Deck 15: IMC: Sales Promotion, Public Relations, Experiential Marketing, and Personal Selling

Question 1

Sales promotions provide special incentives to stimulate immediate action.

Answer 1

True

Question 2

Sales promotion incentives are instrumental in generating repeat sales.

Answer 2

True

Question 3

Sales promotion efforts encourage distribution.

Answer 3

True

Question 4

Contests are best at generating trial.

Question 5

In terms of strategy, contests are best suited to the growth stage of the product life cycle.

Question 6

In terms of strategy, cash refunds are effective in the introduction stage of the product life cycle.

Question 7

Tim Hortons' "Roll up the Rim"is a loyalty program.

Question 8

The use of premiums focuses more on customer acquisition than retention.

Question 9

Canadian Tire "money"is perhaps the best-known and longest running frequent buyer program in Canada.

Question 10

Consumers are adapting to rebates so well, it seems they won't buy a new car unless some kind of incentive is available.

Question 11

Leon's "Don't Pay a Cent Event"is an example of a cash refund promotion.

Question 12

Shelf extenders and tear pads are examples of trade promotions.

Question 13

Shoppers Optimum program is a frequent buyer program.

Question 14

If Kraft pays for part of an advertising flyer that Safeway produces, the result is cooperative advertising.

Question 15

The use of dealer premiums is often controversial.

Question 16

The practice of public relations is used to build rapport with the various publics a company, individual, or organization may have.

Question 17

Public relations communications is useful in four key areas: corporate communications, reputation management, publicity generation, and fundraising.

Question 18

The final outcome of a crisis often depends on how effectively a firm manages its public relations activity. It is often best to keep quiet until there is a solution.

Question 19

When Esso advertises their support of an environmental initiative, it is part of corporate communications.

Question 20

Product seeding creates buzz.

Question 21

A press release guarantees publication of a news piece by media.

Question 22

Cause marketing sponsorships such as CIBC's "Run for the Cure"simply needs to benefit the sponsor.

Question 23

Shell Canada made the largest contribution to wilderness preservation in Canadian history. This is a good example of selecting a cause with a mutual benefit for both the oil and gas company and Canadian wilderness.

Question 24

A crucial strategic consideration is the need for companies to have exclusivity in events they sponsor, meaning that direct competitors are blocked from sponsoring the same event.

Question 25

In the selling process, the first step is the pre-approach.

Question 26

When Sandy makes a service call to an important customer, she asks about how their product is working and what they know about competitors' products. This is essential for gathering market intelligence.

Question 27

During the approach stage of the sales process, the salesperson determines whether the prospect has the financial resources to purchase.

Question 28

It is important for salespeople to wait for the customer to ask for the product.

Question 29

When a duct-cleaning company representative calls back after the service has been performed, he or she is engaging in prospecting.

Question 30

What separates the successful salesperson from the unsuccessful one is usually how well an individual follows an established set of principles.

Question 31

"It takes 20 years to build a reputation and five minutes to ruin it" is an expression relating to one of the key functions of public relations.

Question 32

When Domtar (a pulp and paper company) takes out a paid print ad stating "It's easier to learn on paper" they are engaging in reputation management.

Question 33

Demonstrations usually are not required in sales presentations, as salespeople can convince most people with their words alone.

Question 34

Much of a salesperson's success can be attributed to listening to customer needs and applying problem-solving skills.

Question 35

Any activity that provides special incentives to bring about immediate action from consumers, distributors, and an organization's sales force is known as

A) publicity.
B) sales promotion.
C) a push strategy.
D) public relations.
E) advertising.

Question 36

Jason is planning the launch of the company's new snack food. At this, the introduction stage of the product's life cycle, what is the goal of the consumer sales promotion strategy that Jason will develop?

A) encourage special dealer purchase
B) secure shelf space
C) encourage multiple purchases
D) encourage merchandising support
E) encourage trial purchase

Question 37

Which of the following statements about free sample distribution is correct?

