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Sales Promotions Flashcards

(46 cards)

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1
Q

Direct inducement that offers extra incentives anywhere along the marketing channel to enhance or accelerate the products movement from producer to consumer

A

Sales promotions

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2
Q

Sales promotions aimed at members of the distribution channel are called

A

Trade promotions

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3
Q

Examples of direct inducement

A

Money
Prizes
Extra products
Gifts

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4
Q

This is designed to change to timing of a purchase or to shift inventory to others in a channel

A

Sales promotion

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5
Q

Worldwide percentages of advertising, consumer sales promotion, and trade promotion

A

Advertising 25%
Consumer sales promotion 15%
Trade promotion 60%

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6
Q

3 reasons for the growth of sales promotions

A

Accountability
Media shifts
Marketplace changes

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7
Q

Accountability (reason for growth of sales promotion)

A

Pressure of short term sales

Desire to know ROI

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8
Q

Marketplace changes influencing sales promotion (consumer behavior, pricing)

A 
Less loyal, more risk averse
Consumer expectations of discounts
Battle for market share
Parity products
Power of retrailer
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9
Q

5 objectives of promotions

A 
Generate trial
Encourage repeat purchases
Increase brand awareness
Build traffic for a retailer
Build a brand
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10
Q

Push strategy for sales promotions

A

Get your products out and into the retailer
Producer -> resellers -> end users
Marketing communications between all

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11
Q

9 types of trade promotions

A 
Slotting allowances
Trade deals
Premiums & contests
Display allowances
Co-op advertising
Buyback allowances
Advertising allowances
Push money & spiffs
Meetings/conventions
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12
Q

Manufacturer pays retailer for shelf or floor space for a new product

A

Slotting allowances (trade promotion)

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13
Q

Manufacturer offers retailer short term discounts or other dollar inducements
Retailers usually pass the savings on to consumers through sale prices

A

Trade deals

trade promotion

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14
Q

Similar to slotting allowances but display instead of shelf space
Manufacturer pays retailer to make room for and set up displays
Ex. Dewalt in a Lowe’s

A

Display allowances

Trade promotions

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15
Q

Manufacturer agrees to buyback old product that hasn’t been sold
Often used for new products
Reduces risk for retailer

A

Buyback allowances

trade promotions

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16
Q

Manufacturer gives retailer either percentage off of purchases or a flat fee with the intent that the retailer will use the $$ to advertise the products

A

Advertising allowances

Trade promotion

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17
Q

Manufacturer reimburses retailers a % of advertising costs for advertising their products

A

Co-op advertising

Trade promotions

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18
Q

Cash payments given to sales staff for reaching specific sales goals or pushing certain products

A

Push money/Spiffs

Trade promotions

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19
Q

Special prizes and gifts given to retailers for reaching specific sales goals or pushing certain products
-can be given to retailer

Study These Flashcards
A

Retail premiums and contests

Trade promotions

20
Q

In store display materials and advertising like devices they are designed to build traffic, exhibit and advertise the product, and promote impulse buying
Consumers make decisions in store 66% of the time

Study These Flashcards
A

Point of purchase (POP) Materials

Trade promotions

21
Q

Pull strategy for consumer sales promotions

Study These Flashcards
A

Consumers come to retailer and say I want this product

Product we

22
Q

8 types of sales promotions

Study These Flashcards
A 
Price deals
Refunds and rebates
Sampling
Coupons
Premiums
Contest/sweepstakes
VIP cards
Specialties
23
Q

Larger cash refunds on items that usually require action on the consumer

Study These Flashcards
A

Rebates

Consumer promotions

24
Q

The phenomenon by which consumer purchase products because of the rebate but fail to collect the rebate due to inconvenience
Approx 60% of all rebates

25
Giving product for free to consumers with the hopes of stimulating repeat usage Most costly of all sales promotions Effective for new products
Sampling | Consumer promotions
26
Biggest sampling mistakes
``` Sampling to current users Focusing on targeting versus trial Sampling without starting a conversation Sampling without measurement Thinking you don’t have anything to sample ```
27
Retailer vs manufacturer sponsored Redemption rate highest for these on or in packages Free standing inserts have higher redemption rate than newspapers or magazines
Coupons | Consumer promotions
28
Coupons printed at checkout counter
Catalina coupons
29
Item offered free or at a bargain price to encourage the consumer to buy an advertised product Direct vs mail
Premiums | Consumer promotions
30
Putting the brands name on giveaways (swag)
Specialties | Consumer promotions
31
Discounts given when you present a savings card
VIP cards | Consumer promotions
32
Contests vs. sweepstakes
Contests depend on skill | Sweepstakes random
33
Pros of sales promotions
Quick Effective Measurable
34
Cons of sales promotion
Expensive Easily coped Eroded brand loyalty (encourages deal proneness) Not always completely measurable
35
Launch of an attractive and hard to imitate promotion (the monopoly window)
Low consumer response delay High competitive response delay Higher layoffs
36
Launch of easily imitated or over complex promotion
High consumer response delay Low competitive response delay Lower layoffs
37
Do or don’t? | Promote if others are promoting and you compete on price
Do! I’ll
38
Do or don’t? | Be the only one in your industry offering a promotion
Don’t!
39
Do or dont? | Promote a product where additional inventory will increase consumption levels (ex. Food)
Do!
40
``` Do or don’t? Use restrictions (time limit, purchase limit, etc) ```
Do!
41
Is BOGO or 50% or 1/2 off better?
BOGO
42
What range of percentages off should you offer?
20-40%
43
Do or don’t? | Remind consumers of the “regular” price
Do!
44
Do or don’t? | Frequently promote
Don’t
45
Do or don’t? | Provide a reason for the promotion
Do!
46
Do or don’t? | Promote if you have high quality/high price position
Don’t!

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