Lecture 7

Question 1

What are the sales promotion goals?

Answer 1

increase immediate customer sales
increase support among the markertes sales force
gain support of the trade in marketing the product

Question 1

Why are companies spending more and more money on sales promotion?

Answer 1

1. Sales managers are under great pressure to produce results quickly
2. Assessment of sales promotion i relatively easy
3. Sales promotion strategies target consumer trade and the sales force
4. Cost for results in this industry are relatively low

Question 2

What are the 7 types of consumer promotions?

Answer 2

1. Coupons
   Redemption rate < 2%, the discount is less than 2 %.
2. Contest
   A way to engage and entertain, people have to participate, not just passive customers.
3. Sweepstakes
   Participants submit names to be included in drawing.

4.Price deals
5.Rebates
6.Premiums
7.Sampling

Question 3

What are the drawbacks of price promotions?

Answer 3

• Stock pileup
• negative effect on reference price (the price people have in mind for the product category, for example laptop €500)
• brand image
• overall quality evaluation

Question 4

What is public relations?

Answer 4

A communication discipline. Objective is to make the audience feel good about the target brand and gain the goodwill of the public.

Question 5

What. is the difference of PR and advertising?

Answer 5

• PR concerned with managing the organisation’s
  *Advertising primarily concerned with enhancing sales
• PR persuade media
  *Advertising pays to use media
• PR has no control on the impact on the publics
• Advertising has control on the results

Question 6

What are the 4 types of public relations?

Answer 6

1. Image and reputation management
2. Public Affairs and issue management
3. relationship management
4. Crisis management