Deck 16: Sales Promotion and Personal Selling

Question 1

Consultative selling is also called relationship selling.

Answer 1

True

Question 2

Boxes of Kraft macaroni & cheese contain information on how consumers can receive a free apron that looks like the box by mailing the proofs-of-purchase from five boxes of microwaveable Kraft macaroni & cheese to the manufacturer.The apron is an example of a premium.

Answer 2

True

Question 3

Sales promotions are primarily short-term incentives.Immediate purchase is usually the goal of sales promotion.

Answer 3

True

Question 4

Manufacturers use trade promotions because they help manufacturers gain new distributors,obtain intermediary support for consumer promotions,and improve trade relations.

Question 5

Salesperson Tami Hravian's products are liked by her clients.These clients give Hravian names of others who may also like her products.Hravian is using cold calling to generate leads.

Question 6

Hewlett-Packard offered $25 to individual Office Depot salespeople for each HP Laser Jet printer they sold.The $25 is push money.

Question 7

Point-of-purchase promotions are seldom used as a sales promotion tool because most purchase decisions are made before consumers ever enter a store.

Question 8

Eli Tillotson represents the DEL Medical Systems Group.He is currently talking to three veterinarians' offices to try to convince them to order his company's new universal x-ray machine.Tillotson is engaged in personal selling.

Question 9

Personal selling becomes a more important promotional tool as product complexity and buyer risk increase.

Question 10

Trade shows are an excellent place to introduce new products to the marketplace.

Question 11

In relationship selling,salespeople focus more time on generating leads than on qualifying leads.

Question 12

When California Closets offers to pay $50 to customers who buy closet storage units from the company,it is an example of a premium offer.

Question 13

With relationship selling the salesperson would spend most of his or her contact time with the prospect talking about the product because the salesperson does not want to waste the customer's time.

Question 14

A marketer who wants the greatest impact from a sweepstakes should offer one large prize rather than several smaller ones.

Question 15

To qualify a sales lead,a salesperson must identify who in an organization has the authority to buy the product and must close the sale with that individual.

Question 16

Coupon distribution by packaged-goods manufacturers has been steadily increasing.

Question 17

Marketers find it much easier to evaluate the effectiveness of advertising than the effectiveness of sales promotions.

Question 18

A sales promotion campaign could include any (or all)of the four promotional elements of the promotional mix.

Question 19

A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous shopping goods.

Question 20

Relationship selling is typically used to sell industrial type goods,such as oil drilling equipment.

Question 21

The final selling duty for most successful salespeople is closing the sale.

Question 22

Falina Blanc typically negotiates the price with her prospective customers because she knows price is the most effective negotiating tool when closing a sale.

Question 23

Sales promotion:

A) is a publicity tool
B) is only directed to the ultimate consumer market
C) is more difficult to measure than advertising
D) offers a short-term incentive to buy
E) is a smaller percentage of the promotion budget than advertising

Question 24

Before approaching the customer,a salesperson should learn as much as possible about the prospect's organization and its buyer.This process is called sales acculturation.

Question 25

Raul earns a 20 percent commission on every sale he makes to supplement his base income of $20,000.This is an example of a straight commission system.

Question 26

The goal of sales promotion (regardless of what form it takes)is usually:

A) immediate purchase by consumers
B) return on investment
C) cost control
D) market share leadership
E) economies of scale

Question 27

AFLAC Insurance Company introduced a duck in its ads that said the company's name instead of "Quack." Since the advertising campaign began,AFLAC has created a duck premium,developed a line of clothing with the AFLAC duck,and used the AFLAC duck on its Web site.The AFLAC duck has become a tool for:

A) push strategies
B) advocacy advertising
C) comparative advertising
D) cause marketing
E) sales promotions

Question 28

Salespeople should view objections as requests for information.

Question 29

_____ sales promotions are targeted toward the ultimate consumer market.

A) Facilitating
B) Intermediary
C) Pull
D) Consumer
E) Trade

Question 30

Coupons,premiums,contests,free samples,and frequent buyer programs are examples of:

A) personal selling
B) trade sales promotion
C) publicity
D) advertising
E) consumer sales promotion

Question 31

The final stage of sales management is evaluating the effectiveness and performance of the sales force.

Question 32

Why are many marketers shortening the time in which a coupon can be redeemed?

A) to track response rates
B) to increase introductory sales
C) to create a greater sense of urgency to redeem the coupon
D) to respond to claims that coupons adversely affect consumer behavior
E) to limit the use of on-pack coupons

Question 33

A _____ is a cash refund given to consumers for the purchase of a product during a specific time period.

