Deck 8: Sales Promotion

Question 1

Sales promotion is intended to create an immediate response, and therefore sales promotion plans often adopt short -term views.

Answer 1

True

Question 2

Frequent buyer programs only work for retail outlets.

Answer 2

False

Question 3

A coupon is a predetermined amount of money returned directly to customers by the manufacturer after the purchase has been made.

Answer 3

False

Question 4

Louise accidentally threw out her birthday gift card with the rest of the party clean up. Since the card was never used, this is an example of breakage.

Question 5

Continuous sales promotions create a good image in the eyes of the consumer.

Question 6

Media-delivered coupons are popular if the objective is brand awareness.

Question 7

Product sampling is an effective, but expensive way to promote a product.

Question 8

In Canada, the most popular categories for distributing coupons are food, personal care, and household products.

Question 9

Slippage is another word for product lost due to customer theft.

Question 10

The overall goal of trade promotions is to encourage channel members to provide marketing and merchandising support for a particular product.

Question 11

The temporary offering of a larger price for the same size product is called a premium offer.

Question 12

The most common consumer promotion objective is trial purchase.

Question 13

Free samples are a type of "push" promotion.

Question 14

Most manufacturers rely on external suppliers to develop and implement a contest.

Question 15

It is illegal and considered bribery for manufacturers to offer retail salespeople incentives to promote a specified brand of goods to customers.

Question 16

Free-standing inserts are distributed solely through magazines.

Question 17

A discount offered by a manufacturer that encourages a distributor to perform a merchandising function on behalf of a manufacturer is called a trade allowance.

Question 18

Marketing organizations often pay a percentage (often 50% or more) of the distributor's advertising cost, provided that the marketer's brand is featured prominently. This is called a performance allowance.

Question 19

In most cases, a company will use either a "push" promotion strategy or a "pull" promotion strategy, rarely both.

Question 20

When a brand offers 20% more of a product at the same price as a regular size item, this is known as a bonus pack.

Question 21

One of the common types of trade promotions activities is

A) free merchandise.
B) contests.
C) samples.
D) allowances.
E) free radio advertising.

Question 22

List three common trade promotion objectives siting an example for each.

Question 23

List and describe the elements of a sales promotion brief.

Question 24

Contests can be classified into two categories. Name and describe them, giving an example of each.

Question 25

Describe the various ways sampling can be utilized.

Question 26

How are sales promotion activities evaluated? Cite some specific examples.

Question 27

Consumer promotions refers to those activities that are designed to stimulate consumer purchase, trying to get product into the distribution method by using a

A) sales strategy.
B) integrated marketing strategy.
C) pull strategy.
D) push strategy.
E) place strategy.

Question 28

How often should a brand offer sales promotions? Discuss.

Question 29

What are the main options for delivering coupons to consumers? Which one is the best?

Question 30

Explain the following statement, "a sales promotion will only work if it receives the necessary media support."

Question 31

What are the three additional considerations for Sales Promotional Planning?

Question 32

Explain the difference between a "pull" promotion and a "push" promotion.

Question 33

What is a rebate and when are they used?

Question 34

What are loyalty programs and why are they gaining popularity? Name two successful Canadian loyalty programs.

Question 35

Sales promotion can be defined as activities that provide special incentives to bring about

A) some creative activity.
B) more websites.
C) more movement in the product life cycle.
D) a greater competitor activity.
E) immediate response from consumers, distributors, and an organization's sales force.

Question 36

Discuss the use of plastic cards with consumers.

Question 37

List three common consumer promotion objectives siting an example for each.

Question 38

A reward program is an example of a(n)

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

Question 39

Point-of-purchase displays are examples of

A) consumer promotions.
B) advertising.
C) trade promotions.
D) sponsorships.
E) pull promotions.

Question 40

What is the difference between a performance allowance and cooperative advertising allowance?

Question 41

A sales promotion brief would NOT typically include

A) integrated marketing communication objectives.
B) target market profile.
C) market profile.
D) sales promotion objectives.
E) competitor activity profile.

