Understand the role of premiums, the types of premiums, and the developments in premium practice. | Premiums and Other Promotions CHAPTER 17 Understand the role of premiums, the types of premiums, and the developments in premium practice. Recognize the role of price-off promotions and bonus packages. Be aware of the role of rebates and refund offers. Know the differences among sweepstakes, contests, and games, and the reasons for using each form of promotion. Understand the role of continuity promotions. Chapter Objectives After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 17– 17– © 2010 South-Western, a part of Cengage Learning. All rights reserved. Appreciate retailer-driven promotions. Evaluate the potential effectiveness of sales promotion ideas, and appraise the effectiveness of completed promotional programs. Chapter Objectives (cont’d) After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 17– 17– © 2010 South-Western, a part | Premiums and Other Promotions CHAPTER 17 Understand the role of premiums, the types of premiums, and the developments in premium practice. Recognize the role of price-off promotions and bonus packages. Be aware of the role of rebates and refund offers. Know the differences among sweepstakes, contests, and games, and the reasons for using each form of promotion. Understand the role of continuity promotions. Chapter Objectives After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 17– 17– © 2010 South-Western, a part of Cengage Learning. All rights reserved. Appreciate retailer-driven promotions. Evaluate the potential effectiveness of sales promotion ideas, and appraise the effectiveness of completed promotional programs. Chapter Objectives (cont’d) After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 17– 17– © 2010 South-Western, a part of Cengage Learning. All rights reserved. Premiums Premiums Are articles of merchandise or services offered as a gift to induce action by consumers, retailers, and the sales force Represent versatile promotional tools that generate trial purchases, encourage repeat purchasing, and reinforce brand images Are provide to increase consumer brand loyalty and to motivate new purchases 17– © 2010 South-Western, a part of Cengage Learning. All rights reserved. Major Consumer-Oriented Promotions Table 17– © 2010 South-Western, a part of Cengage Learning. All rights reserved. Premiums Free-with-Purchase Premiums Delayed reward to consumers primarily designed to generate trial purchases Perceived value of a premium item, or gift, depends on the value of brand offering gift Mail-In Offers Delayed reward to consumers primarily designed to generate trial purchases. Few consumers exposed to free mail-in offers take advantage of the opportunities In-, On-, and Near-Pack Premiums Offer a
