Sampling and Couponing

1、powerpoint presentation by charlie cook the university of west alabama eighth edition 2010 south-western, a part of cengage learning all rights reserved. chapter 16 integrated marketing communications in advertising and promotion 1.appreciate the objectives of consumer-oriented sales promotions. 2.r

2、ecognize 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 r

3、edemption process and misredemption. 6.appreciate the role of promotion agencies. chapter objectives after 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

4、south-western, 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-wester

5、n, a part of cengage learning. all rights reserved.168 major 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 rig

6、hts reserved.1611 2010 south-western, a part of cengage learning. all rights reserved.1612 2010 south-western, a part of cengage learning. all rights reserved.1613 sampling charmin via a fleet of tractor trailers figure 16.1 2010 south-western, a part of cengage learning. all rights reserved.1614 ta

7、rgeting rather than mass distributing samples using innovative distribution methods where appropriate undertaking efforts to measure samplings return on investment prudent sampling practices 2010 south-western, a part of cengage learning. all rights reserved.1615 calculating the roi for a sampling i

8、nvestmenttable 16.2 step 1: 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 dist

9、ributed; hence, the total cost 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 p

10、rofit per unit is $1. thus, each 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 c

11、ost of the sampling program ($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).

12、step 4: determine the effectiveness 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., 1,50

13、0,000 times 1.1) to justify the 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.

14、all rights reserved.1618 2010 south-western, a part of cengage learning. all rights reserved.1619 illustration 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.1621 full

15、coupon costtable 16.3 1. face value$1.00 2. distribution and postage cost0.40 3. handling charge0.08 4. consumer fraud (misredemption) cost0.07 5. internal preparation and processing cost0.02 6. redemption cost0.02 total cost$1.59 2010 south-western, a part of cengage learning. all rights reserved.1

16、622 2010 south-western, a part of cengage learning. all rights reserved.1623 instantly redeemable coupons shelf-delivered coupons scanner-delivered coupons point-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-west