A) premium
B) trade discount
C) purchase allowance
D) rebate
E) functional allowance

Question 34

_____ is marketing communication activities in which a short-term incentive is offered to induce the purchase of a particular good or service.

A) Publicity
B) Sales promotion
C) Promotion
D) Advertising
E) Motivation selling

Question 35

Paul Metzger is a headhunter--a specialized employment agent.For every client he places,Metzger receives a finder's fee equal to 10 percent of the client's first-year salary.This finder's fee is paid by the hiring firm and represents his entire pay.This is an example of a straight salary system.

Question 36

Packaged-goods marketers such as Kellogg's and Betty Crocker have cut the use of coupon distribution due to:

A) high costs and disappointing redemption rates
B) the growth of frequency programs
C) push money from retailers
D) POP activities
E) user incentives from retailers

Question 37

Meta Singh is expected to sell two surgical laser systems each month.This sales objective is an example of a quota.

Question 38

Which of the following would NOT be a target for a trade sales promotion offered by Science Diet pet food?

A) a store that specializes in products for animals
B) a pet department in a large discount store
C) a dog food wholesaler
D) a Science Diet distributor
E) a consumer who feeds his dog Science Diet

Question 39

The two types of sales promotion are:

A) consumer and trade
B) new-buyer and repeat-buyer
C) introductory and maturity
D) elastic and inelastic
E) hierarchical and functional

Question 40

Because of the high costs of coupons and their disappointing redemption rates,marketers of packaged-goods are:

A) issuing fewer coupons and using more everyday low pricing
B) shortening the time the coupon can be redeemed to create a feeling of urgency
C) using instant coupons on product packages
D) distributing single-all purpose coupons that can be redeemed for several brands
E) doing all of these

Question 41

When Monique took her home-delivered Dade County newspaper out of its plastic bag,she found a small box of a Pepcid AC tablets in the bottom of the bag.The manufacturer of the new over-the-counter medication was using which form of sales promotion?

A) direct buyer program
B) introductory premium
C) sampling
D) pull product
E) push product

Question 42

Co-branded credit cards are use used in conjunction with:

A) self-perpetuating premiums
B) loyalty marketing programs
C) trade consumer promotion
D) consumer discount programs
E) functional consumer discount

Question 43

Why do some marketers offer rebates instead of price reductions to induce short-term sales?

A) Rebates are especially good at enticing purchases,but most consumers never bother to redeem them.
B) A price reduction of this type would have likely been an example of price discrimination.
C) Rebates offer a more immediate reward than price reductions.
D) Rebates have a much higher redemption rate than coupons.
E) Rebates result in brand-loyal consumers.

Question 44

Which of the following is NOT an example of a point-of-purchase promotion?

A) television monitors at supermarket checkouts
B) shelf talkers
C) newspaper inserts
D) shelf extenders
E) end-aisle and floor-stand displays

Question 45

The Men's Health Center offers free blood pressure tests,cholesterol screening tests,and prostate exams one day each year.These free health tests are an example of a:

A) premium
B) free sample
C) service commission
D) sponsorship
E) point-of-purchase promotion

Question 46

When Jane Ming purchased a subscription to Southern Living magazine,she received a free cookbook entitled Christmas Cookies.The cookbook is an example of a(n):

A) contest
B) premium
C) trade sample
D) product placement
E) loyalty incentive

Question 47

The maker of Serta mattresses gives away a stuffed sheep with every purchase of a new mattress.The sheep is an example of a:

A) loyalty incentive
B) trade sample
C) premium
D) trade product
E) product placement

Question 48

One of the best methods for creating and rewarding brand loyalty among consumers who might otherwise switch to competing brands is a:

A) directed coupon mailing
B) sweepstakes
C) loyalty marketing program
D) trade sales promotions
E) sampling program

Question 49

Unlike other sales promotion activities,the objective of a loyalty marketing program is to:

A) encourage brand switching
B) appeal to bargain hunters who consistently buy the lowest priced brand
C) take away customers from the competition
D) build long-term,mutually beneficial relationships between a company and its key customers
E) modify customers' attitudes toward a product

Question 50

The Pillsbury Bake-Off requires people to submit a recipe using Pillsbury baking products.Finalists are brought to Pillsbury kitchens to bake their recipes so the winner of the cash prize can be chosen.This is an example of a:

A) contest
B) sales promotion game
C) sweepstakes
D) push money deal
E) POP (participant of Pillsbury)

Question 51

When Darrell purchased a five-pound bag of 9 Lives cat food,he received a free can of the manufacturer's new gourmet cat food.The can of cat food is an example of a:

A) product placement
B) trade sample
C) contest
D) premium
E) loyalty incentive

Question 52

Which of the following statements about contests and sweepstakes is true?

