13.4 Sales Promotion Flashcards
What is sales promotion?
Sales promotion consists of short-term incentives to encourage the purchase or sales of a product or service.
How does sales promotion differ from advertising?
While advertising offers reasons to buy a product or service, sales promotion offers reasons to buy now.
What are some examples of sales promotions?
Examples of sales promotions include coupons, discounts, special offers, end-of-the-aisle displays, and free add-ons or upgrades with a purchase.
What is the purpose of sales promotion tools?
Sales promotion tools are designed to stimulate earlier or stronger market response.
What are the four target audiences for sales promotion tools?
The four target audiences for sales promotion tools are final buyers (consumer promotions), retailers and wholesalers (trade promotions), business customers (business promotions), and members of the sales force (sales force promotions).
What are some factors that have contributed to the high levels of sales promotion in consumer markets?
Factors contributing to high levels of sales promotion include
pressures on product managers to increase sales,
stiff competition,
declining advertising efficiency,
and consumers becoming more deal-oriented.
What is promotion clutter?
Promotion clutter refers to the abundance of sales promotions that can cause a given promotion to be lost among other promotions, weakening its ability to trigger an immediate purchase.
What are some objectives of consumer promotions, trade promotions, business promotions, and sales force promotions?
Objectives include
urging short-term customer buying,
boosting customer-brand engagement,
getting retailers to carry new items and more inventory,
generating business leads,
stimulating purchases,
rewarding customers,
and motivating salespeople.
What should sales promotions aim to achieve in the long term?
Sales promotions should aim to reinforce the product’s position and build long-term customer relationships, rather than only creating short-term sales or temporary brand switching.
How can promotional programs build loyalty?
Promotional programs can build loyalty through added value rather than discounted prices, such as frequency marketing programs, loyalty cards, and rewards for regular customers.
What are some common consumer promotion tools?
Common consumer promotion tools include samples, coupons, rebates, price packs, premiums, advertising specialties, point-of-purchase promotions, contests, sweepstakes, games, and event marketing.
What are some benefits of using sampling as a promotional tool?
Sampling is an effective way to introduce a new product or create new excitement for an existing one. It can generate buzz, draw new customers, and encourage them to make a habit of purchasing the product.
How do digital coupons differ from traditional coupons?
Digital coupons can be individually targeted and personalized in ways that traditional print coupons cannot. They can be redeemed via smartphones or other mobile devices and have a much faster growth rate in redemptions compared to traditional coupons.
What is the purpose of point-of-purchase (POP) promotions?
POP promotions are displays and demonstrations that take place at the point of sale to attract consumers’ attention, encourage impulse purchases, and enhance the shopping experience.
What is event marketing?
Event marketing involves creating or sponsoring events, such as mobile brand tours, festivals, reunions, marathons, concerts, or other gatherings, to promote a brand and engage consumers.
This type of marketing connects events and sponsorships to a brand’s value proposition and can have a far-reaching impact due to the social sharing power of digital media.
