6. Decide which of the following statements are right and which are wrong. Give the correct variants.

1. The name Xerox is synonymous with computers, telephones sets and faxes .

2. Supply for ‘document management’ comes from companies that are bogged down by content.

3. Both clients and companies are keen to reduce operational costs.

4. A revamped Xerox Global Services was launched in 1998 to help spirit away Xerox’s proceeds of crime .

5. Mr Lepeak says when you can’t find the content you need, the only problem is higher overhead costs .

6. Xerox’s role as a software manufacturer is a thing of the past.

7. Digital commercial printing and digitising the office with ‘multifunctional devices’ are being driven by demand for colour printing

8. Document and imaging companies are eager to seize control over Xerox .

9. Ms Mulcahy says that Xerox’s role is similar with that of traditional IT consultants’ such as IBM and EDS .

10. According to Ms Mulcahy, printer giant Hewlett-Packard is not a serious rival to Xerox .

7. Make up your own sentences using the words and word combinations given below.

Cryptic texts, to access archives, to manage information, to document processes, to cut operational costs, at double-digit rates, a nimble consultant, in the wake of, to create channels of information, corporate logo, high-growth areas, colour printing.

8. In groups discuss the following.

A recent article in Marketing News reported that spending on sales promotion is over $100 billion a year. In fact, spending on sales promotion activities in recent years has been about $40 billion more than advertising. Here is the breakdown on where sales promotion dollars were spent:

	Dollars Spent (Percent)
Meetings and conventions	31 %
Direct mail	16 %
Premiums and incentives (e.g., rebates)	14%
Point-of-purchase displays	12%
Audiovisuals and miscellaneous	8%
Promotional ad space	8%
Exhibits and trade shows	6%
Couponing	4%

Coupons were highly accepted. When asked about their reactions to sales promotion efforts, 83 percent of 7,554 households polled felt coupons increased the value of shopping dollars. Some 50 percent of respondents felt rebates gave the best value. Many felt that sweepstakes, contests, and mail-in efforts were not worth the trouble. About 40 percent found sweepstakes and contests “too much to deal with”.

Much time, effort, and expense is spent evaluating advertising effectiveness. Not nearly as much effort is placed on evaluating sales promotion efforts, even though more money is spent on these promotions than advertising.

Decision Questions

1. Meetings, conventions, exhibits, and trade shows take up some 37 percent of sales promotion dollars. How would you go about measuring the effectiveness of such meetings? Do you see any signs of wasteful spending at such events?

2. Point-of-purchase displays are an important sales promotion tool. Think about displays you have seen. Which are most effective and why?

3. What is the reaction to coupons, rebates, sweepstakes, and contests in your family? Are your reactions similar to others in the survey? What would you recommend to producers given those reactions?

4. There is some debate among promotion professionals as to whether direct mail is part of advertising or sales promotion. Either way, it is a major part of promotion efforts today. Evaluate the best and worst direct mail piece you have received. What makes them “good” or “bad”?

FINANCIAL TIMES NOVEMBER 2 2004