11.1. Consumer-Oriented Promotion II Flashcards
1
Q
Sampling
A
premier sales-promotion device for generating trial usage by delivering an actual- or rial-sized product to consumers
2
Q
sampling works best when…
A
- products have relatively low unit value
- product can be broken into small piece that reflects full features and benefits
- purchase cycle is relatively short
3
Q
types of sampling
A
- door-to-door by distribution team
- direct mail
- newspaper/ magazine insert
- in-package sampling
- in-store sampling
- event
- high-traffic locations
4
Q
how effective is sampling
A
- 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
5
Q
coupons
A
- 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
6
Q
coupon distribution - media/mail-delivered
A
- FSI (free standing insert)
- mobile app/ e-mail/ direct mail
7
Q
coupon distribution - on or in package
A
- cross-ruff
- bounce-back
8
Q
coupon distribution - in-store
A
- scanner-delivered
- shelf-delivered
- instant redemption
9
Q
FSI
A
- broad exposure
- relatively cheaper
- adv function
- redemption rate very low
- don’t generate much trade interest
- susceptible to misredemption
10
Q
in- and on-pack coupons
A
- 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
11
Q
bounce back
A
for next purchase
12
Q
cross-ruff
A
coupon for one brand is promoted by another
13
Q
bounce-back coupon example
A
gap cash; spend 100, get 25
14
Q
instantly redeemable coupons
A
- peelable from package at the point of purchase
- represent an immediate reward
- alternative to price-off deals
- redemption rate about 30%
15
Q
shelf-delivered coupons
A
- instant coupon machine, smart source
- machines attached to shelf alongside coupon-sponsoring brand
- redemption rate about 11%
16
Q
scanner-delivered coupons
A
- reward is delayed
- potentially very effective bc they provide a way to carefully target coupon distribution
- redemption rate about 9%
17
Q
premiums
A
articles of merchandise or service offered by manuf to induce action on the part of the sales force, trade representatives, or consumers
18
Q
premiums have to…
A
- match the target market
- be carefully selected
- reinforce firms product and image
- be integrated with other IMC tools
19
Q
in pack premiums
A
- offer premium item inside or attached
- immediate value
20
Q
free in the mail premium
A
- receive premium for submitting required number of proofs of purchase
- not only stimulate consumer trial, also reward brand loyalties and encourage repeat purchase behavior
21
Q
self-liquidating premium
A
- customer needs to pay certain amount of money to get a premium item
22
Q
in pack/ on pack premium example
A
happy meal, kinder joy
23
Q
price offs
A
- get consumers to purchase larger quantities than normal
- ensure promotion dollars reach consumers
- obtain off-shelf display space
- provide sales force with incentive
24
Q
pro price-off
A
- boosts short-term sales
- generates customer traffic
- easy implementation
25
con price-off
- must be carful **not to increase customer price sensitivity**
- can have detrimental impact on brand and corporate **image**
26
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**
27
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
28
rebates/refunds
manuf gives cash discounts or reimbursements to conusmer who submit (mail) proof of purchase
29
contests and sweepstakes
primarily to **enhance brands image**
30
sweepstakes
purely on the basis of chance, no need for proof of purchase
31
contest
solve specific contest problem nd may need proof of purchase
32
doorbusters
33
advertising vs sales promotion
table
34
things promotions do well
- introduce new product
- build brand awareness
- reinforce advertising images and messages
35
things promotions dont do well
- create image for a brand
- compensate for lack of advertising
- change negative attitudes toward a product
36
problems with sales promotion
table
