Before you watch

Why is it that all the prices at Whole Foods are written on chalk boards? Why do they want you to get a whiff of fresh plants as you walk in? Or why are on sale items strategically placed right by the door? Grocery stores are notorious for carefully thinking through the entire customer experience and optimize their space accordingly literally down to the square foot. In fact, the major indicator for success for a grocery store, and similar clothing retail stores, is sales per square foot. Did you know that many stores often have mock stores built out for research purposes? Sales and sales promotion are vital piece of the health of a retailer and in these videos we start to explore the many sales promotion tools that are employed by various firms.

Video

Download the Slides

Food For Thought

Check your understanding with these questions:

Compare and contrast sales promotion and mass media advertising as promotional tools. In what ways do the strengths of one make up for the limitations of the other? What specific characteristics of sales promotions account for the high levels of expenditures that have been allocated to them in recent years?
Consumers often rationalize their purchase of a new product with a statement such as, “I bought it because I had a 50-cent coupon, and our grocery store was doubling all manufacturers’ coupons this week.” What are the prospects that such a consumer will emerge as a loyal user of the product? What must happen if he or she is to become loyal?