Marketing: Chapters 17, 18 & 20

Terms in this set (53)

A. Coupons - offer discounted price to consumer; stimulates demand, encourages retailer support; cause consumers to delay purchases
B. Deals - short-term price reductions; used to increase trial or in reaction to a competitor, reduce consumer risk; cause consumers to delay purchases, reduce perceived value
C. Premiums - products offered for free or reduced price; build goodwill and company image; consumers buy for premium rather than the product itself
D. Contests - consumers apply their skill to win a prize; increase customer involvement and purchases; require creative or analytical thinking
E. Sweepstakes - participants submit entry for chance at a prize; encourages brand loyalty and increased purchases or visits to store; sales drop after sweepstakes end
F. Samples - offering the product for free or at a greatly reduced price; encourages product trial, low risk to consumer; high cost for company
G. Loyalty programs - sales programs used to encourage repeat customers; creates brand loyalty; expensive
H. Point of purchase displays - in store ads for a product; high product visibility; hard to get retailers to allocate high traffic space in store
I. Rebates - offers the return of a portion of the price of a product based on proof of purchase; stimulates demand; easily copied, steals future sales, reduces perceived product value
J. Product placements - use of a brand name/product in a movie, TV show, video game, or commercial; demonstrate product uses, positive message in noncommercial setting; little control over presentation of product