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Coupons, Sweepstakes & Contests
Terms in this set (47)
Consumer Usage of coupons?
75-80% of all households use coupons, coupon use declines when economy is strong
Highest use for consumer usage of coupons?
45-64 year olds, $25-75,000 incomes
Lowest use for consumer usage of coupons?
18-24 year olds, $75,000+ incomes
2 reasons for coupon use?
76% of consumers like to save money, 67% need to stretch their budget
Why marketers like coupons? (5)
Deliver a temporary price cut to consumers,
May encourage trial,
Differentiate between price sensitive and price insensitive consumers,
Enable targeting to geographic or other demographic segments,
May influence retailers to carry product
Coupon problems? (5)
expensive and inefficient,
excessive use may erode brand loyalty (consumers come to expect/depend on coupons),
create uneven demand,
Potential solutions to coupon problems?
switch to everyday low pricing or tailor programs to meet specific goals
Top 10 retailer redeemers?
walmart, kroger, target, publix, walgreens, cvs, ahold, defense commissary, safeway, meijer
Advantages of free-standing inserts? (5)
broad distribution at relatively low price, good targeting, color, consumers like them, retailers respond to them
Disadvantages of free-standing inserts? (3)
low redemption rates, wasted reach: may not reach intended target, limits on availability and long lead time
Newspaper Ad advantages? (2)
any day of the week, short lead time
Newspaper Ad Disadvantages? (3)
limited targeting, low redemption, expensive
Magazine Ad Advantages? (2)
high reproduction quality, good targeting
Magazine Ad Disadvantages? (3)
narrow reach, timing problems, lack of favor among consumers
Magazines Ads can be either?
on-page or pop-up
Postal service or alternative delivery system?
Direct mail advantages? (5)
Selectivity (geographic and demographic targeting),
One coupon per household,
Good redemption rates,
Direct Mail disadvantages? (2)
high delivery costs ($15-$50 per thousand), poor reaction from retailers
in-pack, on-pack, or instant coupons and same product or cross-ruff
Merchandise-distributed coupons advantages? (3)
low distribution costs, high redemption rates, good targeting
Merchandise-distributed coupons disadvantages? (2)
long expiration dates needed, special packaging
Obtained at the time of purchase of a carrier brand and may be redeemed at a later date?
Usually a 'cents off' coupon affixed to the product or in newspaper/magazine inserts for use on the NEXT purchase and
Have the ability to link consumer purchases across different brands as well as shopping trips
electric coupons? (3)
point of purchase distribution tied to scanner data, frequent shopper cards, online services
Electric coupons advantages? (4)
good targeting, high response rates, short lead times, retailer relationships
Electric coupons disadvantages? (5)
high cost, not available at all stores, consumer dislike, no ad message, fraud
Other distribution methods? (4)
retailer distribution, through the mail by request, handouts, special programs in non-traditional locations
Retailer distribution? (4)
shelf dispensers, kiosks, circulars or ads, sampling in stores
Promotion objectives tied to coupon distribution methods? (8)
new product trial, incremental volume/repeat purchase, retail support, target specific shoppers based on segmentation, encourage brand switching, in-store/impulse purchases, consumer relations, building consumer database
Any method with sample, direct mail, electronic shelf, free-standing insert (FSI), handout, shelf box, shelf pad?
new product trial
Bounceback digital, electronic checkout, FSI, in-pack, instant redeemable
incremental volume/repeat purchase
Digital...esp on retailer site, FSI...esp with retail co-equity, handout...esp while sampling, in-ad, newspaper, store coupon?
Digital, direct mail, electronic checkout, handout magazine, military?
target specific shoppers based on segmentation
Digital, electronic checkout, handout, instant redeemable, shelf box, shelf pad?
encourage brand switching
Digital, electronic kiosk, handout, instant redeemable, military, shelf box, shelf pad?
Bounceback, consumer relations, digital?
Any mass-reach method in which additional name and contact information is collected and captured-either online or through special data capture?
building consumer database
Couponing issues? (6)
value, message, mis-redemption, multiple purchase requirements, expiration dates, costs
Couponing issues: value? (3)
average face value: $1.44 in 2008 vs. $1.62 in 2013, high value gets better response and is better at reaching competitive users (switchers), consumer perceptions and expectations (wait and watch for coupons)
Couponing issues: message ? (3)
appearance and shape, clear/obvious offer and restrictions, selling message
Couponing issues: mis-redemption? (4)
carelessness at checkout (less risk with scanners), fraud: theft and collusion with retailers, fake coupons printed through home computers, sale in bulk via online auction sites
Couponing issues: multiple purchase requirements? (2)
buy one get one free 'BOGO' and multiple units of same brand and different related products, impact on target and redemption rates
Couponing issues: expiration dates?
average is under 3 months (about 10 weeks in FSI's)
Couponing issues: costs? (4)
distribution, redemption, face value, retailer handling
Normally require the participant to perform some type of activity and the winner is selected based on who performs the best or provides the most correct answers
Entices consumers to submit free entries into drawings of chance that are tied to product or service awareness to win a prize
Benefits to the brand? (8)
create a buzz about the product (especially with social media) and encourage people to talk about the company and its products, draw traffic to website or store, build brand awareness, get consumers to market for you (especially if 'votes' are needed...consumers will spread the word), build database-especially number of likes, perform marketing research (add a survey, gather info), gather User generated Content (UGC) like photos and videos and essays from consumers that can be reused, strengthen relationship with consumers and be fun and engaging
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