11.1. Consumer-Oriented Promotion II Flashcards
Sampling
premier sales-promotion device for generating trial usage by delivering an actual- or rial-sized product to consumers
sampling works best when…
- products have relatively low unit value
- product can be broken into small piece that reflects full features and benefits
- purchase cycle is relatively short
types of sampling
- door-to-door by distribution team
- direct mail
- newspaper/ magazine insert
- in-package sampling
- in-store sampling
- event
- high-traffic locations
how effective is sampling
- effective for inducing new customers to try purchasing
- no single answer possible whether sampling incr or decr repeat purchase behavior
- impact on repeat purchase is moderated by quality of sampled product
coupons
- promotional device that provides cents-off to consumers upon its redemption
- oldest and most widely used tool
- 240 billion per year in US
- 85% use coupons; 21% regularly
coupon distribution - media/mail-delivered
- FSI (free standing insert)
- mobile app/ e-mail/ direct mail
coupon distribution - on or in package
- cross-ruff
- bounce-back
coupon distribution - in-store
- scanner-delivered
- shelf-delivered
- instant redemption
FSI
- broad exposure
- relatively cheaper
- adv function
- redemption rate very low
- don’t generate much trade interest
- susceptible to misredemption
in- and on-pack coupons
- for next purchase
- coupon for one brand is promoted by another
- no distribution costs
- delayed value to consumer
- don’t reach nonusers of the carrying brand
bounce back
for next purchase
cross-ruff
coupon for one brand is promoted by another
bounce-back coupon example
gap cash; spend 100, get 25
instantly redeemable coupons
- peelable from package at the point of purchase
- represent an immediate reward
- alternative to price-off deals
- redemption rate about 30%
shelf-delivered coupons
- instant coupon machine, smart source
- machines attached to shelf alongside coupon-sponsoring brand
- redemption rate about 11%
scanner-delivered coupons
- reward is delayed
- potentially very effective bc they provide a way to carefully target coupon distribution
- redemption rate about 9%
premiums
articles of merchandise or service offered by manuf to induce action on the part of the sales force, trade representatives, or consumers
premiums have to…
- match the target market
- be carefully selected
- reinforce firms product and image
- be integrated with other IMC tools
in pack premiums
- offer premium item inside or attached
- immediate value
free in the mail premium
- receive premium for submitting required number of proofs of purchase
- not only stimulate consumer trial, also reward brand loyalties and encourage repeat purchase behavior
self-liquidating premium
- customer needs to pay certain amount of money to get a premium item
in pack/ on pack premium example
happy meal, kinder joy
price offs
- get consumers to purchase larger quantities than normal
- ensure promotion dollars reach consumers
- obtain off-shelf display space
- provide sales force with incentive
pro price-off
- boosts short-term sales
- generates customer traffic
- easy implementation
con price-off
- must be carful not to increase customer price sensitivity
- can have detrimental impact on brand and corporate image
FTC price-offregulations
- only used on brand with established retail prices
- limited to three per year per brand size
- must be hiatus period (at least 30d) btw promotions
- no more than 50% of volume comes from promotion
- manuf must provide display materials
- dealer required to show regular and promotion price
bonus packs
- extra q of a product that are offered for the same price
- alternative for price-off deals
- many bonus-packs are purchased by customers who would have purchased anyways
rebates/refunds
manuf gives cash discounts or reimbursements to conusmer who submit (mail) proof of purchase
contests and sweepstakes
primarily to enhance brands image
sweepstakes
purely on the basis of chance, no need for proof of purchase
contest
solve specific contest problem nd may need proof of purchase
doorbusters
advertising vs sales promotion
table
things promotions do well
- introduce new product
- build brand awareness
- reinforce advertising images and messages
things promotions dont do well
- create image for a brand
- compensate for lack of advertising
- change negative attitudes toward a product
problems with sales promotion
table
