Deck 13: Sales Promotion

Question 1

If Kellogg's Corn Flakes includes an in-pack coupon for Tropicana Orange Juice,this type of coupon is an example of a(n)

A) cross-ruff
B) in-store delivered coupon
C) media-delivered coupon
D) rebate
E) free sample

Answer 1

A

Question 2

To encourage repeat purchases and continued brand loyalty,marketers most often use

A) media-delivered coupons
B) cross-coupon
C) in-pack self-coupons
D) in-store delivered coupons
E) soon-to-expire coupons

Answer 2

C

Question 3

According to statistics,5.7 billion of these were distributed to Canadian households in 2009.

A) coupons
B) samples
C) contests
D) cash refunds
E) premiums

Answer 3

A

Question 4

When a product is new or relatively new and a trial purchase is the primary objective,a marketer will most often use

A) an in-store coupon
B) instantly redeemable coupon
C) on-pack self-coupon
D) in-pack self-coupon
E) media-delivered coupon

Question 5

Media-delivered coupons are coupons distributed

A) inside consumer goods
B) through television stations
C) through in-store kiosks
D) through radio stations
E) in newspapers, magazines or online

Question 6

Which of the following is an example of a consumer promotion activity?

A) co-operative advertising allowance
B) premiums
C) performance allowance
D) payola
E) delayed payment incentive

Question 7

Evaluating the financial impact of a coupon offer includes

A) interest rates
B) handling costs
C) creative costs
D) free samples
E) advertising costs

Question 8

The average face value of a redeemed coupon in 2009 was:

A) $0.74
B) $1.35
C) $0.25
D) $2.00
E) $1.55

Question 9

Advertising and promotion are not necessarily viewed as two separate entities,since the strategy today is about

A) event marketing
B) the World Wide Web
C) the agency's responsibility
D) an integrated marketing approach
E) public relations and sponsorship

Question 10

Sales promotion can be defined as activity that provides special incentives to bring about

A) more movement in the product life cycle
B) immediate response from consumers
C) more creative advertising
D) more web sites
E) greater competitor activity

Question 11

It is common for companies to combine pull and push promotion strategies which means they direct their attention at both

A) final users and the media
B) primary suppliers and channel members
C) competitors and final users
D) strategic partners and the media
E) final users and channel members

Question 12

A frequent- buyer (loyalty)program is an example of

A) consumer promotion
B) sponsorship
C) trade allowance
D) trade promotion
E) public relations

Question 13

Considering only those coupons redeemed for packaged goods,2009 statistics showed consumers saved approximately

A) $54 million
B) $135 million
C) $75 million
D) $68 million
E) $156 million

Question 14

Of the 5.7 billion coupons distributed by the packaged goods industry annually,how many are redeemed?

A) 1.1 billion
B) 650 million
C) 330 million
D) 225 million
E) 95 million

Question 15

There are two basic types of promotion strategy: push and pull.In a push strategy,demand is created by

A) becoming a major sponsor
B) distributing coupons
C) directing efforts at consumers
D) directing efforts at intermediaries
E) blitz media campaigns

Question 16

Trade promotion activities are targeted towards

A) consumers
B) sales force
C) marketers
D) media
E) distributors

Question 17

A second objective of consumer promotion is to encourage

A) protection of loyalty
B) increase in listings
C) word-of-mouth advertising
D) sales support
E) a building of volume

Question 18

One of the common types of trade promotions activities is

A) video games
B) DVDs
C) free radio advertising
D) co-operative advertising funds
E) social media

Question 19

The most common objective of a consumer promotion activity is to have the consumer make

A) a trial purchase
B) a request for a coupon
C) a recommendation
D) a request for product information
E) a request for a sample

Question 20

In-store delivered coupons are distributed by

A) using a swipe card
B) in-store display centres
C) catalogues
D) newspapers
E) Canada Post

Question 21

The most common type of refund is the

A) premium
B) multiple-purchase refund
C) single-purchase refund
D) slippage
E) buy one, get a dollar back

Question 22

The best known and longest running loyalty program in Canada is offered by

A) Air Canada
B) Air Miles
C) Canadian Tire
D) Pepsi-Cola
E) Esso

Question 23

These sales promotion methods are considered to be the most effective in inducing trial purchases:

A) contests
B) cash refunds
C) free samples
D) coupons
E) rebates

Question 24

This consumer promotion activity is considered to be the most effective method of generating trial purchase.

