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KMART REVIEWS IN-STORE MARKETING

While Kmart is beginning to install coupon dispensers in its U.S. stores, the company's Canadian division is planning to get rid of them. This month the discount department store chain will begin installing an electronic marketing network in 87 of its U.S. superstores. In a program managed by Catalina Marketing, shoppers will receive discount coupons at the checkout counters, as well as prizes triggered by certain purchases. Some will also receive cards that allow them to make free long distance phone calls. However, Kmart Canada has not been happy with the kiosks dispensing discount coupons in its stores and will likely take them out in the next few months. Kmart is currently considering what marketing tools it will use to replace the kiosks, Doug Thomas told Adnews yesterday. Thomas, who is senior director of sales, advertising and marketing, said the kiosks haven't brought in as much revenue as expected. Seniors were scared of the technology and children were playing with the machines. Also, people like to get their coupons with products instead of having to walk over to a machine at the front of the store.

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