Sales Promotion

Question 1

Sales Promotion

Answer 1

provides SHORT TERM incentives to generate interest in a product or service

Question 2

Types of Sales Promotion

Answer 2

trade promotions and consumer promotions

Question 3

Trade Promotion

Answer 3

Short-term promotional tools given to wholesalers, distributors, or retailers. Used to entice another member to purchase goods for eventual resale.
Example of a PUSH strategy.
Examples: trade discounts, quantity discounts, etc

Question 4

Consumer Promotions

Answer 4

Short-term marketing tools used to encourage immediate consumer purchase.
Example of a PULL strategy.
Examples: coupons, premiums, contests, sweepstakes, samples and free trials, loyalty programs, rebates, etc

Question 5

How to create a successful premium

Answer 5

Match the premium to the target market.
Avoid fads or exclusivity.
Pick a premium that reinforces the firm’s product/service.
Integrate the premium with other IMC tools.

Question 6

Benefits of sampling products

Answer 6

Introduce new products to consumers.
Generate interest.
Generate leads.
Collect information.
Boost sales.

Question 7

Sales promotion STRENGTHS

Answer 7

Provides extra incentive to act.
Creats sense of immediacy.
Stimulates trial.
Increases purchase or usage frequency.
Builds databases.

Question 8

Sales promotion WEAKNESSES

Answer 8

Adds clutter.
Sets false retail prices.
Promotes forward buying.