Frequently Asked Questions

What is Consumer Promotion?
A consumer promotion is a short-term incentive targeted directly at consumers and includes coupons, rebates, free offers, patronage rewards and others. Consumer promotions can be considered as “pull” promotions in that they directly entice the consumer to purchase the product, thereby pulling the brand through the channel. Trade promotions can be considered as “push” promotions in that they provide incentives for the retailer to offer special deals and push the product through the channel.¹

Why is it done?
Consumer promotions are normally offered in conjunction with other forms of advertising as an incentive, or trigger, to purchase. Marketers have found that by creating an attractive value equation that includes a temporary price reduction, advertising becomes more effective resulting in increased sales volume.

Who does it?
Most companies selling retail goods and services participate in some form of consumer promotions. From grocery coupons to in-store rebates for personal electronics items, consumer promotions are a prevalent marketing tactic.

• FSI - coupons delivered in the Sunday newspaper
• Direct Mail - coupons delivered directly to consumers via US mail
• Magazine - either on-page or tipped-in card
• Newspaper - printed on a newspaper page
• Direct Home Delivery - door hanger, leaflet or Poly bag
• Instant Redeemable - attached to the packaging of a consumer product
• Electronic Checkout - printed and delivered upon purchase
• Handout - hand-delivered to consumer at retail or sampling location
• On-Shelf - most often either from a dispenser or tear-off pad
• On-Pack - printed on the packaging of a consumer product
• Internet - downloaded by consumer from manufacturer or coupon vendor sites
• Electronic Kiosk - printed at retail location
• Promotion GuidePoint© Papers

How many coupons are there?
According to the Marx FSI Trends Report there were 251 billion FSI coupons distributed in 2004. FSI coupons account for approximately 82% of all coupons distributed.²

What is an FSI?
Free-Standing Inserts (FSIs) are four-color, multi-page booklets featuring coupons, refunds, sweepstakes and other promotional advertising distributed in Sunday newspapers.

Why should I track coupon activity?
Consumer packaged goods manufacturers spend hundreds of millions of dollars each year in distributing and redeeming promotional coupon offers. The latest competitive coupon information can provide a clear picture of which direction a brand or manufacturer is going in regards to price, position and creative themes. Tracking competitive coupon activity is one of the most effective methods for unlocking competitive marketing strategies.

What are the key measures in coupon tracking?

• Coupon distribution - the number of coupons issued by a brand or manufacturer for a given date or across a broad time range. Provides a baseline view of coupon activity.
• Coupon share of voice - the percent of total coupons distributed by a brand or manufacturer within a particular product category. This measure allows for competitive comparisons in size of couponing effort.
• Coupon expenditures - the amount of marketing dollars a brand or manufacturer will spend on promoting its item through coupons, taking into account media placement, distribution and redemption costs.

What questions can be answered by tracking coupon activity?

• Are my competitors couponing?
• Where are my competitors couponing?
• How are my competitors couponing:
  - What are their average coupon values and purchase requirements?
  - How do they vary strategy by market?
  - Do they partner with retailers?
  - Do they use coupons to introduce new items or extensions?
• How much are my competitors spending on couponing?
• What are the trends for categories in which my brands compete?