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approaching the customer and probing needs
designing and proposing solutions
See Exhibit 18.4.
KEY: CB&E Model Promotion OBJ: 18-6 TOP: AACSB Reflective MSC: BLOOMS Comprehension Digital Cookware
Digital Cookware has developed a new kind of skillet that should make cooking easier for many
non-chefs. The skillet has a display on its handle that beeps to alert the cook when the pan’s target
temperature is reached. The skillet, with the aid of an accompanying cookbook, will take much of
the guesswork out of cooking. Digital Cookware is a small company, and it has invested
considerable money in developing this new technology, which it eventually hopes to use in an
entire line of pots and pans. It has run some small ads for the new skillet in cooking magazines
and has been featured on some morning talk shows. It needs a quick infusion of cash to maintain
its current operational level and to develop the rest of the cookware line. Digital Cookware is
considering some kind of sales promotion.
94. Refer to Digital Cookware. Why might rebates be a really good sales promotion for Digital
Cookware to use?
They are useful in building long-term
relationships with customers.
They can create a great amount of publicity.
They create mutually beneficial relationships
between the manufacturer and its customers.
They are good at enticing purchases, but most
rebates are not redeemed.
They can be piggybacked with similar
Building long-term relationships describes a loyalty marketing program. Sweepstakes and
contests generate publicity. Piggybacked is a term used with sampling.
KEY: CB&E Model Promotion OBJ: 18-2 TOP: AACSB Reflective MSC: BLOOMS Application 95. Refer to Digital Cookware. The company’s first task is to define its exact sales promotion
objective. If the goal of the company is to persuade customers to buy its brand of skillet as
opposed to one of the skillets made by its competition, it should:
use on-pack coupons
run a cooking contest that has contestants
enter recipes that use the new skillet
use price-off packages
use bonus packs
institute a loyalty marketing program
See Exhibit 18.1.
KEY: CB&E Model Promotion OBJ: 18-1 TOP: AACSB Reflective MSC: BLOOMS Application 96. Refer to Digital Cookware. Digital Cookware is offering retailers a price reduction for allocating space for special displays its products. This type of trade sales promotion is called:
a trade allowance
an event sponsorship
a store demonstration
a trade show
Trade allowance is a price reduction offered by manufacturers to intermediaries such as
wholesalers and retailers.
KEY: CB&E Model Promotion OBJ: 18-3 TOP: AACSB Reflective MSC: BLOOMS Application 97. Refer to Digital Cookware. If Digital Cookware offered the sales associates at a chain of cooking
stores a bonu...
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This document was uploaded on 09/29/2013.
- Fall '13