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What two distinctly different markets are Sales Promotions usually targeted towards?
- Consumer sales promotion: consumer market
- Trade sales promotion: wholesalers & retailers
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
What are 6 types of Consumer promotions?
- Coupons & Rebates
- Loyalty Marketing Programs
- POP Promos
What are 6 types of Trade Sales promotions?
- Trade allowances
- Push Money
- Free Merchandise
- Store Demos
- Business Mtgs
Whereas Consumer Promotions _______ a product through the channel by ___________________, Trade Promotions ____________a product through the channel by _________________.
- Push, creating a demand
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
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
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)
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.
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