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MBA Trade Promotion Very Short Question Answer Model Paper

MBA Trade Promotion Very Short Question Answer Model Paper

MBA Trade Promotion Very Short Question Answer Model Paper

MBA Trade Promotion Very Short Question Answer Model Paper

MBA Trade Promotion Very Short Question Answer Model Paper
MBA Trade Promotion Very Short Question Answer Model Paper

Trade promotion, its nature, Types and Objectives, Consumer Promotion: Coupons, Premiums, Contests and Sweepstakes, Refunds and Rebates, Sampling, Bonus packs and Price offs.

Section A


Qus.1. What do you understand by the term trade promotions?

Ans. Trade promotion refers to offering various incentives to the distribution channel in the form of discounts, arranging exhibitions, offering demonstrators or other such methods. In essence, the channel dealers are motivated to promote the products over that of the competition. Trade promotions ensure that channel dealers give an excellent experience to the customer.

Qus.2. Write the objectives of trade promotions.

Ans. Trade promotions have the following objectives:

  1. Move excess stock forward.
  2. Achieve widespread distribution.
  3. To push more competitors.
  4. Increase display levels.

Qus.3. What are the benefits offered by trade promotions to businesses? 

Ans. Trade promotions can offer several benefits to businesses:

  1. Help the companies differentiate their products from the competition.
  2. Increase product visibility and brand awareness with consumers.
  3. Increase a product’s consumption rate or the average quantity of a product used by

Consumers in a given time period.

  1. Improve distribution of their products at retailers and strengthen relationships with retailers.

Qus.4. Discuss the issues in trade promotions, 

Ans. Trade promotion has the following issues:

  1. Lack of accurate and timely information.
  2. Inability to plan promotions based on analytics,
  3. Ineffective organization and partner integration.
  4. Lack of appropriate key performance indicators.

Qus.5. What is the use of coupons in trade promotions?

Ans. Coupons are a method in trade promotions to drive traffic to the retailer’s store and can be especially used when the retail outlet is brand new or when it is losing out to a competition. They are always attractive to end customers because they ensure a guaranteed discount at the retailer or the dealers outlet

Qus.6. How does cooperative advertising help in trade promotion?

Ans. Cooperative advertising helps in trade promotion in the following ways:

  1. It helps the awareness of the channel dealer in that region.
  2. It helps the overall sales of the products and the brand.
  3. It increases the recall of the brand in the mind of the consumers.

Qus.7. Define consumer promotion.

Ans. Consumer promotion refers to incentives aimed towards a Companies use company’s customers and are used to gain potential customers or promotion methods to keep current customers satisfied. These are geared towards customer needs and wants.

Qus.8. Give the main objectives of consumer promotion.

Ans. The main objectives of consumer promotion are:

  1. To attract new customers and grow the customer base.
  2. Getting customers to switch brands by offering free

Samples and free trials.

  1. Clearing out extra merchandise.
  2. Combating competitor promotions.
  3. Generating cash flow and short-term revenue.

Qus.9. Mention the common types of consumer promotion.

Ans. The common types of consumer promotion are coupons, per cent-off discounts, samples, rebates, premiums, ad specialties and contests and sweepstakes.

Qus.10. What is the difference between trade and consumer promotion in relation to a marketing mix?

Ans. The difference between trade and consumer promotions in relation to a product’s marketing mix is:

  1. Trade promotions are targeted towards retailers while the consumer promotions are

targeted towards consumers.

  1. The purpose of trade promotion is to help companies differentiate a product, increase

Product visibility, and increase the product purchase rate. But the purpose of consumer

Promotions is to increase brand awareness and market acceptance.

Qus.11. How are coupons useful in consumer promotions? 

Ans. Coupons are useful in consumer promotions because of the following reasons:

  1. Introducing a new product.
  2. Promoting the sales of an existing product.
  3. Selling a large quantity of product.
  4. Encouraging consumers to switch brands.
  5. Encouraging repeat sales.

Qus.12. What do you understand by premiums?

Ans. Premiums are a type of consumer promotion that provide incentive to purchase by offering an yet related product for no additional cost. Premiums can be included in the outer part of the packaging or can take the form of a prize inside of the product packaging.

Qus.13. How does contests and sweepstakes help in consumer promotion? 

Ans. Contests and sweepstakes help in consumer promotion in the following ways:

  1. Generate buzz and excitement around the brand.
  2. Do not require a purchase to enter.
  3. Give the customers or potential customers an opportunity to win something.
  4. Include a survey to gather more information for future consumer promotions.

Qus.14. Give the benefits of rebates in consumer promotion.

Ans. Rebates are money-back offers made to customers after a purchase has been made. Rebates have the following benefits:

  1. They are used for higher price products and must be mailed to the product’s manufacturer

With proof of purchase prior to the consumer receiving any money back.

  1. Companies can request personal information or other data from the customer.

Qus.15. Why is sampling helpful in consumer promotion?

Ans. Sampling offers give consumers a chance to try out a product for free in order to help generate interest in the product. Though this can be quite expensive, free samples help consumers verify product quality without the fear of buyer’s remorse.

 Qus.16. What are the advantages of consumer promotion?

Ans. Consumer promotion has the following advantages:

  1. It stimulates positive attitude towards the product.
  2. It gives extra incentive to the customer to make a purchase.
  3. It gives direct inducement to take immediate action now rather than later.
  4. It has flexibility and it can be used at any stage of a new product introduction.

Qus.17. When is a consumer promotion effective? 

Ans. Consumer promotion is effective when:

  1. A new brand is introduced
  2. We have to communicate a major improvement in our product.
  3. We want to amplify the results of the advertising.
  4. We want to increase the number of retail stores to sell our products.
  5. We decide to embark upon aggressive sale campaign

Q.18. When is a consumer promotion in effective? 

Ans. Consumer promotion is in effective in the following cases:

1 When established brands have a declining market.

  1. When there are no product improvements.
  2. When there is intensive competition on consumer promotions.

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