Using coupons and rebates to lower the price of an item is an example of quizlet

51. The sales-promotion techniques used within the trade market are:
a. couponing, cash allowances, incentives, and slotting fees.
b. incentives, allowances, training programs, and cooperative advertising. c. case allowances, sweepstakes, couponing, and training programs.
d. slotting fees, Point-of-Purchase displays, consumer rebates, and merchandise allowances.

56. The CEO of a software manufacturing firm that supplies to large insurance firms wants to look at all possible forms of business-market promotions to gain and maintain lucrative customers. He meets with his marketing director, and they review the five main areas of promotion techniques aimed at business buyers. They are:
a. trade shows, business gifts, premiums and advertising specialties, trial offers, and frequency programs. b. incentives, allowances, training programs, cooperative advertising, and sampling.
c. merchandise allowances, cash allowances, trade shows, training programs, and incentives.
d. premiums and advertising specialties, frequency programs, incentives, allowances, and cooperative advertising.

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1. First, sales promotion involves an inducement that provides an extra incentive to buy.
- This incentive is usually the
key element in a promotional program: It may be purely financial (i.e., coupon, price discount, refund or rebate), emotionally based (i.e., opportunity to enter a contest, premium), value-oriented (e.g., extra amount of product, sample a free product), or experiential (i.e., attend a marketing event).
- The financial incentive is extrinsic while the intrinsic non-financial incentives are hedonic in nature, demonstrating entertainment, personal exploration, and value expression

2. Second, sales promotion is essentially an acceleration tool, designed to speed up the buying process of consumers By providing an extra incentive, sales promotion techniques can motivate consumers to
and maximize sales volume.
- By providing an extra incentive, sales promotion techniques can motivate consumers to purchase a larger quantity of a brand or shorten the purchase cycle by encouraging consumers to take more immediate action. Sales promotion attempts to maximize sales volume by motivating customers who have not responded to advertising.
- The ideal sales promotion program generates sales that would not be achieved by other means.
- However, sales promotion offers may end up being used by current users of a brand rather than attracting new users.

- promotion activities targeted to the ultimate consumer market
- include samples, coupons, premiums, promotional products, contests and sweepstakes, refunds and rebates, bonus packs, price discounts, and event marketing.
- These promotions are directed at consumers, the end purchasers of goods and services, and are designed to induce them to purchase the marketer's brand.
- Consumer promotions are also used by retailers to encourage consumers to shop in their particular stores.
- Sales promotion can also be directed to intermediaries like wholesalers, distributors, and retailers, known as trade members.

- Another part of the strategic sales promotion decision is the degree to which each sales promotion is applied to the range of sizes, varieties, models, or products.
- Overall, there are three important product decisions for sales promotions.
- (1) Should the sales promotion be run on the entire line, or on individual items? If the individual item option is chosen (i.e., selective application), the next decision point arises:
- (2) Which specific items should the sales promotion target?
- The marketer could run a promotion on either the more or the less popular items.
- Similarly, the marketer could focus on higher or lower price points.
Sometimes, a sales promotion is offered on a unique product format or size instead of the regular product.
- For example, Kellogg's bundled three brands of cereal with plastic in one sales promotion in which each size was not the standard size typically distributed.
- This raises the remaining strategic issue:
(3) Should the sales promotion be run on the "regular" stock or another special version?

- a voucher providing a consumer with a discount or free good and it is one of the oldest and most widely used sales promotions.
- Its characteristics are a function of tactical options: the variability in discount offered (e.g., $0.50, $1.00), time flex-ibility in terms of offer and expiration (e.g., limited, unlimited), and how it is distributed (e.g., media, direct, package, retailer), allowing it to fit in more than one cell

- Direct mail, print media (newspaper or magazine), in/on package, and non-traditional.
- Coupons are disseminated to consumers in a number of ways, including media, direct mail, in/on package, in store, and the Internet.
- The average redemption rate for all distribution methods is 2.5 percent.
- About 320 billion coupons are distributed annually in the United States, which extrapolates to 35 billion in Canada—almost 1,000 coupons per Canadian per year.
- However, general observation suggests that coupon distribution is more intense in the United States, meaning the 1,000 per person in Canada is too high an estimate.

- Offer discounts on specific products, usually for a short period of time, and only at a specific store
- distributed to consumers while shopping via tear-off pads, handouts, on-shelf dispensers, and
electronic dispensers.
- These in-store coupons reach consumers when they are ready to make a purchase, increase brand awareness on the shelf, generate impulse buying, encourage product trial, and provide category exclusivity. - Extending this idea, coupons are distributed essentially in any place-based location by simply handing them out.

- Goodies such as coffee mugs, T-shirts, and magnets given away to build awareness for a sponsor.
- Some freebies are distributed directly to consumers and business customers; others are intended for channel partners such as retailers and vendors.
- useful and/or symbolic items that are implemented in marketing communication programs as a sales promotion or message vehicle, or a combination of both.
- Promotional products are essentially a premium, but not typically tied to a purchase as shown in the Happy Meal example.
- A promotional product is mostly given as a gift to company stakeholders (customers, suppliers, employees, guests) as a thank-you or reward.
- The items contain brand identification to enhance awareness, maintain brand equity, or strengthen goodwill.
- Popular items include pens, mugs, glassware, key rings, calendars, and clothing.
- The variety of promotional products makes it a virtual certainty that a manager can improve attitudes with an item that represents the brand appropriately.

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