sales promotion

Question 1

true or false: sales promo is not a standalone component, it moves people from comprehension -> conviction -> action

Answer 1

false! sales promo moves consumers from conviction to ACTION -> does not go through the full ACCA model

Question 2

trade promotions are only relevant for what types of products?

Answer 2

products sold through intermediaries i.e. grocery store or dealership

Question 3

push vs pull strategy

Answer 3

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

Question 4

trial purchase examples

Answer 4

coupons, free samples, rebates, giveaway

Question 5

repeat/multiple purchase is best activity for…

Answer 5

coupons, discounts, contests, premium

Question 6

loyalty sales promo examples

Answer 6

premiums, freebies, loyalty programs

Question 7

media-delivered coupon

Answer 7

best for new/relatively new products or trial purchase

Question 8

free-standing insert coupon

Answer 8

delivered in newspapers, magazines, direct mail, in-store distribution, sava.ca (coupon) app

Question 9

in-pack self-coupon

Answer 9

inside package, redeemable next purchase

Question 10

on-pack self-coupon

Answer 10

appears on side or back panel

Question 11

instant redeemable coupon

Answer 11

attached to package and removed to purchase product

Question 12

cross-ruff (cross-coupon) coupon

Answer 12

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

Question 13

redemption rate

Answer 13

number of coupons returned expressed as a percentage of the number of coupons distributed

Question 14

rebate

Answer 14

predetermined amount of money returned directly to consumers by the manufacturer after the purchase has been made

Question 15

single-purchase refund

Answer 15

receive portion of money back for purchase of specific product

Question 16

escalating schedule

Answer 16

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)

Question 17

slippage

Answer 17

situation of a consumer collecting labels in a promotion offer but failing to follow through and request a refund

Question 18

premium

Answer 18

an additional item given free, or greatly discounted, to induce purchase of the primary brand

added value to tempt consumers to buy

Question 19

in-pack premium

Answer 19

item placed inside

Question 20

on-pack premium

Answer 20

item attached to package

Question 21

mail-in premium

Answer 21

sending in proofs of purchase

Question 22

bonus pack (more in packaging) premium

Answer 22

offers customers more for less ex. 20% more for regular price, or BOGO free

Question 23

types of loyalty programs

Answer 23

points, programs, loyalty cards, monetary rewards

Question 24

trade allowance

Answer 24

temporary price reduction to encourage larger purchases by distributor. percentage reduction from list price, predetermined dollar off, free goods.

Question 25

performance allowance

Answer 25

discount encourages distributor to perform merchandising function on behalf of manufacturer. additional funds help cover distributors cost of implementing activity. Deal negotiated.

Question 26

co-op allowance

Answer 26

fund allocated to pay for portion of distributors advertising. Often, manufacturers pay a percentage of distributors ad costs (often >50%) if brand is prominent.

Question 27

dealer premium

Answer 27

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.

Question 28

collateral materials

Answer 28

visual aids specific to special promos or as visual aids to selling products

Question 29

P.O.P. materials (dealer displayers)

Answer 29

“point-of-purchase” ; display material placed in stores advertising product or encouraging impulse purchasing ex. CK might have a display in the Bay

Question 30

X trade promotion should be used to get new listings

Answer 30

dealer premium

Question 31

X trade promotion activity should be used to get sales volume

Answer 31

trade allowance, performance allowance

Question 32

X trade promo activity should be used to get merchandising support

Answer 32

collateral material, point-of-purchase material (dealer displayers), co-op allowance

Question 33

what are three ways to measure effectiveness of sales promos?

Answer 33

1. Measure sales promo objective(s)
2. Measure ROI
3. Measure marketing objective