Promotion Flashcards
What are the types of price promotion?
-specified amount on all/selected lines
-seasonal sales
-discounts on certain days- eg hospitality on quieter week days
-discounts for certain groups of people
Multi-buys/vol discount
-BOGOF
-buy one get one half price
-save amount when spending over certain amount
What are the risks of price promotion?
-won’t know if it’s worked until promotion finished
-risk won’t build customer loyalty when price returns to normal
-c’s will view price promotions as way of buying things cheaply, will switch to next product on promotion
-may damage brands image, think the reduced price= ‘correct’ price, and not willing to pay higher price
=champagne industry concerned about regular price promotions in British sms
Why are multibuys controversial?
-less likely to affect brands image, but encourage excessive alc consumption
=banned in Scotland and Sweden
What are link saves?
-offer to buy one product, then reduced price on another product from diff category
-eg wine, offer discount on food
What are other ways of promotion?
-competitions
-consumer tastings
-staff training
-staff incentives
-limited edition packaging
