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Unformatted text preview: Explain which sales promotions each
should emphasize in its marketing mix.
Oakley Grove wants to maintain its current customers. To achieve this objective, it can create a
loyalty marketing program. Customers could earn points for each pound purchased, and after
acquiring a certain number of points, customers could redeem them for a free gift box. Also,
bonus packs would be a good sales promotion to use and would give customers an incentive to
stock up. Another possibility is to have customers collect proofs of purchases off of the Oakley
Grove packages and redeem those for some premium such as a juicer.
Abraham Enterprises would need to use different sales promotions because its goal is to persuade
customers to switch from Oakley Grove to its brand of fruit. One method it could try is sampling,
especially if it believes that its product is superior to that of Oakley Grove. It could also use a
sweepstakes or a contest (such as who makes the best dessert using oranges) to gain publicity for
its product and to draw attention to the products it produces. Abraham Enterprises could also use
a premium offer, but it would need to be something unique (like the bounty off of one orange tree
for a year) so that the premium would make a strong impression on the customers the company wants to gain from its competitors.
KEY: CB&E Model Promotion OBJ: 18-2 TOP: AACSB MSC: BLOOMS Synthesis 3. Consumer sales promotion seeks to reach new users, keep current users, and entice users to stock
up. It can also be used to reinforce advertising for the good or service. Name and define five
consumer sales promotional tools.
COUPONS are certificates given to consumers entitling them to an immediate price reduction
when they purchase the item.
PREMIUMS are extra items offered to the consumer, usually in exchange for some proof that the
promoted product has been purchased.
LOYALTY MARKETING PROGRAMS or FREQUENT BUYER PROGRAMS reward loyal
consumers for making multiple purchases of a particular good or service.
CONTESTS are promotions in which participants compete for prizes based on some skill or
SWEEPSTAKES allow anyone to participate and are characterized by chance drawings for
SAMPLING allows consumers to try products risk-free. Trial sizes reduce the risk of trying new
products. They also eliminate the problem of being stuck with a large quantity of a disliked
POINT-OF-PURCHASE PROMOTIONS are special displays set up at retail locations to build
traffic, advertise the product, or induce impulse buying.
ONLINE SALES PROMOTIONS are a way to boost Web site traffic by giving away free
services and/or equipment. Also, these promotions include sites that distribute coupons online as
a way to counter the high cost and low redemption rate of coupons in print media. Some Internet
sites are also using loyalty programs—users are rewarded with points, which can be redeemed
later. Sampling is also possible at some...
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This document was uploaded on 09/29/2013.
- Fall '13