For example, five-minute shoulder massages or one-hour home decorating consultations. If you have a product which is new in the market or which is not receiving a lot of attention, then you can promote this product to customers via sales promotion. Radio 1. It is one of the primary components of business management and commerce. Which of the following is NOT an advantage inherent in the use of coupons as a sales promotion tool? Now it’s time to sell. The key is to sample products that are so great they'll win raves and repeat business. 50 before the price rise, and the new price is Rs. No doubt, these strategies are effective, but there are various market forces that can affect the sales … We’ll feature a different book each week and share exclusive deals you won’t find anywhere else. At this point, more information about the person and company can be leveraged to make the offer more targeted and relevant. Copyright © 2021 Entrepreneur Media, Inc. All rights reserved. According to Joncos (1990) sales promotion is an effective way of competitive retaliation rather than marketing activities. The individual promotion specialists can then focus on the details of implementation. Think of Costco on weekends. These objectives are for both marketers and traders. Even young consumers and affluent shoppers--groups that traditionally shun coupons--are using them, boosting the typical 1 to 2 percent redemption rate by nearly 20 percent. To celebrate this month, the manufacturer of Aleve pain reliever sponsored fundraiser walks to raise money to find a cure for arthritis. Another great example: Estée Lauder works with retailers to offer women free mini-makeovers that end with customer photos (against an Estée Lauder backdrop). The American Airline AAdvantage promotional program rewarded consumer: Post Cereal is introducing a new kind of breakfast cereal that is soy-based and targeted at health-conscious adults between the ages of 25 and 50. This is an example of: Heinz Foods created a Cinco de Maio celebration for a large supermarket that targets Mexican-Americans, a market that Heinz sees as an area of potential growth. The objective(s) of these sales promotion tools was to: Which of the following statements about sales promotions is true? Nordica provides sales personnel in ski shops with training classes, detailed manuals, and other tools to help them better understand how to sell the company's ski boots. In the opening vignette, Macy's learned the hard way that: In the opening vignette, Macy's learned that extensive use of discounts and promotional offers: undermines their ability to build and maintain brand equity. When a product or service is well supported by sales promotion, dealers are automatically induced to have more of such items. How has the view of sales promotions changed during the past decades? All of the following are examples of trade-oriented sales promotion activities EXCEPT: All of the following are examples of consumer-oriented sales promotion activities EXCEPT: Which of the following statements about sales promotion programs is true? Gender 2. Today, more than ever, marketers are relying on digital platforms to sell their products. According to L.K. Discounts 1. Trade sales promotion is directed to members of … All of the above statements about the proliferation of new products in the consumer marketplace are true. A(n) _____ is an offer of an item of merchandise or service either free or at a reduced price that is used to provide an extra incentive to purchase. Marketers can develop appropriate sales promotion to accomplish the objective of reducing the negative impact on sales, if the price of the product was Rs. https://quizlet.com/284976713/imc-373-exam-3-chapter-16-flash-cards Coupons are often used by consumers who already use the brand and would purchase it without a coupon. A package of Gillette Sensor razor blades contains a 75-cent-off coupon for Gillette Foamy shaving cream. The appearance of Bart Simpson on the watch and not the Kellogg's logo would: detract from the consumer franchise building value of the promotion, ties into the overall positioning and communications campaign of the brand. Promotion helps you to draw the attention of your target, create interest in your products and services, generate demands, and encourage them to purchase from you. This enables the business to use its marketing resources more efficiently, resulting in more cost and time efficient marketing efforts. The use of premiums is very popular among fast food restaurants as a way of attracting children. Do you want customers to purchase more frequently, buy in greater volume, or be attracted to new or different offerings? _____ is a practice used by some retailers and wholesalers whereby they take advantage of a promotional deal and then sell some of the product purchased at the low price to another store outside of the reseller's trade area or to a middleman who will then resell the products. Which of the following statements about rebates is true? Target your effort Promotions can spur purchases by established customers, reel in new customers, draw customers from competitors, get current … One organisation can rely on television advertising and the other can remain dependent on the efforts of its sales team. Which of the following statements about the proliferation of new products in the consumer marketplace is true? ADVERTISEMENTS: xi. According to the ad, enjoying Puerto Rico hospitality is "As Easy As Saying I Do." A half-hearted, poorly attended event is worse than no event at all, so plan, decorate, train your staff and publicize accordingly. Get customers out of a holding pattern with a top-notch campaign. Which of the following sales promotion techniques is impacted negatively by the presence of professionals or hobbyists who take advantage of the promotion without making a purchase? 2. _____ is a recent development whereby companies are customizing their sales promotion programs for key retailers. Offering too many freebies can signal to customers that they are not purchasing a prestigious or “limited” product. Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal. Some sales promotions are aimed at consumers. As early digital adopters, Asian American consumers can help deliver an immediate sales boost for those digitally savvy brands who make the effort to target them where they are. Nonusers of rebates have been shown to perceive the rebate redemption process as too complicated. Sales promotion is a type of Pull marketing technique. Sales promotion is a $300 billion—and growing— industry. Programs involving cash payments directly to the sales force to reward them for selling the manufacturer's products involve the use of: Which of the following promotions is targeted toward the trade rather than consumers? You can use various techniques like giving discounts on the product, offering 1 + 1 free schemes, etc etc. In a sales promotion sponsored jointly by Puerto Rico Tourism Board and Rums of Puerto Rico, couples were invited to enter a contest for a chance to win the perfect wedding. 