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Terms in this set (118)
______ 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.
Which of the following elements of the integrated marketing communications programs is designed to provide an extra incentive to consumers to purchase a brand?
When a marketer distributes coupons for a brand with a specific expiration date, they are attempting to use sales promotion as a(n):
Coupons, bonus packs, premiums, and samples are promotional offers that are targeted towards:
Consumer-oriented sales promotions are part of a promotional _____ strategy.
Which of the following is an example of consumer-oriented sales promotion activity?
Which of the following is an example of trade-oriented sales promotion activity?
Which of the following statements is true about sales promotion programs?
Many sales promotion programs are designed to motivate distributors and retailers to carry a product and push it to their customers.
How has the view of sales promotions changed during the past decades?
Sales promotions are now considered an essential part of an organization's branding strategies.
Which of the following serves as a reason for the increase in sales promotion?
Power shift in market place from manufactures to retailers
Why are organizations like KFC, Heinz Foods, Toys R Us, and Anheuser Busch placing more emphasis on sales promotions than ever before?
Because they are convinced that sales promotions can be used to build brand equity more effectively and more quickly than other promotional mix elements.
Which of the following developments have resulted in a transfer of power from manufacturers to retailers?
Consolidation in the grocery industry has resulted in larger chains with greater buying power and clout.
One reason for consumer's increased sensitivity to sales promotion is:
that they save money.
How are marketers responding to the fragmentation of the consumer market?
They are using more sales promotions that are tied to local events.
What do some businesspeople give as a reason for the increasingly short-term focus on performance and sales volume in business today?
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:
sales promotions such as coupons and price discounts.
_____ is a recent development whereby companies are customizing their sales promotion programs for key retailers.
Another name for account-specific marketing is:
Marketing planning and reward systems may lead to an increase in the use of sales promotion because sales promotions encourage:
the use of price-oriented promotions to generate short-term sales.
Hasbro, a toy company, teamed with the retailer Toys R Us to create direct mail booklets offering discounts on Hasbro toys only at Toys R Us stores. This is an example of:
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:
) Which of the following explains the reason for the increase in sales promotion activities over the last decade?
The advertising clutter problem
A promotional offer in an ad can _____ that is prevalent in most media today.
break through the clutter
Critics of sales promotions contend the increase in sales promotions is leading to a decrease in:
_____ is an intangible asset of added value or goodwill that results from consumers' favorable image, impressions of differentiation, and/or strength of attachment to a brand.
Brand equity is also known as:
Which of the following statements describes 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 decline in brand equity.
Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are known as:
franchise building promotions.
Which of the following is an example of consumer franchise building promotion?
Frequent flyer program of Lufthansa airways that gives the customer points on each travel
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 Rican hospitality is "As Easy As Saying I Do." The contest is an example of:
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 franchise building promotion.
Which of the following is an example of a sales promotion that can be used to contribute to franchise building?
A sweepstakes or contest that uses a theme which is consistent with the image or positioning of the brand.
Consumer-franchise-building for a brand:
can be accomplished through consumer promotions that reinforce established brand images or positioning.
Which of the following is an example of a nonfranchise building promotion?
Van Kamp Sea Foods devotes most of its marketing budget to trade discounts in the form of off-invoice and promotional allowances so its canned tuna and salmon brands can remain price competitive with private label brands. The heavy emphasis on trade promotion makes it difficult to:
build a Van Kamp brand identity and image.
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:
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:
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:
obtain trial and repurchase.
Promotional incentives such as coupons or refund offers are often included with a sample to:
encourage repeat purchase.
The objective of a $.75-off coupon for Selsun Blue dandruff shampoo was most likely to:
defend current customers.
Smucker's ran a sweepstakes promoting Smucker's ice cream toppings. The sweepstakes was designed to let NASCAR fans know Smucker's sponsored a NASCAR racing team. The purchase of any specially-marked toppings gave customers a chance to win a new Ford Taurus or thousands of other prizes instantly from Smucker's. In this example, a sales promotion was used to:
target a specific market segment.
_____ involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial.
_____ is generally considered the most effective method for generating trial of a new product.
Samples would be an appropriate promotional strategy to:
introduce a new flavor of sport drink to the marketplace.
Sampling for a product such as expensive skin cream that is designed to reduce wrinkles over a long period of time might not be feasible because:
it may be too expensive to give away sample sizes that would be adequate to demonstrate the cream's benefits since it has to be used repeatedly.
Which of the following is an advantage of the sampling method of sales promotion?
Sampling generates much higher trial rates than advertising.
_____ is used when it is important to control where the sample is delivered.
_____ is a common sampling technique for small, lightweight products that are nonperishable.
Sampling through the mail
The oldest, most widely used, and most effective sales promotion tool is:
An advantage of coupons is that they:
allow a marketer to offer a price reduction to consumers who are price sensitive.
Which of the following is a disadvantage associated with couponing?
It can be difficult to estimate how many consumers will use a coupon and when.
Which of the following statements is true about couponing?
Coupons are often used by consumers who are already loyal to the brand.
The most popular method for distributing coupons is:
newspaper freestanding inserts.
What advantage does distribution of coupons through direct mail have over other forms of coupon delivery?
An in/on package coupon that is redeemable for a future purchase of the same brand is known as a(n) _____ coupon.
_____ coupons are on/in pack coupons that are redeemable on the purchase of a different product, usually one made by the same company but occasionally through a tie-in with another manufacturer.
One of the main types of on package coupons is the _____ coupon which is attached to the outside of the package so the consumer can rip it off and redeem it immediately at the time of purchase.
