The Promotional Mix Pieces (11)

Question 1

What is a sales promotion?

Answer 1

a short term, external promotion designed to influence immediate purchase

Question 2

What are the two important/key charecteristics of a sales promotion?

Answer 2

• it is short term
• it influences immediate purchase

Question 3

Sales promotions are short-term meaning…

Answer 3

they are not designed to last forever

Question 4

List six common examples of sales promotions

Answer 4

1. free samples
2. coupons
3. Price promotion
4. Frequent-user program
5. Gift Premium
6. Contests

Question 5

What is the most common example of a free sample promotion?

Answer 5

a food sample stand at a grocery store

Question 6

What are the benefits of free samples?

Answer 6

it decreases the consumer’s purchase risk and encourages product trial purchases

Question 7

Free samples ______ the consumer’s purchase risk and ______ product trial purchases

Answer 7

decrease, encourage

• think of when I have tried a sample of food that i had no intention of buying…and then purchased that food item.

Question 8

_________ are a way to encourage new product usage

Answer 8

coupons

Question 9

In 2018 how many coupons were redeemed?

Answer 9

1.1715 billion worth a face-value of $2.7 billion dollars

Question 10

About _____ percent of couipons distributed are for non-food items, but about _____ of all coupons actually redeemed are for food items

Answer 10

75, half

Question 11

What is a price promotion?

Answer 11

simply a sale

Question 12

a price promotions is simply a ______

Answer 12

sale

Question 13

What are some common examples of a price promotion?

Answer 13

• percent-off sales
• buy-one-get-one-off (BOGO) sales

Question 14

Are price promotions meant to be temporary or long-term?

Answer 14

temporary

• if a business continually runs a sale customers will eventually view the merchandise as worth the reduced price, and the business will have a hard time raising prices back to the original level

Question 15

What does a frequent user program encourage?

Answer 15

loyalty

Question 16

Frequent user programs can encourage a customer to ______ choosing particular brand over a competitors

Answer 16

keep

• For instance, if a customer had a choice between two airlines and all other criteria were equal, the customer would probably pick the airline that would earn him or her frequent flyer miles.

Question 17

What is an example of a gift premium?

Answer 17

a free gift with purchase

Question 18

Contests encourge potential customers to _______, they can also motivate current customers to increase _________.

Answer 18

purchase, comsumption

Question 19

What can contests encourage?

Answer 19

purchase, increasaed consumption, and sharing information about the company

Question 20

What are the four benefits of sales promotions?

Answer 20

• balances demand against available inventory or capacity
• effectiveness is measurable
• promotional costs vary with volume
• reduces risk of initial trial

Question 21

A company with excess _______ or available production capacity can use sales promotions to ______ demand and balance out the ______ inventory / capacity.

Answer 21

inventory, increase, excess

For instance, theme parks run sales promotions during off seasons when the park typically has fewer customers.

Question 22

What is the goal of a sales promotion?

Answer 22

an immediate increase in sales

Question 23

Is tracking the effectiveness of a sales promotion easy or hard?

Answer 23

easy

For the sale of physical goods, a marketer can track the immediate increase in product sales during the promotion.

Question 24

What are the main costs associated with sales promotions?

Answer 24

per-unit expenses that take place every time a customer takes advantage of a sales promotion

To illustrate the concept, if a marketer runs a television commercial (an advertisement) for $10,000, then the cost of that ad is the same whether the company sells 10 extra units from that commercial or 10,000. However, if a marketer distributes $1 coupons (a sales promotion), then the cost of the promotion to the company is $10,000 if the company sells 10,000 units but a mere $10 if the company only sells 10 units.

Question 25

What two sales promotions are effective at reducing the risk of the initial product purchase?

Answer 25

free samples and coupons

Question 26

When are sales promotions useful for reducing the risk of the initial trial of a product?

Answer 26

when introducing a new product to the market. The idea is that the customer will try the product and then become a repeat customer.

Question 27

What is public relations?

Answer 27

The practice of managing the spread of information between a product, company, organization, or brand and the public or stakeholders.

Question 28

What is public relations about compared to advertising?

Answer 28

While advertising involves direct, paid messages designed to lead a consumer toward purchase, public relations is more about building goodwill and managing the brand or company’s image.

Question 29

What are some functions of public relations?

Answer 29

- Promote goodwill and build trust - Lobby for the good of the company - Promote positive brand image - Manage publicity - Maintain investor relations

Question 30

Public relations seeks to promote _______ and build trust

Answer 30

goodwill

Question 31

PR seeks to ______ for the good of the company

Answer 31

lobby

Question 32

PR seeks to promote positive brand \_\_\_\_\_\_

Answer 32

image

Question 33

PR seeks to manage \_\_\_\_\_\_\_

Answer 33

publicity

Question 34

PR seeks to maintain investor \_\_\_\_\_\_

Answer 34

relations

Question 35

To accomplish the funcitons of public relations one must use a variety of...

Answer 35

tools and tactics

Question 36

What are three public relations tools and tactics?

Answer 36

- creating press kits - sponsoring events - building relationships with media

Question 37

Which is viewed as more credible, advertising directly paid for by the company itself or messages from third-party sources such as newspaper articles and tv news stories?

Answer 37

the latter

Question 38

What is personal selling?

Answer 38

an interaction between a front-line employee and a potential customer

Question 39

Personal selling is designed to influence...

Answer 39

a purchase

Question 40

What are the stages of personal selling in chronological order?

Answer 40

1. Prospecting 2, Preapproach 3. Approach 4. Presentation 5. Close 6. Follow-up

Question 41

Match the Personal Selling stages to their definitions/explanations: 1. Prospecting 1. presenting information and benefits to the prospect, addressing any objections 2. Preapproach 2. looking for potential customers, vetting potential customers 3. Approach 3. obtaining the sale 4. Presentation 4. ensuring purchase satisfaction 5. Close 5. researching the prospect, determining the best mode of action 6. Follow-up. 6. contacting prospect, gaining his or her attention, setting up a meeting

Answer 41

1: 2 2: 5 3: 6 4: 1 5: 3 6: 4

Question 42

What is a benefit of personal selling?

Answer 42

The upside for personal selling is the ability to completely customize it for each customer and each purchase situation. A salesperson can develop a customized sales presentation for each prospect.

Question 43

When is personal selling the best option?

Answer 43

Personal selling works best for products with a high enough selling price (and profit margin) to cover the cost of the sales employees.

Question 44

What is direct marketing?

Answer 44

when the marketer communicates with the potential customer with the goal of receiving a direct response from the customer (as opposed to selling in a retail location).

Question 45

What communication channels are used for direct marketing?

Answer 45

media such as direct mail, telemarketing, or television shopping channels such as QVC.

Question 46

Direct marketing such as direct mail allows a marketer to...

Answer 46

reach and communicate directly with customers.

Question 47

What are some benefits of direct marekting?

Answer 47

Such a targeted marketing strategy can increase the efficiency of promotional dollars spent. Direct marketing such as direct mail is also customizable for the individual consumer.