Chapter 12 Sales Promotions

Question 1

Be able to identify instant redemption.

Answer 1

Coupons - A customer can immediately redeem the coupon at the store through an instant redemption coupon program.

Question 2

What are bounce-back coupons used to encourage?

Answer 2

When coupons are placed inside packages so that customers cannot redeem them quite as quickly. Used to encourage repeat purchases.

Question 3

Be able to identify an example of cross-ruffing.

Answer 3

Placing a coupon on one product for another product. To encourage purchase of additional products. (ex: coupon for french onion dip on a bag of potato chips)

Question 4

Identify important keys to building a successful premium program.

Answer 4

Premiums(prizes, gifts, or other special offers consumers receive when purchasing products.)
Match the premium to the target market
Carefully select the premiums(avoid fads, try for exclusivity)
Pick a premium that reinforces the firm’s product and image.
Integrate the premium with other IMC tools (especially advertising and POP displays)
Don’t expect premiums to increase short-term profits.

Question 5

Be able to identify the difference between a contest and a sweepstakes.

Answer 5

Contests - Require some type of activity or skill to be performed, may require a purchase to enter.
Sweepstakes - There is no purchase required and the company must publish the odds of winning. People can enter as many times as they want as long as there is no limit on entry.

Question 6

Identify intrinsic and extrinsic values of a contest.

Answer 6

Intrinsic - Those associated with participating - (ex: a contest requiring the demonstrating of a skill.)
Extrinsic - Represents the actual attractiveness of the prize.

Question 7

Be able to identify a sampling consumer promotion technique.

Answer 7

In-store distribution
Direct sampling
Response sampling
Cross-ruffing sampling
Media sampling
Professional sampling
Selective sampling

Question 8

What is the key to a successful sampling program?

Answer 8

Involves targeting the right audience, at the right venue, at the right time. Targeting sampling is much more effective and efficient than mass sampling. (ex: vogue perfume sent a sample right before Christmas time.)