A) For the customer, it eliminates the financial risk associated with first-time purchase.
B) It is the most effective way of converting trial users to regular users.
C) Samples are usually distributed door to door because of the high cost of in-store demonstrations.
D) Compared with other promotion alternatives, it tends to be inexpensive.
E) It is commonly used to encourage sales of a mature product.

Question 38

"A predetermined amount of money returned directly to the consumer by the manufacturer after the purchase has been made"is a description of a

A) cash refund.
B) mail-in premium.
C) trade allowance.
D) coupon.
E) push strategy.

Question 39

What is the most important consideration about offering rebates?

A) They take time to process.
B) They are most applicable to consumer goods.
C) They are popular in durable goods markets.
D) They are always a good strategy for mature products.
E) Consumers can become accustomed to rebates and wait for a new promotion.

Question 40

An item offered free or at a bargain price to consumers who buy another item is a(n)

A) giveaway.
B) bonus.
C) cross-ruff.
D) premium.
E) add-on.

Question 41

A ________ program offers the consumer points every time a purchase is made.

A) cumulative
B) loyalty
C) retention
D) redeemable
E) buildup

Question 42

Which of the following statements is true about coupon usage in Canada?

A) 30- to 60-year-olds do not use them.
B) The average value is around $1.
C) Over $10 billion in coupons are distributed annually.
D) $1 billion in coupons were redeemed in 2009.
E) 86 million coupons were redeemed by consumers.

Question 43

When are contests most appropriate?

A) during the decline stage of a product's life cycle
B) during recessions
C) during the growth stage of a product's life cycle
D) in the mature stage of a product's life cycle
E) to get trial purchase

Question 44

A table is set up at a Costco outlet offering customers free samples of honey-garlic sausage. Costco sees sampling as an effective way of getting trial usage because

A) it reduces the consumer's financial risk.
B) it is relatively inexpensive.
C) it creates strong customer relationships.
D) it has a captive audience.
E) it usually results in purchases of more than one unit of product.

Question 45

Which of the following is a premium offer?

A) an entry form in the TV Guide for a chance to win a holiday trip
B) a $2.00 refund with two proofs of purchase and a mail-in coupon
C) a scratch-and-win card in advertising for a new breakfast cereal
D) a coupon for cents-off on a purchase after an in-store taste test
E) a team cap for each of the first 500 spectators at a ball game

Question 46

What is the name for a wine opener that comes attached to a bottle of wine?

A) premium
B) cross-ruff
C) combination offer
D) prize
E) incentive

Question 47

A common example of an in-pack or on-pack premium is

A) the container deposit charged on a six-pack of beer.
B) the extra points (such as frequent flyer points) given to registered members for certain combinations of purchases.
C) the additional tax charged on a pack of cigarettes.
D) a bonus gift placed inside a package or attached to it.
E) an expiry date.

Question 48

Home Depot and Canadian Tire offer interest-free loans for up to two years on purchases over a certain value. This consumer promotion is called a ________ program.

A) premium
B) delayed-payment incentive
C) cash refunds
D) loyalty
E) zero-down

Question 49

Revlon offers a conditioner free with the purchase of shampoo. This is called

A) a promotion allowance.
B) a combination offer.
C) a premium offer.
D) a loyalty program.
E) delayed-payment incentives.

Question 50

Cara wants to evaluate the success of the most recent coupon campaign for the Dove skin care products she manages. Which metric will she use?

A) period sales
B) slippage rates
C) awareness scores
D) period profits
E) redemption rates

Question 51

What is the key benefit for the retailer using Groupon?

A) getting new customers in the door
B) using digital coupons
C) attracting savvy shoppers
D) making 25% of normal profit
E) selling out old stock

Question 52

Each year executive members at Costco receive an annual voucher toward future Costco purchases. The voucher value is calculated as 2% of the value of their annual purchases. What type of loyalty program is this?

A) rebate
B) loyalty
C) membership
D) reward
E) appreciation

Question 53

What is the main benefit from premiums?

