IMC 373-EXAM 3

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CH. 16

In the opening vignette, Macy's learned the hard way that:

A. organic is not necessarily natural B. consumers are sensitive to brand re-identification
C. consumers love a deal
D. fashion does not always equal style
E. coupons are better than cost-cutting

consumers love a deal

In the opening vignette, Macy's learned that extensive use of discounts and promotional offers:

A. reduces the effectiveness of nonfranchise-building promotions B. undermines their ability to build and maintain brand equity
C. creates a game that can only be refunded through bonus packs
D. are effective substitutes for self-liquidating off-invoice allowances
E. create accounting nightmares

undermines their ability to build and maintain brand equity

______ is defined as a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or to ultimate consumer with the primary objective of creating an immediate sale.

A. Brand advertising
B. A sales promotion
C. Direct marketing
D. A promotional allowance

A sales promotion

Which of the following elements of the integrated marketing communications programs is designed to provide an extra incentive to consumers to purchase a brand?

A. advertising
B. direct mail
C. public relations
D. price
E. sales promotion

sales promotion

Which of the following statements does NOT describe an aspect or characteristic of sales promotion?

A. A sales promotion provides an extra incentive to buy.
B. A sales promotion is an acceleration tool designed to speed up the selling process.
C. Sales promotion can be targeted to different parties in the marketing channel.
D. Sales promotions now account for more of marketer's promotional budget than media advertising.
E. Most of the sales promotional dollars are spent on consumer-oriented promotions.

Most of the sales promotional dollars are spent on consumer-oriented promotions.

Marketers can target sales promotion efforts to:

A. consumers
B. retailers
C. distributors
D. salespeople
E. all of the above

all of the above

When a marketer distributes coupons for a brand with a specific expiration date, they are attempting to use sales promotion as a(n):

A. brand franchise building promotion
B. brand equity building promotion C. acceleration tool
D. value added tool
E. promotional marketing tool

acceleration tool

Coupons, bonus packs, premiums and samples are promotional offers that are targeted toward:

A. consumers
B. retailers
C. wholesalers
D. salespeople
E. all of the above

consumers

Consumer-oriented sales promotions are part of a promotional ______ strategy.

A. EDLP
B. pull
C. trade
D. premium
E. push

pull

All of the following are examples of trade-oriented sales promotion activities EXCEPT:

A. off-invoice allowances
B. promotional allowances
C. point-of-purchase displays
D. trade shows
E. coupons

coupons

All of the following are examples of consumer-oriented sales promotion activities EXCEPT:

A. samples
B. coupons
C. refunds/rebates
D. trade shows
E. bonus packs

trade shows

Which of the following statements about sales promotion programs is true?

A. Sales promotion programs are targeted only at consumers.
B. Many sales promotion programs are designed to motivate distributors and retailers to carry a product and push it to their customers.
C. Nearly three quarters of all sales promotion dollars are spent on consumer promotions.
D. Sales promotion dollars for most companies are allocated equally between consumers and the trade. E. Sales promotion strategies aimed at marketing intermediaries are called pull strategies.

Many sales promotion programs are designed to motivate distributors and retailers to carry a product and push it to their customers.

Among major packaged goods companies, the greatest percentage of the promotional budget is allocated to:

A. media advertising
B. consumer promotions
C. trade promotions
D. direct marketing
E. trade shows

trade promotions

Among major packaged goods companies, spending on _____ has remained relatively constant over the past decade.

A. trade promotion
B. consumer promotion
C. media advertising
D. direct mail
E. public relations activities

consumer promotion

How has the view of sales promotions changed during the past decades?

A. Sales promotions are now considered an essential part of an organization's branding strategies. B. Sales promotion tactics are now developed before the strategy is determined.
C. Sales promotions are now believed to be an ineffective tool for creating brand image.
D. Creatives have become more sophisticated, and this sophistication has led to a decline in their dependence on sales promotion.
E. There is no difference between how marketers used to treat sales promotions and how they treat them now.

Sales promotions are now considered an essential part of an organization's branding strategies

Why are organizations like KFC, Heinz Foods, Toys R Us, and Anheuser Busch placing more emphasis on sales promotions than ever before?

