Chapter 16 Flashcards
marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value (used to stimulate trial, “sweeten the deal,” etc.)
Sales Promotion
directed at ultimate consumers
Consumer Sales Promotion
directed at resellers/members of the marketing channel.
Trade Sales Promotion
directed at firm’s employees/ stockholders
Internal Sales Promotion
typically a printed certificate giving the bearer a stated price reduction or special value on a specific product, generally for a specific period of time.
Coupons
a preprinted coupon (sometimes contained in an ad) placed into a separate publication, such as a newspaper.
Freestanding Insert
uses a dispenser mounted near the product
On-Shelf Couponing
distribution of coupons on the internet-growing phenomenon
Online Couponing
cash reimbursements to a buyer for purchasing a product. They act as an economic appeal to attract customers and encourage timely buying (by the deadline) and they lower perceived risk (since the price is lower).
Rebates
items given free or at a bargain price to encourage the consumer to buy. e.g., 101 Dalmatian glasses, teeny beanies at fast food outlets
Premiums
(aka frequent buyer programs) - reward loyal consumers for making multiple purchases. e.g., frequent flyer programs offered by airlines
Loyalty Marketing Programs
a small size of a product made available to prospective purchasers, usually free of charge. (Can get expensive) Offers a risk-free (or reduced risk) opportunity to try the product.
Sampling
includes any promotional display set up at the retailer’s location to build traffic, advertise the product, or induce impulse buying. Examples include:
1. Shelf "talkers" - signs attached to store shelves 2. Shelf extenders - attachments that extend shelves so products stand out 3. Ads on grocery carts and bags 4. End-of-aisle and floor-stand displays 5. TV monitors at checkout counters 6. In-store audio messages and audiovisual displays
Point-of-Purchase Promotion
(aka tie-in) – is the collaboration of two or more firms in a sales promotion. e.g., AT&T’s True Rewards program offers discounts on products/services at Blockbuster, Pearle Vision, Red Lobster, and several magazines.
Cross-Promotions
items that are useful or interesting merchandise given away free of charge and typically carrying an imprinted name or message. e.g., pens, calendars, notebooks, key chains, t-shirts, letter openers
Advertising specialties
are short-term special allowances, discounts, or deals granted to resellers as an incentive to stock, feature, or in some way participate in the cooperative promotion of a product.
Trade Allowances
(a payment back to the buyer for purchasing a certain amount of mdse.); similar to a rebate but it’s a reward for buying a certain quantity of goods
Buying Allowances
money or product provided to a retailer for featuring the manufacturer’s brand in an agreed-upon in-store display
Display Allowance
money paid to a reseller for including the manufacturer’s product (along with other products) in the reseller’s advertising efforts.
Advertising Allowance
the manufacturer helps finance the ad and the ad features only the mfr.’s product; they usually supply the ad too.
Cooperative Advertising
bonuses for pushing the manufacturer’s brand through the distribution channel. It is money paid by the manufacturer to retail salespeople to encourage them to promote its products over competing brands. To be legal, be sure that you have the permission of retail management and that you include all employees selling your products.
Push Money (spiffs)
offer training to intermediary’s personnel (appropriate esp. if product is complex)
Training Programs
typically associates prizes with sales of the sponsor’s product
Trade Contests
displays used at the retail level to call customer attention to a featured product
Point-of-purchase displays
