Key Point 1: Consumer Sales Promotion
- Why is sales promotion referred to as a sales accelerator? Give examples of how sales promotion might work at different points in a consumer's brand decision making.
- List at least three objectives that you might have in designing a consumer sales promotion program.
- Do an aisle check in your favorite drugstore. What products could profit most by identifying segments of one?
- Define sales promotion. Explain how sales promotion adds value to a brand offering.
- How do coupons and rebates differ?
- How do sweepstakes and contests differ? Find an example of one or the other, and explain how it works.
- How do specialties deliver brand-reminder messages?
- How many different sales-promotion tools and techniques does Snapple use in promoting its brand and beverage? Create a list of the brand's promotional efforts that you find on the Snapple website, www.snapple.com.
- What are the key strengths and limitations of consumer sales promotions?
- Explain how cross-promotions and tie-ins work. Why are they used?
- Find a cross-promotion involving a movie. Explain why the two brands are in partnership and what they gain from the partnership. In your estimate, is the partnership effective?
- How do loyalty programs work? What objectives do they accomplish?
- What are the strengths and limitations of loyalty programs?
- Loyalty programs work best when a brand has high fixed costs and low variable costs. Explain what that statement means.
- Check your medicine cabinet, and pick one of your favorite products. How many different sales promotions can you identify as being used in support of this product? Consider not only the product's package but also any other marketing communication you can find that promotes this brand.
- What communication functions does a package perform?
- What does it mean to say that packages have a billboard function?
- Visit your local grocery store, and identify the brand that has the most "shelf facings" (packages that face you as you stand in the aisle). Explain how this brand benefits from the billboard effect.
- What are the key strengths and limitations of packaging design?
- List and explain at least three objectives that you might set for your packaging.