Sales Promotion Techniques Quiz: Trivia!

Markdown refers to a reduction in the price of a product by a retailer. It is a strategy used by retailers to attract customers and increase sales. Markdowns are typically applied to products that are not selling well or to clear out excess inventory. On the other hand, a manufacturer discount refers to a reduction in the price of a product offered by the manufacturer to retailers or customers. Since the given answer states that Markdown is a retailer discount, it correctly identifies the nature of Markdown.

The target for a continuity program should include both switchers and current loyals. Switchers are customers who have recently switched from a competitor's product or service and can be targeted to build loyalty towards the current brand. Current loyals are already loyal customers who can be encouraged to continue their loyalty through a continuity program. By targeting both switchers and current loyals, the continuity program can aim to retain existing customers and attract new ones, ultimately increasing customer loyalty and satisfaction.

Sampling is a technique used to introduce a product to nonusers. It involves offering free samples of the product to potential customers, allowing them to try it before making a purchase. This strategy aims to create awareness, generate interest, and encourage trial of the product. By providing a sample, companies hope to convince nonusers of the product's value and quality, ultimately leading to future purchases.

This answer suggests that the retailer offers an additional amount of goods to the customer, with the understanding that the retailer will be paid for these goods at a later date. This could be a form of credit or deferred payment arrangement between the retailer and the customer.

The answer "M pays to integrate product; M pays for unsold product" suggests that M (presumably the manufacturer) is responsible for both integrating the product and paying for any unsold inventory. This implies that M is taking on the financial risk of unsold products, as well as the cost of integrating the product into the market.

The target for refund would be the current loyal customers and price buyers. Current loyal customers are more likely to take advantage of a refund as they have a strong relationship with the brand and may be more inclined to make repeat purchases. Price buyers, on the other hand, are motivated by getting the best deal and may be more likely to seek a refund if they feel they did not get their money's worth.

The targets for coupons are switchers and price buyers. Switchers are customers who frequently switch between different brands or products, and coupons can be used to incentivize them to try a new brand or product. Price buyers, on the other hand, are customers who prioritize low prices and are more likely to be influenced by discounts and coupons. By targeting switchers and price buyers with coupons, businesses can attract new customers and encourage repeat purchases from price-conscious consumers.

The target for sweepstakes includes switchers and current loyal customers. Switchers are customers who frequently switch between different brands or products, making them a valuable target for sweepstakes as it can incentivize them to try a new brand or product. Current loyal customers are already loyal to the brand, and offering sweepstakes can help retain their loyalty and encourage them to continue purchasing from the brand.

The correct answer is Specific timed sales-based discount; Commission for sales. This answer is supported by the information given in the question. The phrase "Scan down; Stiff" suggests that there is a list of options, and the correct answer is the combination of two options. The options "Specific timed sales-based discount" and "Commission for sales" are the only ones that appear together in the list. Therefore, this is the correct answer.

The correct answer is "Cash if R completes certain things; Ad/promo support by R." This answer suggests that R (presumably a retailer) will receive cash if they complete certain tasks or requirements, and they will also receive ad/promo support from another party. This implies that there is a mutually beneficial relationship where R is incentivized with cash and promotional assistance.

The strengths of sampling include stimulating trial, encouraging new uses, broadening sales range, expanding the product, and achieving a high trial conversion rate. By offering samples, companies can entice customers to try their products, increasing the likelihood of future purchases. Sampling also allows for experimentation and exploration of different uses for the product, potentially attracting new customers. It can help expand the sales range by reaching new markets or demographics. Furthermore, sampling can lead to product expansion as customer feedback and preferences are gathered. Finally, a high trial conversion rate indicates that sampling effectively converts trial users into loyal customers.

The target for price discount includes two segments: switchers and competitive loyals. Switchers are customers who frequently switch between different brands and are more likely to be influenced by price discounts. Competitive loyals, on the other hand, are customers who are loyal to a competitor's brand but may be persuaded to switch if offered a better price. By targeting these two segments, a company can attract new customers and potentially steal customers from competitors by offering price discounts.

The correct answer is "High price sensitivity; low cost." This means that the product is highly sensitive to changes in price, meaning that even a small increase in price could significantly impact consumer demand. Additionally, the product has a low cost, which means that it is inexpensive to produce or acquire. This combination suggests that the product is likely to be successful in a trade promotion, as the low cost allows for potential discounts or incentives to be offered to customers without significantly impacting profitability.

The strengths of sweepstakes include creating interest and excitement among participants, as well as being a cost-effective marketing strategy. Sweepstakes can be targeted towards specific demographics, allowing companies to build a database of potential customers. Additionally, sweepstakes can generate trial and repeat purchases, as participants may be more inclined to try a product or service and become loyal customers.

