Sales Promotion

Question 1

What is sales promotion?

Answer 1

short-term incentives to encourage the purchase or sale of a product or service

Question 2

Coupons

Answer 2

certificates that save buyers money when they purchase specified

• redemption rate has declined, more targeted through cell phones ( snip snap )

Question 3

Premiums

Answer 3

goods offered either for free or at a low cost as an incentive to buy a product

example; toy in a McDonalds happy meal

Question 4

Advertising Specialties

Answer 4

useful articles imprinted with an advertiser’s name or logo

example; apparel, pens, calendars

Question 5

Patronage Rewards

Answer 5

awards provided by companies to promote and encourage the purchasing of their products

example; Starbucks rewards, frequent flyer miles, points on credit card purchase

Question 6

Point-of-Purchase (POP)

Answer 6

displays and demonstrations that take place at the point of sale

example; free taste of food products at COSTCO

Question 7

Contests

Answer 7

JUDGED; games that give consumers the chance to win something

Question 8

Sweepstakes

Answer 8

LUCK; games that give consumers the chance to win something

Question 9

Reasons for growth of Sales Promotion

Answer 9

• pressure to increase current sales
• companies face more competition
• advertising efficiency has declined
• trade demands more support
• consumers have become more deal-oriented