Author Question: Depreciation is necessary because most noncurrent assets have a limited useful life; the difference ... (Read 99 times)

deesands · **on:** Jun 29, 2018

Depreciation is necessary because most noncurrent assets have a limited useful life; the difference between the asset and depreciation is intended to provide a more realistic picture of the retailer's assets and prevent an overstatement or understatement of these assets.

Indicate whether the statement is true or false

Question 2

Discuss how retailers manage their sales promotion and publicity.

aliotak · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

T

Answer to Question 2

Retailers use sales promotions, which provide some type of short-term incentive, and publicity to increase the effectiveness of their promotional efforts. The role of sales promotions and publicity in the retail organization should be consistent with and reinforce the retailer's overall promotion objectives.

Sales-promotion tools are excellent demand generators. Many can be used on relatively short notice and can help the retailer achieve its overall promotion goals. Retailers usually break sales promotions into two categories: those where they are the sole sponsors (premiums, contests and sweepstakes, and loyalty programs) and those involving a joint effort with other parties (coupons, displays, and demonstrations and sampling).

Although retailers may not pay for publicity directly, the indirect cost can be quite significant. Most retailers do not have formal publicity departments or directors, but some of the larger and more progressive retailers do. The major advantages of publicity are that it is objective, credible, and appeals to a mass audience. The major disadvantage is that publicity is difficult to control and schedule.