ANYTHING BUT COUPONS AND PRICE DISCOUNTS!

ANYTHING BUT REFUNDS!

The target for the Special Pack includes both Switchers and Current Loyals. Switchers are customers who have recently switched from a competitor's product to the company's product, while Current Loyals are customers who have been loyal to the company's product for a long time. By targeting both these segments, the company can attract new customers and retain existing ones, thereby increasing its market share and sales.

The correct answer is "Low involvement." This suggests that when it comes to purchasing products using coupons, consumers tend to have low involvement or low levels of interest or importance attached to the decision-making process. This implies that consumers may not extensively research or consider various options before making a purchase using coupons.

The correct answer is "Low differentiation, Many discounts." This means that the product has low differentiation, meaning it is not significantly different from other similar products in the market. Additionally, it offers many discounts, which could be a strategy to attract customers and increase sales.

The correct answer is Timed brand discount; Timed price discount. This answer suggests that the retailer is offered a discount on a specific brand of products for a limited time period. Additionally, the retailer is also given a discount on the price of the products for the same duration. This could be a promotional strategy to encourage the retailer to stock up on the brand's products and offer them at a reduced price to customers.

Continuity programs have several weaknesses. Firstly, they can be expensive to implement and maintain, requiring significant financial resources. Secondly, they require a long-term time commitment from both the company and the consumers involved. Thirdly, consumers may question the value of the brand and the benefits they receive from participating in the program. Lastly, if the program is universal and offered to all customers, it can become a negative fixed cost for the company, potentially impacting profitability.

Switchers and current loyals are the target for cause-related campaigns because they are already customers of the brand and have shown a willingness to switch between brands or stay loyal. Cause-related campaigns can help to strengthen their loyalty and encourage them to continue choosing the brand. On the other hand, competitive loyals, price buyers, and nonusers may not have a strong connection to the brand or may be more focused on price rather than social causes, making them less likely to respond positively to cause-related campaigns.

The correct answer includes a combination of factors that suggest a product is suitable for sampling. A new product indicates that it is not well-known in the market yet, making it a good candidate for sampling to increase awareness. Low awareness/market share further emphasizes the need for sampling to introduce the product to potential customers. High differentiation suggests that the product has unique features or benefits that can be highlighted through sampling. Finally, the new flow of customers and many discounts indicate that the product is likely to attract attention and generate interest through sampling.

The strengths of price discount include the ability to dispose of excess inventory, as discounted prices can incentivize customers to purchase products that may otherwise go unsold. Price discounts also allow businesses to control the distribution of their products by offering exclusive discounts to certain channels or customers. Furthermore, price discounts can boost sales of specific products or SKUs, as customers are more likely to buy items that are discounted. Lastly, price discounts can help counteract competitors by attracting customers with lower prices and potentially gaining market share.

The strengths of refunds include building a database, consumer stockpiling, and benefiting from slippage. By offering refunds, businesses can gather valuable customer information and add them to their database, which can be used for targeted marketing and future promotions. Refunds also encourage consumers to stockpile products, leading to increased sales and revenue. Additionally, businesses can benefit from slippage, which refers to the difference between the actual cost of the refunded item and the price at which it is resold, resulting in additional profit.

The strengths of mail premiums include their ability to grab attention, create a positive emotional response (feel good factor), and serve as a reminder of the brand. Mail premiums can attract recipients' attention through their unique and attractive design or offer. Additionally, they can generate a positive emotional response by providing recipients with a free gift or special offer. Lastly, mail premiums can serve as a constant reminder of the brand as recipients may keep or display them, reinforcing brand awareness and recognition.

The target for Mail Premium includes both switchers and current loyals. Switchers are individuals who have recently switched from a different brand or product, while current loyals are existing customers who have shown loyalty towards the brand. By targeting both switchers and current loyals, Mail Premium aims to attract new customers and retain existing ones, maximizing its market share and profitability.

The target for sampling includes switchers, current loyals, competitive loyals, and nonusers. Switchers are customers who have switched from one brand to another, making them a valuable target for sampling to potentially win them over. Current loyals are customers who are already loyal to the brand and can be targeted for sampling to encourage continued loyalty. Competitive loyals are customers who are loyal to a competitor's brand, and sampling can be used to try and convert them. Nonusers are individuals who do not currently use the product, and sampling can be used to introduce them to the brand and potentially gain new customers.

The target for a trade deal would typically include switchers, current loyals, and price buyers. Switchers are customers who frequently switch between different brands or products, making them a valuable target for capturing market share. Current loyals are customers who are loyal to a particular brand or product, and targeting them can help maintain and strengthen brand loyalty. Price buyers are customers who prioritize low prices and are more likely to switch brands for a better deal, making them an important target for attracting new customers.

