34 Lecture

1. Which of the following is an example of a sales promotion? A) Product packaging B) Advertising C) Public relations D) Coupons

Answer: D) Coupons

2. Which of the following sales promotion tactics is designed to encourage repeat purchases? A) Coupons B) Rebates C) Loyalty programs D) Contests

Answer: C) Loyalty programs

3. A company offers a discount to customers who purchase a certain quantity of their product. This is an example of which type of sales promotion? A) Coupons B) Rebates C) Quantity discounts D) Sampling

Answer: C) Quantity discounts

4. Which of the following sales promotion tactics is designed to increase trial of a product? A) Coupons B) Rebates C) Loyalty programs D) Contests

Answer: A) Coupons

5. Which of the following is an example of a trade promotion? A) Coupons B) Rebates C) Free samples D) Slotting fees

Answer: D) Slotting fees

6. A company offers a free sample of their product to customers. This is an example of which type of sales promotion? A) Coupons B) Rebates C) Quantity discounts D) Sampling

Answer: D) Sampling

7. Which of the following is an example of a push promotion? A) Coupons B) Rebates C) Advertising D) Public relations

Answer: C) Advertising

8. Which of the following is an example of a pull promotion? A) Coupons B) Rebates C) Sales force promotions D) Public relations

Answer: A) Coupons

9. Which of the following is a disadvantage of sales promotions? A) Increased brand awareness B) Increased customer loyalty C) Reduced profit margins D) Increased sales volume

Answer: C) Reduced profit margins

10. Which of the following is an example of a premium promotion? A) Coupons B) Rebates C) Free gifts D) Slotting fees

Answer: C) Free gifts

1. What is sales promotion and how does it differ from advertising?

Answer: Sales promotion refers to marketing activities that are designed to stimulate sales of a product or service, such as coupons, rebates, and limited-time offers. Advertising, on the other hand, involves promoting a product or service through paid media channels such as television, radio, and print.

2. How can sales promotion help a company achieve its marketing objectives?

Answer: Sales promotion can help a company achieve its marketing objectives by increasing brand awareness, driving short-term sales, encouraging customer loyalty, and differentiating a product from its competitors.

3. What is the difference between a push promotion and a pull promotion?

Answer: A push promotion involves targeting intermediaries such as wholesalers and retailers to promote a product to their customers, while a pull promotion involves targeting end consumers directly to create demand for a product.

4. How can a company measure the effectiveness of a sales promotion campaign?

Answer: A company can measure the effectiveness of a sales promotion campaign by tracking metrics such as sales volume, customer acquisition and retention rates, redemption rates for coupons and rebates, and return on investment.

5. What are the advantages and disadvantages of using price discounts as a sales promotion tactic?

Answer: The advantages of using price discounts include attracting price-sensitive customers, increasing short-term sales, and encouraging repeat purchases. The disadvantages include reduced profit margins, potential damage to brand image, and the risk of creating a price war with competitors.

6. How can a company use social media to execute a sales promotion campaign?

Answer: A company can use social media to execute a sales promotion campaign by creating engaging content, offering exclusive discounts and promotions to followers, and using social media influencers to promote their products.

7. What are the ethical considerations that a company should keep in mind when designing a sales promotion campaign?

Answer: A company should avoid making false or misleading claims, ensure that promotions are fair and accessible to all customers, and avoid targeting vulnerable populations such as children and the elderly.

8. What are the different types of sales promotion tactics that a company can use?

Answer: Some of the different types of sales promotion tactics include price discounts, coupons, rebates, loyalty programs, contests, sweepstakes, and free samples.

9. How can a company use sales promotion to differentiate its products from those of its competitors?

Answer: A company can use sales promotion to differentiate its products by offering exclusive discounts or premiums that are not available from competitors, or by offering promotions that emphasize unique product features or benefits.

10. What are some common mistakes that companies make when executing a sales promotion campaign?

Answer: Some common mistakes include offering promotions that are not relevant or valuable to customers, failing to communicate the terms and conditions of the promotion clearly, and not allocating enough resources to track and measure the effectiveness of the promotion.

Sales promotion refers to the use of marketing tactics designed to stimulate sales of a product or service. This can include a wide range of activities such as price discounts, coupons, rebates, loyalty programs, contests, sweepstakes, and free samples. The goal of sales promotion is to create a sense of urgency among consumers, encouraging them to make a purchase or take advantage of a limited-time offer. One of the main advantages of sales promotion is that it can help companies achieve short-term sales objectives. By offering a discount or promotion, companies can create an incentive for customers to buy their products right away, rather than waiting for a later time. Sales promotion can also help to differentiate a product from its competitors, particularly if the promotion is unique or emphasizes a particular product feature or benefit. However, there are also some potential drawbacks to using sales promotion as a marketing tactic. For example, offering frequent discounts or promotions can damage a company's brand image, as customers may begin to perceive the product as cheap or low quality. In addition, sales promotions can create a price war with competitors, as they may feel pressure to offer similar promotions in order to remain competitive. To be effective, a sales promotion campaign should be carefully planned and executed. Companies should determine their target audience and tailor their promotions to meet the specific needs and preferences of that audience. They should also track and measure the effectiveness of their promotions, in order to determine which tactics are most successful and refine their strategies accordingly. Overall, sales promotion can be a powerful tool for companies looking to drive short-term sales and differentiate their products from competitors. However, it is important for companies to approach sales promotion strategically, taking into account the potential advantages and drawbacks of this marketing tactic, and tailoring their promotions to meet the specific needs and preferences of their target audience.