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

Scenario 15-1 One of the nation's most popular times for sales promotions was a great deal longer than usual in 2010. Black Friday, which typically takes place the Friday following Thanksgiving, started in October for a number of retailers and was also scheduled to occur throughout the month of November.Sears and Walmart, who had been experiencing a continuous decline in sales recently, were the biggest names behind the move. Executives from a number of companies began to realize that consumers respond to the word "sale," regardless of the time of year, so they decided to simply stretch the period of time in which their biggest sales ran. Companies designed new sale flyers and circulars, and began to promote the various sales on their websites. Other companies such as Target were also implementing a similar strategy-by emphasizing savings earlier in the season and for a longer period of time, company executives hoped their brand would be the first, second, and last choice for consumers during the holiday season.(Stephanie Clifford, "Stores Push Black Friday Into October." The New York Times, October 28, 2010.) -(Scenario 15-1) Because companies realize consumers will be visiting stores more frequently during the holiday season, several toy manufacturers are paying direct cash to retailers in exchange for placing their brand in the most visible locations. These cash payments are known as

Support media are used to introduce a new message beyond the one being delivered by other advertising vehicles, marketing plans, and promotional techniques.

A regional office supply store wants to understand and serve its customers better and compete with nationwide giants.It is looking for the most effective way to encourage repeat visits and build long-term loyalty in its customers, both individuals as well as businesses.What form of promotion would work best?

A mother purchases a Happy Meal box and her son immediately picks up the little toy that accompanies it.The little boy's new toy is an example of a

Organizations and stockholders are setting a short-term orientation toward generating revenue.

Scenario 15-5 Starting in late 2010, shoppers at a number of Bloom supermarkets will be able to watch commercials on small notebook-sized 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, which 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 In-Store TV Advertising System." Washington Post, November 1, 2010.) -(Scenario 15-5) Advertisements on the 3GTV's will likely be rotating on a very frequent basis. In fact, no one ad will be shown for any longer than one or two months at a time. These ads are known as

In a classic quote, what has been considered "the last five seconds of marketing"?

Scenario 15-4 General Mills brand breakfast cereals face strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats.Still, 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 15-4) General Mills has experimented with selling cereal in the form of a "two pack." These are two standard-size boxes of cereal shrink-wrapped together and offered at a special price.What is most likely the objective for this type of consumer-market sales promotion technique?

Trial offers have the same goal as samples, except that trial offers

Friendly Car Wash offers a deal in which customers who have bought nine car washes over the last year get the tenth one free.This is an example of a sampling program to stimulate repeat purchases.

Scenario 15-1 One of the nation's most popular times for sales promotions was a great deal longer than usual in 2010. Black Friday, which typically takes place the Friday following Thanksgiving, started in October for a number of retailers and was also scheduled to occur throughout the month of November.Sears and Walmart, who had been experiencing a continuous decline in sales recently, were the biggest names behind the move. Executives from a number of companies began to realize that consumers respond to the word "sale," regardless of the time of year, so they decided to simply stretch the period of time in which their biggest sales ran. Companies designed new sale flyers and circulars, and began to promote the various sales on their websites. Other companies such as Target were also implementing a similar strategy-by emphasizing savings earlier in the season and for a longer period of time, company executives hoped their brand would be the first, second, and last choice for consumers during the holiday season.(Stephanie Clifford, "Stores Push Black Friday Into October." The New York Times, October 28, 2010.) -(Scenario 15-1) In order to prepare for the holiday season, large retailers often take additional measures to ensure their sales personnel are ready to handle any number of unique situations they may encounter. Classes that feature product information and demonstrations are often implemented to educate employees. These efforts are called

One advantage of sales promotion is that it breaks through the media clutter.

An automobile insurance company has noted an increase in its competitors' television and radio spots, so it considers transit advertising as a unique promotional vehicle.Its marketing team is aware that this works best in

Scenario 15-6 You are a media planner at an advertising agency in Dallas.Since it is Friday, you take a long lunch with a sales associate at the Dallas Morning News followed by a walk through a nearby park, returning to the office around 2:30 p.m.When you get to your desk, you find a number of new emails from account execs waiting for you, all with subject lines suggesting pressing client issues.You need to answer them before the weekend hits. -(Scenario 15-6) One email says that a client with several fast-food restaurants along the state highway wants to get out the message to "eat right now." What kind of media should he use? You reply that you know what will work best.You can meet on Monday to discuss the use of

Scenario 15-3 It's time to take your weekly trip to the grocery store.You bring a coupon good for 50¢ off a national brand of coffee.As you walk the aisles, a woman asks if you'd like to try a slice of pizza.After you taste it, she points out where the brand is kept in the freezer display.When you get to your favorite brand of toothpaste, you're delighted to find that a toothbrush with the same brand name is attached to the box at no charge.You turn the corner and run into a cardboard cutout of one of the stars from a leading medical drama on TV.This display has a medical kit full of a new brand of pain reliever built into it.Your last stop is the cereal aisle, where you notice that one brand offers a chance to buy a T-shirt with a picture of the brand's cartoon character for $4.95. -(Scenario 15-3) You realize later that getting the free toothbrush is nice, but wonder whether it will lead you to buy that brand next time you need one.Some critics point out that sampling is probably not a particularly effective technique for the manufacturer if the item is

Marketers are causing a proliferation of brands in many product categories, while also needing to gain attention and differentiate their brand.

Advertising clutter is taking over mass media and requiring greater ingenuity to achieve breakthrough.

In the world of promotion today, payments in the form of slotting fees, cash allowances, and incentives are becoming more popular, largely due to the growing power of

Scenario 15-6 You are a media planner at an advertising agency in Dallas.Since it is Friday, you take a long lunch with a sales associate at the Dallas Morning News followed by a walk through a nearby park, returning to the office around 2:30 p.m.When you get to your desk, you find a number of new emails from account execs waiting for you, all with subject lines suggesting pressing client issues.You need to answer them before the weekend hits. -(Scenario 15-6) An account executive has emailed saying that a client is quite pleased with the results of the network TV buy that you made last month.Now the client would like to use support media in the geographic areas that have shown the strongest results, as soon as possible.He wants something that targets adults who live and work in major metropolitan areas, has the potential for mass exposure, and can be set up pretty quickly.You recommend the use of

Scenario 15-3 It's time to take your weekly trip to the grocery store.You bring a coupon good for 50¢ off a national brand of coffee.As you walk the aisles, a woman asks if you'd like to try a slice of pizza.After you taste it, she points out where the brand is kept in the freezer display.When you get to your favorite brand of toothpaste, you're delighted to find that a toothbrush with the same brand name is attached to the box at no charge.You turn the corner and run into a cardboard cutout of one of the stars from a leading medical drama on TV.This display has a medical kit full of a new brand of pain reliever built into it.Your last stop is the cereal aisle, where you notice that one brand offers a chance to buy a T-shirt with a picture of the brand's cartoon character for $4.95. -(Scenario 15-3) Of all the products with sales promotions that you encountered in the store, which one involved point-of purchase advertising, which probably cost the manufacturer a few pennies?