Sales Promotion: Purpose And Methods Flashcards
All promotional activities aim to get products known in their target market. What is sales promotion specifically designed to do?
Sales promotion is specifically designed to boost sales
All promotional activities aim to get products known in their target market. Sales promotion is specifically designed to boost sales.
What does sales promotion involve?
Sales promotion involves offering an incentive to persuade current and potential customers to buy products
Enterprises use sales promotion for different reasons.
What is the purpose of sales promotion?
The purpose of sales promotion is:
1) To entice people into a shop where they may buy not only the product but other products that are not in the sales promotion
2) To attract first-time buyers who may become loyal customers having tried a product or brand
3) To boost sales figures, particularly where a local enterprise is ranked on its monthly sales
4) To maintain customer loyalty
5) To sell off older or less fashionable goods to make space for new items
What are the methods of sales promotion?
The methods of sales promotion are:
1) Coupons (like money-off vouchers)
2) Money off/discounts (a % reduction on the original price)
3) Buy one get one free (BOGOF) (a free product when a full-priced product is purchased)
4) Free samples (often given with a discount coupon like try before you buy)
5) Competitions (like prize draws, for example for a free holiday, cash prize or free products)
6) Loyalty incentive (loyal customers get points on purchases that can either be put towards other products or they get something for free)
The methods of sales promotion are:
1) Coupons (like money-off vouchers)
2) Money off/discounts (a % reduction on the original price)
3) Buy one get one free (BOGOF) (a free product when a full-priced product is purchased)
4) Free samples (often given with a discount coupon like try before you buy)
5) Competitions (like prize draws, for example for a free holiday, cash prize or free products)
6) Loyalty incentive (loyal customers get points on purchases that can either be put towards other products or they get something for free).
What are the benefits of ‘Coupons’?
The benefits of Coupons are that it may encourage the customer to buy the product rather than a rival product
The methods of sales promotion are:
1) Coupons (like money-off vouchers)
2) Money off/discounts (a % reduction on the original price)
3) Buy one get one free (BOGOF) (a free product when a full-priced product is purchased)
4) Free samples (often given with a discount coupon like try before you buy)
5) Competitions (like prize draws, for example for a free holiday, cash prize or free products)
6) Loyalty incentive (loyal customers get points on purchases that can either be put towards other products or they get something for free).
What are the limitations of ‘Coupons’?
The limitations of Coupons are that it impacts on profit if the money-off price doesn’t cover the costs of the product
The methods of sales promotion are:
1) Coupons (like money-off vouchers)
2) Money off/discounts (a % reduction on the original price)
3) Buy one get one free (BOGOF) (a free product when a full-priced product is purchased)
4) Free samples (often given with a discount coupon like try before you buy)
5) Competitions (like prize draws, for example for a free holiday, cash prize or free products)
6) Loyalty incentive (loyal customers get points on purchases that can either be put towards other products or they get something for free).
What are the benefits of ‘Money off/discounts’?
The benefits of Money off/discounts are that it encourages customers to buy more products
The methods of sales promotion are:
1) Coupons (like money-off vouchers)
2) Money off/discounts (a % reduction on the original price)
3) Buy one get one free (BOGOF) (a free product when a full-priced product is purchased)
4) Free samples (often given with a discount coupon like try before you buy)
5) Competitions (like prize draws, for example for a free holiday, cash prize or free products)
6) Loyalty incentive (loyal customers get points on purchases that can either be put towards other products or they get something for free).
What are the limitations of ‘Money off/discounts’?
The limitations of Money off/discounts are that it impacts on profit if too few sales are generated
The methods of sales promotion are:
1) Coupons (like money-off vouchers)
2) Money off/discounts (a % reduction on the original price)
3) Buy one get one free (BOGOF) (a free product when a full-priced product is purchased)
4) Free samples (often given with a discount coupon like try before you buy)
5) Competitions (like prize draws, for example for a free holiday, cash prize or free products)
6) Loyalty incentive (loyal customers get points on purchases that can either be put towards other products or they get something for free).
