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- 1. ales Promotion
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KEEY TERM! KEY CONCEPTS
L01 consumer sales Define and state Sales Promolion
promotion sales the objectives of
promotion activities sales promotion.
targeting the ultimate consumer Sales promotion consists of
trade sales promotion sales those marketing communication
promotion activities targeting a activities, other than advertising, Goal = Drive immodiale purchase
marketing channel member, such as a personal selling, and public = Influence Behavior not Attitiidt
wholesaler or retailer
relations, in which a short-term
incentive motivates consumers
L0 2 coupon a certificate that
entitles consumers to an
or members of the distribution
channel to purchase a good
immediate price reduction © C E N G A G E L E A R N I N G 2 0 11
when they buy the product or service immediately, either
by lowering the price or by adding value. The main objectives of sales promotion are to
rebate a cash refund given for
increase trial purchases, consumer inventories, and repeat purchases. Sales promotion
the purchase of a product during a
is also used to encourage brand switching and to build brand loyalty. Sales promotion
specific period
supports advertising activities.
premium an extra item offered to
the consumer, usually in exchange CONSUMER SALES PROMOTION
for some proof of purchase of the Discuss the most
promoted product common forms of Coupons and rebates
loyalty marketing program a consumer sales
promotional program designed to promotion. Consumer forms of
build long-term, mutually beneficial sales promotion include coupons and
relationships between a company rebates, premiums, loyalty marketing ^
and its key customers programs, contests and sweepstakes, 0 U *
frequent buyer program a loyalty sampling, and point-of-purchase Loyalty marketing program , h FflEE
program in which loyal consumers displays. Coupons are certificates
are rewarded for making multiple entitling consumers to an immediate
purchases of a particular good or price reduction when they purchase Contests and sweepstakes
service a product or service. Coupons are a
sampling a promotional program that particularly good way to encourage
allows the consumer the opportunity to
try a product or service for free
product trial and brand switching.
Similar to coupons, rebates provide
i Sampling
5
O
point-of-purchase (P-O-P) purchasers with a price reduction, z
z
display a promotional display set although it is not immediate. To e
n
up at the retailer's location to build receive a rebate, consumers generally
traffic, advertise the product, or must mail in a rebate form with a proof
induce impulse buying
of purchase. Premiums offer an extra
item or incentive to the consumer
.
L0 3 trade allowance a
for buying a product or service.
price reduction offered
Premiums reinforce the consumer's
by manufacturers to
intermediaries, such as wholesalers purchase decision, increase consumption, and persuade nonusers to switch brands. Rewarding
and retailers loyal customers is the basis of loyalty marketing programs. Loyalty programs are extremely
effective at building long-term, mutually beneficial relationships between a company and
push money money offered to
channel intermediaries to encourage its key customers. Contests and sweepstakes are generally designed to create interest, often
them to "push" products—that is, to encourage brand switching. Because consumers perceive risk in trying new products,
to encourage other members of the sampling is an effective method for gaining new customers. Finally, point-of-purchase displays
channel to sell the products set up at the retailer's location build traffic, advertise the product, and induce impulse buying.
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