Chap16 Flashcards
advertising allowance
either a percentage of gross purchases or a flat fee paid to the retailer for advertising the manufacturer’s product.
booths
at trade shows, a major facto r in sales promotion plans.
buyback allowance
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.
cents-off promotion
a short-term reduction in the price of product designed to induce trial usage.
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.
combination offers
company conventions
meetings held by companies with their employees, sales reps, and/or customers to announce new products, policies and marketing programs.
consumer sales promotions
Marketing, advertising, and sales promotion activities aimed at including trial, purchase, and repurchase by the consumer.
contest
a sales promo device for creating consumer involvement
cards issued by retailers that allow them to track their customers’ purchasing habits and demographic profiles.
convenience cards
coupon
a certificate with a stated value that is presented to a retail store for a price reduction on a specific item
customer life time value (LTV)
the total sales or profit value of a customer to a marketer over the course of that customer’s lifetime.
Database
corporate memory of all important customer information
database marketing
tracking and analyzing the purchasing patterns of specific customers in a computer database and then targeting advertising to their needs
dealer meetings
meetings held by companies with their authorized brokers, distributors, and/or retailers to announce new products, policies, and marketing programs.
direct marketing
a system of marketing in which companies build their own database of customers and use a variety of media to communicate with them directly
direct-repsonse advertising
an advertising message that asks the audience to provide feedback straight to the sender
direct sales
selling to customers directly, at home or work, rather than through a retail establishment or other intermediary
direct selling, what is sold this way?
face-to-face selling away from a fixed retail location. Usually refers to a method of marketing consumer goods- ex: encyclopedias
display allowances
fees paid to retailers to make room for and set up manufacturers displays
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
diverting
What is the difference between paper coupons and electronic coupons?
electronic coupons are specific to the customer and distributed at the point of purchase
forward buying
a retailers stocking up on a product when its discounted and buying smaller amounts when at list price
freestanding inserts (FSIs)
coupons distributed through inserts in newspapers
linkage media
in direct marketing, media that helps prospects and customers link up with a company.
loyalty (continuity) programs
program that rewards customers with discounts and free products in return for frequent and continuous patronage.
personal selling, and give an example
a sales method based on person- to-person contact. Retail sales person is an expampe
WHAT’S THE TERM? Materials set up at a retail location to build traffic, advertise the product and promote impulse buying. GIVE AN EXAMPLE
point-of-purchase (POP) materials, window displays are examples of this
polybagging
samples are delivered in plastic bags with the daily paper or monthly mag
premium
an item offered free or at a bargain price to encourage the consumer to buy the advertised product
marketing, advertising, and sales promo activities aimed at including trials purchase and repurchase by consumers.
pull strategies
Define: push money (PM) [alternative name is…?]
a monetary inducement fo retail salespeople to push the sales of particular products. [spiffs]
aimed to get products into the dealer pipeline and accelerate sales by offering inducements to dealers/retailers/and salespersons
push strategies
rebates
large cash refunds on items
sales promotion
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.
slippage
rebate offers that are never redeemed and coupons that are never submitted.
slotting allowances
fees that manufacturers pay to retailers for the privilege of obtaining shelf or floor space for a new product
trade advertising
advertising goods/services to middlemen to stimulate wholesalers and retailers to by goods for resale
trade concentration
more products being sold by fewer retailers
trade deals
short-term dealer discounts on the cost of a product or other dollar inducements to sell a product
What do booths need to effectively attract attention?
Simplicity, good lighting and large visuals
What is the benefit of “combination offers”
You can introduce new items with related items customers are already familiar with
What is the benefit of “convenience cards”
creates a means for targeted marketing
how are consumer purchases tracked for loyalty programs.
through a company’s database
