Exam 15: Sales Promotion Point-Of-Purchase Advertising and Support Media

Scenario 15-2 The Sounds Good recording company is getting ready to release the first compact disc from its newest band, Planet Moon.Sounds Good's last three releases have been dismal failures, and the struggling company needs a quick influx of cash.The owners decide to use sales promotions to move the Planet Moon disc through record stores and into customers' hands. -(Scenario 15-2) Sounds Good has placed a small catalog inside each compact disc.The catalog features a variety of Planet Moon items that can be ordered-the band's music video as well as T­shirts, ball caps, and travel mugs.These items are considered self-liquidating premiums because the consumer:

A(n) entitles a buyer to a designated reduction in price for a product or service.

Compared to advertising, sales promotion is:

Scenario 15-4 General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats.However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market.As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well.Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category.As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal. -(Scenario 15­4) General Mills' salespeople handle and monitor a number of promotions for its cereals.Which of the following involves Point-of-Purchase advertising?

Materials that are used in the retail settings to attract shoppers' attention to a product convey primary product benefits or highlight pricing information.They are referred to as Point-of-Purchase advertising.

Scenario 15-5 Starting in late 2010, shoppers at a number of Bloom supermarkets will be able to watch commercials on small notebook­sized monitors as they stroll through the aisles.The devices, or 3GTV's as creator Automated Media Services calls them, will advertise products nearby ranging from macaroni noodles to peanut butter.The mini- televisions are part of a pilot program in nine of the grocer's locations in Maryland and Virginia to test the effectiveness of commercials at the Point-Of-Purchase.Advertisers who are growing increasingly frustrated by TiVo and DirectTV's fast-forwarding capabilities, will be able to pitch consumers at what Automated believes is the most crucial point in the sale process.The new technology could help grocery stores such as Bloom save money on circulars, but the transition will likely not come without conflict.Before the first 3GTV was even activated, one coalition group argued that the system would undercut parental authority by causing children to lobby for the product being advertised. (Danielle Douglas, "Bloom to Try Out In­Store TV Advertising System." Washington Post, November 1, 2010.) -(Scenario 15-5) If ClipTrick wanted to install a permanant-promotion display.The display would have to be used for more than: