Sampling and Couponing

1、powerpoint presentation by charlie cookthe university of west alabamaeighth edition 2010 south-western, a part of cengage learningall rights reserved.chapter 16integrated marketing communications in advertising and promotion1.appreciate the objectives of consumer-oriented sales promotions.2.recogniz

2、e that many forms of promotions perform different objectives for marketers.3.know the role of sampling, the forms of sampling, and the trends in sampling practice.4.be aware of the role of couponing, the types of coupons, and the developments in couponing practice.5.understand the coupon redemption

3、process and misredemption.6.appreciate the role of promotion agencies.chapter objectivesafter reading this chapter you should be able to: 2010 south-western, a part of cengage learning. all rights reserved.162 2010 south-western, a part of cengage learning. all rights reserved.163 2010 south-western

4、, a part of cengage learning. all rights reserved.164 2010 south-western, a part of cengage learning. all rights reserved.165 2010 south-western, a part of cengage learning. all rights reserved.166 2010 south-western, a part of cengage learning. all rights reserved.167 2010 south-western, a part of

5、cengage learning. all rights reserved.168major consumer-oriented promotionstable 16.1 2010 south-western, a part of cengage learning. all rights reserved.169 2010 south-western, a part of cengage learning. all rights reserved.1610 2010 south-western, a part of cengage learning. all rights reserved.1

6、611 2010 south-western, a part of cengage learning. all rights reserved.1612 2010 south-western, a part of cengage learning. all rights reserved.1613sampling charmin via a fleet of tractor trailersfigure 16.1 2010 south-western, a part of cengage learning. all rights reserved.1614targeting rather th

7、anmass distributingsamplesusing innovativedistribution methodswhere appropriateundertaking efforts tomeasure samplingsreturn on investmentprudent sampling practices 2010 south-western, a part of cengage learning. all rights reserved.1615calculating the roi for a sampling investmenttable 16.2step 1:

8、determine the total cost of sampling, which includes the cost of the sample goods plus the costs of distributionmailing, door-to-door distribution, and so on. assume, for example, that the cost of distributing a trial-sized unit is $0.60 and that 15,000,000 units are distributed; hence, the total co

9、st is $9 million.step 2: calculate the profit per unit by determining the average number of annual uses of the product and multiplying this by the per-unit profit. assume, for example, that on average six units of the sampled product are purchased per year and that the profit per unit is $1. thus, e

10、ach user promises the company a profit potential of $6 when they become users of the sampled brand.step 3: calculate the number of converters needed for the sampling program to break even. (converters are individuals who after sampling a brand become users.) given the cost of the sampling program ($

11、9 million) and the profit potential per user ($6), the number of conversions needed in this case to break even is 1,500,000 (i.e., $9 million divided by $6). this number represents a 10 percent conversion rate just to break even (i.e., 1,500,000 divided by 15,000,000).step 4: determine the effective

12、ness of the sampling. for a sampling to be successful, the conversion rate must exceed the break-even rate with gains in the 10 to 16 percent range. in this case, this would mean a minimum of 1,650,000 people must become users after trying the sampled brand (i.e., 1,500,000 times 1.1) to justify the

13、 sampling cost and yield a reasonable profit from the sampling investment. 2010 south-western, a part of cengage learning. all rights reserved.1616 2010 south-western, a part of cengage learning. all rights reserved.1617 2010 south-western, a part of cengage learning. all rights reserved.1618 2010 s

14、outh-western, a part of cengage learning. all rights reserved.1619illustration of cents-off coupon offersfigure 16.2 2010 south-western, a part of cengage learning. all rights reserved.1620 2010 south-western, a part of cengage learning. all rights reserved.1621full coupon costtable 16.31. face valu

15、e$1.002. distribution and postage cost0.403. handling charge0.084. consumer fraud (misredemption) cost0.075. internal preparation and processing cost0.026. redemption cost0.02total cost$1.59 2010 south-western, a part of cengage learning. all rights reserved.1622 2010 south-western, a part of cengag

16、e learning. all rights reserved.1623instantly redeemable couponsshelf-delivered couponsscanner-delivered couponspoint-of-purchase coupons 2010 south-western, a part of cengage learning. all rights reserved.1624 2010 south-western, a part of cengage learning. all rights reserved.1625 2010 south-western, a part of cengage learning. all rights reserved.1626 2010 south-weste