A. because they want to use sales promotions rather than engage in price wars
B. because they are convinced sales promotions can be used to build brand equity more effectively and more quickly than other promotional mix elements
C. because the use of sales promotions allows them to cut back and/or completely eliminate their use of coupons
D. because consumers have less time to shop
E. because the use of allowances, deals, and premiums confuse consumers

because they are convinced sales promotions can be used to build brand equity more effectively and more quickly than other promotional mix elements

Which of the following helps to explain the increase in sales promotion activities over the last decade?

A. the increase of brand loyalty in many product categories
B. the tremendous decrease in the number of new products
C. the increased emphasis on long term strategy and performance by most companies
D. the advertising clutter problem
E. all of the above

the advertising clutter problem

Which of the following developments have resulted in a transfer of power from manufacturers to retailers?

A. The advent of optical scanners and computers gave manufacturers access to sales information.
B. Manufacturers are spending more money on media advertising.
C. Consolidation in the grocery industry has resulted in larger chains with greater buying power and clout.
D. Manufacturers are spending more money on marketing research.
E. Manufacturers are introducing more private-label brands.

Consolidation in the grocery industry has resulted in larger chains with greater buying power and clout.

Consumers have become more sensitive and responsive to sales promotion because:

A. consumers are multi-brand loyal B. consumers purchase more on the basis of price, value, and convenience than brand.
C. many purchase decisions are being made in the store where many sales promotions are found
D. marketers are offering consumers more promotions to attract and maintain customers
E. of all of the above reasons

of all of the above reasons

Marketing planning and reward systems may lead to an increase in the use of sales promotion because sales promotions encourage:

A. managers to use advertising to build brand equity
B. managers to use consumer-oriented sales promotion to meet long-term performance goals
C. sales reps to encourage their marketing managers not to use promotions to help them get orders from retailers
D. the use of price-oriented promotions to generate short-term sales
E. all of the above

the use of price-oriented promotions to generate short-term sales

Which of the following statements about the proliferation of new products in the consumer marketplace is true?

A. Consumer product companies launch approximately 20,000 new products each year.
B. Sales promotion programs play an important role in motivating retailers to allocate shelf space to new products.
C. Supermarkets now carry an average of 30,000 different products compared to 13,067 in 1982.
D. Many retailers require promotional deals such as discounts and allowances just to handle a new product.
E. All of the above statements about the proliferation of new products in the consumer marketplace are true.

All of the above statements about the proliferation of new products in the consumer marketplace are true.

Which of the following statements about the proliferation of new products in the consumer marketplace is true?

A. Consumer product companies launch approximately 20,000 new products each year.
B. Only when dealing with pricing strategy will marketing managers have to be concerned about slotting allowances.
C. Supermarkets today carry more SKUs of specific products, and fewer different brands of products than they once did.
D. Manufacturers are the leading users of promotions, and their choices of sales promotions are not influenced in any way by retailers.
E. All of the above statements about the proliferation of new products in the consumer marketplace are true.

Consumer product companies launch approximately 20,000 new products each year.

Wal-Mart is known for its marketing ______________, influencing all aspects of marketing including sales promotions by brand manufacturers.

A. simplicity
B. power
C. linearity
D. cooperation
E. religion

power

What do many businesspeople give as a reason for the increasingly short-term focus on performance and sales volume in business today?

A. the primacy effect
B. the more rapid movement of consumers through the hierarchy of effects model
C. a habit of frequent repositioning D. synergistic buying
E. the brand management system

the brand management system

Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision-making. For this reason, many marketers rely on:

A. personal selling instead of mass-media advertising
B. a strategy that eliminates any advertising carryover effect
C. sales promotions such as coupons and price discounts
D. event sponsorships
E. out-of-home advertising media

sales promotions such as coupons and price discounts

_____ is a recent development whereby companies are customizing their sales promotion programs for key retailers.

A. Incentive marketing
B. Accountability marketing
C. Account-specific marketing
D. Trade marketing
E. Franchise building

Account-specific marketing

Another name for account-specific marketing is:

A. a planogram program
B. comarketing
C. dual sponsorship
D. piggyback marketing
E. key-account communications

comarketing

The toy company Hasbro teamed with the retailer Toys R Us to create direct mail booklets offering discounts on Hasbro toys good only at Toys R Us stores. This is an example of:

A. incentive marketing
B. a franchise building promotion
C. brand equity building
D. account-specific marketing
E. none of the above

account-specific marketing

Heinz Foods created a Cinco de Maio celebration for a large supermarket that targets Mexican-Americans, a market that Heinz sees as an area of potential growth. Heinz paid for a mariachi band to serenade shoppers during the day and also set up a food-sampling booth at the store's entry. This would be an example of:

A. incentive marketing
B. a franchise building promotion
C. brand equity building
D. account-specific marketing
E. none of the above

account-specific marketing

Some promotional studies indicate the number of sales promotions being offered to consumers is limiting its effectiveness as a marketing tool. In other words, _____ is affecting sales promotion just as it has advertising.

