Deck 14: Sales Promotion

Question 1

By the 1960s, promotion firms began to transform themselves into:

A)full-service merchandising firms.
B)full-service public relations firms.
C)full-service marketing consultants.
D)full-service branding firms.
E)full-service boutique firms.

Answer 1

C

Question 2

If, in your promotion strategy, you were concerned most about your level of dominance in the product category, you would be looking at

A)customer attitudes
B)customer buying attitudes
C)brand strategy
D)advertising strategy
E)trade environment

Answer 2

C

Question 3

To be effective in sales promotion, you must remember that one basic function is to inform, while the other is to:

A)differentiate.
B)motivate.
C)show customers gratitude.
D)drive profit.
E)persuade.

Answer 3

B

Question 4

Which of the following is NOT a stage in relational promotional strategies?

A)love
B)friendship
C)engagement
D)sharing
E)introductions

Question 5

Today, most marketers recognize that sales promotions must be carefully designed to avoid:

A)long-term sales motivation.
B)long-term sales growth at the expense of brand identity.
C)short-term sales growth at the expense of long-term brand equity.
D)motivation for dealers to build up brand equity.
E)short-term sales growth without increasing unnecessary costs.

Question 6

To help determine the incentive needed, the type of promotion that will likely have the greatest appeal, and the media needed to reach a desired audience, you need in-depth situation analysis and:

A)setting down specific program objectives.
B)strategy development.
C)targeted programming.
D)underlying problems facing the brand.
E)promotional objectives.

Question 7

In a marketing environment, "to expand brand usage by encouraging product uses in addition to usual use" is an example of:

A)a marketing objective.
B)an advertising objective.
C)a sampling objective.
D)a promotional objective.
E)a short-term sales objective.

Question 8

Listed value-added promotional tactics include all of the following EXCEPT:

A)gifts with a purchase.
B)money back.
C)percentage more free.
D)free delivery.
E)toys in cereal boxes.

Question 9

Which of the following would NOT be an objective for promotion in an environment where advertising works with it to contribute to overall marketing goals?

A)to defend share against competitors
B)to increase distribution, and/or retailer/dealer cooperation
C)to gain trial among nonusers of a brand or service
D)to increase repeat purchase or multiple purchases
E)to provide creative approaches that go well beyond what's being said in print, broadcast and digital media

Question 10

To be successful in marketing communication efforts, you must know the purposes and objective of the key components, such as advertising and sales promotion, and how best to:

A)drive them.
B)coordinate and integrate them.
C)differentiate them for brand equity.
D)maximize the independent efforts of each.
E)separate them in ways that yield that desired synergy.

Question 11

What is the historic ratio between expenditures on trade and sales promotions versus expenditures on advertising?

A)1:1
B)2:1
C)3:1
D)4:1
E)5:1

Question 12

Accounting for about half of the promotional budget, these are a type of promotion designed to encourage a company's sales force or retail outlets to push their products more aggressively.

A)consumer advertising
B)consumer sales promotions
C)media promotions
D)sweepstakes promotions
E)trade promotions

Question 13

If, in your promotion strategy, you were concerned most about weather and raw materials, you would be looking at:

A)trade environment.
B)customer buying attitudes.
C)brand strategy.
D)other external factors.
E)advertising strategy.

Question 14

If, in your promotion strategy, you were concerned most about what competitors' attitudes toward your brand were, you would be looking at:

A)customer attitudes.
B)customer buying attitudes.
C)brand strategy.
D)advertising strategy.
E)trade environment.

Question 15

What creative company placed spoons, cartoons, and rag dolls in their products as an incentive?

A)Ovaltine
B)Kellogg's
C)Carnation
D)Post
E)Nestlè

Question 16

Which of the following would NOT pertain to sales promotion?

A)most effective when its message is closely aligned with advertising themes
B)P-O-P displays have same spokesperson as TV commercials.
C)Information and formats in them need to vary to enhance creativity.
D)Counter displays use same headlines and copy style as print ads.
E)Product sampling enhances brand identification.