A) rebate
B) coupons
C) free sample
D) contest
E) loyalty program

Question 25

The main goal of a premium is to

A) increase sales
B) reward the customer for making the purchase
C) create brand loyalty
D) entice trial purchase
E) provide added value to customers

Question 26

According to Resolve Corporation research,the average redemption rate for coupons distributed through addressed direct mail is

A) 22.5%
B) 6.5%
C) 15%
D) 1%
E) 10%

Question 27

An objective of trade promotion is to

A) encourage consumer loyalty
B) promote competition
C) encourage just-in-time inventory management
D) secure merchandising support from distributors
E) have consumers make trial purchases

Question 28

This type of sales promotion has become so ingrained in the automobile industry that consumers now postpone their new car purchases while they wait for an attractive ________.

A) rebate offer
B) premium
C) loyalty program
D) coupon
E) contest

Question 29

A game contest (or instant win)is a promotion vehicle that includes a number of

A) seasons
B) predetermined winning tickets
C) market segments
D) different competitors
E) sports

Question 30

A rebate is a predetermined

A) raincheck on unavailable product
B) amount of money returned to the consumer
C) recall of coupons
D) free offer
E) bargain price

Question 31

Cross sampling refers to an arrangement whereby

A) one product carries a sample of another product
B) multiple products are sampled and compared
C) a competitor's product is sampled
D) a cash refund is returned to the consumer
E) free samples are distributed

Question 32

An "on-pack" premium promotion is when

A) a consumer collects proof of purchase
B) a consumer is involved in a frequent buyer program
C) an item is attached to a package
D) a consumer buys in bulk
E) a consumer picks an instant win package

Question 33

Shoppers Drug Mart's Optimum rewards program allows shoppers to redeem points for

A) future purchases
B) beauty makeovers
C) air travel
D) Shoppers Drug Mart "money"
E) items in a gift catalogue

Question 34

When Melitta coffee offered consumers a chance to win tickets to HSBC Stars on Ice and a 75-cent coupon for any Melitta coffee,it was offering a

A) sweepstakes
B) cross sample
C) delayed payment premium
D) cross-promotion
E) combination offer

Question 35

The benefit of loyalty programs for the marketer is

A) the customer information it is collecting
B) retention of current customers
C) relationship building
D) the brand awareness it is creating
E) increasing profits

Question 36

A small replica pack of Cascade dishwashing detergent delivered to consumers by mail is an example of a(n)

A) on-pack premium
B) cross sample
C) instant premium
D) free sample
E) specialty pack

Question 37

The marketer who pioneered the delayed payment incentive concept in Canada is

A) Canadian Tire
B) Tim Hortons
C) Maxwell House
D) Leon's Furniture
E) Shoppers Drug Mart

Question 38

Because of consumer involvement,contests

A) are self-liquidating
B) are well supported by the retail trade
C) help dramatize a unique selling point
D) are the most effective promotion for generating product trial
E) are cost-effective

Question 39

Frequently,Tim Hortons offers its Roll Up the Rim toWin promotion.This is an example of

A) couponing
B) an instant win contest
C) a rebate
D) a sweepstakes
E) sampling

Question 40

Among media-delivered coupons,this distribution method has a higher rate of redemption than magazines.

A) direct mail
B) online
C) television
D) newspaper
E) free-standing insert

Question 41

Fast-food restaurants consistently use premiums because premiums

A) build loyalty with repeat customers only
B) are low cost
C) can differentiate between competing products
D) are a form of co-operative advertising
E) are only for new customers

Question 42

Dealer display material consists of self-contained,custom-designed merchandising units that

A) are charged to the retailer
B) display the retailer's name and image
C) are the responsibility of the agency
D) display a manufacturer's product
E) contain free samples

Question 43

Premiums are usually offered by manufacturers in the form of

A) price discounts
B) exclusive contest ballots
C) coupons
D) cash-back
E) merchandise

Question 44

To facilitate the selling process,the sales force must provide dealers and retailers with

A) a loyalty program
B) a combination premium
C) a free sample
D) point-of-purchase displays
E) collateral materials

Question 45

Contests are most appropriate at which stage of the product life cycle?

A) trial stage
B) mature stage
C) growth stage
D) decline stage
E) introductory stage

Question 46

A temporary price reduction designed to encourage larger purchases by distributors is referred to as a

A) rebate
B) performance allowance
C) merchandising allowance
D) trade allowance
E) refund offer

Question 47

Organizations now use promotions,particularly contests,as a means to

A) increase store traffic
B) engage customers checking out brands on a website
C) develop effective reach
D) increase the number of coupons redeemed
E) increase the number of impressions

Question 48

This type of promotion can be implemented much more frequently than premium offers and contests.

