Types of Sales Promotions: Comprehensive Guide for Marketing Success

Question 1

What is a key objective of implementing sales promotions?

Accepted Answer

Boost sales volume

Answer

Increase brand recognition

Answer

Enhance customer support

Answer

Lower production expenses

Question 2

Which sales promotion tactic entails temporarily lowering the standard price of a product?

Accepted Answer

Discount

Answer

Coupon

Answer

Rebate

Answer

Free sample

Question 3

Which ethical guideline should marketers follow when implementing sales promotions?

Accepted Answer

Clearly disclose all terms and conditions to prevent deception.

Answer

Prioritize short-term profits, even if it involves misleading customers.

Answer

Employ deceptive tactics to attract customers, as long as the promotion is financially beneficial.

Question 4

Which type of sales promotion offers an immediate reduction in the price of a product or service?

Accepted Answer

Discount

Answer

Coupon

Answer

Rebate

Answer

Free sample

Question 5

What is the purpose of a rebate?

Accepted Answer

To offer a refund after purchase

Answer

To provide an immediate reduction in price

Answer

To encourage bulk purchases

Answer

To increase brand awareness

Question 6

Which sales promotion tactic is considered most effective in generating trial and encouraging brand switching?

Accepted Answer

Free samples

Answer

Coupons

Answer

Discounts

Answer

Rebates

Question 7

Which type of discount offers a reduction in price based on the total purchase amount?

Accepted Answer

Tiered discount

Answer

Quantity discount

Answer

Trade discount

Answer

Seasonal discount

Question 8

What is a primary advantage of using trade discounts?

Accepted Answer

Encouraging bulk purchases

Answer

Increasing customer loyalty

Answer

Reducing inventory levels

Answer

Promoting new products

Question 9

Which sales promotion technique involves offering a tangible item without any purchase obligation?

Accepted Answer

Free sample

Answer

Coupon

Answer

Discount

Answer

Loyalty program

Question 10

What is the primary objective of a loyalty program?

Accepted Answer

Increasing customer repeat purchases

Answer

Generating referrals

Answer

Collecting customer data

Answer

Promoting specific products

Question 11

Coupons offer customers a direct discount on the purchase price of a product. True or False?

Accepted Answer

True

Answer

False

Question 12

A voucher for a full-sized product is not a type of free sample sales promotion.

Accepted Answer

True

Answer

False

Question 13

Free samples are most effective for increasing brand awareness and product trial.

Accepted Answer

True

Answer

False

Question 14

Rebate programs can help businesses gather customer data by requiring participants to provide personal information.

Accepted Answer

True

Answer

False

Question 15

A quantity discount is a sales promotion technique that involves offering a reduced price on the purchase of a large number of units.

Accepted Answer

True

Answer

False

Question 16

Which sales promotion offers a temporary price reduction?

Accepted Answer

Discount

Answer

Coupon

Answer

Rebate

Answer

Free sample

Question 17

What type of sales promotion provides a refund after product purchase?

Accepted Answer

Rebate

Answer

Coupon

Answer

Discount

Answer

Free sample

Question 18

Which sales promotion offers a complimentary product or service to attract customers?

Accepted Answer

Free sample

Answer

Coupon

Answer

Discount

Answer

Rebate

Question 19

What element of a sales promotion defines its terms and conditions?

Accepted Answer

Mechanics

Answer

Objective

Answer

Measurement

Answer

Budget

Question 20

Which metric measures a sales promotion's effectiveness in acquiring new customers?

Accepted Answer

New customer acquisition

Answer

Sales increase

Answer

Redemption rate

Answer

Brand awareness

Question 21

What is the primary purpose of a sales promotion campaign?

Accepted Answer

Boost sales volume

Answer

Enhance brand loyalty

Answer

Enlarge customer base

Answer

Improve product quality

Question 22

Which digital sales promotion channel is gaining popularity due to its targeted advertising capabilities?

