Deck 16: Sales Promotion

Question 1

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.

Answer 1

B

Question 2

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

Answer 2

B

Question 3

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

Answer 3

C

Question 4

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.

Question 5

:

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

Question 6

______ 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
E)Specialty marketing

Question 7

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

Question 8

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 See opening vignette.

Question 9

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.

Question 10

Marketers can target sales promotion efforts to:

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

Question 11

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.

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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 See opening vignette.

Question 18

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

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

Question 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

How are marketers responding to the fragmentation of the consumer market?

A)They are using more direct selling to make event sponsorship more successful.
B)They are using less direct marketing.
C)They are using more sales promotions that are tied into local events.
D)They are employing clipping services to determine the effectiveness of their press releases.
E)They have basically ignored the fragmentation of the consumer market and continued doing business as usual.

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

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.

Question 31

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 See IMC Perspective 16-1.

Question 32

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.

Question 33

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.

Question 34

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

Question 35

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.

Question 36

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

Question 37

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

Question 38

Another name for account-specific marketing is:

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

Question 39

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

Question 40

_____ 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

Question 41

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

Question 42

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.

Question 43

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

Question 44

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

Question 45

The American Airline AAdvantage promotional program rewarded consumer:

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

Question 46

The objective of a $.75-off coupon for Selsun Blue dandruff shampoo was most likely to:

A)attract non-users of the product category
B)identify new uses for the brand
C)attract users of a competitive brand
D)show new usage situation for the brand
E)do none of the above

Question 47

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

Question 48

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

Question 49

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

Question 50

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

Question 51

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:

A)encourage consumers to buy on the basis of price
B)build and maintain store equity for retailers that carry the Van Kamp brand
C)build relationships with the trade
D)build a Van Kamp brand identity and image
E)encourage retailers to use Van Kamp's planograms

Question 52

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

Question 53

Sampling programs are most effective when the product:

A)is of low unit value and samples do not cost too much
B)is divisible and can be broken into small sampling units
C)has a short purchase cycle so that consumers will be motivated to make an immediate purchase
D)has features and benefits that are easily experienced and appreciated
E)has any or all of the above characteristics

Question 54

_____ 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

Question 55

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

Question 56

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

Question 57

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:

A)attract non-users of the product category
B)identify new uses for the brand
C)attract users of a competitive brand
D)show new usage situation for the brand
E)target a specific market segment

Question 58

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

Question 59

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. See IMC Perspective 16-2.

Question 60

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:

A)it cannot be broken down into small sizes
B)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
C)it may be too difficult to find a way to distribute the samples
D)consumers may think it is of poor quality since samples are being given away
E)it would create an easily imitated competitive advantage

Question 61

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

Question 62

_____ 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

Question 63

_____ coupon.

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

Question 64

A recent study of coupon redemption patterns found:

A)many coupons are redeemed just before the expiration date rather than in the period following the initial drop
B)most coupons are redeemed immediately following the initial coupon drop
C)most coupons are redeemed on Thursdays
D)most consumers do not use coupons
E)none of the above is true

Question 65

_____ coupon.

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

Question 66

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.
E)All of above statements describe limitations associated with using coupons as sales promotional tools.

Question 67

and redeemed at the time of the purchase.

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

Question 68

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

Question 69

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.

Question 70

_____ 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

Question 71

The 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

Question 72

Which of the following statements explains why marketers have recently increased their use of sampling?

A)Major companies have entered the sampling business and created more competition,which has helped to keep sampling costs down.
B)New technologies and creative marketing are driving new sampling methods that allow marketers to target their samples more effectively.
C)The simplification of sales promotion programs by companies such as Procter & Gamble is prompting these marketers to move away from coupons and price promotions in favor of samples.
D)Marketers believe sampling meets the complementary goals of introducing consumers to their products and getting retailers to support their programs.
E)All of the above statements explain why marketers have recently increased their use of sampling.

Question 73

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.

Question 74

Valpak uses advertising to:

A)measure redemption rates
B)avoid having to hand deliver coupons for competitive brands at retail checkout
C)develop and operate in-store sampling booths
D)promote the value of the coupons inside
E)deal with coupon misredemption problems Exhibit 16-13.

Question 75

_____ 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

Question 76

_____ coupon.

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

Question 77

_____ coupon.

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

Question 78

What advantage does distribution of coupons through direct mail have over other forms of coupon delivery?

A)more precise reach
B)lower cost
C)lower redemption rate
D)lack of geographic and demographic specialization
E)all of the above

Question 79

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

Question 80

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?

A)direct mail coupons
B)event marketing
C)coupons distributed through freestanding inserts in newspapers
D)in-store coupons
E)spiffs