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Integrated Advertising, Promotion, and Marketing Communications

Kenneth E. Clow, Donald E. Baack

Chapter 12

Sales Promotions - all with Video Answers

Educators


Chapter Questions

Problem 1

Define sales promotion. What are the two main categories of sales promotions?

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Problem 2

What are the sales promotion objectives for new products or services?

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00:51

Problem 3

What is meant by the term "freestanding insert"?

Emily Himsel
Emily Himsel
Numerade Educator

Problem 4

What is a premium? What types of premium programs can companies use?

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01:04

Problem 5

What is the purpose of an instant redemption coupon?

Jennifer Stoner
Jennifer Stoner
Numerade Educator
01:32

Problem 6

What is an on- or in-package premium?

EA
Erwin Antoni
Numerade Educator

Problem 7

What are the circumstances or requirements for a premium program to work?

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Problem 8

What are the two usual factors that influence whether someone enters a competition?

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05:24

Problem 9

How is a refund different from a rebate?

Jennifer Stoner
Jennifer Stoner
Numerade Educator
00:53

Problem 10

What are the primary types of samples?

Gus Steppen
Gus Steppen
Numerade Educator
01:42

Problem 11

What benefits and problems are associated with sampling?

Gus Steppen
Gus Steppen
Numerade Educator
01:32

Problem 12

What are the benefits of offering bonus packs?

Harsh Gadhiya
Harsh Gadhiya
Numerade Educator
01:02

Problem 13

What benefits and problems are associated with price-off tactics?

Kaylee Mcclellan
Kaylee Mcclellan
Numerade Educator

Problem 14

What is an overlay? A tie-in?

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Problem 15

What four caltegories of consumers can be associated with consumer promotions?

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01:23

Problem 16

What are the major types of trade allowances?

Amrita Bhasin
Amrita Bhasin
Numerade Educator

Problem 17

What is a slotting fee? An exit fee?

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Problem 18

Who are the targets of consumer promotions in most cases?

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01:40

Problem 19

What complications are associated with trade allowances?

Oluwadamilola Ameobi
Oluwadamilola Ameobi
Numerade Educator
00:34

Problem 20

How does the spiff money relate to trade contests?

Amrita Bhasin
Amrita Bhasin
Numerade Educator
01:23

Problem 21

What are the main types of trade incentives?

Amrita Bhasin
Amrita Bhasin
Numerade Educator

Problem 22

Describe a cooperative merchandising agreement.

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Problem 23

How are premiums or bonus packs used as trade incentives?

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Problem 24

How can a cooperative advertising program benefit both a manufacturer and a retailer?

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Problem 25

Describe how to effectively utilize trade promotions.

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Problem 26

What problems must be overcome when developing international sales promotions programs?

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03:33

Problem 27

The teen and preteen market segments are important because people that age are developing buying habits that marketers hope will turn into brand loyalty later in life. CVS sells established brands such as Cover Girl and Maybelline, but also younger-oriented brands such as Bonne Bell, Jane, and Naturistics. Drugstores are not typically chosen for the purchase of cosmetics. If you were the marketing manager for CVS, which consumer promotions would be the best to attract teens and preteens to the cosmetics department of CVS? What tie-ins or overlays would you recommend?

AH
Aimal Hassan
Numerade Educator

Problem 28

Describe in your own words the basic concept of each of the consumer promotions listed in Figure 12.1. Suppose Sonic hired you as a marketing intern. Discuss each of the consumer promotions in terms of its suitability for Sonic. Give an example of each that you think is appropriate for Sonic to use.

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Problem 29

Refer to the list of consumer promotions in Figure 12.1. Discuss each one in terms of your personal usage. Which ones do you use? How often? Why?

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03:22

Problem 30

Design a magazine advertisement with a detachable coupon or premium for one of the following Singapore products. Be sure to put an expiration date and other restrictions on the use of the coupon or premium, such as one per customer and one per purchase. You may want to conduct an internet search to see some sample coupons or premiums before you design one.
a. The 1872 Clipper Tea Co, (www.clippertea.com.sg)
b. Gryphon Tea Company (www.gryphontea.com)
c. Straits Preserves (wwwstraitspreserves.com)
d. Sweet Enchantment (www.sweetenchant ment.com)

KS
Kathleen Snyder
Numerade Educator
02:05

Problem 31

Lush Cosmetics (www.lush.com) is growing fast and wants to boost sales even further. The company intends to use a coupon program. Discuss the pros and cons of each method of coupon distribution listed in the chapter (Figure 12.2) for Lush. Which method or methods should Lush use? Why?

