Passage Two Questions
66- 70 are based on the following passage. The
techniques of sales promotion are used both to motivate salespersons to improve
their performance and to induce consumers to purchase goods and services.
Although sales promotion works most closely with advertising, it is also related
to other elements of marketing: production services, packaging,
price, and distribution. At the manufacturing and wholesale
levels of distribution, the methods used to motivate personnel to meet specific
goals usually fall into two categories--sales incentive prizes (such as
merchandise, travel, or cash awards) and sales contests. Both are
based upon the salesperson reaching an objective above the normal sales
quota. Consumer promotions encompass a wide variety of
techniques, including sampling of goods or services, store "money-off" coupons
to encourage the trial of products, special price-reduced packages, mail-in
premium merchandise offers, cash or coupon refunds by mail, special product
packaging and contests. During recessionary periods, when the demand for
consumer expendable dollars becomes more competitive, there is greater
participation in refund, coupon, and premium offers. More than half the
households in the U.S. take advantage of some sales promotion offers each
year. Sales promotion, now fully recognized as a vital element
in the marketing mix, has become a multibillion dollar industry. In recent
years, sales promotion expenditures have exceeded monies spent on advertising
and there are strong indications that this pattern of growth will continue to
maintain its economic edge. Questions: What are the two methods used to motivate salespersons at wholesale levels