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14 Cards in this Set
- Front
- Back
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Why use consumer promotions?
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-accomplish goals that advertising alone cannot do
-encourage to buy one brand over the other -encourage consumers to buy more and more frequently |
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Utilitarian (functional) benefits
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-obtain monetary benefits
-reduces search and decision costs -they can purchase superior brand they might not have purchased before |
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Hedonic benefits
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-sense of being a wise shopper
-need for stimulation -enertainment value (sweepstakes) |
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Immediate reward
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-shelf delivered, instant coupons,
-reward once customer preforms a marketer-specified behavior |
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Delayed reward
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-follow a desired behavior by a period of days, weeks, or even longer
- mail in coupons, online coupon sweepstakes |
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Sampling
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Any method used to deliver an actual or trial sized product to consumers
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Why is sampling effective?
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-gives consumers an opportunity to experience a new brand
-an active,hands-on interaction -almost a necessity |
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When should sampling be used?
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-when new product is superior or has distinctive advantages
-difficult to communicate with advertising alone -when promotional budget can afford to generate trial quickly |
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Coupon
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-a promotional device that rewards consumers for purchasing the coupon-offering brand by providing cents-off savings
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What are 7 Coupon Distribution Methods?
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FSI's
handouts in stores Direct Mail Magazines Newspapers In- and On-Package Internet |
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Full Coupon Cost?
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1.59
face value: 1.00 distribution and postage .40 handling charge .08 Consumer Fraud .07 Internal Preparation and Processing Cost 0.02 Redemption Cost .02 |
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Is Couponing Profitable?
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- Households most likely to redeem coupons are also the most likely to buy the brand in the first place
-Companies have to offer coupons to prevent losing consumers to other brands that do offer coupons |
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Mail- Delivered Coupons
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Have 95% Household Penetration Rate
- Have HIGHEST redemption rate of coupons (3.5%) -are relatively expensive |
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FSI's and other Media- Delivered Coupons
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88% of Coupons distributed on Sundays newspaper have FSi's
-relatively cheaper -redemption rate is very low |