Coupons can be considered weaknesses due to several reasons. Firstly, they can make consumers overly price sensitive, meaning they may only purchase a product when a coupon is available, leading to a decrease in regular sales. Secondly, offering coupons can be expensive for businesses, as they have to bear the cost of the discount. Additionally, coupons may erode brand loyalty as customers may switch to a competitor offering a better deal. Moreover, coupons can create uneven demand, with customers only buying during promotional periods, causing fluctuations in sales. Lastly, coupons can lead to consumer addiction, where customers become dependent on discounts and are less likely to purchase at full price.

Price discounts can have several weaknesses. Firstly, customers may become price sensitive, meaning they will only purchase when there is a discount, reducing profitability. Additionally, price discounts can eliminate price-tiering, making it difficult for businesses to differentiate their products based on price. Furthermore, consumers may become skeptical of the original price, leading to consumer incredulousness. Lastly, frequent price discounts can erode brand loyalty and downgrade the brand image, as customers may perceive the brand as low-quality or desperate for sales.

The answer provided lists the strengths and weaknesses of a special pack. It states that the special pack is able to generate store traffic, but it is also expensive. Additionally, the special pack can be a distraction and unwieldy. It is also mentioned that the special pack is attractive, but it is also theft-prone. This answer gives a comprehensive explanation of the strengths and weaknesses of the special pack without explicitly stating that it is the correct answer.

Cause-related promotions have several strengths. Firstly, they allow for specific targeting, meaning that companies can focus their efforts on reaching a particular audience that is likely to be interested in their cause. This helps to maximize the impact of the promotion and increase the chances of success. Secondly, cause-related promotions can also increase usage of a product or service. By associating a cause with a company's offerings, consumers are more likely to engage with and use them. Additionally, cause-related promotions are often simple and easy to understand, making them more appealing to consumers. Lastly, these promotions can create good feelings among consumers, as they feel a sense of satisfaction in supporting a cause while also receiving a product or service.

The weaknesses of refunds include rising postage costs, ineligible products, and steps that are too involved. Rising postage costs can make the process of returning items expensive for both the customer and the company. Ineligible products refer to items that cannot be returned or refunded, which can be frustrating for customers. Steps that are too involved can make the refund process confusing and time-consuming, leading to a negative experience for customers. These weaknesses highlight some of the challenges and drawbacks associated with the refund process.

The manufacturer strengths of trade promotion include gaining ad support from retailers, countering competitors, and gaining retail distribution. Ad support from retailers helps in promoting the manufacturer's products and increasing their visibility among customers. Counteracting competitors allows the manufacturer to stay competitive in the market and attract customers away from their competitors. Gaining retail distribution means that the manufacturer's products are available in more retail outlets, increasing their reach and potential sales. These strengths collectively contribute to increasing sales and market share for the manufacturer.

The technique for price buyers includes the use of coupons, refunds, and trade promotions. Coupons are a common method used to attract price-conscious customers by providing them with discounts on products or services. Refunds, on the other hand, involve returning a portion of the purchase price to the customer after the sale, providing them with a sense of value and satisfaction. Trade promotions are strategies employed by businesses to incentivize retailers or wholesalers to carry their products, often through discounts or special offers. These techniques are aimed at appealing to price-sensitive consumers and encouraging them to make a purchase.

Low differentiation refers to a product that is similar to its competitors in terms of features, benefits, and overall value proposition. In a continuity program, where customers are committed to purchasing products or services on an ongoing basis, a low differentiation product may be preferred. This is because customers are more likely to stick with a product that they perceive as interchangeable with others in the market, as it reduces the risk of switching to a different brand or supplier. Therefore, a low differentiation product is a suitable choice for a continuity program.

The strengths of coupons include the ability to distribute price cuts, which can attract customers and incentivize them to make a purchase. Coupons also generate trial, allowing customers to try a product or service at a discounted price, potentially leading to repeat business. Coupons can protect the value proposition of a product or service by offering discounts without permanently lowering the perceived value. Additionally, coupons can push retailers to carry a product, as they may be more inclined to stock items that offer promotional discounts.

Sampling and price discount are both techniques for competitive loyalty. Sampling involves giving out free samples of a product to potential customers, allowing them to try it before making a purchase. This can create a sense of loyalty as customers may feel grateful for the opportunity to try the product and may be more inclined to purchase it in the future. Price discount, on the other hand, involves offering a reduced price on a product or service. This can attract customers who are looking for a good deal and may encourage repeat purchases, leading to loyalty.

Trade promotions can help increase store traffic by offering attractive deals and discounts, which can attract more customers to visit the store. By offering promotions, retailers can also increase sales per customer by encouraging them to make additional purchases or buy higher-priced items. Additionally, trade promotions can help increase profit margins by allowing retailers to sell products at a higher price while still offering perceived value through promotional offers.