Question 17

Momentum, a global promotion company, says it uses core disciplines such as event marketing, promotional and retail marketing, and sponsorships to:

A)build brand recognition.
B)move "brands into hands."
C)introduce new products.
D)build market share.
E)create a compelling sales stimulus.

Question 18

Sales promotion programs, in a well-planned marketing strategy, should interact in a complementary way with:

A)public relations.
B)packaging.
C)advertising programs.
D)direct-response.
E)personal selling.

Question 19

To be successful, an advertiser, marketing executive, or promotion manager should have knowledge of the components of public relations, advertising, personnel selling, and sales promotion. This total system is referred to under the umbrella term:

A)integrated communication.
B)marketing communication.
C)marketing concept.
D)marketing mix.
E)marketing promotion.

Question 20

Which product category was one of the first to successfully use sales promotion in the early nineteenth century?

A)bottled water
B)cereal
C)gum
D)energy drinks
E)automobiles

Question 21

Which of the following is NOT a type of company that is among the heaviest users of specialty advertising?

A)banks
B)telecommunication companies
C)stockbrokers
D)colleges
E)hospitals and healthcare organizations

Question 22

Which of the following companies uses its Web site to remind people about coupons?

A)FSI
B)KFC
C)P & G
D)GE
E)Toys "R" Us

Question 23

Among the oldest forms of sales promotion as well as the most pervasive category within the promotion industry are:

A)coupons.
B)premiums.
C)specialties.
D)samples.
E)sweepstakes.

Question 24

What has been the coupon redemption rate for many years?

A)0.39 percent
B)0.93 percent
C)2.6 percent
D)9.33 percent
E)39.3 percent

Question 25

A primary advantage of a self-liquidating offer is:

A)customers pay a majority, if not all, costs for them.
B)their appeal to brand-loyal customers.
C)their appeal to manufacturers who want to liquidate unwanted merchandise.
D)their appeal to frequent purchasers who pay a reduced price based on that frequency.
E)they automatically expire within 90 days of purchase.

Question 26

Using P-O-P displays offers all of the following advantages EXCEPT:

A)motivates unplanned shopping.
B)easily globalized.
C)offers brand and product reminders.
D)influences brand switching.
E)motivates unpredictable consumers.

Question 27

Which of the following is NOT one of the major sectors of the premium industry?

A)continuity
B)in- or on-pack
C)traffic-building
D)indirect
E)self-liquidating

Question 28

One of the historical problems facing P-O-P advertising is:

A)verification a display was used and displayed properly.
B)its extremely high cost.
C)lack of space in many stores.
D)delays in adapting new technologies to enhance their presence.
E)the space requirements of the displays.

Question 29

Growing areas of sampling include all of the following EXCEPT:

A)Internet sampling.
B)event/venues marketing.
C)direct mail sampling.
D)in-store sampling.
E)newspaper distribution.

Question 30

The biggest beneficiaries of licensing agreements are:

A)movies.
B)fast-food companies.
C)toy manufacturers.
D)cartoon characters.
E)corporate mascots.

Question 31

Which of the following items was NOT listed in a survey as a primary reason to use specialties?

A)to use in conjunction with trade shows
B)to skirt company policies prohibiting employees from accepting business gifts
C)to build goodwill and enhance company image
D)to create awareness for new products and services
E)to promote customer retention and appreciation

Question 32

Which is NOT included in the discussion of the three basic approaches to product associations and tie-ins?

A)vendor co-ops
B)staged promotions
C)product licensing
D)event marketing
E)event sponsorship

Question 33

The term used for the digital insertion of computer-generated advertising into a completed movie or television show or superimposed on a live video feed is:

A)morphing marketing.
B)viral advertising.
C)virtual advertising.
D)digital placement.
E)computer grafting.

Question 34

What do Tide, Home Depot, Hot Wheels, Coca-Cola, Viagra, and DuPont all have in common?