A) Contests depend on luck,and participation is free.
B) Contests are generally effective tools for creating long-term relationships with customers.
C) Sweepstakes are promotions that require participants to exhibit some skill.
D) Sweepstakes usually draw about ten times more participants than contests.
E) Contests have fallen under more ethical scrutiny than sweepstakes.

Question 53

One of the major advantages to using point-of-purchase promotions is:

A) its low costs
B) its ability to create long-term relationships with customers
C) the fact it has a captive audience
D) its ability to create long-term relationships with intermediaries
E) the low monetary requirements

Question 54

Montana's Best is a new precooked meal-in-a-bag product made from bison meat.The company is having difficulty gaining consumer acceptance of its bison products even though bison is high in protein and low in cholesterol,fat,and calories.Those who have tried the meat have agreed that it is tender and as delicious as any choice steak,and it is less expensive.Montana's Best should focus on which of the following sales promotion tools?

A) sponsorship
B) sampling
C) trade promotions
D) in-pack couponing
E) premiums

Question 55

_____ are promotional exhibits set up at the retailer's location to build traffic,advertise the product,or induce impulse buying.They are targeted to consumers.

A) Point-of-purchase displays
B) Trade shows
C) Indirect demonstrations
D) Direct demonstrations
E) Freestanding kiosks

Question 56

When Moise purchased a VTech wireless mobile phone,he was able to mail in a proof-of-purchase and his cash register receipt to receive a check from VTech for $20.Moise received a:

A) premium
B) trade allowance
C) purchase allowance
D) rebate
E) functional discount

Question 57

The manufacturer of Claritin,a drug for allergy sufferers that was designed to not make them sleepy,gave physicians free samples of the drug because:

A) its formula is similar to other allergy relief medicines currently on the market
B) it is an inexpensive promotional tool
C) this allows the consumer to try the product risk-free
D) this is an increasingly popular technique with manufacturers
E) trial-size containers are a form of advertising

Question 58

Whenever Hugo buys a 12-ounce soda at his nearby convenience store,he gets a stamp for the card that he carries in his wallet.When he has 8 stamps,he can exchange the card for a free soda.This is an example of a:

A) self-liquidating premium
B) frequent buyer program
C) loyalty incentive
D) in-store rebate
E) consumer allowance

Question 59

Every year SC Johnson gives its customers an opportunity to register online or through the mail to win $5,000 for a room makeover.This prize is awarded on Room by Room,a show on HGTV that SC Johnson sponsors.SC Johnson has designed an annual:

A) contest
B) P-O-P promotion
C) sweepstakes
D) loyalty incentive plan
E) event sponsorship

Question 60

Point-of-purchase promotions work best for:

A) high-involvement products
B) purchases that require extensive decision-making
C) complex products that require technical knowledge to operate
D) impulse buys
E) expensive products like perfume and jewelry

Question 61

Broyhill is offering the sales force at Meers Furniture Emporium a $50 reward for each Broyhill Pleasant Isle Living Room Collection sold in the next 30 days.What type of trade sales promotion is the $50?

A) a trade allowance
B) push money
C) a selling deal
D) premium payment
E) a direct commission

Question 62

_____ is direct communication between a sales representative and one or more prospective buyers,for the purpose of making a sale.

A) Trade promotion
B) Sales promotion
C) Public relations
D) Personal selling
E) Direct marketing

Question 63

Schwinn Cycling and Fitness,Inc.,is offering a chain of sporting goods superstores a 20 percent discount on all Schwinn bicycles if the stores will run their own special promotion on the new Schwinn Paramount Titanium bikes.Schwinn is offering a:

A) trade allowance
B) life cycle extension promotion
C) P-O-P discount
D) push money deal
E) product development deal

Question 64

You are responsible for sales promotion for a new brand of low-carb dairy products for people who are trying to lose weight.You need to introduce a new product to supermarket managers and owners,attract and identify new store contacts,and test market the response to your new product.Which type of trade promotion would most likely help you reach your objectives?