1 Thing Brands Can Do to Avoid Public Outrage and Cancel Culture, The 2 Types of Authority All Businesses Need for Marketing Success, 3 Ways to Succeed in Marketing in the Modern Era. Marketing manager: must determine the blend of promotional activities and coordinate them. Or, for higher-ticket service businesses, samples can take the form of affordable introductory packages that allow prospective customers to wade into the business relationship, gaining trust for the business while also receiving a valuable service. In fact, coming up with attractive promotions has become a bigger deal than ever. The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon. These are then e-mailed to participants for use on their social networking pages. TL;DR (Too Long; Didn't Read) Types of promotional strategies include traditional and online advertising, personal selling, direct marketing, public relations and sponsorships and sales promotions. All of the above statements about on-package sampling are true. But the strategy involves greater product design, production, promotion, inventory, marketing research and management costs. 50 and Rs. Sales promotion can be developed as part of the social media or e-commerce effort just as advertising can, but the methods and tactics are much different. Coupons always make a comeback in penny-pincher markets, which means they're hugely popular these days. Sales promotion is designed to be used as a short-term tactic to boost sales – it is rarely suitable as a method of building long-term customer loyalty. _____ couponing is a method for distributing coupons by identifying a customer's purchases through bar codes scanners and then printing the coupon for a competing or complementary product. Do you want to lure new customers into your business? The stuffed toy is an example of a(n): Consumers must pay the manufacturers' out-of-pocket costs for a _____ premium. The many ads that people see on the Web, in magazines and newspapers, and on TV are impressive and inexpensive. PR Events 1. But rarely can one promotion accomplish all of those objectives at once. Race 7. Intel and the PC manufacturers are using: When advertising and sales promotion efforts work well together and create sales results greater than those achievable from either element being used alone, they are producing a _____ effect. Which of the following elements of the integrated marketing communications programs is designed to provide an extra incentive to consumers to purchase a brand? Education 6. Income level 4. Which of the following would be the best example of a premium offer that contributes to consumer-franchise building efforts for a brand? Referral Programs 1. Know what you want to achievePromotions work especially well when consumers are in need of a jolt to take buying action. This is an example of a: Coors Light beer's heavy financial involvement with and support of freestyle skiing competitions, beach volleyball tournaments, and other sporting events are examples of: May is National Arthritis Month. It can build up a long-term image for a product (Barbican ads) or be incentive to sale quickly (a Digikala ad for a seasonal sale). Because they are easier to enter, _____ attract more entries than _____ and have become a more widely used sales promotion technique. What makes your product/service different from everyone else's? Consumer product companies launch approximately 20,000 new products each year. Regardless of what your company sells or does, it’s important to learn about who your consumer is so you can effectively target them with your promotion strategy. This allows the business to tailor its marketing activities with the needs, wants, aspirations and expectations of target customers in mind. When Campbell Soup Company introduced its V8 Splash fruit medley juices, the company gave out free samples at Sam's Clubs and distributed millions of 50-cents-off coupons. Set the number of sales you want to ring up, dollars you want to bring in, customer names you want to collect, buying patterns you want to change, or any other objective you want your promotion to achieve. Which of the following couponing methods allows companies to reach users of competitive brands rather than consumers who already use their brand? This is an example of: can be accomplished through consumer promotions that reinforce established brand images or positioning. Samples work in all lines of business to let customers try before buying. Heinz paid for a mariachi band to serenade shoppers during the day and also set up a food-sampling booth at the store's entry. Do you want to boost business during slow hours, weekdays or particular seasons? Marketers communicate with their audience in order to inform, educate and persuade them to purchase their product or service. Price savings, including discounts, coupons or added value offers, Samples or trial offers to provide a low-risk way to try new products or services, Events or experiences to generate crowds, enthusiasm, sales, publicity. _____ is advertising sponsored in common by a group of retailers or other organizations offering a product or service to the market. Sales promotions attract new customers, reward dedicated customers and persuade occasional customers to buy. Avoid uninspiring 10 to 20 percent discounts, but also avoid very deep discounts unless they promote a loss leader to generate other higher-margin sales, or unless they'll attract valuable new customers into your business. When she has purchased five books at regular price, she is sent a coupon for a free book to be picked out on her next visit to the store. Critics of sales promotions contend the increase in sales promotions is leading to a decrease in: Which of the following statements correctly describes the relationship between brand equity and sales promotion? Salesmen 1. Which of the following sales promotion tools should work best for Post? These tools are unique in their way and directed differently to these three groups. Companies such as Procter & Gamble use _____ to reduce fluctuations in the retail prices of their brands. While evaluating different methods of promotion in marketing, one should realize these strategies are not set formulas or recipes for the successful launch and eventually high sales of the product. When done correctly, promotions get customers out of a holding pattern by giving them an incentive to take action before a limited-time offer expires. Sales promotions are now considered an essential part of an organization's branding strategies. Plan your incentiveA well-thought-out, properly targeted promotion prompts customers to take action by offering one of these incentives: As you decide on your incentive, keep these facts in mind: Price offers must be strong enough to compel, but reasonable enough to keep your business out of red ink. Healthcare marketers consider internal stakeholders in their marketing efforts by staying in tune to what is going on in the organization and listening to the needs of the internal stakeholders. Find out the 7 reasons why social media marketing is important for your business!Social media is quickly becoming one of the most important aspects of digital marketing, which provides incredible benefits that help reach millions of customers worldwide. When hosting an event, make sure to go all out. Electronically dispensed checkout coupons: are accurately described by all of the above, generate impulse buying and product trial. As a result, you must decide which of the following is most important so that you can target your effort: After carefully and thoughtfully defining the audience and the change you want your promotion to inspire, ask yourself this question: If you offer a time-limited incentive, is it likely that the customers you've targeted will respond? So basically, these are different tools with purpose of encouraging consumers, dealers as well as the company’s sales force. Part of an organization designed to motivate distributors and retailers to carry a or! 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