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

Home Depot is a powerful retailer with a high-volume, low-price position.Therefore, Home Depot can exert pressure on manufacturers and suppliers to offer its staff various forms of trade-market promotions.These come in four major types:

Shampoo manufacturers sometimes run a promotion in which they shrink-wrap two plastic bottles of shampoo for the price of one.They most often use this buy-one-get-one-free tactic when they want to

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) Another email comes from a client asking for clarification on something.She owns a hair salon downtown, and you have occasionally placed newspaper ads for her.One of her regular customers works in marketing and casually mentioned that she should advertise in "out-of-home" media.She never got to ask her exactly what that is.You email a brief definition, adding a note that

The combination of transit, aerial, and cinema advertising is commonly called ____ media advertising.

Several factors have affected sales promotion in recent years.Pressure from stockholders to produce high quarterly revenue, marketing plans based on quick results, and a bottom-line mentality have all contributed to a ____ in many organizations today.

The biggest difference between contests and sweepstakes is that

Sales promotion can provide an affiliation value for a brand, meaning that the consumer wants to, or is able to, identify with the brand.

A kitchen appliance manufacturer devises a program to encourage members of the trade to purchase its brand.It offers salespeople an extra $75 for selling one of its refrigerators, $50 for selling one of its ovens, and $40 for selling one of its dishwashers.What specific promotional concept for the trade channel does this involve?

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 commissions the design of 50 cardboard displays for record stores.The displays will hold 144 compact discs, with headphones for patrons to listen to selections off each disc.This type of promotion is known as ____ advertising.

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 urgent email from another exec says that a local client insists that his billboard campaign is "not working at all" because "no one" is seeing his billboards.Road construction has rerouted downtown Dallas traffic away from the main thoroughfares featuring his three billboards.Before you head home, you drive out to all three locations.That evening you can email the exec that this is actually the case in only one instance, and that you got this information by

What are the three basic forms of sales promotion?

This type of promotion technique, often seen in the trade channel, comes in four different versions: merchandise, slotting, bill-back, and off-invoice formats.What is it?

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) Which promotional concept was demonstrated by the company that hired a woman to hand out slices of pizza?

It is estimated that almost one-fourth of corporate America gives business gifts as a type of business-market promotional technique.

Which of the following is not a form of P-O-P advertising?

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) Which of the several possible objectives of promotion did all these activities have in common?

Assume that you are a marketing director for the business of your choice-it can be a real business or an imaginary one -and you need to reach a local audience.You are asked to compare billboard advertising and transit advertising, including their advantages and disadvantages, and prepare a short report detailing these issues.Briefly outline the report you would write, paying particular attention to the best way to promote the brand, the type of product or service you are selling, the geographic area you are in, the demographics of the local population, etc.

Full-service advertising agencies specialize in a number of both traditional and innovative services, but typically do not provide ____ for their clients.

Describe some of the forms of sales promotion techniques used in consumer markets, and give some of the reasons why they are used.Then imagine yourself as a manufacturer, producer, or small business owner.Invent a brand-a product or service-and explain how you would use at least three of these techniques to target a particular consumer market.

Retailers are becoming more powerful by demanding recompense from manufacturers in return for giving brands favorable placement or other special attention.