MKTG455 Exam 3: Marketing Communications and
Strategy Exam
What is sales promotion? - ans -- 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
strengths of sales promotion - ans -- 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
weaknesses of Sales promotions - ans -- 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
Examples of sales Promotion - ans -- continuity program
-point of sale
- everyday low pricing
- Seasonal promotions
-rebates
- sampling
- sweepstakes/contest
Continuity Program (sales promotion) - ans -- rewarding people for repeat
purchases
- rewards are the common denominator among all promotions
point of sale (sale promotion) - ans -- in-store media
, Seasonal promotions - ans -- things like black friday
- primary objective is to clear out inventory
- stimulates spontaneous purchases
What is a Rebate and what are the pros and cons for manufacturers/ consumers -
ans -- 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 awarness 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
Sampling (sales promotion) - ans -- giving away free samples
- primary objective is to encourage product trial
list the objectives of sales promotion - ans -- 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
functional rewards of sales promotion - ans -- 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
hedonistic rewards of sales promotions - ans -- sense of being a wise shopper
- achieving a need for stimulation or variety
- obtaining entertainment value (whether it be through a display or something
like a sweepstake/ contest)
What can sales promotion accomplish - ans -- increase shelf space in stores by
clearing inventory
Strategy Exam
What is sales promotion? - ans -- 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
strengths of sales promotion - ans -- 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
weaknesses of Sales promotions - ans -- 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
Examples of sales Promotion - ans -- continuity program
-point of sale
- everyday low pricing
- Seasonal promotions
-rebates
- sampling
- sweepstakes/contest
Continuity Program (sales promotion) - ans -- rewarding people for repeat
purchases
- rewards are the common denominator among all promotions
point of sale (sale promotion) - ans -- in-store media
, Seasonal promotions - ans -- things like black friday
- primary objective is to clear out inventory
- stimulates spontaneous purchases
What is a Rebate and what are the pros and cons for manufacturers/ consumers -
ans -- 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 awarness 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
Sampling (sales promotion) - ans -- giving away free samples
- primary objective is to encourage product trial
list the objectives of sales promotion - ans -- 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
functional rewards of sales promotion - ans -- 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
hedonistic rewards of sales promotions - ans -- sense of being a wise shopper
- achieving a need for stimulation or variety
- obtaining entertainment value (whether it be through a display or something
like a sweepstake/ contest)
What can sales promotion accomplish - ans -- increase shelf space in stores by
clearing inventory
