MKTG455 Exam 3: Marketing Communications and
Strategy Exam|| GRADED A+|| LATEST UPDATE
2025/26
What is sales promotion? -CORRECTANSWER 1. All activities that stimulate short-term
behavioral responses from consumers, trade (distributors, wholesalers, retailers), and
the sales force.
2. Incentivizes targets beyond the benefit/value of the products alone
Factors that Influence Increase in Sales Promotion -CORRECTANSWER > Power shift
to retailer
> Growth in brand parity & price sensitivity
> Reduced brand loyalty
> Splintering of mass market and decreased media effectiveness
> Short-term orientation and corporate rewards
> Consumer responsiveness
What sales promotions can accomplish -CORRECTANSWER > Stimulate sales force
> Invigorate sales of mature product
> Facilitate intro of new products
> Increase on/off shelf merchandising space
> Neutralize competitive advertising and sales promotion
,> Obtain trial purchase by consumers
> Encourage repeat purchases
> Load customers
---> Preempt competition
> Reinforce advertising
What promotions can't accomplish -CORRECTANSWER > Compensate for poorly
trained sales force or inadequate advertising
> Provide long-term brand loyalty
> Permanently stop decline of old/unwanted brand/product
Downside of extended promotions -CORRECTANSWER > Can diminish brand image
and brand loyalty
> Can reduce consumption
> Can't stop decline of old/unwanted brand/product
Trade Promotions -CORRECTANSWER Manufacturers' incentives offered to
wholesalers, distributors, retailers and other marketing intermediaries --> objective is to
have retailers stock adequate quantities of product
Examples of trade promotions -CORRECTANSWER Price discounts
Advertising support
Special Displays
, Primary Objectives of Trade Promotions -CORRECTANSWER > Introduce
new/improved products
> Increase distributions of new packages or sizes
> Building retail inventories
> Maintain/increase shelf space
> Obtain displays other than shelf space
> Reduce excess inventory and improve turnover
> Feature your product in retailers' advertisements
> Counter competition's activity
> Sell as much as possible to final consumers
Keys to successful trade promotions -CORRECTANSWER > Offer financial incentive
> Appropriate timing
> Minimize cost & effort for retailer
> Provide quick results
> Improves retailer performance
Types of Trade promotions -CORRECTANSWER Off-Invoice Allowance: Flat-rate
discount if ordered within a certain timeframe
Bill-Back Allowance: Retailer "bills back"manufacturer a % of their cost for advertising or
special displays
Strategy Exam|| GRADED A+|| LATEST UPDATE
2025/26
What is sales promotion? -CORRECTANSWER 1. All activities that stimulate short-term
behavioral responses from consumers, trade (distributors, wholesalers, retailers), and
the sales force.
2. Incentivizes targets beyond the benefit/value of the products alone
Factors that Influence Increase in Sales Promotion -CORRECTANSWER > Power shift
to retailer
> Growth in brand parity & price sensitivity
> Reduced brand loyalty
> Splintering of mass market and decreased media effectiveness
> Short-term orientation and corporate rewards
> Consumer responsiveness
What sales promotions can accomplish -CORRECTANSWER > Stimulate sales force
> Invigorate sales of mature product
> Facilitate intro of new products
> Increase on/off shelf merchandising space
> Neutralize competitive advertising and sales promotion
,> Obtain trial purchase by consumers
> Encourage repeat purchases
> Load customers
---> Preempt competition
> Reinforce advertising
What promotions can't accomplish -CORRECTANSWER > Compensate for poorly
trained sales force or inadequate advertising
> Provide long-term brand loyalty
> Permanently stop decline of old/unwanted brand/product
Downside of extended promotions -CORRECTANSWER > Can diminish brand image
and brand loyalty
> Can reduce consumption
> Can't stop decline of old/unwanted brand/product
Trade Promotions -CORRECTANSWER Manufacturers' incentives offered to
wholesalers, distributors, retailers and other marketing intermediaries --> objective is to
have retailers stock adequate quantities of product
Examples of trade promotions -CORRECTANSWER Price discounts
Advertising support
Special Displays
, Primary Objectives of Trade Promotions -CORRECTANSWER > Introduce
new/improved products
> Increase distributions of new packages or sizes
> Building retail inventories
> Maintain/increase shelf space
> Obtain displays other than shelf space
> Reduce excess inventory and improve turnover
> Feature your product in retailers' advertisements
> Counter competition's activity
> Sell as much as possible to final consumers
Keys to successful trade promotions -CORRECTANSWER > Offer financial incentive
> Appropriate timing
> Minimize cost & effort for retailer
> Provide quick results
> Improves retailer performance
Types of Trade promotions -CORRECTANSWER Off-Invoice Allowance: Flat-rate
discount if ordered within a certain timeframe
Bill-Back Allowance: Retailer "bills back"manufacturer a % of their cost for advertising or
special displays
