MARK 453 Lecture Notes - Lecture 12: Profit Margin, Customer Switching, Brand Equity

• School: Concordia University
• Department: Marketing
• Course: MARK 453
• Professor: Caroline Roux

Document Summary

Incentives offered to members of the distribution channel. Prizes, gifts, or other special offers received for free when purchasing products. Can be the foundation of an imc campaign. Consumer promotions: refunds and rebates & bonus packs. Refunds: smaller cash return on soft goods. Rebates: larger cash return on hard goods. Sales promotions consist of all of the incentives offered to customers and channel members to encourage product purchase. Consumer promotions: directly to customers and potential customers, aimed at those who actually use the product. Trade promotions: allotted only in the distribution channel, expenditures or incentives used by manufacturers to purchase goods for eventual resale, push products through retailers. Before: sales promotions eroded brand equity by shifting focus to price. Today: properly managed promotions differentiate a brand from the competition, helping to build brand awareness and improving a brand"s image. Helps generate store traffic and enhance brand loyalty. 90% of all coupons distributed create brand awareness.