Sales Promotion

Question 1

List the 5 types of sales promotion

Answer 1

1. Coupons & Rebates
2. Samples
3. Premiums
4. Contests & Sweepstakes
5. Price Matching

Question 2

Explain coupons & rebates

Answer 2

Offer some type of price reduction or free merchandise
Coupons must be redeemed at the store while rebates must be sent to the manufacturer for reimbursement

Question 3

Advantages and disadvantages of coupons & rebates

Answer 3

Advantages:
Flexibility of use (newspaper, magazine, direct mail, downloaded off the internet, part of or in a product package, app, promo code)
Have an expiration date
Disadvantages:
Easily copied by competitors

Question 4

Explain samples

Answer 4

Samples of new product are given away to potential customers
Local newspaper, mail, online or in person

Question 5

Explain and give an example premiums

Answer 5

Items given away for free with the purchase of merchandise
Ex. Free toy given away with a McDonald’s Happy Meal

Question 6

Explain and give an example of contests & sweepstakes

Answer 6

For a contest, a task must be performed to win a prize
Sweepstakes participants need only to sign up to be included in a competition (paper or online)
Ex. Roll up the Rim or answering a skilled testing question

Question 7

Explain price matching

Answer 7

A retailer agrees to match and/or beat a lower advertised price from a rival’s store
Selling you the same product for a lower price