On the inside of the Tortino's brand pizza box was a $1-off coupon for the purchase of the next Tortino's pizza. Tortino's used a(n) _____ coupon.
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
Kellogg's places a 50-cent-off coupon for Rice Krispies brand cereal on the outside of a box of its Frosted Mini-Wheats brand of cereal. This is an example of a(n) _____ coupon.
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.
Which of the following is a disadvantage associated with bounce back coupons?
It does not attract non-users of the particular brand.
_____ 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.
Gillette's market research shows that most consumers decide upon a brand of deodorant at the point-of-purchase rather than before entering the store. Based on these findings, what form of promotion should be most effective for Gillette's Right Guard brand?
Which of the following couponing methods allows companies to reach users of competitive brands rather than consumers who already use their brand?
Electronically dispensed checkout coupons:
are cost-effective and can be targeted to specific categories of consumers.
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.
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:
Quaker Oats cereal included tubes of Colgate Junior toothpaste inside each box of Life brand cereal. This is an example of a:
Consumers must pay the manufacturers' out-of-pocket costs for a _____ premium.
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.
Which of the following statements about the use of premiums as a sales promotion tool is true?
. The use of premiums is very popular among fast food restaurants as a way of attracting children.
Which of the following statements about the use of premium offers by fast-food chains such as McDonald's and Burger King is true?
Many of the premiums used by these companies have cross-promotional tie-ins with popular movies.
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 instead of the Kellogg's logo would:
detract from the consumer franchise building value of the promotion.
An effective premium is one that:
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 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(n) _____ winners are determined purely by chance.
Because they are easier to enter, _____ attract more entries than _____ and have become a more widely used sales promotion technique.
Arm & Hammer maker of Crystal Blend scoopable cat litter, Super Scoop, the baking soda clumping litter, Super Clay, the premium lightweight clay litter, and Cat Litter Deodorizer ran a contest to find the "Coolest Cat Trick." First prize was $10,000, and several smaller prizes were awarded to other participants. The most likely reason why Arm & Hammer used this contest was to:
generate excitement and interest about the Arm & Hammer brand cat litters.
Sweepstakes and contests:
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?
Contests and sweepstakes
Which of the following statements is true about rebates?
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:
more effort is required.
Acushnet ran a promotion offering a box of fifteen Pinnacle golf balls for the same price as twelve balls. This is an example of a:
provide marketers with a way to provide extra value to consumers without having them to 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:
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:
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:
Why have frequency programs become so popular with marketers?
Frequency programs support the goal of customer retention.
Coors Light beer's heavy financial involvement with and support of freestyle skiing competitions, beach volleyball tournaments, and other sporting events are examples of:
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:
Which of the following statements about event sponsorships is true?
Decisions and objectives for event sponsorships are often part of an organization's public relations activities.
Programs involving cash payments directly to the sales force to reward them for selling the manufacturer's products involve the use of:
Which of the following promotions is targeted toward the trade rather than consumers?
An appliance manufacturer offers a $50 payment to salespeople who work at Rutgers Appliance if they sell one of the company's new refrigerators. This payment is known as:
Another term used for push money that is given to retailers' or wholesalers' sales staff to encourage them to promote and sell a company's product is:
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 trade allowance.
Ocean Spray offers its retail accounts a $3.00 per case discount on 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:
an off-invoice allowance.
Payments offered by manufacturers to resellers for merchandising products or running special in-store programs are called:
Money that must be paid to a retailer so it will take on a company's new product is known as:
Which of the following statements is true about the slotting allowances charged by many retailers?
Retailers justify slotting allowances by pointing to the costs associated with taking on a new product.
) Some retailers have demanded payment for new products that do not reach a minimum sales target. These payments are called:
A _____ is a configuration of products that occupy a shelf section in a store offered to resellers by manufacturers.
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.
sales training programs.
_____ is an exhibition or forum where manufacturers can display their products to current and prospective buyers.
A trade show
The five resorts in the Bahamas that combined their promotional budgets to sponsor an "It's better in the Bahamas'" ad campaign, is an example of:
horizontal 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 by sharing the cost of advertising. Intel and the PC manufacturers are using:
_____ is advertising sponsored in common by a group of retailers or other organizations offering a product or service to the market.
Horizontal cooperative advertising
_____ is advertising supported by raw materials or component part manufacturers to help establish end products making use of their materials.
Ingredient-sponsored cooperative advertising
) The "Visa on the Label" program under which Visa provides uniform and linen manufacturers with advertising monies based on the number of yards of Visa fabric they buy from the company is an example of:
ingredient-sponsored cooperative advertising.
When New Balance sponsors a campaign advertising the availability of its running shoes at FootLocker stores, this is an example of _____ advertising.
Advertising implemented by retailers and paid for (at least in part) by a manufacturer is called:
vertical 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.
Which of the following statements is true about the coordination of advertising and sales promotion efforts?
Product trial created through sales promotion techniques such as sampling or couponing is more likely to result in long-term use of the brand when accompanied by advertising.
According to attribution theory, a consumer who purchases a product on promotion may not repurchase it because the:
purchase behavior is attributed to an external incentive.
Delta Airlines began offering triple miles to members of its frequent flyer program when they took any Delta flight from New York to Miami. Then United and other airlines immediately matched the offer, and it was believed for a long time that they all must continue the program or lose their competitive position. This situation is an example of:
a sales promotional trap or spiral.
Which of the following actions has the potential to create a sales promotion trap or spiral in the fast-food industry?
the use of 99-cent specials to promote popular items such as Burger King's Whopper and McDonald's Big Mac
In many areas of the country, supermarkets have gotten in the trap of doubling or even tripling manufacturers' coupons resulting in:
reduced profit margins.
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