationships that last, taken. Most companies have … Prohibited Content 3. There are a number of reasons that are favourable to the growth of sales promotion: ¨ Increasing Competition The air of change is gaining momentum after the introduction of economic liberalisation.Due to increase in competition, companies are finding it increasingly difficult to compete on quality. The sales promotion department usually arranges such contests to increase the efforts, and energies of the sales force. 4. The basic purpose of promotion is to disseminate information to the potential customers. Factors Contributing to The Rapid Growth of Sales Promotion - product managers face greater pressures to increase current sales - company faces more competition and competing brands are less differentiated - advertising efficiency has declined because of rising costs, media clutter, and legal restraints - consumers have become more deal oriented Sales Promotion Objectives Consumer promotions … Several factors have contributed to the rapid growth of sales promotion. (3) More external competition (4) Least difference among the brands (5) … (a) Promotion is accepted by top management as an effective sales tool. It may further be said that the efforts of the selling force itself are part of sales promotion.”. Plagiarism Prevention 4. a) declining interest in quality, b) increasing number of international firms c) rising hostility toward large firms d) increasing popularity of e-procurement , e) declining advertising efficiency. Sales promotion is a vital bridge or a connecting link between personal selling and advertising. It helps in achieving the following purposes: 1. “Sales promotion should be used as an offensive weapon in the brand’s marketing arsenal, not merely as a defensive reaction when a problem arises.” 3. A) declining interest in quality B) declining advertising efficiency C) … Nowadays, management considers … b. more competition and a decline in differentiation of brands. Advertising, personal selling, sales promotion and publicity – all four tools – are used for a newly launched product to get a rapid consumer acceptance. The present paper discuses major factors contributing to this growth. Product managers realize the importance of sales promotion. Factors Affecting Promotion Mix Definition: The Promotion Mix is the blend of several promotional activities (Advertising, personal selling, sales promotion, public relations, direct marketing) used by … All of the factors listed below have played a part in that growth EXCEPT: a. greater pressure to increase sales. The main purpose of sales promotion is to boost sales of a product by creating demand, that is, both consumer demand as well as trade demand. It gives extra incentive to consumers, dealers and salesmen, and thereby producers push out maximum products. A company can use variety of promotion techniques including advertising, personal selling, sales promotion, direct marketing and public relations to achieve the company’s communication objectives. Factors contributing to the growth of small manufacturing firms: perceptions on Japanese owner/managers. Bonus is usually offered to salesmen who sell in excess of the quota. This further affected the overall sales growth of Woolworths. Some companies use publicity to create or improve brand image and goodwill in the market. 3. Sales Promotion Rapid Growth of Sales Promotion Types of Sales Promotions Consumer promotions Trade promotions Sales force promotion Sales Promotion Rapid Growth of Sales Promotion Factors in the Growth of Sales Promotions Product managers are under pressure to increase current sales… This growth is likely to be stimulated by a number of factors including: Customers are more selective in; their buying choices and a good promotional programme is needed to reach them. It offers a direct inducement to act by providing extra worth over and above what is built into the product as its normal price. It is a part of marketing strategy. of these factors results in failure and loss of competitive advantage. Sales promotion costs increase as a percentage of budget expenditure annually. “Sales promotion is an integral part of the marketing mix”. Sellers use incentive-type promotions to attract new customers, to reward loyal customers and to increase the repurchase rates of occasional users. The leadership factors focus on the people at the top. It is sometimes hard to establish demand for a new product in a market of similar products. Factors Contributing to The Rapid Growth of Sales Promotion product managers, Factors Contributing to The Rapid Growth of Sales Promotion, - product managers face greater pressures to increase current sales, - company faces more competition and competing brands are less differentiated, - advertising efficiency has declined because of rising costs, media clutter, and legal restraints, - consumers have become more deal oriented, - getting retailers to carry new items or more inventory, - getting more sales support for current/new products, - getting salespeople to sign up new account, - sales promotion tools used to boost ST customer buying/involvement or to enhance LT customer, - certificates that give saving when purchase specified products, - price reduction occurs after the purchase, - offer consumers savings off regular price of a product, - goods offered either for free or at a low price (McDees happy meals), - useful articles imprinted with the advertiser’s name, logo, message that, - displays/demonstration that take place at the