Marketing ch 12

Question 1

· Be able to identify instant redemption.

Answer 1

Instant Redemption- Coupons provided within the store and can be used immediately.

Question 2

Scanner-deliver-

Answer 2

Some retailers issue coupons at the cash register. These are often for competing brand, thereby encouraging brand switching.

Question 3

· What are bounce-back coupons used to encourage?

Answer 3

Bounce-back- Coupons that are placed within package. Used to encourage repeat purchases

Question 4

cross-ruffing

Answer 4

Coupons set near one product to encourage purchase for another product. (Ex. Coupon for dip placed near the chips). Or manufacturer uses cross rufling to get the consumer to purchase another of its products. Kellogg’s may place a coupon on a rice krispy box for another cereal, such as Frosted flakes or an oatmeal product.

Question 5

Identify important keys to building a successful premium program.

Answer 5

Premiums succeed when they tie in with the firm’s products to enhance the image of the product and the brand. For adults these are fine china or fine crystals. For kids this is Disney or Sesame street toys. The product should not be low quality.
Keys to Success: 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 6

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

Answer 6

Contests- usually require purchase but illegal to make someone pay in some states. Normally require contestant to perform some type of activity. Can range from bikini contest in club to submitting designs to Dr. Pepper. Sweepstakes- No purchase is required. Customers can enter as many times as they wish. Odds of winning must be states on all point of point purchases.

Question 7

Identify intrinsic and extrinsic values of a contest.

Answer 7

People enter contests and sweepstakes that they find interesting or challenging. The perceived value of a contest or sweepstakes consists of two components: extrinsic value [attractiveness of the prize (car vs sandwich) and intrinsic value [those associated with participating (contest requiring demonstration of skill (such as recipe or essay contest)] .

Question 8

· Be able to identify a sampling consumer promotion technique.

Answer 8

In-store distribution
Direct Sampling
Response sampling
Media Sampling
Professional Samples
Selective Samples

Question 9

In-store distribution, sampling consumer promotion technique

Answer 9

delivers the sample in the store such as when an employee cooks a food product and gives it to a customer on site (costco ayyyyy)

Question 10

Direct Sampling

Answer 10

Items are mailed or delivered door to door consumers.

Question 11

Response sampling

Answer 11

are made available to individual or business responding to media offer on television.

Question 12

Media Sampling

Answer 12

means the sample is included in the media outlet. (Shoe insoles placed in magazine)

Question 13

Professional Samples

Answer 13

Given to doctors for example

Question 14

Selective Samples

Answer 14

Distributed at a site such as state fair parade, sports event, restaurant.
*New Free Standing Inserts to distribute samples

Question 15

· What is the key to a successful sampling program?

Answer 15

Successful sampling involves targeting the right audience at the right venue at the right time.
Ex. Chanel sending samples to Vogue magazine.