Ch. 16 Mktg Comm

Front 1

sales promotion

Back 1

a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.
-usually provides an extra incentive to buy
-essentially an acceleration tool, designed to speed up the selling process and maximize sales volume
-can be targeted to different parties in the marketing channel

Front 2

consumer-oriented sales promotion

Back 2

includes sampling, couponing, premiums, contests and sweepstakes, refunds and rebates, bonus packs, price-offs, frequency programs, and event marketing.
-directed at consumers

Front 3

trade-oriented sales promotion

Back 3

includes dealer contests and incentives, trade allowances, point-of-purchase displays, sales training programs, trade shows, cooperative advertising, and other programs designed to motivate distributors and retailers to carry a product and make an extra effort to push it to their consumers.

Front 4

factors contributing to the increase in sales promotion

Back 4

-maturation of the promotion industry (more sophisticated)
-growing power of retailers (can now measure results of each product through scanner data, consolidation of grocery store industry, Wal-mart)
-declining brand loyalty
-increased promotional sensitivity
-brand proliferation (market saturated with new brands)
-fragmentation of the consumer market (need more targeted approaches)
-short-term focus of many marketers
-increased accountability (measurable results)
-competition
-clutter

Front 5

account-specific marketing (co-marketing)

Back 5

a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives.

Front 6

consumer franchise building (CFB) promotions

Back 6

sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity.
-ability to convert consumers to loyal customers

Front 7

nonfranchise-building (no-FB) promotions

Back 7

designed to accelerate the purchase decision process and generate an immediate increase in sales.
-do not communicate information about a brand's unique features or the benefits of using it

Front 8

objectives of consumer-oriented sales promotion

Back 8

-obtaining trial and repurchase
-increasing consumption of an established brand
-defending current customers
-targeting a specific market segment
-enhancing integrated marketing communications and building brand equity

Front 9

sampling

Back 9

involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial
+excellent way to induce trial
+consumers get to experience the brand directly
-must have some unique or superior benefits
-some products are difficult to gauge immediately

Front 10

criteria for effective sampling program

Back 10

1. products are of relatively low unit value
2. products are divisible, which means they can be broken into small sample sizes that are adequate for demonstrating the brand's features and benefits to the user.
3. the purchase cycle is relatively short, so the consumer will consider an immediate purchase or will not forget about the brand before the next purchase occasion.

Front 11

sampling methods

Back 11

-door-to-door sampling
-sampling through mail
-in-store sampling
-on-package sampling
-event sampling
-Internet

Front 12

couponing

Back 12

+can offer price reduction only to those consumers who are price-sensitive
+encourage repurchase after initial trial
+encourage to try more expensive brand
-difficult to estimate when a consumer will use a coupon
-difficult to prevent the coupons from being used by consumers who already use the brand
-low redemption rates and high cost
-misredemption (fraud)

Front 13

coupon distribution methods

Back 13

-freestanding inserts (most popular)
-direct mail
-newspapers/magazines
-inside or outside package

Front 14

bounce-back coupon

Back 14

an in/on-pack coupon that is redeemable for the next purchase of the same brand

Front 15

cross-ruff coupon

Back 15

and in/on-pack coupon which is redeemable for a different product

Front 16

instant coupon

Back 16

attached to the outside of the package so the consumer can rip it off and redeem it immediately at the time of purchase.

Front 17

in-store couponing

Back 17

all co-op couponing programs distributed in a retail store environment.

Front 18

premiums

Back 18

an offer of an item of merchandise or service either free or at a low price that is an extra incentive for purchasers.

Front 19

free premiums

Back 19

usually small gifts or merchandise included in the product package or sent to consumer who mail in a request along with a proof of purchase. (consumers' favorite type of promotion)

Front 20

self-liquidating premiums

Back 20

require the customer to pay some or all of the cost of the premium plus handling and mailing costs.

Front 21

contest

Back 21

a promotion where consumers compete for prizes or money on the basis of skills or ability

Front 22

sweepstakes

Back 22

a promotion where winners are determined purely by chance; it cannot require a proof of purchase as a condition for entry

Front 23

refunds (rebates)

Back 23

offers by the manufacturer to return a portion of the product purchase price, usually after the consumer supplies some proof of purchase.

Front 24

bonus packs

Back 24

offer the consumer an extra amount of a product at the regular price by providing larger containers or extra units.

Front 25

price-off deal

Back 25

reduces the price of the brand (right on the package) ex. 25% free

Front 26

loyalty programs

Back 26

continuity or frequency program. encourages customer loyalty

Front 27

event marketing

Back 27

a type of promotion where a company or brand is linked to an event or where a themed activity is developed for the purpose of creating experiences for consumers and promoting a product or service.

Front 28

event sponsorship

Back 28

an integrated marketing communications activity where a company develops actual sponsorship relations with a particular event and provides financial support in return for the right to display a brand name, logo, or advertising message and be identified as a supporter of the event.

Front 29

summary of consumer-oriented promotions and marketer objectives

Back 29

chart on page 539

Front 30

objectives of trade-oriented sales promotion

Back 30

-obtain distribution for new products
-maintain trade support for established brands
-encourage retailers to display established brands
-build retail inventories

Front 31

push money

Back 31

cash payments made directly to the retailer's or wholesaler's sales staff to encourage them to promote or sell a manufacturer's product.

Front 32

trade allowances

Back 32

a discount or deal offered to retailers or wholesalers to encourage them to stock, promote, or display the manufacturer's products.

Front 33

off-invoice allowance

Back 33

a certain amount or percentage is deducted from the invoice

Front 34

slotting allowances

Back 34

fees retailers charge for providing a slot or position to accommodate the new product.

Front 35

failure fees

Back 35

paid if a product does not hit minimum sales level within a certain time.

Front 36

forward buying

Back 36

stocking up on a product at the lower deal or off-invoice price and resell it to the consumers after the market's promotional period ends.

Front 37

diverting

Back 37

a retailer or wholesaler takes advantage of the promotional deal then sells some of the product purchased at the low price to a store outside its area or to a middleperson who resells it to other stores.

Front 38

planograms

Back 38

configurations of products that occupy a shelf section in a store.

Front 39

trade show

Back 39

a forum where manufacturers can display their products to current as well as prospective buyers.

Front 40

cooperative advertising

Back 40

the cost of advertising is shared by ore than one party

Front 41

horizontal cooperative advertising

Back 41

advertising sponsored in common by a group of retailers or other organizations providing products or service to the market

Front 42

ingredient-sponsored cooperative advertising

Back 42

supported by raw materials manufacturers; its objective is to help establish end products that include the company's materials and/or ingredients.

Front 43

vertical cooperative advertising

Back 43

a manufacturer pays for a portion of the advertising a retailer runs to promote the manufacturer's product and its availability in the retailer's place of business.