MKTG 455 - EXAM 3 - STUDY GUIDE NEWSOME QUESTIONS
AND ANSWERS LATEST 2025/2026
The strengths of sales promotions
Strengths:
- creates an opportunity for communication
- helps to differentiate from competition
- promotes word of mouth
- Good and close relations between manufacturer and consumer
- Impulse buying
- Attention to new products
- Regaining market share from competitors
The weaknesses of sales promotions...
Weaknesses: Things that are considered premium may have image damage from sales
promotions.
- Retailers might see them as a hassle
- After sales end, consumers who switched from competitors for the sale, may go back to
previous brand
what are premiums?
We'll throw in something free for taking part in the promotion.
Understand the different types of sales promotions: what is price off?
b. Price Off: Ex, 50% off. (usually 10 to 25 percent off regular price)
Understand the different types of sales promotions: what is couponing?
c. Couponing: Online, paper, direct mail. From the brand perspective, couponing can be used to
track consumer behavior. If digital, we can track it even more.
Understand the different types of sales promotions: what are sweepstakes and contests?
d. Sweepstakes and Contests: they're a thing.
Fully understand the objectives of sales promotions.
, The main one is to increase short term sales. ALL PROMOTIONS PROVIDE A REWARD for the
customer.
Know the functional and hedonistic rewards of sales promotion.
Functional: Reduce search and decision costs, improve product quality for customers, etc.
Hedonistic: Makes you feel smart, provides entertainment, etc.
Know the 10 things Sales Promotions CAN accomplish.
1. Stimulate 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 positive or negative)
5. Introduce new products
6. Obtain trial purchase
7. Prevent competition from loading
8. Allows us to load customers
9. Reinforces advertising
10. Neutralize competitor's ads and promotions
Know what Sales Promotions 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 often make it a pain in the ass so no one does it (low redemption rate), good thing for
manufacturer.
- greater awareness builder, increased trial, and creates GOODWILL.
What is the key objective of a Continuity program or promotion?
- 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 promotions
Strengths:
- creates an opportunity for communication
- helps to differentiate from competition
- promotes word of mouth
- Good and close relations between manufacturer and consumer
- Impulse buying
- Attention to new products
- Regaining market share from competitors
The weaknesses of sales promotions...
Weaknesses: Things that are considered premium may have image damage from sales
promotions.
- Retailers might see them as a hassle
- After sales end, consumers who switched from competitors for the sale, may go back to
previous brand
what are premiums?
We'll throw in something free for taking part in the promotion.
Understand the different types of sales promotions: what is price off?
b. Price Off: Ex, 50% off. (usually 10 to 25 percent off regular price)
Understand the different types of sales promotions: what is couponing?
c. Couponing: Online, paper, direct mail. From the brand perspective, couponing can be used to
track consumer behavior. If digital, we can track it even more.
Understand the different types of sales promotions: what are sweepstakes and contests?
d. Sweepstakes and Contests: they're a thing.
Fully understand the objectives of sales promotions.
, The main one is to increase short term sales. ALL PROMOTIONS PROVIDE A REWARD for the
customer.
Know the functional and hedonistic rewards of sales promotion.
Functional: Reduce search and decision costs, improve product quality for customers, etc.
Hedonistic: Makes you feel smart, provides entertainment, etc.
Know the 10 things Sales Promotions CAN accomplish.
1. Stimulate 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 positive or negative)
5. Introduce new products
6. Obtain trial purchase
7. Prevent competition from loading
8. Allows us to load customers
9. Reinforces advertising
10. Neutralize competitor's ads and promotions
Know what Sales Promotions 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 often make it a pain in the ass so no one does it (low redemption rate), good thing for
manufacturer.
- greater awareness builder, increased trial, and creates GOODWILL.
What is the key objective of a Continuity program or promotion?
- 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.
