WEEK 8 Flashcards
What is sales promotion?
An activity or material that acts as a direct inducement, offering added value or incentive to buy the product
Marketing and communications activities that change the price/value relationship of a product or service perceived by the target, thereby
(1) generating immediate sales and
(2) altering the long-term brand value
What is Sales Promotion Effects
SEE PHOTO
What are value added promtions
Extra benefit - extra features to develop positive brand perceptions
eg
Prize draws premiums
What is Prince Promotion
Reduces price - may impact brand value eg
Money off coupon
Buy now, pay later
Coupons off future purchase
NB Reduces the price consumers are prepared to pay for goods / services but if trial is important
Promotional techniques
Immediate
* Price promotions
* Bonus packs
(BOGOF)
* Instant win
* Sampling
* Coupons
Delayed
* Loyalty schemes
* Premiums
* Cash refund / rebate offers
* Competitions
* Coupon → next purchase
* Free draws
The “ratchet effect”
SEE PHOTO
Problems with promotions
Promiscuous consumers!
Mis-redemption: non buyers acquire other
buyer’s coupons
Mal redemption: large scale frauds
Over redemption: too many claimants!
What is direct marketing?
- process of TARGETING and generating prospects for customer ACQUISITION
- recording of individual customer responses / transactions
Engaging Customers on a Journey
Reaches each discrete sector independently
suspect
Prospect (acquisition planning)
Customer
Repeat Buyer (retention and relationship planning)
Brand Advocate
What is The 80:20 rule Or Pareto’s Principle
80% of sales or profit will derive from 20% of the individuals
What is Digital customer journey
