Scenario 15-2
The Sounds Good recording company is getting ready to release the first compact disc from its newest band, Planet Moon.Sounds Good's last three releases have been dismal failures, and the struggling company needs a quick influx of cash.The owners decide to use sales promotions to move the Planet Moon disc through record stores and into customers' hands.
-(Scenario 15-2) MusicMixers, a manufacturer of recording equipment, speakers, and microphones based in Baltimore, is a supplier for Sounds Good.The owners of Sounds Good have purchased most of their studio equipment from MusicMixers.Now MusicMixers is apparently running a promotion of its own.When the sales rep visits, he drops off two expensive-looking leather jackets with a small MusicMixers logo on one sleeve.The jackets are considered ____ and are part of a ____ sales promotion.

Question

Quizplus · Accepted Answer

The expensive-looking leather jackets are likely business gifts, as they are being given to the owners of Sounds Good by a supplier, MusicMixers. This type of promotion is typically aimed at the business-market, rather than the consumer-market or retail-market. Advertising specialties typically include items like pens or keychains with a company logo, and premiums are typically given to customers as a reward for purchasing a product or service. Merchandise allowances are a type of trade promotion, but there is no indication of this in the scenario.

Scenario 15-2 The Sounds Good Recording Company Is Getting Ready to Release