Page 373 - Introduction to Business

CHAPTER 10 Developing the Promotion and Distribution Mixes 347

personnel in department stores. Sports quizzes, crossword puzzles, and jingles are
examples of contests targeting consumers.
Coupons are certificates that allow customers to receive a cash refund or a free coupons Certificates that allow
product at the time of purchase. All of us at one time or another have probably consumers to receive a cash refund or
a free product at the time of purchase
redeemed coupons in supermarkets to receive 8¢, 10¢, 20¢, 50¢, or $2 off the price
of some product. Coupons are frequently used to get consumers to switch brands
or to try new products.
Cross coupons involve having a coupon printed on an item or enclosed within cross coupons Coupons printed on an
the item’s package that provides a discount on a different item. In many instances, item or enclosed within the item’s
package that provide a discount on a
the two products involved are related. For example, a coupon for chip dip may be
different item
included on a bag of potato chips. Or a coupon for pretzels may be found on soft
drink cartons. Cross couponing can be used by two different manufacturers in the
same promotion.
Deals are inducements offered to retailers and consumers to purchase a certain deals Inducements offered to retailers
quantity of a product. The “buy six, get one free” type of promotion is an example. and consumers to purchase a certain
quantity of a product
For instance, if we buy six bottles of a soft drink, we get another one at no additional
charge. Retailers may get a case of potato chips free if they purchase ten cases.
Displays are provided by manufacturers to retailers. They consist of a wide displays Materials for holding
range of materials for holding merchandise. They can be placed at a variety of loca- merchandise sold in a retail store
tions in a store. Frequently used locations are at checkout areas, entranceways, the
middle of wide aisles, and the end of aisles. Displays are probably effective because
they stimulate the purchase of impulse items. It has been estimated that about half
of all merchandise purchased in supermarkets is bought on impulse.
Incentives can be offered to either retail salespeople or consumers. Incentives incentives Rewards offered to retail
are rewards made available for a specified performance. Merchandise, travel, and salespeople or consumers for specified
performance
cash are types of rewards generally provided. An in-pack is a premium that is
in-pack A premium enclosed with a
enclosed with a product. One of the most familiar in-packs are the toys that are
product
included in the boxes of Cracker Jack. Potential Cracker Jack inserts are now test
marketed among children who evaluate their acceptability. Mail-ins consist of pre- mail-ins Premiums provided to
miums provided to consumers once the consumer has requested them by mail. consumers once the consumer has
requested them by mail
Proof of purchase is often required. For example, consumers may be told to cut out
the brand name on a package of cereal and send it to the company to receive their
premium.
P-O-P (point of purchase) materials are provided to retailers by manufacturers P-O-P Point-of-purchase materials
to help them promote sales. They include a wide range of options, including ban- provided to retailers to help them
promote sales
ners, counter cards, signs, and display racks. In most instances, these are provided
free to retailers, but sometimes a cost may be levied. Premiums consist of mer- premiums Merchandise offered to
chandise that is offered to consumers as an incentive to buy a product. Star Wars consumers as an incentive to buy a
product
posters, beanie babies, decorated glasses, and Harry Potter memorabilia are some
well-known examples. A purchase with purchase allows consumers to buy one purchase with purchase An incentive
product if they purchase another product. Hallmark Cards, for instance, offered that allows consumers to buy a product
if they first purchase another product
consumers an 80-page holiday cookbook for $1.50 if they purchased at least $5
worth of Hallmark merchandise.
Samples are free merchandise that are provided to retailers or consumers. The samples Free merchandise that is
hope is that if consumers are involved, they will try the product, like it, and con- provided to retailers or consumers
tinue to purchase it. Most samples are smaller than the normal size of the product.
Some examples of consumer products for which sampling is frequently done are
food items (chips, hot dogs, crackers, etc.), where in many cases the sampling is
done in retail food stores, and soap, liquid detergents, and deodorants, which may
be sent directly to consumers’ homes. Manufacturers sometimes will provide retail-
ers with samples with the expectation that the product will sell well and the retailer
will want to stock it on a regular basis.

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