into-the-pipeline promotions

Question 1

describe trade credit

Answer 1

Manufacturers offer retailers credit to pay for goods at a later date.

Question 2

adv and disav of trade credit

Answer 2

adv
-No cash required to stock products, which is good for new or struggling businesses.
-Retailers can purchase goods and then pay for them once they are sold.

dis
-Could lead to bad debt if retailers are unable to sell the goods and repay the supplier

Question 3

describe point of sale (POS) materials

Answer 3

Free posters and display materials are given to retailers to display products to customers.

Question 4

adv and disadv of point of sale (POS) materials

Answer 4

adv
-This can enhance the look of the retail store
-It can draw customers eyes to the product display

dis
-Retailers may need to dispose of bulky display materials at the end of promotions

Question 5

describe sale or return

Answer 5

Manufacturers give retailers the option to return goods that do not sell

Question 6

adv and disadv of sale or return

Answer 6

adv
-Allows retailers to try new products without the risk of being stuck with unsold inventory.
-Improves cash flow.

dis
Products may be returned in a poor condition, creating waste.

Question 7

describe dealer loaders

Answer 7

Discounts used to encourage retailers to stock up on a product, e.g. buy ten boxes, get one free.

Question 8

adv and disadv of dealer loaders

Answer 8

adv
-Retailers can save on the unit cost of products allowing for greater profits
-Savings can be passed to customers to increase sales revenue

dis
-retailers may overstock and find they are unable to sell
-Products may go out of fashion or out of date

Question 9

describe staff training

Answer 9

Manufacturers can offer retail staff free training to give them the skills and knowledge to sell the product.

Question 10

adv and disadv of staff training

Answer 10

adv
-Staff become experts in the product, which can impress customers.
-The quality and motivation of staff are improved

dis
-Training has to be done during normal hours, which reduces productivity, or after hours, which will increase overtime pay

Question 11

what are the 5 into the pipeline promotion methods

Answer 11

-trade credit
-point of sale (POS) materials
-sale or return
-dealer loaders
-staff training