A)They provide free samples.
B)They all operate in undifferentiated markets.
C)They all sponsor NASCAR racing teams.
D)Each logo is associated with a primary color.
E)none of the above

Question 35

Which of the following was among tactics used by Kimberly-Clark to introduce people to a new type Kleenex tissue?

A)use of free-standing inserts
B)use of direct mail
C)use of upscale magazines
D)give-aways at places where it was hard to find a Kleenex
E)comparison tests

Question 36

The philosophy behind sampling is that:

A)less is more.
B)the product must sell itself.
C)it's a form of prospect mining.
D)it's all about pushing the experientials.
E)manufacturers need to go only for venues.

Question 37

Which of the following is the most preferred form of coupon distribution?

A)FSI
B)instant redeemable
C)handout co-op
D)the Internet
E)the cash register

Question 38

One category you would NOT find in a total promotion budget is:

A)consumer sales promotion.
B)agency advertising.
C)consumer advertising.
D)trade promotion.
E)merchandising aspects.

Question 39

What is the average value of the offer per coupon?

A)50 cents
B)99 cents
C)$1.28
D)$1.36
E)$1.50

Question 40

The type of sales promotion in which points are won or earned, tracked, and redeemed for merchandise by the consumer is called:

A)consideration program.
B)fulfillment program.
C)blanket distribution method.
D)loyalty incentive.
E)mobile coupons.

Question 41

Primary purposes of co-op advertising, include all of the following EXCEPT:

A)to benefit retailers by helping them stretch their advertising budgets.
B)to allow national manufacturers to build goodwill with retailers.
C)to qualify national manufacturers for local advertising rates, especially in newspapers.
D)to build better relationships with the media who strongly support the concept.
E)to ensure that retailers pay at least 60 percent of local advertising costs.

Question 42

A sales promotion is more effective when its message is closely related to themes being used in the product's or service's advertising campaigns.

Question 43

Any sweepstakes that requires a purchase by an entrant is illegal and considered:

A)a lottery.
B)an added-value transaction.
C)a transactional relationship.
D)a "rub off."
E)a contest.

Question 44

Which would NOT be a characteristic of trade shows?

A)In a typical year, almost 100 million people will attend them.
B)a prime example of an integrated promotion
C)sponsorship always used as a stand-alone marketing tool
D)provides fulfillment of a number of objectives from product introduction to direct selling
E)create opportunities for on-site market research

Question 45

The key to successful marketing communication is determining the purposes and objectives of advertising, sales promotion, and other components and how best to coordinate and integrate these objectives.

Question 46

Merchandising, dealer promotion, and trade promotion are all names for one of the three categories in a total promotion budget.

Question 47

Event marketing is most effective when it involves a long-term relationship that offers advertisers the opportunity to develop a continuing relationship with a loyal audience.

Question 48

Which of the following is a type of co-op fraud?

A)applying co-op dollars to more than one medium
B)double booking ads
C)retailers billing manufacturers for ads that run beyond the period agreed upon for the program
D)double billing
E)asking the media for the placement incentive fee

Question 49

In a total promotion budget, the long-term trend is that almost half of the dollars allocated go to consumer advertising and only about 25 percent goes to both trade promotions and consumer sales promotions.

Question 50

The regulation that is likely having an effect on marketers who use sweepstakes because of its provision for a national opt-out list is the:

A)Consumer Protection Act.
B)Deceptive Mail Prevention and Enforcement Act.
C)National Contests and Sweepstakes Act.
D)Special Advertising Mail Act.
E)CAN-SPAM Act.

Question 51

All of the following are true of directories, including the Yellow Pages, EXCEPT:

A)cost-efficient medium for reaching serious prospects.
B)few companies bother to include some directory advertising in their marketing plans.
C)more than 10,000 printed directories for both consumers and trade buyers.
D)service businesses rely on them as their sole type of promotion.
E)readers are often consumers in the mood to purchase.

