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Flashcards in The Promotional Mix Pieces (11) Deck (48)
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What is a sales promotion? 

a short term, external promotion designed to influence immediate purchase 


What are the two important/key charecteristics of a sales promotion? 

- it is short term 

- it influences immediate purchase 


Sales promotions are short-term meaning...

they are not designed to last forever


List six common examples of sales promotions

1. free samples

2. coupons

3. Price promotion

4. Frequent-user program

5. Gift Premium

6. Contests 


What is the most common example of a free sample promotion? 

a food sample stand at a grocery store 


What are the benefits of free samples? 

it decreases the consumer's purchase risk and encourages product trial purchases 


Free samples ______ the consumer's purchase risk and ______ product trial purchases 

decrease, encourage 


- think of when I have tried a sample of food that i had no intention of buying...and then purchased that food item. 


_________ are a way to encourage new product usage 



In 2018 how many coupons were redeemed? 

1.1715 billion worth a face-value of $2.7 billion dollars 


About _____ percent of couipons distributed are for non-food items, but about _____ of all coupons actually redeemed are for food items 

75, half 


What is a price promotion? 

simply a sale 


a price promotions is simply a ______



What are some common examples of a price promotion? 

- percent-off sales

- buy-one-get-one-off (BOGO) sales 


Are price promotions meant to be temporary or long-term? 



- if a business continually runs a sale customers will eventually view the merchandise as worth the reduced price, and the business will have a hard time raising prices back to the original level 


What does a frequent user program encourage? 



Frequent user programs can encourage a customer to ______ choosing particular brand over a competitors



- For instance, if a customer had a choice between two airlines and all other criteria were equal, the customer would probably pick the airline that would earn him or her frequent flyer miles. 


What is an example of a gift premium?

a free gift with purchase 


Contests encourge potential customers to _______, they can also motivate current customers to increase _________. 

purchase, comsumption 


What can contests encourage? 

purchase, increasaed consumption, and sharing information about the company 


What are the four benefits of sales promotions? 

- balances demand against available inventory or capacity

- effectiveness is measurable 

- promotional costs vary with volume

- reduces risk of initial trial 


A company with excess _______ or available production capacity can use sales promotions to ______  demand and balance out the ______ inventory / capacity.

inventory, increase, excess


For instance, theme parks run sales promotions during off seasons when the park typically has fewer customers.


What is the goal of a sales promotion? 

an immediate increase in sales 


Is tracking the effectiveness of a sales promotion easy or hard?  



For the sale of physical goods, a marketer can track the immediate increase in product sales during the promotion.


What are the main costs associated with sales promotions?    

per-unit expenses that take place every time a customer takes advantage of a sales promotion




To illustrate the concept, if a marketer runs a television commercial (an advertisement) for $10,000, then the cost of that ad is the same whether the company sells 10 extra units from that commercial or 10,000. However, if a marketer distributes $1 coupons (a sales promotion), then the cost of the promotion to the company is $10,000 if the company sells 10,000 units but a mere $10 if the company only sells 10 units.


What two sales promotions are effective at reducing the risk of the initial product purchase?



free samples and coupons


When are sales promotions useful for reducing the risk of the initial trial of a product? 


when introducing a new product to the market. The idea is that the customer will try the product and then become a repeat customer.


What is public relations? 



The practice of managing the spread of information between a product, company, organization, or brand and the public or stakeholders.


What is public relations about compared to advertising? 

While advertising involves direct, paid messages designed to lead a consumer toward purchase, public relations is more about building goodwill and managing the brand or company’s image.


What are some functions of public relations? 

- Promote goodwill and build trust

- Lobby for the good of the company

- Promote positive brand image

- Manage publicity

- Maintain investor relations


Public relations seeks to promote _______ and build trust