Accepted Answer

Social media

Answer

Email marketing

Answer

Pay-per-click advertising

Answer

Affiliate marketing

Question 23

When designing a sales promotion campaign for a seasonal product, what is a critical factor to consider?

Accepted Answer

Appropriate timing

Answer

Target audience identification

Answer

Promotion duration

Answer

Budgetary constraints

Question 24

Which of the following is a type of sales promotion that offers a price reduction after purchase?

Accepted Answer

Rebate

Answer

Coupon

Answer

Discount

Answer

Loyalty program

Question 25

How do rebates differ from discounts?

Accepted Answer

Rebates are paid after purchase, while discounts are deducted at the point of sale.

Answer

Discounts are only available for online purchases, while rebates can be claimed via mail or online.

Answer

Rebates are only offered for high-priced items, while discounts are more common for everyday products.

Answer

There is no difference between rebates and discounts.

Question 26

What is the main objective of offering free samples in a sales promotion campaign?

Accepted Answer

To create a favorable brand impression

Answer

To generate new leads

Answer

To encourage repeat purchases

Answer

To increase customer satisfaction

Question 27

Which of the following is NOT a key metric for assessing the effectiveness of a sales promotion?

Accepted Answer

Brand reputation

Answer

Sales uplift

Answer

Customer acquisition cost

Answer

Return on investment

Question 28

What type of promotion provides a partial reimbursement after a purchase has been made?

Accepted Answer

Rebates

Answer

Discounts

Answer

Buy-one-get-one-free

Answer

Free trial

Question 29

Which metric is commonly used to measure the effectiveness of a sales promotion campaign?

Accepted Answer

Sales lift

Answer

Market share

Answer

Customer engagement

Answer

Brand recall

Question 30

To measure the effectiveness of a sales promotion in enhancing brand recognition, which metric is primarily used?

Accepted Answer

Brand recall

Answer

Sales volume

Answer

Customer engagement

Answer

Return on investment

Question 31

What is the main goal of offering a coupon to a customer?

Accepted Answer

To encourage immediate purchase

Answer

To build brand loyalty

Answer

To increase brand awareness

Answer

To stimulate repeat purchases

Question 32

Which of the following is an example of a tiered discount?

Accepted Answer

10% off on purchases over $100

Answer

Buy one, get one free

Answer

Free gift with purchase

Answer

Loyalty points program

Question 33

Difference between Coupon and Rebate
What is the main distinction between a coupon and a rebate?

Accepted Answer

Coupons are redeemed at point of sale, while rebates are redeemed later.

Answer

Coupons offer a percentage discount, while rebates offer a fixed amount.

Answer

Coupons attract new customers, while rebates reward existing customers.

Answer

There is no difference between coupons and rebates.

Question 34

Free Sample as a Sales Promotion
Which sales promotion technique offers potential customers a free product or sample?

Accepted Answer

Free samples

Answer

Coupons

Answer

Discounts

Answer

Rebates

Question 35

Key Benefit of Discounts
What is the key advantage of employing discounts as a sales promotion strategy?

Accepted Answer

Immediate purchase encouragement.

Answer

Customer loyalty building.

Answer

Increased brand awareness.

Answer

Reduced inventory levels.

Question 36

Irrelevant Factor in Sales Promotion Selection
Which factor is NOT relevant when selecting a sales promotion type?

Accepted Answer

Company reputation

Answer

Target audience

Answer

Product or service characteristics

Answer

Budget constraints

Question 37

Purpose of Loyalty Programs
What is the primary purpose of utilizing a loyalty program as a sales promotion tactic?

Accepted Answer

Rewarding repeat purchases and fostering loyalty.

Answer

Attracting new customers and expanding the customer base.

Answer

Increasing brand awareness and improving brand visibility.

Answer

Reducing inventory levels and clearing out excess stock.

Question 38

Primary Goal of Bundle Promotions
What is the main objective of implementing a bundle promotion?

Accepted Answer

Increasing sales of complementary products or services and creating perceived value.

Answer

Clearing out excess inventory and reducing storage costs.

Answer

Attracting new customers and expanding the customer base.

