Media-delivered coupons : coupons packaged with another medium, such as newspapers, magazines, direct mail, in-store distribution, and on the internet Options for delivery include free-standing inserts (FSI) in newspapers, magazines, direct mail and in-store distribution Free-standing inserts: a booklet featuring coupons, refunds, contests, or other promotional advertising distributed by direct mail or with newspapers, magazines of other delivery vehicles Once a product moves into the late growth and early mature stages of its life cycle, a marketer’s attention shifts from trial purchase to repeat purchase As a defensive measure, it is important to reward current customers in one form or another The package itself becomes an important medium for distributing coupons, either in or on the package of the product In-pack self-coupons: a coupon for the next purchase of a product that is packed inside the package or under a label On-pack self-coupon : a coupon that is printed on the outside of a package redeemable on the next purchase of the product Instantly redeemable coupon : a removable coupon located on the package or a store shelf that is redeemable on the current purchase of the product Cross-ruff (cross-coupon): a coupon packed in or with one product that is redeemable for another product. The product the coupon is packed with is the means of distributing the coupon Redemption Rate : the number of coupons returned expressed as a percentage of the number of coupons that were distributed People are more enticed to take action with a digital coupon (14 %) compared to coupons in magazines (1-7%) and direct mail coupons (6.5%) Product Samples Product sampling is a powerful, yet expensive way to promote a product. Effective for encouraging trial purchase but due to the costs, many manufacturers do not use it Free sample : free distribution of a product to potential users (usually mini versions of the product) Samples are an expensive proposition due to product, package and handling costs In spite of these costs, samples rank second to coupons among marketers, so clearly the long-term benefit outweighs the short-term costs Contests Contest: a promotion that involves awarding cash or merchandise prizes to consumers when they purchase a specified product Sweepstake : a chance promotion involving the giveaway of products or services of value to randomly selected participants Cars, vacations and sometimes cash
Games/ Instant-win promotion: a promotional contest that includes a number of pre-seeded winning tickets. Instant-win tickets can be redeemed immediately McDonald’s monopoly games Roll up the rim (instant win) A cost-benefit analysis should be done prior to getting involved with a contest. In terms of benefit, a contest is a good device for achieving repeat purchase objectives.
You've reached the end of your free preview.
Want to read all 8 pages?
- Fall '13