Question 42

Three common trade promotion objectives are to secure a listing with distributors, build sales volume, and

A) encourage repeat purchase.
B) encourage trial.
C) build brand awareness.
D) change consumer attitudes.
E) secure merchandising support.

Question 43

In the case of a new product, the first and most important trade promotion objective is to

A) encourage brand loyalty.
B) encourage trial.
C) build sales volume.
D) secure a listing.
E) secure merchandising support.

Question 44

The distribution of ____________________ is becoming very popular.

A) digital coupons
B) in-pack self-coupons
C) on-pack self-coupons
D) free standing inserts
E) cross-ruff coupons

Question 45

Due to its high impact and reach, __________ is a medium that is often used in conjunction with sales promotion in order to create awareness and excitement.

A) radio
B) print
C) the Internet
D) television
E) direct mail

Question 46

The most common objective of consumer promotion is to

A) obtain distribution.
B) stimulate multiple purchases.
C) encourage trial purchase.
D) increase brand awareness.
E) change a brand's position in the minds of consumers.

Question 47

Media-delivered coupons are coupons distributed through

A) radio stations.
B) events.
C) a salesperson.
D) newspapers and magazines.
E) television stations.

Question 48

Three common trade promotion objectives are

A) to secure a listing, gain product awareness, and secure merchandising support.
B) to encourage trial, gain product awareness, and secure merchandising support.
C) to secure a listing, build sales volume, and secure merchandising support.
D) to secure a listing, encourage trial, and secure merchandising support.
E) to encourage trial , build awareness, and stimulate repeat purchases.

Question 49

Which of the following questions would NOT fall under the logistics and fulfillment stage of sales promotion planning?

A) How will media advertising be coordinated with the sales promotion?
B) Who will draw the prizes?
C) How will the prizes be delivered?
D) What are the sales promotion objectives?
E) Where will all the contest entries be sent?

Question 50

Which of the following is NOT a major type of consumer promotion?

A) point-of-purchase displays
B) free samples
C) coupons
D) cash rebates
E) loyalty programs

Question 51

An action plan for communicating incentives to appropriate target markets at the right time is called a(n)

A) integrated marketing communications plan.
B) strategic plan.
C) marketing plan.
D) sales promotion plan.
E) incentive plan.

Question 52

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

A) directing efforts at salespeople.
B) directing efforts at intermediaries.
C) blitz media campaigns.
D) lobbying government officials.
E) directing efforts at consumers.

Question 53

Which of the following is NOT a common consumer promotion objective?

A) trial purchase
B) brand awareness
C) multiple purchases
D) brand loyalty
E) repeat purchase

Question 54

According to Nielsen, research shows the redemption rate for a coupon depends on the

A) dollar amount of the coupon.
B) type of product.
C) method of delivery.
D) perceived value of the offer in relation to the regular price.
E) appeal of the artwork on the coupon.

Question 55

Which of the following measures could be used to evaluate the success of a sales promotion?

A) response rate
B) coupon redemption rate
C) incidence of trial purchase
D) number of contest entries
E) All of the above could be used to measure the success of a sales promotion plan.

Question 56

Which of the following methods of coupon distribution would be best if the objective is repeat purchase?

A) coupons
B) the Internet
C) freestanding inserts
D) magazines
E) in-pack or on-pack self-coupons

Question 57

An agreement made by a wholesaler to distribute a manufacturer product to the retailer it supplies is called a

A) listing.
B) shelving.
C) trade promotion plan.
D) contract.
E) distribution.

Question 58

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

A) directing efforts at salespeople.
B) directing efforts at consumers.
C) blitz media campaigns.
D) lobbying government officials.
E) directing efforts at intermediaries.

Question 59

In the sales promotion planning process, after sales promotion objectives have been set, the next step is to

A) logistics and fulfillment.
B) devise sales promotion execution.
C) devise a sales promotion strategy.
D) measurement and evaluation.
E) devise a marketing plan.

Question 60

According to the Canadian Deals Association, which keeps records on coupon distribution., the average redemption rate of coupons in Canada is

A) 5.72%.
B) 3.25%.
C) 2.50%.
D) 1.26%.
E) 10.3%.