Answer

Rewarding loyal customers and fostering brand loyalty.

Question 39

Which type of sales promotion offers a direct reduction in the purchase price upon presentation at the point of sale?

Accepted Answer

Coupon

Answer

Loyalty program

Answer

Rebate

Answer

Free sample

Question 40

What type of sales promotion involves a price reduction that is received after the purchase?

Accepted Answer

Rebate

Answer

Coupon

Answer

Discount

Question 41

Which sales promotion technique provides consumers with a free quantity of a product or service to experience it firsthand?

Accepted Answer

Free sample

Answer

Contest

Answer

Loyalty program

Answer

Coupon

Question 42

What type of sales promotion offers exclusive perks or rewards to repeat customers to encourage continued patronage?

Accepted Answer

Loyalty program

Answer

Discount

Answer

Sweepstakes

Answer

Free sample

Question 43

Which sales promotion is designed to create excitement and generate buzz around a brand, often involving participation and a chance to win?

Accepted Answer

Contest

Answer

Loyalty program

Answer

Coupon

Answer

Rebate

Question 44

What type of sales promotion offers a small reduction in the regular price of a product or service?

Accepted Answer

Discount

Answer

Rebate

Answer

Free sample

Answer

Coupon

Question 45

Which sales promotion involves rewarding customers for repeated purchases through accumulating points or rewards?

Accepted Answer

Loyalty program

Answer

Rebate

Answer

Coupon

Answer

Contest

Question 46

What type of sales promotion offers a chance to win a prize based on luck or random selection?

Accepted Answer

Sweepstakes

Answer

Discount

Answer

Loyalty program

Answer

Rebate

Question 47

Which sales promotion is primarily used to introduce new products or services to potential customers?

Accepted Answer

Free sample

Answer

Loyalty program

Answer

Contest

Answer

Coupon

Question 48

What type of sales promotion combines multiple different sales promotions into a single offer?

Accepted Answer

Combination promotion

Answer

Sweepstakes

Answer

Free sample

Answer

Discount

Question 49

Which sales promotion offers a direct price reduction on a product?

Accepted Answer

Discount

Answer

Free sample

Answer

Loyalty program

Question 50

The main goal of offering free samples as a sales promotion is to:

Accepted Answer

Introduce a product and encourage customers to try it

Answer

Reduce excess inventory

Answer

Drive immediate sales

Answer

Boost customer loyalty

Question 51

What is a rebate in the context of sales promotions?

Accepted Answer

A partial refund offered to customers after they purchase a product

Answer

A price reduction at the point of purchase

Answer

A coupon for a specific product

Answer

A reward for repeat purchases

Question 52

A key advantage of using coupons as a sales promotion is their ability to:

Accepted Answer

Reach specific customer groups

Answer

Build strong customer loyalty

Answer

Increase brand recognition

Answer

Clear out excess inventory

Question 53

Which of these is NOT considered a type of sales promotion?

Accepted Answer

Advertising

Answer

Discount

Answer

Free sample

Answer

Loyalty program

Question 54

A common challenge with sales promotions is:

Accepted Answer

Finding the balance between short-term gains and potential brand damage

Answer

High costs associated with implementation

Answer

Lack of customer interest

Question 55

When planning a sales promotion, the most crucial factor to consider is:

Accepted Answer

The target audience and desired objectives

Answer

Market competition

Answer

Product availability

Answer

Budget constraints

Question 56

What is the main purpose of a loyalty program in sales promotions?

Accepted Answer

To encourage repeat purchases and foster customer loyalty

Answer

To boost product awareness

Answer

To attract new customers

Question 57

Which of these metrics is used to assess the success of a sales promotion?

Accepted Answer

Increased sales volume and return on investment (ROI)

Answer

Social media engagement

Answer

Customer satisfaction ratings

Question 58

Businesses often implement sales promotions to:

Accepted Answer

Boost immediate sales and increase market share

Answer

Build long-term customer relationships

Answer

Reduce production expenses

Answer

Enhance customer service