A. clutter
B. the recency effect
C. the carryover effect
D. noise
E. subliminal perception

clutter

Critics of sales promotions contend the increase in sales promotions is leading to a decrease in:

A. retailer power
B. ad readership scores
C. brand equity
D. promotional traps
E. consumer primacy

brand equity

Which of the following statements correctly describes the relationship between brand equity and sales promotion?

A. Critics argue sales promotion spending contributes to the destruction of brand equity.
B. Critics argue every dollar that is spent on promotion rather advertising devalues the brand.
C. Critics argue sales promotion is leading to reductions in brand equity because it comes at the expense of media advertising.
D. Not all sales promotion activities detract from brand equity.
E. All of the above statements about the concerns over the relationship between brand equity and advertising and promotion are true.

All of the above statements about the concerns over the relationship between brand equity and advertising and promotion are true.

Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are:

A. nonfranchise building promotions B. franchise building promotions
C. high-involvement sales promotions
D. sales promotion traps
E. event marketing

franchise building promotions

Which of the following statements describes how brand equity is affected by the increased role of sales promotion?

A. Critics argue sales promotions generally result in higher brand equity.
B. Sales promotions do not contribute to the erosion of brand equity.
C. Proponents of brand equity argue increased spending on sales promotion is coming at the expense of media advertising, and this is leading to declines in brand equity. D. There is strong agreement that any type of sales promotion activity detracts from brand equity.
E. All of the above statements describe how brand equity is affected by the increased role of sales promotion.

Proponents of brand equity argue increased spending on sales promotion is coming at the expense of media advertising, and this is leading to declines in brand equity.

In a sales promotion sponsored jointly by Puerto Rico Tourism Board and Rums of Puerto Rico, couples were invited to enter a contest for a chance to win the perfect wedding. According to the ad, enjoying Puerto Rico hospitality is "As Easy As Saying I Do." The contest is an example of:

A. a nonfranchise building promotion
B. a franchise building promotion
C. a high-involvement sales promotion
D. a sales promotion trap
E. event marketing

a franchise building promotion

Tropicana developed a "Win the Perfect Vacation" sweepstakes to complement an advertising campaign theme promoting its grapefruit juice as the perfect beverage. This is an example of:

A. a nonfranchise building promotion
B. a franchise building promotion
C. a high-involvement sales promotion
D. a sales promotion trap
E. event marketing

a franchise building promotion

Consumer-franchise-building for a brand:

A. is the exclusive responsibility of advertising
B. is accomplished through short-term price-oriented promotions
C. is impossible to do through consumer promotions
D. can be accomplished through consumer promotions that reinforce established brand images or positioning
E. is becoming less important to marketers as competition intensifies

can be accomplished through consumer promotions that reinforce established brand images or positioning

The building or reinforcement of consumer-franchise or equity for a brand:

A. can really only be accomplished through advertising
B. can be done with carefully planned sales promotion programs C. can be done with more easily through trade-oriented promotions than through consumer-oriented promotions
D. is really not very important given the prolonged economic prosperity the U.S. economy has been in
E. is accurately described by none of the above

can be done with carefully planned sales promotion programs

Which of the following is an example of a sales promotion that can be used to contribute to franchise building?

A. a 50-cents off coupon on a box of Minute Rice to encourage repurchase
B. a sweepstakes or contest that uses a theme which is consistent with the image or positioning of the brand
C. a $50-rebate offer on the purchase of a Lane cedar chest
D. a price reduction of $5 on a pair of Lee jeans
E. all of the above

a sweepstakes or contest that uses a theme which is consistent with the image or positioning of the brand

Which of the following is an example of a nonfranchise building promotion?

