Unquestionably, There Are Numerous Positive Things That Can Result from a Properly

question 12

Essay

Unquestionably, there are numerous positive things that can result from a properly planned sales promotion. However, a manager must also realize that there are potential negatives to a sales promotion effort. As a wise manager, what kind of questions would you ask yourself before committing a substantial amount of money to a sales promotion?

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Definitions:

Price Floor

A minimum price set by the government for certain goods and services, intended to ensure fair conditions for producers.

Shortage

A situation where demand exceeds supply, often leading to rising prices and unmet consumer needs.

Surplus

An excess of income or assets over expenditure or liabilities in a given period, often referring to profit or the amount of goods produced over what is needed.

Price Ceiling

A restriction enforced by the government on the highest price allowable for a product or service.