CDPP Promotional Planning & Event Management 3

Question 1

What is the primary purpose of a 'promotional calendar' in demand planning?

Accepted Answer

To provide a structured view of all planned promotional events across time, enabling coordinated demand forecasting and supply planning

Answer

To schedule employee time-off during seasonal slow periods

Answer

To track the expiry dates of printed promotional materials and signage

Answer

To record historical sales performance data organized by calendar month

Question 2

Which promotion type typically generates the highest demand lift percentage?

Accepted Answer

A combination of temporary price reduction, feature advertising, and in-store display

Answer

Everyday low pricing (EDLP) without additional tactics

Answer

Loyalty program bonus points offers

Answer

Free shipping on online orders only

Question 3

What is 'promotional demand disaggregation'?

Accepted Answer

Allocating a total promotional demand forecast down to the SKU and location level for operational planning

Answer

Breaking apart a combined promotional budget into individual marketing line items

Answer

Removing promotional effects from historical shipment data to find the baseline

Answer

Separating marketing trade spend from consumer spend in financial reporting

Question 4

'Consumption-based forecasting' for promotions involves using:

Accepted Answer

Point-of-sale (POS) consumer takeaway data rather than retailer shipment data to measure true promotional demand

Answer

Energy consumption data to forecast warehouse and factory output requirements

Answer

The amount of product consumed in internal quality testing and sampling programs

Answer

Manufacturing consumption of raw materials during promotional production runs

Question 5

What is the typical impact of promotional demand variability on safety stock requirements?

Accepted Answer

Promotional demand variability often increases safety stock requirements to cover forecast error during events

Answer

Promotions eliminate the need for safety stock during the event period

Answer

Promotions always reduce safety stock because promotional demand is highly predictable

Answer

Safety stock levels are completely unaffected by promotional demand patterns

Question 6

In promotional planning, what is 'incremental volume'?

Accepted Answer

The volume sold above the baseline that is directly attributable to the promotional activity

Answer

The total volume of product sold during an entire promotional period

Answer

The increase in production capacity needed to support a promotion

Answer

The additional logistics and warehousing volume generated by a promotion

Question 7

Which collaborative process is most important for ensuring promotional plans are aligned between sales, marketing, and supply chain?

Accepted Answer

Integrated Business Planning (IBP) or S&OP with a dedicated promotional review step

Answer

Annual employee performance reviews and goal-setting sessions

Answer

Weekly IT system maintenance and data quality windows

Answer

Monthly external financial audits and compliance reviews