Toward Interactive Classrooms

1
Consumer franchise-building promotions are
designed to

• Boost immediate sales.
• Attract new customers to a product.
• Increase awareness of and loyalty to a brand.
• Push a product through the distribution channel.
• Increase retail self space for a particular brand.

2
Consumer franchise-building promotions are
designed to

• Boost immediate sales.
• Attract new customers to a product.
• Increase awareness of and loyalty to a brand.
• Push a product through the distribution channel.
• Increase retail self space for a particular brand.

The goal of consumer franchise-building
promotions is to build a favorable image for a
brand by pointing out unique features and selling
points, with the ultimate goal of reducing
reliance on price discounting incentives.
3
Coupons

• On, in or near packages
• Retail store shelves
• Direct mail
• Internet
• Free standing inserts

The most frequently used method of distributing
coupons is
4
Coupons

• On, in or near packages
• Retail store shelves
• Direct mail
• Internet
• Free standing inserts

The most frequently used method of distributing
coupons is
Approximately 84 of all coupons are distributed
through free standing inserts (FSI).
5
Coupons

• Instant redemption
• Scanner-delivered
• Cross-ruffing
• Response offer
• E-coupons

The best type of coupon to encourage brand
switching is
6
Coupons

• Instant redemption
• Scanner-delivered
• Cross-ruffing
• Response offer
• E-coupons

The best type of coupon to encourage brand
switching is
Because scanner-delivered coupons tend to be for
a competing brand from what was purchased by the
consumer, brand-switching is encouraged.
7
Coupons
Of the various types of coupons that are
redeemed, the highest percentage are _____,
which account for 39.3 of all redeemed coupons.

• Instant redemption
• Scanner-delivered
• Cross-ruffing
• Response offer
• E-coupons

8
Coupons
Of the various types of coupons that are
redeemed, the highest percentage are _____,
which account for 39.3 of all redeemed coupons.

• Instant redemption
• Scanner-delivered
• Cross-ruffing
• Response offer
• E-coupons

Almost 40 of the coupons that are redeemed are
instant-redemption coupons, primarily because the
coupons can be redeemed instantly and the
consumer does not have to wait.
9
Premiums

• Free-in-the-mail
• In- or on-package
• Retail store
• Manufacturer
• Self-liquidating

If Office Depot offers a free print cartridge to
any customer who purchases a printer, which type
of premium is being used?
10
Premiums

• Free-in-the-mail
• In- or on-package
• Retail store
• Manufacturer
• Self-liquidating

If Office Depot offers a free print cartridge to
any customer who purchases a printer, which type
of premium is being used?
Retail store premiums are offered by retailers
and can be for any brand of a product or for
specific brands sold within the store.
11
Consumer Promotions

• Coupons
• Premiums
• Bonus packs
• Contests or sweepstakes
• Trade allowance

The best consumer promotion to encourage customer
traffic, increase brand awareness, or boost sales
is
12
Consumer Promotions

• Coupons
• Premiums
• Bonus packs
• Contests or sweepstakes
• Trade allowance

The best consumer promotion to encourage customer
traffic, increase brand awareness, or boost sales
is
Contests and sweepstakes are excellent methods of
boosting customer traffic to a retail outlet or
to create brand awareness for a particular brand,
especially a new brand.
13
Sampling

• In-store sampling
• Direct sampling
• Response sampling
• Cross-ruff sampling
• Package sampling

A sample chocolate bar placed inside a box of
almond granola breakfast bars is an example of
14
Sampling

• In-store sampling
• Direct sampling
• Response sampling
• Cross-ruff sampling
• Package sampling

A sample chocolate bar placed inside a box of
almond granola breakfast bars is an example of
The purpose of cross-ruff sampling is to
encourage customers to try a new product or a
different version of the product that has been
purchased.
15
Consumer Promotions

• Coupons
• Premiums
• Price-offs
• Contests or sweepstakes
• Bonus packs

The best consumer promotion to encourage
customers to stockpile a particular brand and to
encourage consumer loyalty is
16
Consumer Promotions

• Coupons
• Premiums
• Price-offs
• Contests or sweepstakes
• Bonus packs

The best consumer promotion to encourage
customers to stockpile a particular brand and to
encourage consumer loyalty is
Bonus packs are the most attractive to current
customers and encourages them to stock up on the
brand. This not only encourages brand loyalty,
but also preempts any promotions by the
competition.
17
Consumer Promotions
A joint promotion between a Betty Crocker product
and General Mills product is called a(n)

• Inter-company tie-in
• Intra-company tie-in
• Overlay
• Response offer promotion
• Self-liquidating promotion

18
Consumer Promotions
A joint promotion between a Betty Crocker product
and General Mills product is called a(n)

• Inter-company tie-in
• Intra-company tie-in
• Overlay
• Response offer promotion
• Self-liquidating promotion

Because inter-company tie-ins involved two
companies joining together for one promotion, it
is more difficult than an intra-company tie-in
that involves two products within one company.
19
Consumer Promotions
An individual who responds positively to coupons,
premiums, and other consumer promotions is called
a(n)

• Brand-loyal consumer
• Promotion prone consumer
• Price sensitive consumer
• Spiff consumer
• Deal consumer

20
Consumer Promotions
An individual who responds positively to coupons,
premiums, and other consumer promotions is called
a(n)

• Brand-loyal consumer
• Promotion prone consumer
• Price sensitive consumer
• Spiff consumer
• Deal consumer

Promotion prone consumers respond regularly to
consumer promotions, such as coupons, contest,
sweepstakes, and price-offs. They are not brand
loyal. They purchase whatever brand is on-deal.