Question
Which three are challenges associated with sales promotions? D A Decreases sales, adjusts sales promotions, increase bottom line D B Decreases sales, adjusts sales promotions, create a certain image D C Needs to be easy to understand and use, promotion can be expensive, discounting and incentives can take focus off quality of product D D Create a certain image, communicative company values, adjust sales promotions
Solution
4.4
(367 Votes)
Nora
Master ยท Tutor for 5 years
Answer
The correct answer is **C. Needs to be easy to understand and use, promotion can be expensive, discounting and incentives can take focus off quality of product.**Here's why the other options are incorrect and a breakdown of the challenges presented in option C:* **A & B. Decreases sales:** A well-executed sales promotion should *increase* sales, not decrease them. While adjustments might be needed based on performance, the goal is always to boost sales.* **A, B & D. Adjust sales promotions:** Adjusting sales promotions isn't a *challenge* in itself. It's a necessary part of managing them effectively. You analyze results and tweak your approach as needed.* **A. Increase bottom line:** This is the *goal* of a sales promotion, not a challenge.* **B & D. Create a certain image:** While creating a specific image can be *part* of a sales promotion, it's not a challenge inherent to all promotions. Some promotions might focus purely on driving immediate sales.* **D. Communicative company values:** While important for overall marketing strategy, communicating company values isn't a direct challenge related to *sales promotions* specifically.**Why C is correct:*** **Needs to be easy to understand and use:** A complicated or confusing promotion will deter customers. Simplicity is key for effective sales promotions.* **Promotion can be expensive:** Developing and implementing promotions (advertising, discounts, prizes, etc.) can be costly, impacting profitability if not managed carefully.* **Discounting and incentives can take focus off quality of product:** Over-reliance on discounts can train customers to only buy when there's a sale, devaluing the product's perceived worth and potentially impacting long-term brand image. It can also lead to price wars with competitors.