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MARCOM Paid Media: Promotions: Premiums, Sampling, Coupons

Terms in this set (48)

brand management
- directed at influencing consumer behavior rather than initiating trade or sales force action
objectives of brand management
- generating purchase trial and retrial
- encouraging repeat purchases
- reinforcing brand images
promotions
- accomplish goals that ads by itself cannot
- induce consumers to buy now not later
- encourage buying one brand over competitor
- encourage consumers to buy more frequently
functional benefits of rewards
- monetary savings
- reducing search and decision costs
- improved product quality
hedonic benefits of rewards
- accomplish sense of being a wise shopper
- achieving need for stimulation and variety
- obtaining entertainment value
immediate rewards
- monetary savings or some benefit as soon as the consumer performs behavior
delayed rewards
- follow desired behavior by a period of days, weeks, or even longer
premiums
- merchandise offered as a gift to induce action
- generate trial/repeat purchasing and reinforce image
- increase brand loyalty and motivate new purchases
free with purchase premiums
- delayed reward to consumers primarily designed to generate trial purchases
- perceived value of a premium item, or gift, depends on the value of brand offering gift
mail-in offers
- delayed reward to consumers primarily designed to generate trial purchases.
- few consumers exposed to free mail-in offers take advantage of the opportunities
in-, on-, and near-pack premiums
- offer a free item of immediate value inside or attached
- provide the retail trade with premium item that retailers then give to consumers
- less expensive due to no additional packaging
bogo offers
- immediate rewards
- rewards brand loyalty and encourages trials
self-liquidating premium
- consumer mails in proof of purchase with sufficient money to receive item
- should be appealing and of value
phone cards
- repeat-purchasing objective
- delayed reward
- preset amount of calling time
attractive premiums
- choice and delivery based on explicit detailing of what is to be accomplished
- must be compatible with brand's image and appropriate
price-off objectives
- rewards present users
- get consumers to purchase larger quantities
- establish repeat purchases
- ensure promotion dollars reach customers
FTC regulation
- labels can only be used on distributed brands with retail prices
- 3 price-off per year
- no more than 50% of annual volume
- manufacturer must provide display materials
- dealer required to show regular and promotion prices
bonus packs
- extra quantities of a product that are offered for the same price
- alternative to price-off deals
- purchased by people who would have bought it anyway
games and contest
- instant rewards
- rules
- excitement and stimulate brand interest
- avoid anything that will threaten confidence and integrity of operations
sweepstakes
- winner are determined by chance
- inexpensive and simple
- reinforce brand positioning and image
- attract attention
- increase brand distribution
rebate/refund
- manufacturers offer discount/reimburse consumers
- delayed
- can attract switchers from competitive brands
fraud
- consumers
- manufacturers
- retailers
continuity programs
- loyalty programs
- point programs
overlay program
- use of multiple promotion tools to promote a brand or to promote brand cooperatively from different firms
tie-in promotion
- promotion of multiple brands in a single intercompany
- cost effective but lead time is lengthened
- should reinforce partners' images
purpose of retailer promotions
- increase store traffic
- offer price discounts and deals
- build customer loyalty
types of retailer promotions
- retail coupons
- frequent shopper programs
- special price deals
- samples and premiums
evaluating promotion ideas
1. identify specific objective
2. achieve agreement on objectives
3. evaluate the idea
sampling
- any method used to deliver and actual or trial sized product
sampling effectiveness
- gives consumers an opportunity to experience a new brand personally
- allows active interaction rather than a passive encounter
- a necessity when introducing new products
direct mail
- mailed directly to households targeted by demographics/ geographics
newspapers and magazines
- samples included in magazines and newspaper represent cost efficient forms of sampling
door-to-door distribution
- allows considerable targeting and has lower cost and short lead times
on- or in-pack sampling
- uses the package of another product to serve as the sample carrier
high-traffic locations
- shopping centers, movie theaters, airports, and special events offer valuable forums for sample distribution
in-store sampling
- providing samples in grocery stores
sampling at unique venues
- choosing unique locations for sampling products appropriate for people at a certain stage of life, referred to as change-point sampling
internet sampling
- distributing samples online through the services of companies that specialize in online sample delivery
prudent sampling practices
- targeting rather than mass distributing samples, - using innovative distribution methods where appropriate,
-undertaking efforts to measure sampling's return on investment
when to use sampling
1. brand is superior or distinctive advantage
2. product concept is difficult to communicate by ads alone
3. promotional budgets can afford to generate consumer trial quickly
sampling problems
- expensive
- mishandling
- wrong market
- samples fail to capture new consumers
- ROI is not good
- misuse of samples
- subject to mail pilferage
coupon
- rewards consumers for purchasing the brand by providing cents-off savings
- instant, by mail, or by media
coupon distribution methods
- free standing inserts
- handouts in stores
- direct mail
- magazines
- newspaper
- in or on package
- shelf delivery
- register delivery
- internet
is couponing profitable?
- companies have to offer coupons to prevent losing consumers to brands that do
mail delivered coupons
- 95% penetration rate
- highest redemption rate
- increase purchases
- expensive
- inefficient for brands with high market share
FSIs and other media delivered coupons
- 88% of all coupons distributed via Sunday newspaper freestanding inserts
- provides broad exposure
- relatively cheaper
- serves both reminder and advertising functions
- redemption rate low
- don't generate trade interest
- susceptible to misredemption
online couponing
- via internet
- consumers print their own
- potential fraud
- through telephone also
misredemption
- 3-4% is millions in losses
- consumers and management can participate
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