What are the benefits of ‘Buy one get one free (BOGOF)’?
The benefits of Buy one get one free (BOGOF) are that it may encourage customers to buy additional products as they have saved money elsewhere
The methods of sales promotion are:
1) Coupons (like money-off vouchers)
2) Money off/discounts (a % reduction on the original price)
3) Buy one get one free (BOGOF) (a free product when a full-priced product is purchased)
4) Free samples (often given with a discount coupon like try before you buy)
5) Competitions (like prize draws, for example for a free holiday, cash prize or free products)
6) Loyalty incentive (loyal customers get points on purchases that can either be put towards other products or they get something for free).
What are the limitations of ‘Buy one get one free (BOGOF)’?
The limitations of Buy one get one free (BOGOF) are that it impacts on profit if too few sales are generated
The methods of sales promotion are:
1) Coupons (like money-off vouchers)
2) Money off/discounts (a % reduction on the original price)
3) Buy one get one free (BOGOF) (a free product when a full-priced product is purchased)
4) Free samples (often given with a discount coupon like try before you buy)
5) Competitions (like prize draws, for example for a free holiday, cash prize or free products)
6) Loyalty incentive (loyal customers get points on purchases that can either be put towards other products or they get something for free).
What are the benefits of ‘Free samples’?
The benefits of Free samples are that having tried the product, customers may decide to buy the product, so there is the possibility of repeat sales, which increases profit
The methods of sales promotion are:
1) Coupons (like money-off vouchers)
2) Money off/discounts (a % reduction on the original price)
3) Buy one get one free (BOGOF) (a free product when a full-priced product is purchased)
4) Free samples (often given with a discount coupon like try before you buy)
5) Competitions (like prize draws, for example for a free holiday, cash prize or free products)
6) Loyalty incentive (loyal customers get points on purchases that can either be put towards other products or they get something for free).
What are the limitations of ‘Free samples’?
The limitations of Free samples are that it impacts on profit if too few sales are generated
The methods of sales promotion are:
1) Coupons (like money-off vouchers)
2) Money off/discounts (a % reduction on the original price)
3) Buy one get one free (BOGOF) (a free product when a full-priced product is purchased)
4) Free samples (often given with a discount coupon like try before you buy)
5) Competitions (like prize draws, for example for a free holiday, cash prize or free products)
6) Loyalty incentive (loyal customers get points on purchases that can either be put towards other products or they get something for free).
What are the benefits of ‘Competitions’?
The benefits of Competitions are that:
1) It allows the enterprise to build up marketing information, because customers provide their details to enter competitions
2) It appeals to people’s sense of thrill to build interest in the product
The methods of sales promotion are:
1) Coupons (like money-off vouchers)
2) Money off/discounts (a % reduction on the original price)
3) Buy one get one free (BOGOF) (a free product when a full-priced product is purchased)
4) Free samples (often given with a discount coupon like try before you buy)
5) Competitions (like prize draws, for example for a free holiday, cash prize or free products)
6) Loyalty incentive (loyal customers get points on purchases that can either be put towards other products or they get something for free).
What are the limitations of ‘Competitions’?
The limitations of Competitions are that it impacts on profit
The methods of sales promotion are:
1) Coupons (like money-off vouchers)
2) Money off/discounts (a % reduction on the original price)
3) Buy one get one free (BOGOF) (a free product when a full-priced product is purchased)
4) Free samples (often given with a discount coupon like try before you buy)
5) Competitions (like prize draws, for example for a free holiday, cash prize or free products)
6) Loyalty incentive (loyal customers get points on purchases that can either be put towards other products or they get something for free).
What are the benefits of ‘Loyalty incentives’?
The benefits of Loyalty incentives are that:
1) It establishes a long-term relationship with customers
2) Customers may choose the enterprise’s products over a rival’s products