Ahmad Reda
Ahmad Reda
Numerade Educator
01:04

Problem 32

To maintain a strong brand image, Imagine magazines' marketing team decides to use a premium for each of its magazine brands. What type of premium would you suggest for Imagine for each of the target markets listed here? Which premium would you use? Justify your answers.
a. Web designer (www.imagine-publishing.co.uk/ portfolio/magazines/WebDesigner)
b. Digital photographer (www.imaginepublishing.co.uk/portfolio/magazines/ DigitalPhotographer)
c. Explore history ( www.imagine-publishing. co-uk/portfolio/magazines/explorehistory)
d. Play (www.imagine-publishing.co.uk/ portfolio/magazines/Play)

Hoan Nguyen
Hoan Nguyen
Numerade Educator
01:49

Problem 33

Explain the difference between a contest and a sweepstakes and the difference between extrinsic and intrinsic rewards. The Toggery, a local upscale clothing boutique, wants to use a contest or sweepstake to generate store traffic. What are the pros and cons of each for The Toggery? Which would you suggest for The Toggery? Why? Briefly describe the contest or sweepstakes you envision.

Emily Himsel
Emily Himsel
Numerade Educator
02:25

Problem 34

How often do you enter contests or sweepstakes? What was the last contest you entered? Why did you enter? Discuss the importance of extrinsic and intrinsic rewards in entering contests and sweepstakes. If you seldom or never enter contests and sweepstakes, why? What type of intrinsic and extrinsic rewards would it take for you to enter?

Dushyant Barot
Dushyant Barot
Numerade Educator
05:48

Problem 35

Sales promotions that are allowed in your own country may not necessarily be allowed in all of the countries in your region. The situation may also be reversed. Compare and contrast the range in two other countries with your own.

Oluwadamilola Ameobi
Oluwadamilola Ameobi
Numerade Educator

Problem 36

Consumers can be divided into four broad categories in terms of how they respond to consumer promotions: promotion prone, brand loyal, price sensitive, and brand preference. Identify two services or goods that would fit into each category for you personally. For example, you may be promotion-prone when you buy soft drinks (your favorite brand is "What's on Sale"). but be very brand-loyal when you buy shoes (Nike, Reebok). What determines which type of category you fit into for the various products you discussed?

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Problem 37

Consumers can be divided into four categories based on how they respond to consumer promotions (Figure 12.8). Explain in your own words the characteristics of each group. You are a marketing intern for Chic Shaque, a retailer of contemporary fashions, bedding. bath, gifts and home decor. For each of the consumer promotion groups, identify a consumer promotion that you think is the best. Explain why. Of the four consumer promotions you just identified, which would you recommend for Chic Shaque? Why?

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Problem 38

Interview three people who have lived in another country about the use of consumer promotions in those countries. Make a list of those promotions that are heavily used and those that are not used. Present your findings to the class.

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02:07

Problem 39

Consumer ervironmental consciousness has begun to drive brands to consider multi-purpose packaging to help make the brand more appealing. The ideal situation is to get a second use out of containers, bottles, and jars. In 2014, coffee brand Nescafé ran a promotion that focused on this aspect and at the same time sought to fit in with consumers' daily rituals and a guaranteed time they would be drinking coffee. They released a limited-edition 3D printed alarm clock cap; the coffee jar had to be opened in order to turn off the alarm. Water brand Vittel tried something very similar by launching a promotion featuring a dual-purpose packaging bottle with a refresh cap. The cap was, in effect. a timer and would sound every hour to remind consumers that they should drink water more regularly. Brands are constantly pushing packaging forward with new technology. The brands need to balance the advantages of changing the packaging with the costs associated with making those changes. Investigate local examples of dual-packaging promotions. How did the promotion work, and was it successful?

Hossam Mohamed
Hossam Mohamed
Numerade Educator

Problem 40

Coupons remain a popular form of consumer promotions. Access the following Hong Kong websites. What are the advantages and disadvantages of each one to a consumer? How do the websites impact manufacturers? How do they impact retailers?
a. iPrice (iprice.hk/coupons)
b. Collect Offers (hk.collectoffers,com)
c. Hong Kong Tourist Board (www.discoverhongkong.com/uk/plan-your-trip/e-coupons/index.jsp)

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Problem 41

UK Competitions (www.ukcompetitions.com) is one of several UK-based websites that list and provide links to a wide range of current competitions open to UK consumers. Research your own country or region and try to find a similar website. If this is not possible, then use the UK Competitions website and answer the questions listed below. Bear in mind that some countries will have radically different legislation and regulations.
a. Do the listing websites require the reader to register or do they provide "free" links?
b. What common information is the consumer required to give to the promotion organizer?
c. Is the consumer required to make a purchase in order to qualify for entry?
d. What is the legislation related to this in your country (or the United Kingdom)?

