12.5.1.1. Price promotion / At the point of sale: /devising marketing strategy

Question 1

List 4 types of direct price promotion!

Answer 1

PSDG

1. ) Percentage or money discount
2. ) Seasonal sales
3. ) Daily discounts
4. ) Group discounts (students, members…)

Question 2

List 5 types of multi-buy promotion!

Answer 2

1. ) Buy one get one free
2. ) Buy one get one half price
3. ) Buy 3 pay 2
4. ) Percentage by volume
5. ) Buy 2 large glasses – get the rest for free

Question 3

What are the opportunities and threats after a

price reduction has worked?

Answer 3

Opportunities:

• Higher sales than before promotion

Threats:

• Sales will drop immediately
• No consumer loyalty
• Post promotion sales not higher than before
• May damage image of product
  e. g. champagne in UK

Question 4

What are the opportunities and threats after a promotion by volume has worked?

Answer 4

Opportunities:

• Less negativ effect on consumers loyalty

Threats:

• Controversial because of excessive consumption
• = banning or minimum unit pricing

Question 5

Name two further possibilities of price promotion which carrying less risk of devaluing the product image!

Answer 5

LF

1. ) Link saves = wine & food = percentage on food
2. ) Free delivery

Question 6

Are price promotions beneficial for producers?

Answer 6

Yes = increase sales and brand awareness

Question 7

Name 2 disadvantages for producer if big retailers offer promotions?

Answer 7

ML

1. ) Meet the cost of promotion
2. ) Loss in sales revenue

= Big retailer = for big producer