• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/12

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

12 Cards in this Set

  • Front
  • Back
Sales Promotion
Is any incentive that is additional to the basic benefits provided by the brand and temporarily changes its perceived price or value
Sales promotion is __________ oriented and capable of influencing behavior because it offers buyers _____
1. short-term
2. superior value and can make them feel better about the buying experience
Purpose of Sales Promotion
- Induce the trade (wholesalers and retailers) or consumers to buy a brand
- Encourage the manufacturer’s sales force to sell a brand aggressively
- Encourage immediate, desired shopping and purchasing behaviors from their consumers
- Encourage people to increase their donations to nonprofits now rather than later
Increased Budgetary Allocations in:

Advertising Spending
Push Strategy
Pull Strategy
Advertising Spending
- Advertising expenditures have declined in recent years while promotion spending has increased

Push Strategy
- Using promotional efforts to push product through the selling chain

Pull Strategy
- Using consumer advertising to pull product through the channel of distribution
Sales Promotion can:
- Stimulate sales force enthusiasm for a new, improved, or mature product
- Invigorate sales of a mature brand
- Facilitate the introduction of new products to the trade
- Increase on- and off-shelf merchandising space
- Neutralize competitive advertising and sales promotions
- Obtain trial purchases from consumers
Sales Promotion can:
- Hold current users by encouraging repeat purchases
- Increase product usage by loading consumers
- Preempt competition by loading consumers
- Reinforce advertising
- Compensate for a poorly trained sales force or for a lack of advertising
- Give the trade or consumers any compelling long-term reason to continue purchasing a brand
- Permanently stop an established brand’s declining sales trend or change the basic nonacceptance of an undesired product
Consumer Rewards
- All promotion techniques provide consumers with rewards (benefits, incentives, or inducements)
- They encourage certain forms of behavior
- Both utilitarian and hedonic
Utilitarian Benefits of Rewards
- Obtaining monetary savings
- Reducing search and decision costs
- Obtaining improved product quality made possible by a price reduction that allows consumers to buy superior brands they might not otherwise purchase.
Hedonic Benefits of Rewards
- Accomplishing a sense of being a wise shopper when taking advantage of sales promotions
- Achieving a need for stimulation and variety when trying a brand that might not purchased if it were not for an attractive promotion
- Obtaining entertainment value when, for example, the consumer competes in a promotional contest or participates in a sweepstakes
Sampling
Any method used to deliver an actual- or trial-sized product to consumers
Why Sampling is Effective
- It gives consumers an opportunity to experience a new brand personally
- It allows an active, hands-on interaction rather than a passive encounter, as is the case with the receipt of promotional techniques such as coupons
- It is almost a necessity when introducing truly new products that can afford this form of promotion
When to use Sampling
1. When the new or improved brand is demonstrably superior or has distinct relative advantages
2. When an innovative product concept is difficult to communicate by advertising alone
3. When promotional budgets can afford to generate consumer trial quickly