A. consumer sampling
B. contests targeted to ultimate consumers
C. price-off deals
D. event sponsorship
E. frequency programs

price-off deals

Promotional activities designed to accelerate the purchase process and generate an immediate increase in sales without communicating information about a brand's unique features or benefits are known as:

A. consumer franchise-building promotion
B. nonfranchise-building promotion C. sweepstakes
D. image promotions
E. trade promotions

nonfranchise-building promotion

Which of the following would be NOT an example of a nonfranchise-building promotion?

A. price-off deals
B. bonus packs
C. rebates
D. image advertising
E. promotional deals to retailers

image advertising

The sales promotion tool that critics contend is most guilty of detracting from brand equity and at the same time being detrimental to a brand franchise is:

A. sweepstakes
B. contests
C. frequent patronage programs
D. trade promotions
E. event sponsorships

trade promotions

Which of the following is a reasonable objective for consumer-oriented sales promotions?

A. to obtain trial of a new brand
B. to encourage repurchase of a brand
C. to increase consumption of an established brand
D. to enhance advertising and marketing efforts
E. all of the above

all of the above

When Campbell Soup Company introduced its V8 Splash fruit medley juices, the company gave out free samples at Sam's Clubs and distributed millions of 50-cents-off coupons. The objective(s) of these sales promotion tools was to:

A. defend the brand's customer base B. obtain trial and repurchase
C. target a specific market
D. increase consumption of an established brand
E. create long-term brand equity

obtain trial and repurchase

Which of the following statements about sales promotions is true?

A. Ivory soap carving contests were used to support the war effort in World War II.
B. McDonald's was sued for illegally using the Monopoly game contest. C. The Oscar Mayer Wienermobile was the first sales promotion premium offer.
D. Sweepstakes are seen as more involving and more motivating than contests.
E. The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon.

The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon.

The American Airline AAdvantage promotional program rewarded consumer:

A. loyalty
B. diversity
C. diversification
D. price sensitivity
E. demographic segmentation

loyalty

Post Cereal is introducing a new kind of breakfast cereal that is soy-based and targeted at health-conscious adults between the ages of 25 and 50. The marketing objectives for the introduction are to generate trial and repeat purchase during the 3-month product launch. Which of the following sales promotion tools should work best for Post?

A. sampling and rebates
B. rebates and high value checkout coupons
C. bonus packs, trade allowances, and slotting fees
D. high value in package coupons and sampling
E. sweepstakes, contests, and rebates

high value in package coupons and sampling

Sales promotion tools could be used to increase sales of an established brand by:

A. giving away samples to attract nonusers of the brand
B. using coupons to give users of a competitive brand an incentive to switch
C. identifying new uses for the product
D. using a premium offer that appeals to people who use a competitive brand
E. doing all of the above

E. doing all of the above

Which of the following describes a sales promotion that can be used by a marketer to defend its current customer base?

A. Use special price promotions to encourage consumers to stock up on the brand.
B. Use bonus pack promotions to get consumers to buy larger sizes.
C. Use coupons to encourage consumers to continue to buy the brand.
D. Use trade promotions to encourage retailers to display and promote the brand.
E. Do any or all of the above

Do any or all of the above

_____ is generally considered the most effective method for generating trial of a new product.

A. Couponing
B. Sampling
C. A rebate award
D. A bonus pack
E. A contest

Sampling

Samples would be an appropriate promotional strategy to:

A. increase the market share of an established brand
B. induce trial of a new brand that is clearly superior to the competition C. assist consumers to learn a new behavior
D. introduce a new product to the marketplace
E. do all of the above

do all of the above

Samples would be an appropriate promotional strategy to:

A. support an every day low price (EDLP) strategy
B. as the key tactic in a push promotional strategy
C. introduce a new flavor of sport drink to the marketplace
D. support reminder advertising for a product in the decline stage of its product life cycle
E. do all of the above

introduce a new flavor of sport drink to the marketplace

Which of the following is NOT a sampling distribution method?

A. door-to-door sampling
B. sampling through the mail
C. in-store sampling
D. in or on package sampling
E. self-liquidating sampling

self-liquidating sampling

_____ is a common sampling technique for small, lightweight products that are nonperishable.

A. Door-to-door sampling
B. Sampling through the mail
C. In-store sampling
D. On-package sampling
E. Location sampling

Sampling through the mail

Which of the following statements about on-package sampling is true?

