Chapter 17 - all questions

Chapter 17, Question 2
There has been a substancial growth in marketing promotions over the past years. This growth is a shift from advertising to promotions due to a few factors.
The shift from manufacturer power to retailer power. This is due to the retailer knowing more about product sales.
Increased brand parity and price sensitivity: too many products are alike and deals are given to gain share of wallet.
Reduced brand loyalty: retailers are running more promotions to increase customer loyalty and engagement.
Splintering of the mass market and reduced media effectiveness: mass marketing is less effective and more targeted promotions are gaining footing.
Short term orientation and corporate rewards structures: firms are structuring into short term gains verses long term goals. Promotions are especially good at gaining a quick hit, or a jump in sales by using promotions.
Consumer Responsiveness: Customers are jumping at messaging that give them something in return. They are more responsive to discounts, rewards and benefits.
Chapter 17, Question 4
Push and pull are defined as follows:
Push: manufacturing directs the personal selling and promotions by using allowances. This is used to push products and providing more inventories than the competitors.
Pull is when efforts are directed at consumers in hopes to gain the voice of customer towards the retailer to carry the manufacturers products.
Grocery Example: Pepsi working with Rainbow foods to offer discounts for purchasing products. Trade allowances would allow for discounted prices on the product.
Pull would be JandJ advertising medication around the merchant. This would put pressure on the merchant to carry the product.

Chapter 17, Question 15
Pay for performance is the strongest method in my opinion. The assures that the retailer obtains deeper discounts if the products are pushed and sold in the stores. The more they sell, the greater the discounts or trade allowances. This is less of a gamble for the retailers as orders can be ordered in a smaller fashion and second hand sales to other regions or access product does not sit around.