A) They are often too low in value to make an appreciable difference.
B) They are equated to low-quality products.
C) They offer added value to the customer.
D) They entice people to try a new product.
E) They encourage people to switch brands temporarily.

Question 54

Dealer-display material is also known as

A) cooperative advertising.
B) collateral material.
C) manufacturer islands.
D) trade shows.
E) point-of-purchase material.

Question 55

A retailer uses artwork from Sony that will be integrated into the retailer's ad in a local newspaper. Sony has agreed to pay one-third of the cost of the ad space. This is an example of

A) a promotional allowance.
B) dealer-display material.
C) corporate advertising.
D) a dealer premium.
E) cooperative advertising.

Question 56

An auto parts dealer provides an auto repair shop with a display stand containing spark plugs. Which of the following statements concerning usage of this display is accurate?

A) The repair shop is required to use this display.
B) The repair shop usually asks for some type of allowance for using the display.
C) The repair shop is legally bound to use only these parts if the display is used.
D) The parts rep will dictate where the display must be located.
E) The repair shop decides whether or not it will be used and where it will be located.

Question 57

A manufacturer offers a distributor's buyer Toronto Maple Leaf season tickets because of the high volume of goods the distributor purchases. These tickets are an example of

A) payola.
B) collateral material.
C) POP material.
D) a dealer premium.
E) a cooperative merchandising allowance.

Question 58

The marketing department presented programs designed to launch a new product in the market. At the end of the presentation they distributed attractive stands for placement at check-out counters. What are these stands known as?

A) retail in-ad coupons
B) dealer display materials
C) cooperative merchandising
D) promotion activities
E) dealer premiums

Question 59

What type of sales promotion is Tim Hortons' "Roll up the Rim,"which has a fixed amount of winning tickets?

A) a premium
B) a game
C) a rebate
D) a sweepstakes
E) a loyalty program

Question 60

Which of the following trade promotion activities requires distributors to demonstrate that they have participated as they agreed to?

A) on-site sampling
B) dealer premium
C) demonstration selling
D) performance allowances
E) consumer promotion

Question 61

"Face-to-face communication that involves a seller presenting the benefits of a product to a buyer for the purpose of making a sale"is a description of

A) public relations.
B) direct response advertising.
C) publicity.
D) direct marketing.
E) personal selling.

Question 62

Patrick is a sales representative for a linen manufacturer. His clients are large retail chains. Patrick regularly visits a variety of retail stores and carefully reviews the linen departments to keep abreast of changes the retail buyers have made to their linen product mix. Patrick is performing which sales representative role?

A) follow-up service
B) problem solving
C) locating and maintaining customers
D) merchandising
E) gathering market intelligence

Question 63

Alicia's position is business development manager. She contacts new and existing customers to ensure satisfaction with their current services and learn about any important areas where she could help and offer additional services. What is her role?

A) cross-selling
B) order processor
C) customer service
D) salesperson
E) CRM representative

Question 64

Toyota had to recall 4 million vehicles in 2010 because of sticky gas pedals. What kind of public relations role was Toyota faced with?

A) reputation management
B) creating buzz
C) publicity generation
D) corporate communications
E) corporate advertising

Question 65

CIBC sponsors the annual "Run for the Cure,"a national fundraising event for the Canadian Breast Cancer Foundation. This sponsorship is a form of

A) media relations.
B) advocacy advertising.
C) cause marketing.
D) buzz marketing.
E) publicity generation.

Question 66

When a crisis occurs, a company's executive team and public relations personnel are working in which area of public relations?

A) public affairs
B) corporate communications
C) corporate advertising
D) reputation management
E) advocacy advertising

Question 67

The public relations department of a local manufacturer is preparing a press release to announce the expansion of a local plant that will add many jobs to the community. What is the role of this press release?