A. This can be a very cost effective sampling method, particularly for multiproduct companies.
B. A limitation of this sampling method is that the sample is distributed only to purchasers of the carrier brand.
C. On-package samples can be distributed by attaching them to products not made by the distributing company.
D. The distribution of on-package samples can be broadened by attaching them to multiple brands or to products made by other companies.
E. All of the above statements about on-package sampling are true.

All of the above statements about on-package sampling are true.

he oldest, most widely used, and most effective sales promotion tool is:

A. cents-off coupons
B. sampling
C. rebates
D. event sponsorship
E. bonus packs

cents-off coupons

_____ distributed the first coupon in 1895.

A. C. W. Post Co.
B. General Motors
C. R. J. Reynolds
D. Procter & Gamble
E. Bank of America

C. W. Post Co.

An advantage of coupons is that they:

A. elicit faster consumer response than samples
B. generally elicit immediate response from consumers
C. are very effective even without brand name awareness
D. allow a marketer to offer a price reduction to consumers who are price sensitive without having to reduce the price for everyone
E. build brand loyalty

allow a marketer to offer a price reduction to consumers who are price sensitive without having to reduce the price for everyone

Which of the following statements describes a limitation associated with using coupons as sales promotional tools?

A. Coupons offer price reductions only to those consumers who are price sensitive.
B. Coupons are often used by consumers who are already loyal to the brand.
C. Coupons for established brands or products are not redeemed.
D. Coupons can encourage trial and repeat purchase of a brand.

Coupons are often used by consumers who are already loyal to the brand.

Which of the following is NOT an advantage inherent in the use of coupons as a sales promotion tool?

A. Coupons offer price reductions to consumers who are price sensitive. B. Coupons are an effective way of generating trial of a new product.
C. Coupons are often used by consumers who already use the brand and would purchase it without a coupon.
D. Coupons can encourage repeat purchase of a brand.
E. Coupons can encourage non-users to try a brand.

Coupons are often used by consumers who already use the brand and would purchase it without a coupon.

When calculating the costs of a couponing program, marketers should consider:

A. production costs
B. redemption costs
C. handling costs
D. distribution costs
E. all of the above

all of the above

The most popular method for distributing coupons is:

A. newspaper freestanding inserts (FSIs)
B. direct mail
C. in/on packs
D. magazines
E. newspaper supplements

newspaper freestanding inserts (FSIs)

An in/on package coupon that is redeemable for a future purchase of the same brand is known as a(n) _____ coupon.

A. cross-ruff
B. bounce-back
C. instant
D. cross sell
E. same purchase

bounce-back

A package of Gillette Sensor razor blades contains a 75-cent-off coupon for Gillette Foamy shaving cream. This is an example of a(n) _____ coupon.

A. cross-ruff
B. bounce back
C. same purchase coupon
D. instant coupon
E. rebate coupon

cross-ruff

Affixed to the front of a bag of Aunt Jemima corn meal was a(n) _____ coupon that could be torn off (without damaging the bag) and redeemed at the time of the purchase.

A. bounce-back
B. cross-ruff
C. instant
D. premium
E. cross-sell

instant

_____ couponing is a method for distributing coupons by identifying a customer's purchases through bar codes scanners and then printing the coupon for a competing or complementary product.

A. On-package
B. In-Store
C. Shelf-dispensed
D. Cross-ruff
E. Instant

In-Store

Which of the following couponing methods allows companies to reach users of competitive brands rather than consumers who already use their brand?

A. on-package coupons
B. freestanding inserts
C. instant coupon machines at point-of-purchase
D. checkout coupons
E. all of the above

checkout coupons

Electronically dispensed checkout coupons:

A. reach consumers when they are ready to make a purchase
B. increase brand awareness on the shelf
C. provide category exclusivity
D. generate impulse buying and product trial
E. are accurately described by all of the above

are accurately described by all of the above

Electronically dispensed checkout coupons:

A. are paid for by the retailers where such coupons are handed out
B. have no redemption deadline
C. are available at Web sites and must be printed off to be used
D. generate impulse buying and product trial
E. are accurately described by all of the above

generate impulse buying and product trial

Companies in the ____ industry have begun replacing brand-specific coupons with universal coupons that can be redeemed for any of their brands.

A. disposable diapers
B. beer
C. cereal
D. shampoo
E. coffee

cereal

A(n) _____ is an offer of an item of merchandise or service either free or at a reduced price that is used to provide an extra incentive to purchase.

