MKTG 455 - EXAM 3 - Study Guide Newsome Ques ons
and answers latest 2025/2026
The strengths of sales promo ons
Strengths:
- creates an opportunity for communica on
- helps to differen ate from compe on
- promotes word of mouth
- Good and close rela ons between manufacturer and consumer
- Impulse buying
- A en on to new products
- Regaining market share from compe tors
The weaknesses of sales promo ons...
Weaknesses: Things that are considered premium may have image damage from sales
promo ons.
- Retailers might see them as a hassle
- A%er sales end, consumers who switched from compe tors for the sale, may go back to
previous brand
what are premiums?
We'll throw in something free for taking part in the promo on.
Understand the different types of sales promo ons: what is price off?
b. Price Off: Ex, 50% off. (usually 10 to 25 percent off regular price)
Understand the different types of sales promo ons: what is couponing?
c. Couponing: Online, paper, direct mail. From the brand perspec ve, couponing can be used to
track consumer behavior. If digital, we can track it even more.
Understand the different types of sales promo ons: what are sweepstakes and contests?
d. Sweepstakes and Contests: they're a thing.
Fully understand the objec ves of sales promo ons.
, The main one is to increase short term sales. ALL PROMOTIONS PROVIDE A REWARD for the
customer.
Know the func onal and hedonis c rewards of sales promo on.
Func onal: Reduce search and decision costs, improve product quality for customers, etc.
Hedonis c: Makes you feel smart, provides entertainment, etc.
Know the 10 things Sales Promo ons CAN accomplish.
1. S mulate the sales force
2. Invigorate state of stale or mature products
3. More on and off shelf space
4. Can encourage repeat purchases (can be a posi ve or nega ve)
5. Introduce new products
6. Obtain trial purchase
7. Prevent compe on from loading
8. Allows us to load customers
9. Reinforces adver sing
10. Neutralize compe tor's ads and promo ons
Know what Sales Promo ons CANNOT accomplish.
- Does not provide long-term reason to engage with us
- Can't fix ongoing problem, i.e. 2 year decline in sales- answer is research
- Undertrained sales force
What are rebates?
Rebates: Receive money back from manufacturer
Understand the pros and cons of Rebates to Manufacturers and Consumers.
- They o%en make it a pain in the ass so no one does it (low redemp on rate), good thing for
manufacturer.
- greater awareness builder, increased trial, and creates GOODWILL.
What is the key objec ve of a Con nuity program or promo on?
- REWARD CUSTOMERS THAT COME BACK!
- To increase loyalty
- great way to track data
- Airlines were the first to do this and the most famous example
Know what best generates product trials.
and answers latest 2025/2026
The strengths of sales promo ons
Strengths:
- creates an opportunity for communica on
- helps to differen ate from compe on
- promotes word of mouth
- Good and close rela ons between manufacturer and consumer
- Impulse buying
- A en on to new products
- Regaining market share from compe tors
The weaknesses of sales promo ons...
Weaknesses: Things that are considered premium may have image damage from sales
promo ons.
- Retailers might see them as a hassle
- A%er sales end, consumers who switched from compe tors for the sale, may go back to
previous brand
what are premiums?
We'll throw in something free for taking part in the promo on.
Understand the different types of sales promo ons: what is price off?
b. Price Off: Ex, 50% off. (usually 10 to 25 percent off regular price)
Understand the different types of sales promo ons: what is couponing?
c. Couponing: Online, paper, direct mail. From the brand perspec ve, couponing can be used to
track consumer behavior. If digital, we can track it even more.
Understand the different types of sales promo ons: what are sweepstakes and contests?
d. Sweepstakes and Contests: they're a thing.
Fully understand the objec ves of sales promo ons.
, The main one is to increase short term sales. ALL PROMOTIONS PROVIDE A REWARD for the
customer.
Know the func onal and hedonis c rewards of sales promo on.
Func onal: Reduce search and decision costs, improve product quality for customers, etc.
Hedonis c: Makes you feel smart, provides entertainment, etc.
Know the 10 things Sales Promo ons CAN accomplish.
1. S mulate the sales force
2. Invigorate state of stale or mature products
3. More on and off shelf space
4. Can encourage repeat purchases (can be a posi ve or nega ve)
5. Introduce new products
6. Obtain trial purchase
7. Prevent compe on from loading
8. Allows us to load customers
9. Reinforces adver sing
10. Neutralize compe tor's ads and promo ons
Know what Sales Promo ons CANNOT accomplish.
- Does not provide long-term reason to engage with us
- Can't fix ongoing problem, i.e. 2 year decline in sales- answer is research
- Undertrained sales force
What are rebates?
Rebates: Receive money back from manufacturer
Understand the pros and cons of Rebates to Manufacturers and Consumers.
- They o%en make it a pain in the ass so no one does it (low redemp on rate), good thing for
manufacturer.
- greater awareness builder, increased trial, and creates GOODWILL.
What is the key objec ve of a Con nuity program or promo on?
- REWARD CUSTOMERS THAT COME BACK!
- To increase loyalty
- great way to track data
- Airlines were the first to do this and the most famous example
Know what best generates product trials.
