MKTG Week 7 Notes
MKTG Week 7 Notes MKTG 420
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This 1 page Class Notes was uploaded by Sonia Brosnan on Sunday May 15, 2016. The Class Notes belongs to MKTG 420 at University of Oregon taught by L Schneider in Spring 2015. Since its upload, it has received 14 views. For similar materials see Marketing Communications in Marketing at University of Oregon.
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Date Created: 05/15/16
MKTG 420 Week 7 Notes ● Sales promotions ○ Incentives that influence consumers’ perceived values ○ Value increases ● Consumer market sales promotions ○ Stimulate trial purchases ○ Stimulate repeat purchases ○ Introduce a new brand ○ Contribute to a company’s IMC plan ○ Combat/disrupt competitors’ strategies ○ Stimulate larger purchases ■ Consumers can stock up on sale items (take more than one) ● Risks: ○ Can devalue the brand by always being on sale ■ Ex: Doritos seems to always be on sale (may be viewed as lesser quality by consumers) ○ If companies always use financial incentives, customers become price oriented (not brand loyal) ○ Stock piling borrowing from future sales ○ Takes a lot of time and effort ○ Lawyers get involved ■ Especially in sweepstakes and contests ■ Cost also increases when lawyers are involved ● Coupons ○ Advantages: ■ Easy to use ■ Induces brand switching (giving consumers financial incentives to switch between brands) ■ Induces repeat product purchases ○ Disadvantages: ■ Often has exclusions (fine print) ■ Fraud/misrepresentation opportunities ■ Administrative + creative + honoring + distribution costs ○ Direct consumer coupons delivered to the door ○ Scanner delivered coupons print out with receipt ○ Bounce back coupons “Save $1 on your next purchase” ○ Cross roughing companies put a coupon near a higher priced item ■ Good for introducing new products ■ Good for stimulating sales for stagnant products ■ Ex: Placing a coupon for a new salsa next to a bag of tortilla chips ○ How to make coupons more effective: ■ Put on phones, emails ■ Make the deal work it ■ Less requirements the better ■ How you distribute matters (cross roughing, email..)
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