Sales promotion

Question 1

Purpose of sales promotion

Answer 1

create a temporary increase in sales by bringing purchasing decisions forward and making immediate decision
usually for low-value items
often for temporary gain due to temporary shift in demand

Question 2

4 characteristics of sales promotion

Answer 2

attractiveness
fit to product category
reception delay- if a discount is not immediate it would be less desirable
value- high value promotions work better but value must be pecieved

Question 3

Sale promotion examples

Answer 3

free taster samples
two for the price of one
free gift with each purchase

Question 4

trade promotions can be used for….

Answer 4

increase stock- more stock more commitment there will be to selling
better shelf space- more eye-catching more likely to sell
launch new product- new carries element of risk, retailer may need extra incentive
even out fluctuating sales- seasonal offers
couter competition

Question 5

Retailer promotions can be used for…

Answer 5

increase store traffic- more people in store
increase amount of purchase-eg. 2for1
increase store loyalty-eg. loyalty cards
increase own brand sales
even out busy periods

Question 6

manufacturer promotions are carried out because…

Answer 6

encourage trial for new products
expand usage
attract new customers
load up- encourage customers to stock up on product
enhance brand-values