A) publicity
B) strategic philanthropy
C) event sponsorship
D) public relations
E) corporate advertising

Question 68

When managing a public relations crisis, organizations are best advised to

A) act quickly and responsively to address concerns with credible messages.
B) remain silent until the truth of the situation can be proven.
C) take immediate legal action against the individual or group making the allegations.
D) work diligently to discredit the accuser or the media reporting the issue.
E) protect upper management and allow only junior spokespeople to be quoted by the press.

Question 69

Lauren, the media relations manager for a corporation, prepares a document that contains the who, what, when, where, why, and how relating to a new product launch event her company is hosting. This document is a

A) corporate report.
B) press kit.
C) house organ.
D) press release.
E) press conference.

Question 70

The planned process of integrating a variety of communication elements behind an event theme by a sponsoring organization is

A) sponsorship.
B) promotion mix.
C) corporate sponsorship.
D) event marketing.
E) event sponsorship.

Question 71

The Toronto Sky Dome became the Rogers Centre several years ago and is home to the Toronto Blue Jays and Toronto Argonauts. This is an example of

A) venue marketing.
B) cultural marketing.
C) event sponsorship.
D) sports marketing.
E) ambush marketing.

Question 72

Toby Keith, a country music singer, opens his concert with a video that features him in a high-speed chase with aliens. He out-powers their spaceship as a result of the power of the Ford truck he is driving. The truck then breaks through onto the stage and remains a prominent prop for the remainder of the concert. Ford has engaged in

A) prospecting.
B) venue sponsorship.
C) event sponsorship.
D) celebrity marketing.
E) sports sponsorship.

Question 73

A company preparing to launch a new family luxury SUV is considering event sponsorship to raise the profile of the new product. Which event is most likely to align with the company's marketing strategy?

A) a Nascar race
B) the opening of a new Italian restaurant
C) a Shakespearean festival in Stratford, Ontario
D) a Red Hot Chili Peppers concert tour
E) the Super Bowl

Question 74

When advertising in print and television media, advertisers must consider how the impact of competing messages within these media will create "noise"for the consumer and make perception of the company's ad more challenging. When considering a sponsorship, this same premise leads to

A) choosing the target carefully.
B) using sponsorships to complement other promotional activity.
C) selecting events offering exclusivity.
D) selecting an event with an image that sells.
E) measuring the benefits of sponsorship.

Question 75

A snowboard manufacturer doesn't have the budget to sponsor the local mountain's annual skills competition. Their marketing team shows up with banners and collateral anyway. This is known as

A) gorilla marketing.
B) ambush marketing.
C) innovative marketing.
D) last-minute events marketing.
E) guerilla sponsorship.

Question 76

PR has long been associated with "spin," which means

A) marketers must pay attention to trends in the marketplace (how the world spins).
B) customers have long been in control of conversations with brands.
C) traditionally, marketers have been able to control the tone and delivery of key messages.
D) every message has an opposite message, which marketers must spin around to see.
E) social media is having little impact on the ways in which PR messages are being received and interpreted.

Question 77

Which of the following statements about handling objections in a sales presentation is true?

A) If the product is good, the seller rarely faces objections from the buyer.
B) Good sales representatives will not encounter objections.
C) Prospects almost always express resistance when contemplating the purchase of a product.
D) An interested prospect seldom raises an objection.
E) An objection suggests misunderstanding on the part of the buyer.

Question 78

The function of the pre-approach stage in the selling process is to

A) explain the product's benefits to the customer.
B) gather information about potential customers that will assist in determining customer qualification.
C) practise the formal presentation.
D) develop a list of potential customers.
E) establish a social relationship with the potential customer.

Question 79

A salesperson who is reviewing LinkedIn for names of potential customers is in what stage of the selling process?

A) prospecting
B) approach
C) pre-sale preparation
D) qualification
E) pre-approach

Question 80

An industrial sales rep met the potential buyer for the first time and engaged in an attention-generating conversation. This stage in the selling process is called

A) prospecting.
B) pre-approach.
C) presentation.
D) socialization.
E) approach.