Every industry has its own vocabulary, and the incentive promotion industry is no different. This list of special terms is provided as a service to people new to the field, who may not know the difference between a contest and a sweepstakes (read on!).
Sales Incentives: An award to a salesperson for performance - exceeding a quota, signing new accounts, re-opening accounts, selling specified products, or other stated objectives of the company.
Dealer Incentives: One given to a retailer with a specified purchase of one or more products, or for coupons or purchase credits accumulated over a period of time.
Business Gifts and Awards: A gift to a customer, stockholder , employee or other business friend as an expression of appreciation.
Contests and Sweepstakes. . .
Contest: A competition based on skill in which prizes are offered. Proof of purchase is usually required with entry.
Sweepstakes: A promotion which awards substantial prizes on the basis of a chance drawing. Similar to a contest, but without the element of skill and usually without "consideration" for legal reasons.
Direct Premium: The simplest kind- an item given free with a purchase at the time of the purchase. Includes on-packs, in-packs, and container premiums as well as those given separately.
Self-Liquidators: A consumer premium (usually by mail) for proof of purchase and a cash amount sufficient to cover the merchandise cost plus handling and postage. May refer to any promotion in which the recipient pays the premium cost.
In-pack - On-pack. . .
In-pack: A direct premium inside a package.
On-pack: A direct premium attached to the exterior of a product package, or sometimes riding with it in a special sleeve, carton or film wrap.
Traffic Builders: A relatively low-cost premium offered free as an inducement to visit a store for a demonstration.
Trading Stamps: A gummed stamp given by a retailer, usually for each 10 cents of a purchase, to be pasted in a saver book to accumulate 1200 to 1500, then redeemable for premiums presented in the stamp company catalog.
Coupon Plan: A continuous program offering a variety of premiums for coupons, labels or other tokens from one or more products.
Container Premium: A type of factory-packed direct premium- a reusable container which serves as a product package; all or part of the extra cost may be added to the price to make the promotion self-liquidating.
Bank Account Opener: A direct premium offered by a bank or savings-and-loan to a depositor opening a new account.
Travel Incentives: A trip, group or individual, offered to sales people or dealers. Often tied in with sales meetings at resort areas.
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Glossary of Terms
