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

One advantage of sales promotions is that the results are simple to measure.

Scenario 15-3 Stacey is making her weekly trip to the grocery store. She takes with her a National brand coffee coupon worth 50 cents. While shopping she was asked if she would like to try a slice of pizza from a sales person. After tasting it, the sales personal directs her to where the brand is available. When Stacey arrives at her favorite brand oftoothpaste, she is delighted to find that she would receive a toothbrush along with the toothpaste attached to the box for no charge. She then runs into a cardboard cutout of an actor from a medical drama that she watches on TV, with a box full of pain relievers built into it. At her last stop, the cereal aisle, she notices that a brand offers a chance to buy a T-shirt with a picture of the brand's cartoon character.  -(Scenario 15-3)Which of the following promotional concepts was demonstrated by the company that hired a woman to hand out slices of pizza? 

A dentist offers a deal in which customers who have had two teeth whitening services over the last year get the third one free.This is an example of a sampling program to stimulate repeat purchases.

A retailer has been doing very well over the years,and can now expect to get cash payments from manufacturers and suppliers if they want their products on the retailer's shelves.Therefore,it regularly receives these payments,known as: 

Coupons are the oldest and most widely used form of sales promotion.

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 sales flyers and circulars, and began to promote the various sales on their websites. Other companies such as Targetwere 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: 

One advantage of using sweepstakes and contests is that they can quickly and easily communicate the brand message through the game.

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.

Discuss the overall trend in spending on advertising and sales promotion over the past decade.Outline at least three reasons for this trend.

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 sales flyers and circulars, and began to promote the various sales on their websites. Other companies such as Targetwere 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)Implementing contests and sweepstakes can be a challenging task.One of the difficulties in implementing an effective sweepstakes is: 

Of all types of support media,directory advertising offers a unique advantage by: 

Despite more advertising clutter,transit advertising works well in dense,urban cities rather than in rural small towns.

Scenario 15-6 Ted's grocery store is extremely popular in a small neighborhood. Pretzels, a crisps company, has provided scratch cards inside each packet of crisps with the hope of a prize for the winner. Pretzels being a relatively new company had to pay Ted's grocery to sell its products. Quads, a blender manufacturer, has provided its customers with a chance to receive 10% of their money back by filling in and mailing the required details on a provided form. It also stated that employees who sell two blenders would receive a bonus. Quad had sent the owner of Ted's grocery an expensive hand crafted wooden sculptor.  -(Scenario 15-6)Pretzels paid Ted's grocery a fee to sell its products.This is known as: 

A manufacturer of dental care products sets up a new promotion by attaching one of its toothbrushes to its boxes of toothpaste.This is an example of a mobile sampling technique.

Compared to advertising,sales promotion is: 

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

The advantage that sales promotions have over advertising is that they are measurable and they can often motivate consumers to buy larger quantities or try new brands.