Question 52

Traditionally, the major marketers of contests and sweepstakes include:

A)liquor companies.
B)dot-com companies.
C)fast-food franchises.
D)magazine publishers.
E)automotive manufacturers.

Question 53

Transactional promotions focus on the long-term connection between marketer and consumer.

Question 54

Each year, the percentage of the public who enter either a sweepstakes or contest is:

A)50 percent.
B)42 percent.
C)30 percent.
D)15 percent.
E)10 percent.

Question 55

When it comes to promotion strategy, in-depth situation analyses and strategy development can help determine the incentive needed, the type of promotion likely to have the greatest appeal, and the media required to reach the desired audience.

Question 56

Trade incentives are a category of sales promotions that can include incentives directed all of the following EXCEPT:

A)wholesalers.
B)retailers.
C)sales people.
D)employees.
E)consumers.

Question 57

If not executed properly, sales promotion can damage brand equity by replacing the image of a product with price competition.

Question 58

Your company provides a component for another company's end product. If you want to bring attention to your role in the manufacturing of the product, you can participate in the co-op program called:

A)ingredient manufacturer co-op.
B)manufacturer to wholesaler co-op.
C)vendor programs.
D)wholesaler to manufacturer advertising.
E)internal-part advertising.

Question 59

A surprising aspect of co-op advertising is the amount of money that is:

A)spent beyond what the budget allocated.
B)available but goes unspent.
C)available.
D)demanded by manufactures.
E)demanded by local retailers.

Question 60

Promotions work best when the objectives are based on short-term sales increases.

Question 61

Trade shows provide opportunities to do on-site market research as well as follow-ups in person or online.

Question 62

Today, co-op is a major category of trade promotion as well as a means of overcoming significant rate premiums charged to national advertisers, particularly by newspapers and sometimes by other media.

Question 63

The difference between a sweepstakes and a contest is that a contest is based solely on chance.

Question 64

Premiums, one of the oldest and largest categories of sales promotion, usually involve programs in which merchandise such as writing instruments, calendars, and clothing is given to customers in exchange for a purchase or some other action.

Question 65

A recurring concern about the number of coupon promotions is the negative effect they have on the building of brand loyalty.

Question 66

The major difference between premiums and advertising specialties are that premiums are given with no obligation on the part of the recipient.

Question 67

Trade incentives can be quite effective, but increasingly regulatory agencies are wondering about the ethics of some trade incentives because the sponsors do not provide full disclosure to consumers.

Question 68

Coupons are among the oldest form of sales promotion with FSIs being the primary means of delivery.

Question 69

In trade promotions, manufacturers put money into incentives designed to motivate members of the distribution?-wholesalers, retailers, and even company sales personnel-to increase sales, productivity, and morale.

Question 70

As retailers take even more control of the distribution channel, dealer and sales incentives are becoming even less and less important as a type of sales promotion tool.

Question 71

Vendor programs are a special type of co-op, initiated by and customized by retailers in which manufacturers are approached to pay all or a share of the program.

Question 72

Sweepstakes that require consideration are usually illegal.

Question 73

P-O-P is ideal for retail environments where 60 percent of consumer purchasers are unplanned.

Question 74

________ tactics are related to the actual purchase of a product or service.

Question 75

In a total promotion budget, what some refer to as sales promotion or promotion can also be called ________, and it is one of three categories in such a budget.

Question 76

The main reason for the failure to fully use co-op is primarily a result of a lack of knowledge on the part of retailers as to how to use them or an unwillingness to meet the restrictions dictated by manufacturers.

Question 77

The stage in relationship branding cycle that is most conducive to promotional activation is called ________.

Question 78

If you're trying to catch a glimpse of the evolution of the marketplace, look to the Yellow Pages and its subject headings that trace changes in consumer lifestyles.

Question 79

In choosing a specialty item, it is important that the item have some logical relationship to both the target market and the product or service being promoted.

Question 80

The organization that handles, organizes, and responds to requests for merchandise is referred to as a(n)________; they are often used in marketing to handle coupon processing, and contest and sweepstakes responses.