A. coupon
B. sample
C. premium
D. rebate
E. off-price deal

premium

Serta, the manufacturer of mattresses, gave away a Serta Sheep Plushie toy to any customer who purchased a mattress from a Serta dealer. The toy was only available for a limited time. The stuffed toy is an example of a(n):

A. coupon
B. sample
C. free premium
D. rebate
E. self-liquidating premium

free premium

Consumers must pay the manufacturers' out-of-pocket costs for a _____ premium.

A. cost-covered
B. self-liquidating
C. subsidized
D. cost-plus
E. base-cost

self-liquidating

Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal. This is an example of a _____ premium.

A. cost-covered
B. self-liquidating
C. subsidized
D. cost-plus
E. base-cost

self-liquidating

Which of the following statements about the use of premiums as a sales promotion tool is true?

A. The use of premiums is very popular among fast food restaurants as a way of attracting children.
B. Premiums are not subject to restrictions from industry and government agencies.
C. Redemption rates for mail-in premium offers are very high.
D. Consumers are always required to pay at least some of the costs of a premium offer.
E. Mail-in premiums offer immediate reinforcement to the purchaser.

The use of premiums is very popular among fast food restaurants as a way of attracting children.

Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal. The appearance of Bart Simpson on the watch and not the Kellogg's logo would:

A. detract from the consumer franchise building value of the promotion
B. create problems in supply and demand
C. make inventory forecasting easier D. fully support Kellogg's in its consumer franchise building promotion
E. make it unnecessary for Kellogg's to run a nonfranchise building promotion

detract from the consumer franchise building value of the promotion

An effective premium is one that:

A. distracts consumers from the firm's main reason for existing
B. ties into the overall positioning and communications campaign of the brand
C. induces one-time trial purchase of a brand for which there is low awareness
D. encourages repeat purchase of some brand other than that for which the premium is delivered
E. has no impact on an organization's pioneering advertising

ties into the overall positioning and communications campaign of the brand

Which of the following would be the best example of a premium offer that contributes to consumer-franchise building efforts for a brand?

A. a free tube of Colgate toothpaste in a box of Life cereal
B. a pack of baseball cards in a box of Cheerios cereal
C. a free sport bottle with the purchase of a four-pack of Gatorade D. a dish towel in a box of Tide laundry detergent
E. a pack of golf tees inside a box of golf balls

a free sport bottle with the purchase of a four-pack of Gatorade

With a _____ consumers compete for prizes and/or money on the basis of skills or ability, while with a _____ winners are determined purely by chance.

A. sweepstakes; contest
B. contest; sweepstakes
C. contest; event sponsorship
D. sweepstakes; event sponsorship E. contest; rebate

contest; sweepstakes

Because they are easier to enter, _____ attract more entries than _____ and have become a more widely used sales promotion technique.

A. contests; sweepstakes
B. sweepstakes; contests
C. sweepstakes; premiums
D. contests; premiums
E. contests; rebates

sweepstakes; contests

Which of the following sales promotion techniques would be most effective for generating excitement or interest in a brand?

A. coupons
B. price-off deals
C. bonus packs
D. contests/sweepstakes
E. samples

contests/sweepstakes

Sweepstakes and contests:

A. are primarily used to move consumers into the conviction stage of the hierarchy of effects model
B. can be used to generate excitement and involvement with a popular and timely event
C. contribute minimally to consumer franchise building
D. do not distract from consumer franchise building activities
E. are accurately described by all of the above

can be used to generate excitement and involvement with a popular and timely event

Which of the following sales promotion techniques is impacted negatively by the presence of professionals or hobbyists who take advantage of the promotion without making a purchase?

A. sampling
B. premiums
C. contests and sweepstakes
D. event sponsorships
E. bonus packs

contests and sweepstakes

Inefficiently run sales promotions can result in:

A. increased self-regulation of sales promotional activities
B. poor relationships with mass-media
C. violation of the Robinson-Patman Act
D. a cease-and-desist order from the Federal Trade Commission
E. negative publicity

negative publicity

The Kraft clause is:

A. a disclaimer used with contests and sweepstakes to protect the sponsoring company
B. a law used to protect companies against fraudulent coupon redemption
C. a law that frees a sponsoring company from liability during event sponsorship
D. in the small print that comes with every rebate and refund offer and states the purchaser can only redeem one time
E. none of the above

a disclaimer used with contests and sweepstakes to protect the sponsoring company

Which of the following statements about rebates is true?

