MKTG 455 Exam 3 Marketing
Communications & Strategy Exam
1. What is sales promotion? - ANSWER ✔ - - all promotional activities that stimulate short-term
behavioral responses from:
- consumers
- trade( distributors, wholesalers, retailers)
- company's sales force
Incentivizes targets beyond the benefit/value of the products alone
2. Strengths of sales promotion - ANSWER ✔ - - primary benefit is that it stimulates short term sales
period
- encourages product trial
- encourages repeat purchases
- encourage you to try a more mature product that you have not tried in a long time
3. Weaknesses of Sales promotions - ANSWER ✔ - - reduced brand loyalty
- can hurt luxury products
- possible decline in perceived quality
- short-term oriented, almost guaranteed it won't improve long term engagement
- clutter
4. Examples of sales Promotion - ANSWER ✔ - - continuity program
-point of sale
- everyday low pricing
- Seasonal promotions
- rebates
- sampling
- sweepstakes/contest
5. Continuity Program (sales promotion) - ANSWER ✔ - - rewarding people for repeat purchases
- rewards are the common denominator among all promotions
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MKTG 455
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, 6. Point of sale (sale promotion) - ANSWER ✔ - - in-store media
7. Seasonal promotions - ANSWER ✔ - - things like black Friday
- primary objective is to clear out inventory
- stimulates spontaneous purchases
8. What is a Rebate and what are the pros and cons for manufacturers/ consumers - ANSWER ✔ - -
reimburse a customer for part of the purchase
- great for manufacturers as it incites interest but few consumers actually redeem, lowering the
cost of the promotion overall
- Great for awareness lift
- makes your brand look like the good guy from the consumer perspective (like you are giving
them a good deal)
- can be tedious for consumers as you need multiple steps (both digital and mail in), most
customers do not complete it
9. Sampling (sales promotion) - ANSWER ✔ - - giving away free samples
- primary objective is to encourage product trial
10. List the objectives of sales promotion - ANSWER ✔ - - stimulate short term sales
- maintain or increase shelf space in retail
- reducing excess inventories and increasing turnover
- countering competitive activity
- introduce new or improved product/services
- increase distribution of new packages or sized
- build retail inventories
11. Functional rewards of sales promotion - ANSWER ✔ - - monetary (savings)
- Reduced search and decisions cost, as it is easier to find
- possibly improved production quality made possible by price reduction that allows consumers
to buy superior products
12. Hedonistic rewards of sales promotions - ANSWER ✔ - - sense of being a wise shopper
- achieving a need for stimulation or variety
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MKTG 455
©™
Communications & Strategy Exam
1. What is sales promotion? - ANSWER ✔ - - all promotional activities that stimulate short-term
behavioral responses from:
- consumers
- trade( distributors, wholesalers, retailers)
- company's sales force
Incentivizes targets beyond the benefit/value of the products alone
2. Strengths of sales promotion - ANSWER ✔ - - primary benefit is that it stimulates short term sales
period
- encourages product trial
- encourages repeat purchases
- encourage you to try a more mature product that you have not tried in a long time
3. Weaknesses of Sales promotions - ANSWER ✔ - - reduced brand loyalty
- can hurt luxury products
- possible decline in perceived quality
- short-term oriented, almost guaranteed it won't improve long term engagement
- clutter
4. Examples of sales Promotion - ANSWER ✔ - - continuity program
-point of sale
- everyday low pricing
- Seasonal promotions
- rebates
- sampling
- sweepstakes/contest
5. Continuity Program (sales promotion) - ANSWER ✔ - - rewarding people for repeat purchases
- rewards are the common denominator among all promotions
Page 1 of 10
MKTG 455
©™
, 6. Point of sale (sale promotion) - ANSWER ✔ - - in-store media
7. Seasonal promotions - ANSWER ✔ - - things like black Friday
- primary objective is to clear out inventory
- stimulates spontaneous purchases
8. What is a Rebate and what are the pros and cons for manufacturers/ consumers - ANSWER ✔ - -
reimburse a customer for part of the purchase
- great for manufacturers as it incites interest but few consumers actually redeem, lowering the
cost of the promotion overall
- Great for awareness lift
- makes your brand look like the good guy from the consumer perspective (like you are giving
them a good deal)
- can be tedious for consumers as you need multiple steps (both digital and mail in), most
customers do not complete it
9. Sampling (sales promotion) - ANSWER ✔ - - giving away free samples
- primary objective is to encourage product trial
10. List the objectives of sales promotion - ANSWER ✔ - - stimulate short term sales
- maintain or increase shelf space in retail
- reducing excess inventories and increasing turnover
- countering competitive activity
- introduce new or improved product/services
- increase distribution of new packages or sized
- build retail inventories
11. Functional rewards of sales promotion - ANSWER ✔ - - monetary (savings)
- Reduced search and decisions cost, as it is easier to find
- possibly improved production quality made possible by price reduction that allows consumers
to buy superior products
12. Hedonistic rewards of sales promotions - ANSWER ✔ - - sense of being a wise shopper
- achieving a need for stimulation or variety
Page 2 of 10
MKTG 455
©™
