11.1. Consumer-Oriented Promotion II

Question 1

Sampling

Answer 1

premier sales-promotion device for generating trial usage by delivering an actual- or rial-sized product to consumers

Question 2

sampling works best when…

Answer 2

• products have relatively low unit value
• product can be broken into small piece that reflects full features and benefits
• purchase cycle is relatively short

Question 3

types of sampling

Answer 3

• door-to-door by distribution team
• direct mail
• newspaper/ magazine insert
• in-package sampling
• in-store sampling
• event
• high-traffic locations

Question 4

how effective is sampling

Answer 4

• 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

Question 5

coupons

Answer 5

• 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

Question 6

coupon distribution - media/mail-delivered

Answer 6

• FSI (free standing insert)
• mobile app/ e-mail/ direct mail

Question 7

coupon distribution - on or in package

Answer 7

• cross-ruff
• bounce-back

Question 8

coupon distribution - in-store

Answer 8

• scanner-delivered
• shelf-delivered
• instant redemption

Question 9

FSI

Answer 9

• broad exposure
• relatively cheaper
• adv function
• redemption rate very low
• don’t generate much trade interest
• susceptible to misredemption

Question 10

in- and on-pack coupons

Answer 10

• 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

Question 11

bounce back

Answer 11

for next purchase

Question 12

cross-ruff

Answer 12

coupon for one brand is promoted by another

Question 13

bounce-back coupon example

Answer 13

gap cash; spend 100, get 25

Question 14

instantly redeemable coupons

Answer 14

• peelable from package at the point of purchase
• represent an immediate reward
• alternative to price-off deals
• redemption rate about 30%

Question 15

shelf-delivered coupons

Answer 15

• instant coupon machine, smart source
• machines attached to shelf alongside coupon-sponsoring brand
• redemption rate about 11%

Question 16

scanner-delivered coupons

Answer 16

• reward is delayed
• potentially very effective bc they provide a way to carefully target coupon distribution
• redemption rate about 9%

Question 17

premiums

Answer 17

articles of merchandise or service offered by manuf to induce action on the part of the sales force, trade representatives, or consumers

Question 18

premiums have to…

Answer 18

• match the target market
• be carefully selected
• reinforce firms product and image
• be integrated with other IMC tools

Question 19

in pack premiums

Answer 19

• offer premium item inside or attached
• immediate value

Question 20

free in the mail premium

Answer 20

• receive premium for submitting required number of proofs of purchase
• not only stimulate consumer trial, also reward brand loyalties and encourage repeat purchase behavior

Question 21

self-liquidating premium

Answer 21

• customer needs to pay certain amount of money to get a premium item

Question 22

in pack/ on pack premium example

Answer 22

happy meal, kinder joy

Question 23

price offs

Answer 23

• get consumers to purchase larger quantities than normal
• ensure promotion dollars reach consumers
• obtain off-shelf display space
• provide sales force with incentive

Question 24

pro price-off

Answer 24

• boosts short-term sales
• generates customer traffic
• easy implementation

Question 25

con price-off

Answer 25

• must be carful not to increase customer price sensitivity
• can have detrimental impact on brand and corporate image

Question 26

FTC price-offregulations

Answer 26

• 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

Question 27

bonus packs

Answer 27

• 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

Question 28

rebates/refunds

Answer 28

manuf gives cash discounts or reimbursements to conusmer who submit (mail) proof of purchase

Question 29

contests and sweepstakes

Answer 29

primarily to enhance brands image

Question 30

sweepstakes

Answer 30

purely on the basis of chance, no need for proof of purchase

Question 31

contest

Answer 31

solve specific contest problem nd may need proof of purchase

Question 32

doorbusters

Question 33

advertising vs sales promotion

Answer 33

table

Question 34

things promotions do well

Answer 34

• introduce new product
• build brand awareness
• reinforce advertising images and messages

Question 35

things promotions dont do well

Answer 35

• create image for a brand
• compensate for lack of advertising
• change negative attitudes toward a product

Question 36

problems with sales promotion

Answer 36

table