A. Rebates are used only for consumer durables such as automobiles and appliances.
B. Most retailers want to be involved with rebate programs.
C. Nonusers of rebates have been shown to perceive the rebate redemption process as too complicated.
D. Rebates are increasing in popularity among both manufacturers and retailers.

Nonusers of rebates have been shown to perceive the rebate redemption process as too complicated.

The redemption rate for refunds is lower than that for coupons because:

A. the payoff is smaller
B. the reinforcement is immediate
C. more effort is required
D. the payoff is larger
E. the offers tend to expire very quickly

more effort is required

As a sales promotion, _____ has the advantage of offering a price incentive to the consumer, which may or may not be utilized, depending upon how the consumer acts after the purchase.

A. a sweepstakes or contest
B. a premium
C. diverting
D. a rebate
E. forward buying

a rebate

Acushnet ran a promotion offering a box of fifteen Pinnacle golf balls for the same regular price as twelve balls. This is an example of a:

A. price-off deal
B. premium
C. bonus pack
D. rebate
E. trade allowance

bonus pack

Bonus packs:

A. offer consumers an extra amount of a product or service but a higher than normal price
B. provide marketers with a way to provide extra value to consumers without having them do anything other than purchase the product
C. are not an effective way of loading consumers with a product and reducing their susceptibility to a competitor's promotional offer
D. are always welcome by retailers since bonus packs never require extra shelf space and increase retailers' profit margins
E. are accurately described by all of the above

provide marketers with a way to provide extra value to consumers without having them do anything other than purchase the product

When reductions from the regular price of a product are offered at the point-of- purchase through specially marked packages, a marketer is using a:

A. bonus pack
B. rebate
C. refund offer
D. bounce back coupon
E. price-off deal

price-off deal

Super-Sav supermarket gives customers VIC (very important customer) cards, which allows customers to take advantage of additional discounts on certain products and notification of special, customer-only sales. In addition, customers can accrue points each time they present their cards. These points can be used to purchase cookware, dishes, and other similar hard goods. Super-Sav is using a:

A. bonus program
B. frequency program
C. customer rewards contest
D. self-liquidating promotion
E. subsidized program

frequency program

Every time Beth buys a book at Waldenbooks, she presents her Waldenbooks card, and the sales associate enters her purchase in a database. When she has purchased five books at regular price, she is sent a coupon for a free book to be picked out on her next visit to the store. This is an example of a:

A. bonus program
B. frequency program
C. customer rewards contest
D. self-liquidating promotion
E. subsidized program

frequency program

Frequency programs:

A. are also called continuity programs
B. have become popular with supermarkets
C. are also called loyalty programs D. give marketers the opportunity to develop databases
E. are accurately described by all of the above

are accurately described by all of the above

Coors Light beer's heavy financial involvement with and support of freestyle skiing competitions, beach volleyball tournaments, and other sporting events are examples of:

A. premiums
B. trade shows
C. exhibitions
D. event marketing
E. contests

event marketing

May is National Arthritis Month. To celebrate this month, the manufacturer of Aleve pain reliever sponsored fundraiser walks to raise money to find a cure for arthritis. Aleve's manufacturer engaged in:

A. a self-liquidating premium
B. a trade show
C. an exhibition
D. event marketing
E. a corporate contest

event marketing

Which of the following statements about event sponsorships is true?

A. the amount of money spent on event sponsorships has been declining in recent years.
B. Event sponsorships are not typically integrated into a company's marketing communications strategy. C. Event marketing and event sponsorship are synonymous.
D. Decisions and objectives for event sponsorships are often part of an organization's public relations activities.
E. All of the above statements about event sponsorship are true.

Decisions and objectives for event sponsorships are often part of an organization's public relations activities.

All of the following are reasonable objectives for trade-oriented sales promotions EXCEPT:

A. to obtain distribution and support for new products
B. to maintain trade support for established brands
C. to encourage the trade to display and support established brands
D. to differentiate a brand through image enhancement
E. to build retail inventories

to differentiate a brand through image enhancement

Which of the following is a viable objective for a trade-oriented sales promotion?

