CDPP Promotional Planning & Event Management

Question 1

What is the primary purpose of a baseline forecast in promotional demand planning?

Accepted Answer

To represent underlying demand without any promotional effects

Answer

To estimate total revenue during a promotion

Answer

To calculate safety stock levels for the promotion period

Answer

To determine optimal promotional pricing strategies

Question 2

Which of the following best describes 'promotional lift'?

Accepted Answer

The incremental demand generated above the baseline due to a promotion

Answer

The increase in logistics costs during a promotional period

Answer

The decrease in inventory levels observed after a promotion ends

Answer

The rise in customer service inquiries during a promotional campaign

Question 3

In demand planning, 'cannibalization' during a promotion refers to:

Accepted Answer

Sales of a promoted item that replace sales of a non-promoted item in the same portfolio

Answer

A reduction in competitor sales caused by the promotion

Answer

An increase in product returns following a promotional event

Answer

Damage to promotional displays during product transport

Question 4

What is a 'post-event analysis' (PEA) in the context of promotional planning?

Accepted Answer

A retrospective review comparing actual promotional performance against the forecast

Answer

A pricing review conducted before the next promotion launches

Answer

A customer satisfaction survey distributed after a promotional event

Answer

An assessment of transportation costs after promotional product delivery

Question 5

Which metric is most commonly used to evaluate the accuracy of a promotional demand forecast?

Accepted Answer

Mean Absolute Percentage Error (MAPE)

Answer

Return on Investment (ROI)

Answer

Economic Order Quantity (EOQ)

Answer

Days of Supply (DOS)

Question 6

'Forward buying' in the context of trade promotions refers to:

Accepted Answer

Retailers purchasing excess inventory during a promotional discount to sell later at regular price

Answer

Customers purchasing products before they are officially released

Answer

Manufacturers ordering raw materials in advance of a promotional production run

Answer

Demand planners forecasting promotional demand several quarters ahead

Question 7

Which of the following is a key input for building an accurate promotional demand forecast?

Accepted Answer

Historical promotional event data including timing, discount depth, and promotion mechanics

Answer

The company's most recent annual financial audit report

Answer

The number of customer service representatives available during the event

Answer

The executive leadership team's long-term strategic vision