A program that offers consumers a small bonus such as points or play money each

A program that offers consumers a small bonus such as

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A program that offers consumers a small bonus, such as points or play money, each time they make a purchase; the bonus accumulates and can be redeemed for merchandise or some other benefits Loyalty programs add to the costs of a busines in the form of addtional employees, call centres, catalogues, and computers Plastic cards can function as both a loyalty card and a gift card Marketing organizations must carefully consider the decision to use loyalty programs Comsumers perceive the “Free” reward as a real incentive, but they don't realize they are paying for the privege Members of loyalty programs sumbit profiles with their age, address, gender and consumer preferences Trade Promotion Execution The trade looks for the best offers from suppliers and makes buying decisions accordingly Trade promotions must be designed to deliver the highest possible value to the trade while costing as lttle as possible for the manufacturer The trade promotion offers work together to generate a high degree of impact during the promotion period Trade Allowances Trade Allowances: A temporary price reduction that encourages larger purchases by distributors It can be offered several ways: A percentage reduction from the list price A predetermined dolar amount off the list price Free goods – may be something like “buy 10 cases and get one free” The manufacturer woukd like to see a portion of the allowance devoted to lowering the price of the product at retail for a short period Trade allowances can be deducted from the invoice immediately, and in such cases are called off-invoice allowance They can be offered on the basis of a bill-back, in which case the manufactrer keeps a record of all purchases shipped to the distributor and when the deal period expires, reimburses the distributor for the allowances it earned Performance Allowances Performance Allowances: A discount offered by a manufacturer that encourages a distributor to perform a merchandising function on behalf of a manufacturer Helps cover the distributor's cost Before paying the allowance, the manufacturer requires proof of performance by the distributor Cooperative Advertising Allowances Cooperative Advertising Allowance (co-op allowance): The sharing of advertising costs by suppliers and retailers or by several retailers Dealer Premiums Dealer Premium: An incentive offered to a distributor to encourage the special purchase of a product or to secure addtional merchandising support from the distributor
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Spiff: An incentive offered to ratail salespeople to encourage them to promote a specified brand of goods to customers Collateral Material Collateral Material: Visual aids used by sales representatives in sales presentations, such as price lists, product manuals, sales brochures, and audiovisual materials Dealer Display Material Dealer Display (point-of-purchase) Material: Advetising or display material located in retail
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