Rashmi Sinha
Rashmi Sinha
Numerade Educator

Problem 42

Examine the following websites. Identify all of the promotions offered on the site. Provide a screenshot of each promotion you see. What are the objectives of each consumer promotion? Do the promotions on the websites mesh with the company's advertising and consumer promotions at retail outlets? Explain.
a. Taco Bell (www.tacobell.com)
b. Hershey's (www.hersheys.com)
c. Huggies (www.huggies.com)
d. Papa John's (www.papajohns.com)

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03:07

Problem 43

Use a search engine to find your country- or regionspecific version of the websites for Apple, Samsung, and Toshiba. What promotions are they running at the moment? Are these promotions in association with, or independent of, local retailers? Are they trying to convince you to order direct?

Md.Daniyal Arshad
Md.Daniyal Arshad
Numerade Educator

Problem 44

Access the authors’ blog for this textbook at the URLs provided to complete these exercises. Answer the questions that are posed on the blog.
Papa John’s: blogclowbaack.net/2014/05/12/papa- johns-chapter-12/

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Problem 45

Access the authors’ blog for this textbook at the URLs provided to complete these exercises. Answer the questions that are posed on the blog.
Brookshire's: blogelowbaack.net/2014/05/12/ brookshires-chapter-12/

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Problem 46

Access the authors’ blog for this textbook at the URLs provided to complete these exercises. Answer the questions that are posed on the blog.
Consumer promotions: blogclowbaack. net/2014/05/12/consumer-promotions-chapter-12/

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01:14

Problem 47

What are the benefits of offering a paint sampling service?

Jameson Kuper
Jameson Kuper
Numerade Educator

Problem 48

What are the potential disadvantages of offering money off coupons for the Dulux brand?

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01:56

Problem 49

What is the role of specialist trade fairs in the Dulux marketing communications strategy?

Jennifer Stoner
Jennifer Stoner
Numerade Educator

Problem 50

How can sales promotion help to grow sales of Dulux paint through DIY trade outets?

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Problem 51

How can sales promotion help to differentiate the Dulux brand from store own brands?

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Problem 52

What role can onlne competitions play in the Dulux marketing communications strategy?

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00:50

Problem 53

Visit the Dulux trade website at http://dulux. tradede corating.co.uk/index.jsp. What benefits does the website offer to the trade professional?

Amrita Bhasin
Amrita Bhasin
Numerade Educator
03:01

Problem 54

How can the effect veness of sales promotion be measured?

Ameer Said
Ameer Said
Numerade Educator

Problem 55

What are the primary target markets for Academy Sports + Outdoors?

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Problem 56

For each of the target markets identified in the preceding quest on, what types of consumer promotions should Acaderny Sports + Outdoors offer? Justify your response.

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Problem 57

Suppose you are the vice president of marketing at Academy Sports + Outdoors. Examine the list of consumer promotions shown in Figure 12.1. Discuss the pros and cons of each promotion if the target market is active-minded families with children under 18 and incomes between $$\$ 30,000$$ and $$\$ 70,000$$

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03:45

Problem 58

From your answer to the preceding question, pick one of the promotions you feel is the best to reach the designated target market. Design a newspaper ad using that promotion. Be sure to indude restrictions such as usage and expiration date.

Jennifer Stoner
Jennifer Stoner
Numerade Educator
02:02

Problem 59

In your own words describe each of the sampling methods listed in Figure 12.5. Suppose you are a marketing intern for Maxwell House and that Maxwell House has developed three new flavors of coffees. Discuss the pros and cons of each method of sampling for Maxwell House coffee. Keep in mind that in addition to getting consumers to try the product, Maxwell House will also want to convince retailers to stock the coffee on its shelves.

MB
Matt Bremer
Numerade Educator
00:46

Problem 60

The Rawlings Sports Equipment Company plans to increase sales of baseball gloves this season. The company intends to use a coupon program. Discuss the pros and cons of each method of coupon distribution listed in the chapter for Rawlings. Which method or methods should Rawlings use? Why?

Melissa Lupinacci
Melissa Lupinacci
Numerade Educator