Certified Professional Category Analyst (CPCA) 2025 – 400 Free Practice Questions to Pass the Exam

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With regard to base and incremental sales, which statement is true?

Base sales = the normal expected sales volume in the absence of any promotion

Base sales are defined as the normal expected sales volume in the absence of any promotions or marketing efforts. This concept is crucial for understanding the impact of promotional activities on overall sales. Base sales represent a benchmark against which the effectiveness of promotional strategies can be measured. By establishing what the expected sales are without additional marketing efforts, analysts can then evaluate how much additional revenue was generated through promotions, which is referred to as incremental sales.

To clarify, incremental sales refer to sales that surpass the established baseline due to promotional activities, rather than being a function of the baseline itself. This emphasizes that base sales are fundamental for analyzing the effectiveness of marketing strategies. The other statements either incorrectly define base and incremental sales or introduce unnecessary complexity without accurately capturing the essence of these concepts.

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Incremental sales = the net difference of total promoted sales less all costs associated with running the promotion

Base sales = total sales of all products in distribution for at least 52 weeks

Incremental sales = portion of sales during any promotion that exceed baseline volume by at least 10%

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