A. to obtain distribution and support for new products
B. to maintain retailer support for established brands
C. to encourage retailers to display and promote established brands
D. to build retail inventories
E. to do all of the above

to do all of the above

Programs involving cash payments directly to the sales force to reward them for selling the manufacturer's products involve the use of:

A. slotting fees
B. pull money
C. push money
D. pricing promotions
E. promotional allowances

push money

Which of the following promotions is targeted toward the trade rather than consumers?

A. spiffs
B. coupons
C. premiums and sweepstakes
D. bonus packs
E. all of the above

spiffs

A discount or deal offered to a retailer or wholesaler to encourage them to stock, promote or display a manufacturer's product is known as:

A. cooperative advertising
B. merchandising support
C. a trade allowance
D. a spiff
E. push money

a trade allowance

Ocean Spray offers its retail accounts a $3.00 per case discount for all of the cranberry juice they purchase during the month of May. This discount will be deducted straight from the bill. This is an example of:

A. push money
B. a slotting allowance
C. an off-invoice allowance
D. a display allowance
E. a coop allowance

an off-invoice allowance

Payments offered by manufacturers to resellers for merchandising products or running special in-store programs are called:

A. cooperative advertising
B. push monies
C. advertising subsidies
D. promotional allowances
E. slotting allowances

promotional allowances

Money that must be paid to a retailer so it will take on a company's new product is known as:

A. slotting allowances
B. failure fees
C. spiffs
D. new product fees
E. trade discounts

slotting allowances

Some retailers have demanded payment for new products that do not reach a minimum sales target. These payments are called:

A. failure fees
B. slotting allowances
C. push monies
D. slotting fees
E. street monies

failure fees

_____ is a practice used by retailers whereby they stock-up on a product at a low deal or off-invoice price and resell it to consumers at higher prices when a promotional period has ended.

A. Forward buying
B. Diverting
C. Everyday low pricing
D. Discount trading
E. Promotional discounting

Forward buying

_____ is a practice used by some retailers and wholesalers whereby they take advantage of a promotional deal and then sell some of the product purchased at the low price to another store outside of the reseller's trade area or to a middleman who will then resell the products.

A. Forward buying
B. Diverting
C. Everyday low pricing
D. Discount trading
E. Promotional discounting

Diverting

Companies such as Procter & Gamble use _____ to reduce fluctuations in the retail prices of their brands.

A. high/low pricing strategies
B. trade allowances
C. everyday low pricing (EDLP)
D. cooperative advertising
E. slotting allowances

everyday low pricing (EDLP)

A _____ is a configuration of products that occupy a shelf section in a store offered to resellers by manufacturers.

A. slotting plan
B. planogram
C. promotional layout
D. retail format
E. store layout

planogram

Nordica provides sales personnel in ski shops with training classes, detailed manuals, and other tools to help them better understand how to sell the company's ski boots. This is an example of:

A. cooperative advertising
B. a planogram
C. sales training programs
D. event marketing
E. spiffs

sales training programs

_____ is an exhibition or forum where manufacturers can display their products to current and perspective buyers.

A. A planogram
B. A trade layout
C. Cooperative advertising
D. A trade show
E. Event marketing

A trade show

_____ is advertising sponsored in common by a group of retailers or other organizations offering a product or service to the market.

A. Horizontal cooperative advertising
B. Vertical cooperative advertising
C. Indirect advertising
D. Ingredient-sponsored cooperative advertising
E. Dyadic communication

Horizontal cooperative advertising

When New Balance sponsors a campaign advertising the availability of its running shoes at FootLocker stores, this is an example of _____ advertising.

A. horizontal cooperative
B. vertical cooperative
C. dyadic
D. ingredient-producer cooperative E. aggregated

vertical cooperative

_____ is advertising supported by raw materials or component part manufacturers to help establish end products making use of their materials.

A. Vertical cooperative advertising
B. Ingredient-sponsored cooperative advertising
C. Horizontal cooperative advertising
D. Support advertising
E. Integrated dyadic communications

Ingredient-sponsored cooperative advertising

Intel and several different manufacturers of personal computers have joined to create and sponsor ads that promote both the computer and the microprocessor. Intel and the PC manufacturers are using:

A. cooperative advertising
B. forward promotion
C. dyadic communications
D. comparative advertising
E. diverting

cooperative advertising

When advertising and sales promotion efforts work well together and create sales results greater than those achievable from either element being used alone, they are producing a _____ effect.

A. stimulus-response
B. symbiotic
C. hierarchical
D. synergistic
E. dyadic

synergistic

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