CDPP Promotional Planning & Event Management 2

Question 1

What is 'trade promotion management' (TPM) in demand planning?

Accepted Answer

The process of planning, executing, and analyzing promotional activities with retail trade partners

Answer

Trade promotion management encompasses all activities related to planning, executing, and evaluating promotional programs run with retail and trade channel partners.

Question 2

Which planning horizon is most appropriate for detailed promotional event forecasting?

Accepted Answer

1 to 3 months

Answer

Detailed promotional event forecasting is typically done at a 1-3 month horizon where promotion mechanics, timing, and retail commitments are known with sufficient certainty to build an accurate forecast.

Question 3

What is the 'halo effect' in promotional demand planning?

Accepted Answer

The incremental sales lift experienced by non-promoted items due to increased store traffic from a promotion

Answer

The halo effect refers to increased sales of non-promoted products that benefit from the higher customer traffic or attention generated by a promotional event nearby.

Question 4

'Demand shaping' in the context of promotional planning means:

Accepted Answer

Using pricing, promotions, or product availability to influence when and how much customers buy

Answer

Demand shaping involves using levers like promotions, pricing, and product placement to actively influence customer purchasing behavior to align with supply capabilities or business objectives.

Question 5

What is the main challenge of 'event overlap' in promotional forecasting?

Accepted Answer

It becomes difficult to isolate the individual contribution of each overlapping promotion to total demand lift

Answer

When multiple promotions run simultaneously, attributing demand lift to any single event becomes statistically complex, reducing the accuracy of both current and future promotional forecasts.

CDPP - Certified Demand Planning Professional Practice Test

CDPP - Certified Demand Planning Professional Practice Test

CDPP Promotional Planning & Event Management 2