1. What two distinctly different markets are Sales Promotions usually targeted towards?
    • Consumer sales promotion: consumer market
    • Trade sales promotion: wholesalers & retailers
  2. What are the 4 types of consumers and the sales promotion goals for each?
    • Loyal Customers: Reinforce behavior & Increase consumption
    • Competitor's Customers: Break loyalty & Persuade switching
    • Brand Switchers: Increase Share
    • Price Buyers: Appeal to w/ low price
  3. What are 6 types of Consumer promotions?
    • Coupons & Rebates
    • Premiums
    • Loyalty Marketing Programs
    • Contests
    • Sampling
    • POP Promos
  4. What are 6 types of Trade Sales promotions?
    • Trade allowances
    • Push Money
    • Training
    • Free Merchandise
    • Store Demos
    • Business Mtgs
  5. Whereas Consumer Promotions _______ a product through the channel by ___________________, Trade Promotions ____________a product through the channel by _________________.
    • Push, creating a demand
    • Pull
  6. What are the 7 steps in the Personal Selling Process?
    • Generating Leads
    • Qualifying Leads
    • Approaching the customer & probing needs
    • Developing & proposing solutions
    • Handling Objections
    • Closing the sale
    • Following up
  7. What are 5 key factors in determining if Personal Selling is the way to go?
    • Product value is High
    • Product is custom made
    • Product is complex and difficult to understand
    • The # of customers is few
    • The location of customers is concentrated
  8. What is CRM and how does it work?
    • Customer Relationship Management:
    • Building & maintaining profitable customer relationships by personalizing the interaction w/ each customer- (lemonade stand w/ customer database example)
  9. Explain RFM & LTV analysis.
    • Recency-Frequency-Monetary Analysis identifies those customers most likely to purchase again because they have boufht recently, frequentluy, or spent a specified amt of money with the firm.
    • This data can then be used to create a Lifetime Value Analysis which projects the future value of the customer over a period of years.
  10. What are 8 common CRM Marketing Database Applications? Examples of each where possible.
    • Campaign Management-
    • Retaining Loyal Customers-loyalty programs
    • Cross-Selling Other Products
    • Designing Targeted Marketing Communications
    • Reinforcing Customer Purchase Decisions
    • Inducing product Trial by New Customers
    • Increasing Effectiveness of Distribution Channel Mktg
    • Improving Customer Service
Card Set
Mktg Exam Ch18