16

Question 1

sales promotion

Answer 1

A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale

Advantage: to create an immediate sales

Tool: extra incentive to buy

Target: different parties—consumers or the trade

Question 2

Types of Sales Promotion Activities

Answer 2

consumer oriented programs
samples
coupons
premiums
contests/ sweepstakes
refunds
rebates
bonus packs
price offs
loyalty programs
event marketing

trade oriented programs
contests and dealer incentives
trade allowances
point of purchase displays
trade shows
training programs
cooperative advertising

Question 3

Reasons for Increase in Sales Promotion

Answer 3

Increase in sales promotion spending
-Growing power of retailers
•Increased promotional sensitivity

Disadvantage of sales promotion
•Decreased brand value

Question 4

Consumer Franchise-Building (CFB) Promotions

Answer 4

Objectives
•Communicate distinctive brand attributes
•Build long-term brand preference
Techniques
•“Frequency” programs
•Contests and sweepstakes

Question 5

Nonfranchise-building (non-FB) promotions

Answer 5

• Generate immediate sales

* Do not contribute to brand image

Question 6

Sampling Works Best When

Answer 6

The products are of relatively low unit value

The products are divisible

The purchase cycle is relatively short

Question 7

Sampling Methods

Answer 7

Door-to-door
Direct mail
Central location distribution
In-store sampling
Cross-product sampling
Co-op package distribution With newspaper/magazineInternet sites

Question 8

Advantages and Limitations of Coupons

Answer 8

Advantages
•Appeal to price sensitive consumers

Disadvantages
•Difficult to determine how many consumers will use coupons and when

Question 9

Types of Trade-Oriented Promotions

Answer 9

costs and incentives
trade allowances >buying allowances, promotional allowances, slotting allowances
trade shows