promotion: sales promotion Flashcards
what do all promotional activities aim to get?
products known in their target market
what are sales promotions specifically designed to do?
boost sales
what does sales promotion involve?
offering an incentive to persuade current and potential customers to buy products
incentive
something that motivates/encourages someone to make a specific choice
purpose:
who does it attract?
first-time buyers who may become loyal customers having tried a product or brand
purpose:
what does it maintain?
customer loyalty
purpose:
what does it sell off?
older or less fashionable goods to make space for new items
purpose:
how does it boost sales figures?
particularly where a local enterprise is ranked on its monthly sales
purpose:
what does it entice people into a shop for?
where they may buy not only the product but other produces that are not in sales promotion
methods:
what are coupons also known as?
money-off vouchers
methods:
what is a benefit of using coupons?
encourage the customer to buy the product rather than a rival product
methods:
what is the imitation of using coupons?
impacts on profit if money-off price doesn’t cover costs of products
methods:
what is a free sample?
try before you buy
methods:
what can a free sample be often given with?
discount coupon
methods:
what is a benefit of free sample?
having tried the product, customers may decide to buy (possibility of repeat sales) - increases profit
methods:
what is a limitation of free sample?
impacts on profit if too few sales generated
methods:
what are competitions?
prize draws for example for a free holiday, cash prize or free products
methods:
what is a benefit of competitions?
allows the enterprise to build up marketing information as customers provide details to enter the comp
methods:
what does competitions appeal to peoples sense of?
thrill to build interest in the product
methods:
what is a limitation with competitions?
impacts on profit
methods:
what is a money off/discounts?
a percentage reduction on the original price
methods:
what is a benefit of money off/discounts?
encourages customers to buy more more products
methods:
what is a limitation of money off/discounts?
impacts on profit if too few sales generated
methods:
what is a loyalty incentive?
loyal customers obtain points on purchases that can either be put towards other products or they get something for free
methods:
what is a benefit of loyalty incentive? (what does it establish?)
establishes a long-term relationship with customers so they Amy choose the enterprise’s products over a rival’s
methods:
what is a limitation of loyalty incentive?
impacts on profit if too few sales generated
methods:
what is the buy one get one free?
a free product when a full-priced product is purchased
methods:
what is a benefit of BOGOF?
encourage customers to buy additional products as they have saved money elsewhere
methods:
what is a limitation of BOGOF?
impacts on profit if too few sales generated