Question 61

In terms of premiums, bonus packs rank lower in terms of popularity, but they do offer some benefits. Which of the following is NOT an objective met by bonus packs?

A) They provide a merchandising tool to encourage displays in stores.
B) They help retain current customers.
C) They help build brand loyalty.
D) They increase the quantity of a brand purchased.
E) They increase product awareness.

Question 62

Tim Hortons' "Roll Up the Rim to Win" promotion is an example of

A) a rebate.
B) couponing.
C) an instant-win game.
D) sampling.
E) a sweepstakes.

Question 63

Shoppers Drug Mart's Optimum card, which allows customers to swipe their card each time they make a purchase and collect points, is an example of a

A) rebate.
B) premium.
C) frequent buyer program.
D) loyalty program.
E) Both C and D are correct.

Question 64

Sally collected labels for weeks on a promotional offer for her favourite yogurt, but she failed to send them to the company and request the refund. This is known as

A) shrinkage.
B) a failed promotion.
C) slippage.
D) leakage.
E) delayed redemption.

Question 65

Many manufacturers do not select product sampling as a sales promotion strategy

A) because product sampling has no proven effect on trial purchase.
B) because sampling is difficult logistically.
C) because the redemption rate for product samples is low.
D) due to the high costs involved.
E) due to the difficulty in producing samples.

Question 66

__________ refers to the fact that the issuer of a gift card receives the money without offering goods or services right away.

A) Breakage
B) Slippage
C) Profit
D) Premium
E) Float

Question 67

Skippy peanut butter often includes a coupon for Smucker's Jam on their package, and Smucker's Jam includes a coupon for Skippy peanut butter on their package. This is an example of a(n)

A) in-pack self-coupon.
B) retro-pack self-coupon.
C) cross-ruff coupon.
D) free-standing insert.
E) media-delivered coupon.

Question 68

A temporary price reduction that encourages larger purchases by distributors is called a

A) cooperative allowance.
B) dealer premium.
C) trade allowance.
D) performance allowance.
E) collateral material.

Question 69

The golf balls given away in a case of beer is also known as a

A) rebate.
B) sweepstake prize.
C) free sample.
D) premium.
E) bonus.

Question 70

This type of product-delivered coupon is valid on the purchase of a different product.

A) instantly redeemable coupon
B) on-pack self-coupon
C) in-pack self-coupon
D) cross-ruff
E) free-standing insert

Question 71

If 1 million coupons were distributed and 55,000 were returned, the redemption rate would be

A) 55.00%.
B) 0.55%.
C) 0.05%.
D) 55,000.
E) 5.50%.

Question 72

A result study revealed that 90% of Canadians

A) participate in more than one loyalty program.
B) prefer coupons to loyalty programs.
C) do not participate in any loyalty programs.
D) participate in two to five loyalty programs.
E) participate in at least one loyalty program.

Question 73

Product sampling

A) is a waste of time.
B) is viewed as a way to minimize risk.
C) would take more than one sample.
D) is powerful, yet expensive,
E) proves that the product when purchased is different than the sample.

Question 74

A rebate is a predetermined

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

Question 75

Rebate offers are best suited to products in this stage of the product life cycle.

A) maturity
B) growth
C) introductory
D) decline
E) new product stage

Question 76

Rather than issue a coupon to offer value, some shampoo companies will attach a travel size bottle of shampoo with regular bottle. This is know as using a(n)

A) premium.
B) bonus pack.
C) award.
D) cross-ruff promotion.
E) on-pack sampling.

Question 77

An additional item given free, or greatly discounted, to induce purchase of the primary brand is also called a

A) rebate.
B) sweepstakes.
C) slippage.
D) premium.
E) free sample.

Question 78

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

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

Question 79

Marketers need to be familiar with section 189 of the Criminal Code and Sections 52 and 59 of the Competition Act if they plan on

A) working with distributors.
B) issuing a rebate.
C) running a contest.
D) developing new products.
E) advertising.

Question 80

Which of the following is not a common trade promotion option?

A) dealer premium
B) on-pack premiums
C) trade allowances
D) performance allowances
E) cooperative advertising allowance