A) cash refunds
B) free samples
C) coupons
D) trade shows
E) sweepstakes

Question 49

Trade promotion is supposed to

A) pull a product through is distribution channel
B) secure end users
C) be an exchange of services between two companies
D) build brand loyalty for end users
E) Secure merchandising support from distributers

Question 50

One objective of trade promotion is to secure a listing with distributors.A listing is defined as

A) an offer to provide trade allowances
B) an agreement with retailers to distribute a manufacturer's goods to consumers
C) an agreement with a wholesaler to distribute a manufacture's goods to retailers
D) merchandising support
E) loading up at the end of a promotion

Question 51

If 1000 coupons are distributed and 75 are returned,then the redemption rate is

A) 75%
B) 15%
C) 7.5%
D) 0.75%
E) 10%

Question 52

After purchasing a Nintendo game,a customer sends in a proof of purchase and receives a cheque from the manufacturer for $5.This is an example of a

A) manufacturer's coupon
B) bonus offer
C) through-the-mail premium
D) rebate
E) sample

Question 53

Which sales promotion technique is long-term in nature?

A) sampling
B) loyalty programs
C) rebates
D) coupons
E) premiums

Question 54

A study by Promotion Research Group found that ________ per cent of branded merchandise recipients in a business-to-business situation rated branded promotion merchandise the best method for building brand loyalty.

A) 56
B) 15
C) 74
D) 25
E) 40

Question 55

While promotion strategies bring positive results in the short-term,the long-term risks of repeated promotions include

A) hurting the brand's image
B) alienating distributers
C) increasing costs
D) bringing attention to competitor's products
E) government interference

Question 56

A cereal box that contains a voucher that can be used for $1 off a complementary product is referred to as a

A) refund
B) cross-ruff
C) premium
D) price-off
E) bonus pack

Question 57

A dealer premium is an additional incentive offered by a manufacturer to a distributer to

A) increase profit margins
B) encourage a special purchase
C) increase advertising
D) reduce inventory
E) increase stock turns

Question 58

The Air Miles points a consumer collects on a credit card is an example of a

A) loyalty program
B) cross-ruff
C) premium
D) sweepstakes
E) trade allowance

Question 59

A free toy inside a box of Fruit Loops is an example of a(n)

A) bonus offer
B) delayed payment incentive
C) in-pack premium
D) cross-ruff
E) sample

Question 60

The industry term for the situation where a rebate offer creates a sale,but the customer never redeems the offer is

A) misredemption
B) slippage
C) dealer premium
D) collateral
E) trade allowance

Question 61

Companies such as Kraft,Colgate,Palmolive and Apple advertise their products heavily to end users while their sales force sells the products among business customers or channel members.

Question 62

The method by which coupons are delivered depends on the demographics of the consumer.

Question 63

McDonald's "Monopoly" promotion is an example of a game contest.

Question 64

One objective of consumer promotion activity is to protect distributor loyalty.

Question 65

Trade shows are organized each year by an industrial association to demonstrate the latest products of member manufacturers.

Question 66

A company can implement a contest however they want.

Question 67

Coupons,samples,contests and premiums are examples of activities that would be considered a pull strategy.

Question 68

Rebates can also occur before the final purchase has been made.

Question 69

Contests are more effective in inducing trial purchases than coupons and free samples.

Question 70

Slippage is when a distributor loses customers during a promotion.

Question 71

Trade promotions refer to those activities designed to encourage distributors to purchase additional volume.

Question 72

Experiential marketing involves potential customers interacting directly with the product.

Question 73

In a push strategy,the organization creates demand by directing promotional efforts at consumers or final users of the product.

Question 74

A Cheerios box containing a small sample package of Lucky Charms cereal is an example of cross sampling.

Question 75

Experiential marketing is another name for on-site sampling.

Question 76

Premiums can be offered to consumers as a mail-in.In other words,consumers send in a proof of purchase and the item is returned by mail.

Question 77

Sales promotion can be defined as activity that provides special incentives for an organization's sales force over the long term.

Question 78

Frequent coupon users are more likely to be females over the age of 55.

Question 79

A free sample is a free product distributed to loyal customers.

Question 80

A delayed payment incentive promotion is when a consumer is granted a grace period during which he or she pays no interest or principal for the item purchased.