sales promotion Flashcards
true or false: sales promo is not a standalone component, it moves people from comprehension -> conviction -> action
false! sales promo moves consumers from conviction to ACTION -> does not go through the full ACCA model
trade promotions are only relevant for what types of products?
products sold through intermediaries i.e. grocery store or dealership
push vs pull strategy
push for b2b, pull for b2c
push: demand created by directing promo activities at intermediaries who then ‘push’ product to consumer
pull: demand created by advertising activities who ‘pull’ customers in where they request for the item
trial purchase examples
coupons, free samples, rebates, giveaway
repeat/multiple purchase is best activity for…
coupons, discounts, contests, premium
loyalty sales promo examples
premiums, freebies, loyalty programs
media-delivered coupon
best for new/relatively new products or trial purchase
free-standing insert coupon
delivered in newspapers, magazines, direct mail, in-store distribution, sava.ca (coupon) app
in-pack self-coupon
inside package, redeemable next purchase
on-pack self-coupon
appears on side or back panel
instant redeemable coupon
attached to package and removed to purchase product
cross-ruff (cross-coupon) coupon
when 2 products collab on a coupon offer. Obvious relationship. capitalize on eachother’s consumers in effort to attract new users ex. Tetley Tea incloudes an in-pack coupon for Christie Cookies
redemption rate
number of coupons returned expressed as a percentage of the number of coupons distributed
rebate
predetermined amount of money returned directly to consumers by the manufacturer after the purchase has been made
single-purchase refund
receive portion of money back for purchase of specific product
escalating schedule
buy 1, get $1 back, buy 2, get $2 back, buy 3 get $5 back. Encourages customers to buy three items at one time (achieving multiple purchase objectives)
slippage
situation of a consumer collecting labels in a promotion offer but failing to follow through and request a refund
premium
an additional item given free, or greatly discounted, to induce purchase of the primary brand
added value to tempt consumers to buy
in-pack premium
item placed inside
on-pack premium
item attached to package
mail-in premium
sending in proofs of purchase
bonus pack (more in packaging) premium
offers customers more for less ex. 20% more for regular price, or BOGO free
types of loyalty programs
points, programs, loyalty cards, monetary rewards
trade allowance
temporary price reduction to encourage larger purchases by distributor. percentage reduction from list price, predetermined dollar off, free goods.
performance allowance
discount encourages distributor to perform merchandising function on behalf of manufacturer. additional funds help cover distributors cost of implementing activity. Deal negotiated.
co-op allowance
fund allocated to pay for portion of distributors advertising. Often, manufacturers pay a percentage of distributors ad costs (often >50%) if brand is prominent.
dealer premium
incentive offered to distributor by manufacturer to encourage special purchase of product or secure additional merchandising from retailer.
Distributed my manufctur’s sales reps, can include golf equip., cameras, leisure clothing, etc.
collateral materials
visual aids specific to special promos or as visual aids to selling products
P.O.P. materials (dealer displayers)
“point-of-purchase” ; display material placed in stores advertising product or encouraging impulse purchasing ex. CK might have a display in the Bay
X trade promotion should be used to get new listings
dealer premium
X trade promotion activity should be used to get sales volume
trade allowance, performance allowance
X trade promo activity should be used to get merchandising support
collateral material, point-of-purchase material (dealer displayers), co-op allowance
what are three ways to measure effectiveness of sales promos?
- Measure sales promo objective(s)
- Measure ROI
- Measure marketing objective
