ABSTRACT

While the objective of any single sales promotion is generally a specific sales volume in a finite time period, the sales promotion may be part of a long-term strategic plan or a short-term tactical response to competitive activity or market conditions. The Extra-Terrestrial, and although US sales increased 65%, it is difficult to separate the effects of the product placement from the associated sales promotional activity, as US$1 million was spent by Hershey's promoting the movie. Trade responses to temporary price reductions initiated by a manufacturer that are intended to reduce retail pricing may not necessarily be followed through as the manufacturer intends, with retailers potentially opting to not pass the discount on, or to only pass some of it, thus improving the retailer's own margins.