point of sales (Costco), - give customers chance to win something by luck or effort, - sweepstakes: consumer must submit names for drawing, - games: something that may or may not help them win a prize, - creating brand-marketing event or serving as a sole/participating sponsor, - sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in, - Money off list price for a stated period of time, - So much off per case in return for retailer’s agreement to feature product, - extra cases of merchandise for featuring/buying a certain amount, - cash/gifts to dealers to push the manufacturer’s goods, - free items that carry products name (pens, calenders, memo pads, etc), - used to generate business leads, stimulate purchases, reward customers, motivate salespeople, - firms selling to the industry show products at trade show, - effective to reach many customers not reached with regular sales force, - contest for salespeople/dealers to motivate them to increase sales performance for period, - work best when they are tied to measurable//achievable sales objectives, Developing the Sales Promotion Program (SCPLE), - Promote and distribute the program (ex: $2-off program could be given out in the store, online, etc). “Sales promotion should extend and reinforce the brand’s advertising and positioning, whenever possible.”, 4. First, inside the company, product managers face greater pressures to increase their current sales, and promotion is viewed as an effective short-run sales tool. Sales promotions yield faster responses in sales than advertising. (Growing power of resellers). Now-a-days top level managers realize and accept that sales promotion effects sales. “Good sales promotions are built upon sound strategic planning.”. By Nikki Gilliland April 9th 2019 11:50. Product managers view promotion as an effective short-run sales tool, Competitors use sales promotion to differentiate their offers, Sales … This is intended primarily for those who are new to e-commerce as a monetization technique, including publishers who are thinking of expanding to … From the last two decades, promotions strategies used by organizations around the world have undergone through tremendous changes. Audience are bored with advertising clutter and avoid looking at (Advertising is less effective). It stimulates them to buy the product. Which of the following factors has most likely contributed to the rapid growth of sales promotion, particularly in consumer markets? Hence, currently, the use of information system resources such as computers, internet, e-business, point of sales (POS) and other ground-breaking business practices is a common feature of SMEs in the advanced world. Sales Promotion: Definition, Purpose, Importance and Other Details! (Brand Loyalty). Now-a-days it becomes a necessity and it is not a luxury. (b) Competitors have become promotional-minded. Other Factors: Over and above these factors, there are certain minor factors that affect promotion mix. Australian online shopping expenditure is predicted to be worth $26.9 billion by 2016, with a Compound Annual Growth Rate (CAGR) of 14.1%. Factors Contributing to IT Industry Success . However, the appearances of the products are similar. … Find answers and explanations to over 1.2 million textbook exercises. “Sales promotion is an integral part of the marketing mix”. (a) Promotion mix (b) Sales promotion (c) Trade promotion (d) Discount coupon 8. 7. In addition to Internal and External factors, the following further points are worthy to be noted: 1. Environmental factors. Product managers are also using … Socio-economic factors : Accessibility, Accommodation, Amenities, Ancillary services, etc. _____ is the factors contributing for the rapid growth of Sales Promotion. This preview shows page 5 - 6 out of 6 pages. 3. Hence, promotional activities are essential. The fast fashion industry is big business – and it’s only getting bigger. Which of the following factors has most likely contributed to the rapid growth of sales promotion, particularly in consumer markets? The shelf-apace available with resellers is limited. There is cut-throat competition, and the market is flooded with numerous products. Disclaimer 9. (a) There is widespread use of branding. Thus, they purchase products based on price, value and convenience. A good sales promotional programme will remove the consumer’s dissatisfaction with respect to retail selling. Sales promotions are likely to turn them into loyal brand users. Just as the birth of new people increases the population size, deaths decrease it. Aug 11 2016 09:18 AM b. more competition and a decline in differentiation of brands. Sales promotion is designed to supplement and co-ordinate personal selling and advertisement efforts. All vigorous efforts to sell more products by widening the market result in aggressive selling. Below we’ll highlight the five factors that determine whether an e-commerce venture will be successful or not. c. a relaxing of government regulations governing sales promotion. -Product managers view promotion as an effective short-run sales tool.-Competitors use sales promotion to differentiate their offers.-Advertising efficiency has declined.