Chap16

Question 1

advertising allowance

Answer 1

either a percentage of gross purchases or a flat fee paid to the retailer for advertising the manufacturer’s product.

Question 2

booths

Answer 2

at trade shows, a major facto r in sales promotion plans.

Question 3

buyback allowance

Answer 3

a manufacturer’s offer to pay for an old product so that it will be taken off the shelf to make room for a new product.

Question 4

cents-off promotion

Answer 4

a short-term reduction in the price of product designed to induce trial usage.

Question 5

A sales promo device in which two related products are packaged together at a special price, such as a razor and a package of blades.

Answer 5

combination offers

Question 6

company conventions

Answer 6

meetings held by companies with their employees, sales reps, and/or customers to announce new products, policies and marketing programs.

Question 7

consumer sales promotions

Answer 7

Marketing, advertising, and sales promotion activities aimed at including trial, purchase, and repurchase by the consumer.

Question 8

contest

Answer 8

a sales promo device for creating consumer involvement

Question 9

cards issued by retailers that allow them to track their customers’ purchasing habits and demographic profiles.

Answer 9

convenience cards

Question 10

coupon

Answer 10

a certificate with a stated value that is presented to a retail store for a price reduction on a specific item

Question 11

customer life time value (LTV)

Answer 11

the total sales or profit value of a customer to a marketer over the course of that customer’s lifetime.

Question 12

Database

Answer 12

corporate memory of all important customer information

Question 13

database marketing

Answer 13

tracking and analyzing the purchasing patterns of specific customers in a computer database and then targeting advertising to their needs

Question 14

dealer meetings

Answer 14

meetings held by companies with their authorized brokers, distributors, and/or retailers to announce new products, policies, and marketing programs.

Question 15

direct marketing

Answer 15

a system of marketing in which companies build their own database of customers and use a variety of media to communicate with them directly

Question 16

direct-repsonse advertising

Answer 16

an advertising message that asks the audience to provide feedback straight to the sender

Question 17

direct sales

Answer 17

selling to customers directly, at home or work, rather than through a retail establishment or other intermediary

Question 18

direct selling, what is sold this way?

Answer 18

face-to-face selling away from a fixed retail location. Usually refers to a method of marketing consumer goods- ex: encyclopedias

Question 19

display allowances

Answer 19

fees paid to retailers to make room for and set up manufacturers displays

Question 20

purchasing large quantities of an item at regional promotional discount and shipping portions to areas of the country where the discount isn’t being offered

Answer 20

diverting

Question 21

What is the difference between paper coupons and electronic coupons?

Answer 21

electronic coupons are specific to the customer and distributed at the point of purchase

Question 22

forward buying

Answer 22

a retailers stocking up on a product when its discounted and buying smaller amounts when at list price

Question 23

freestanding inserts (FSIs)

Answer 23

coupons distributed through inserts in newspapers

Question 24

linkage media

Answer 24

in direct marketing, media that helps prospects and customers link up with a company.

Question 25

loyalty (continuity) programs

Answer 25

program that rewards customers with discounts and free products in return for frequent and continuous patronage.

Question 26

personal selling, and give an example

Answer 26

a sales method based on person- to-person contact. Retail sales person is an expampe

Question 27

WHAT’S THE TERM? Materials set up at a retail location to build traffic, advertise the product and promote impulse buying. GIVE AN EXAMPLE

Answer 27

point-of-purchase (POP) materials, window displays are examples of this

Question 28

polybagging

Answer 28

samples are delivered in plastic bags with the daily paper or monthly mag

Question 29

premium

Answer 29

an item offered free or at a bargain price to encourage the consumer to buy the advertised product

Question 30

marketing, advertising, and sales promo activities aimed at including trials purchase and repurchase by consumers.

Answer 30

pull strategies

Question 31

Define: push money (PM) [alternative name is…?]

Answer 31

a monetary inducement fo retail salespeople to push the sales of particular products. [spiffs]

Question 32

aimed to get products into the dealer pipeline and accelerate sales by offering inducements to dealers/retailers/and salespersons

Answer 32

push strategies

Question 33

rebates

Answer 33

large cash refunds on items

Question 34

sales promotion

Answer 34

a direct inducement offering extra incentives all along the marketing route- from manufacturers through distribution channels to customers- to accelerate the movement f the product from the producer to the consumer.

Question 35

slippage

Answer 35

rebate offers that are never redeemed and coupons that are never submitted.

Question 36

slotting allowances

Answer 36

fees that manufacturers pay to retailers for the privilege of obtaining shelf or floor space for a new product

Question 37

trade advertising

Answer 37

advertising goods/services to middlemen to stimulate wholesalers and retailers to by goods for resale

Question 38

trade concentration

Answer 38

more products being sold by fewer retailers

Question 39

trade deals

Answer 39

short-term dealer discounts on the cost of a product or other dollar inducements to sell a product

Question 40

What do booths need to effectively attract attention?

Answer 40

Simplicity, good lighting and large visuals

Question 41

What is the benefit of “combination offers”

Answer 41

You can introduce new items with related items customers are already familiar with

Question 42

What is the benefit of “convenience cards”

Answer 42

creates a means for targeted marketing

Question 43

how are consumer purchases tracked for loyalty programs.

Answer 43

through a company’s database