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

Sales promotions have an advantage over advertising in that they offer great rewards with little or no risk.

Out-of-home media describes various advertising venues that reach local audiences while they are out in public.

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) On one of the company's websites, a sweepstakes was designed to award one lucky customer after he or she provided feedback on a number of planned sales promotions for the holidays. One characteristic of a sweepstakes is

Retailers often run trade promotions simultaneously along with consumer promotions.

The only medium that places the advertising, the product, and the consumer together in the same place at the same time is P-O-P advertising.

One objective for promotions in the trade channel is to increase store traffic, which benefits both manufacturers and retailers.

List and briefly describe the four main techniques commonly used in trade-market sales promotions.Choose one type and demonstrate how it would operate within a certain type of industry, profession, or business.

You are opening an informal dining establishment in your hometown, a novel type of buffet-style eatery offering a wide variety of breakfast and lunch choices 24-hours a day, called Anytime Cafe.As part of your initial promotions, you are considering a couponing effort as well as a frequent-diner program.Briefly describe a couponing effort for this business, naming several advantages and disadvantages.Then describe how a frequency program would work for this establishment, including any advantages and disadvantages.

A manufacturer helps out a retailer by sharing the cost of local advertising, allowing the manufacturer to have some control over the process and the retailer to advertise for less.They are taking part in a form of business-market sales promotion.

From the consumer's viewpoint, directories like the Yellow Book have some disadvantages as promotional tools.For one thing, they cause a particular problem with

A display rack that stocks cigarettes is placed above the cash register, so the cashier can reach the product for the consumer.The rack has signage on the front advertising the cigarette brand.This is called an overhead merchandiser.

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) The marketers at General Mills have learned that they, along with Kellogg's and Quaker Oats, often target the same customers with their advertising.This problem of customers receiving too many messages from too many firms has been addressed with sales promotion tactics featured in advertising, such as coupons included in magazine ads, or rebate offers mentioned in TV commercials.This is an example of ____ driving growth in sales promotion.

One drawback of sales promotions is that the results are difficult to document.

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) The displays commissioned by Sounds Good need to be set up and maintained.Any record store that agrees to do this gets several copies of Planet Moon CDs and past releases from Sound Goods for free.This is known as a(n)

As noted in the text, some advertising experts suggest that billboard copy should not exceed ____ words.

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 inserts a sheet of coupons in Sunday newspapers in major markets.This is a form of ____ sales promotion.

Sales promotion can attract attention and motivate trial purchase, so it is often used to introduce new brands to the public.

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 T-shirts, ball caps, and travel mugs.These items are considered self-liquidating premiums because the consumer

Compared to advertising, sales promotion is

Transit advertising works well in small towns, rural areas, and farm communities due to their lack of ad clutter.