-Sales promotions help attract today's … Factors contributing to rapid growth of sales promotion Product managers view promotion as an effective short-run sales tool. A "push" promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demandfor a product: it takes the product to the customer - the customer … ‡2.Companies face more competition. If your product is satisfying the needs of the consumers at reasonable prices, it will sell. The survival of your business depends on identifying and managing them. Journal of Enterprising Culture 4 (4), 351- 361. The rapid growth of sales promotion in consumer markets is most likely the result of all of the following factors except: D. Consumers using the Internet to search for deals and save money. The factors which most influenced the customers in using the banking service were its reputation, followed by its convenient … Distributors c. Retailers d. Empirical Evidence on the Factors Affecting the Growth of SMEs Scholars have used different approaches to identify the factors affecting the growth of small firms, however there is considerable variation in the results of previous researches. 2. Privacy Policy 8. Sale… “Sales promotion should extend and reinforce the brand’s advertising and positioning… Abstract: The rapid growth of E-Commerce initiatives in the world reflects its compelling advantages, such as enhanced governmental performance, lower cost structure, greater flexibility, broader scale and scope of services, greater transparency, accountability, and faster transactions. ... “In addition to the convenience, another factor that is driving our sales in such cities is that many of the brands do not have footprint in … This would include product or brand performance analysis, competitive situation including the promotion activities of major competitors, distribution situation, and consumer behaviour with respect to sales promotions. “Sales promotions may be defined as all the marketing and promotion activities, other than advertising, personal selling and publicity that motivate and encourage the consumer to purchase by means of such inducements as premiums, advertising specialties, stamps, refunds, rebates, exhibits, displays and demonstrations. Content Filtrations 6. 4 Leadership Factors. The tools of sales force promotion are bonus, sales force contests, and sales meetings and conferences. FACTORS INFLUENCING GROWTH AND DEVELOPMENT OF SMALL AND ... Table 4.27: Factors contributing to the growth and development of business ..... 48 Table 4.28: ... driving force in their rapid growth. In the broader sense it is not an expenditure; it is an investment, as it pays rich returns. The amount spent on sales promotion now equals the amount spent on advertising. It will increase the sales volume. Sales promotion increases as a result of the growing use of self-service and other sales methods. (Proliferation). In consumer-oriented markets, the producer must know what is required by the consumers and to make the consumers know from where, when, how and at what price, the products would be available. These factors can cause both short- and long-term fluctuations in the market, but it is also important to understand how all these elements come together to create trends. 6. Explanation: This is because consumers using the Internet to search for deals and save money doesn't mean that sales promotion … To increase sales … Joseph Mair has recorded one such policy statement in the Handbook of Sales Promotion; the policy says: 1. All the marketing devices, by which demand for a product is stimulated and re-stimulated are known as sales promotion. All the buyers must be attracted, urged and even persuaded to buy the products. (c) It is the duty of the product managers to increase the sales volume, and this attracts the sales promotion tools to achieve the aimed objective. Answer to Describe the factors that have accounted for sales promotion’s rapid growth. An interesting example: the Brooke Bond Tea of India used to distribute free tea to every household during 1930’s, in order to promote tea drinking habits among the people of Chennai. “Sales promotion should be developed as campaign, not as single, unrelated events.”, 5. 1. Advertising reaches the customers at their homes, or at the place of business or in their travels, whereas sales promotional devices inform, remind or stimulate the buyers at the point of purchase. (a) Pressurizing by manager to increase sales … For the birth of new product or new brand, sales promotion is very important. Some factors contribute to this rapid growth, especially in the customer markets. It improves the performance of middlemen and acts as a supplement to advertising and personal selling. In Developing Countries: The Case of Thailand. Sales promotion is considered as a special selling effort to accelerate sales. In India lakhs of rupees are now being spent on sales promotional activities. Do you expect a ... home / study / business / business statistics / business statistics solutions manuals / Advertising Promotion and Other Aspects of ... Edit edition. Similar article was published by Bold (2015) where the author highlighted that the growth … So companies depend heavily on sales promotion. Problem 2DQ from Chapter 18: Describe the factors that have accounted for sales promotion The aggressive sales can be gained by utilizing the various sales promotions. “Sales promotion should be used as an offensive weapon in the brand’s marketing arsenal, not merely as a defensive reaction when a problem arises.”, 3. There are factors responsible for rapid growth of sales promotion discussed below. The rapid growth of sales promotion is due to the fact that product managers are faced with greater pressure to increase their current sales and sales promotion as viewer as an effective short-term sales … i. 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