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49 Cards in this Set
- Front
- Back
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coupons
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legal certificates granting savings
create brand awareness encourage purchase |
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free standing inserts
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predominantly distributed in newspapers
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instant redemption coupon
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distributed in stores
redeem instantly |
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bounce back coupon
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inside packages
cannot redeem instantly |
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scanner delivered coupons
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triggered by item being scanned
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cross ruffing
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coupon for one product on another
on products that fit together |
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response offer coupons
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issued following request by consumers
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electronically delivered coupons
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internet delivered
u pons |
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print media
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88% of coupons
80% fsi |
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problems with coupons
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reduced revenues
mass cutting counterfeiting misredemption |
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premium
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prizes, gifts, or other special offers
can enhance image |
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free in the mail
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gifts individuals receive for purchasing products
mails in proof of purchase credit cards |
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in or on package
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small gifts such as toys in cereal boxes
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store of manufacturer
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gifts given by either the retail store or the manufacturer when the customer purchases a product
kids meal toy |
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self liquidating
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require consumer to pay an amount
consumer pays most or all of the costs |
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problems with premiums
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short life spans
cost lower cost less interest higher cost more sales but cost more |
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keys to successful premiums
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match to target market
carefully select the premiums reinforce product and image integrate with imc tools dont use increase profits |
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contests
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require action
winner is who performs best purchase depends on law |
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sweepstakes
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no action
based on probability no purchase required |
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extrinsic value
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actual attractiveness of the item
greater perceived value and participation private viewing party |
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intrinsic value
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associated with skills, abilities
demonstrate skills |
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refund
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offer to return a certain amount of money to consumer (small)
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rebate
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typically larger than refund
customer recovers part of cost in the form of cash |
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slippage
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hire actuaries
never going total be redeemed |
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in store distribution
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food product samples in store
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direct sampling
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a program in which samples are mailed or delivered door to door
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response sampling
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made available to individuals or businesses responding to a media offer on tv, internet, magazine.
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cross ruff sampling
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one product on another
laundry detergent with a free dryer sheet |
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media sampling
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the sample is included in the media outlet
perfume in magazine |
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professional sampling
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delivered to professionals
doctors who give free drug samples |
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selective sampling
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distributed at a site such as a state fair, parade, restaurant, sporting event
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bonus packs
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increase usage
match competitive actions stockpiling loyalty attract new users encourage switching |
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problems with bonus packs
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when small, consumers beleive price not changed
when large, consumers beleive price increased to compensate costly may slow cash flows |
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price off
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temporary reduction in the price of a product to the consumer
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price offs generate
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boosting short term sales
generate traffic easy avoid detrimental impact on image |
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promotion prone consumers
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regularly respond to coupons which means they are not brand loyal and primarily purchase on deal items
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brand loyal consumer
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purchases only one particular brand and does not substitute, regardless of and deal being offered
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price sensitive
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price remains the primary, if not only, criterion used in making a purchase decision
dont care about brand names |
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trade promotions
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manufacturers push products through to retailers
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trade allowances
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provide financial incentives to other channel members to motivate them to make purchases
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off invoice allowance
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per case rebate
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drop ship allowance
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paid to retailers who bypass wholesalers or brokers
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slotting fees
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add products
add shelf space or delete a brand |
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exit fees
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remove an item from inventory
3 liters instead of 2 liters |
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disadvantages of trade allowances
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not passing on to retail customers
forward buying diversion |
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trade contests
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spiff
prizes or cash designed for various channel members |
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trade incentives
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involve the retailer performing a function in order to receive the funds
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cooperative merchandising agreement
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formal agreement between the retailer and manufacturer
calendar promotions |
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back haul allowance
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retailer sends trucks
mulch |