A) trade shows
B) trade allowances and direct incentives
C) push money
D) contests and sweepstakes
E) direct sampling and store demonstrations

Question 65

Harland & Wolff in Belfast,North Ireland,makes ocean-going vessels.(It was the company that manufactured the Titanic.)Last year its primary customer was the U.S.government.You would expect Harland & Wolff to rely on _____ to promote its vessels.

A) publicity
B) advertising and sales promotion
C) sales promotion
D) personal selling
E) product innovations and direct marketing

Question 66

The use of trade shows,conventions,and conferences to contact customers:

A) has been decreasing in recent years
B) costs much less per potential customer than personal sales calls
C) is most effective for mature products
D) is usually directed toward the consumer goods market
E) has a disadvantage in that it is usually impossible to display the product itself

Question 67

You are responsible for sales promotion for VitaBalls,a vitamin in a bubble gum form.Your objectives are to encourage product trial and repurchase,encourage brand switching to your brand,and increase the amount of product purchased by current customers.You have used coupons in the past but found that many were sent to homes that were childless.To reach consumers who have an interest in your product,you may want to:

A) continue with coupons through an on-line distributor
B) switch to trade sampling
C) use sweepstakes
D) introduce point-of-purchase displays
E) hire a sales force

Question 68

_____ is money offered by a manufacturer to employees of channel intermediaries to encourage them to sell the manufacturer's product.

A) A trade allowance
B) Push money
C) A selling deal
D) A premium payment
E) A direct trade sales promotion

Question 69

Which of the following is NOT an example of a trade sales promotion?

A) push money and training
B) business meetings and conventions
C) premiums and coupons
D) free merchandise and store demonstrations
E) trade shows

Question 70

Personal selling is more important than advertising and sales promotion if:

A) the products being sold are standardized
B) there are many customers for the product being sold
C) the product being sold has a low value
D) the buyers of the product are extremely dispersed
E) the products being sold are technically complex

Question 71

_____ is a price reduction offered by manufacturers to intermediaries such as wholesalers or retailers,in exchange for performance of specified functions or purchasing during special periods.

A) A point-of-purchase discount
B) Pull money
C) A quantity discount
D) A functional discount
E) A trade allowance

Question 72

For which of the following products would its producer be more likely to choose personal selling rather than advertising or sales promotion to market it?

A) fresh vegetables
B) insurance policies
C) office supplies
D) hammers
E) satellite programming guide

Question 73

When compared to other forms of promotion,personal selling:

A) is considerably more effective for obtaining sales and gaining a satisfied customer
B) does not have to deal with unqualified customers
C) is best able to handle customer objections as they arise
D) costs can be more easily controlled
E) is accurately described all of these

Question 74

Trade sales promotions are popular among manufacturers because they do all of the following EXCEPT:

A) improve trade relations
B) create long-term relationships between manufacturers and customers
C) obtain wholesaler and retailer support for consumer sales promotions
D) help manufacturers gain new distributors
E) provide retailers with increased store traffic

Question 75

Trianka Patel has recently started a mailing service in a region that is showing tremendous industrial growth.Her business has the capability to print,fold,insert,and mail all types of letters.Her customers include 3 local retailers,a small university,and a regional cable television provider.She needs more customers and plans to spend one day per week visiting businesses and introducing her services.Patel is engaged in:

A) direct sales management
B) personal selling
C) public relations
D) sales promotion
E) research and development

Question 76

Fiona is a sales associate at a store that sells new and used videos and DVDs.Recently she was given a CD of the music from Vanity Fair to encourage her to suggest customers buy this movie.The CD is an example of:

A) the use of a pull strategy
B) a trade sales promotion
C) a trade allowance
D) an intermediary rebate
E) free consumer sales promotion

Question 77

Trade sales promotions support a(n)_____ strategy.

A) push
B) hierarchical
C) disintermediation
D) discontinuous innovation
E) pull

Question 78

Which of the following statements does NOT describe an advantage personal selling has over other forms of promotion?

A) Personal selling is less expensive on a per contact basis.
B) Personal selling is better for providing customers with detailed demonstrations of products.
C) It is easier to vary the message according to what the customer needs to know with personal selling.
D) It is easier to direct the marketing effort to directly to qualified prospects with personal selling.
E) Personal selling costs can be controlled by adjusting the size of the sales force.

Question 79

Mountain Valley Springs Company,a producer of bottled water,sells a highly standardized product to consumers all over the United States.You would expect Mountain Valley Springs to rely on _____ to promote its product.

A) public relations
B) personal selling
C) advertising and sales promotion
D) publicity and direct marketing
E) product innovation

Question 80

Which of the following statements about online sales promotions is true?

A) Internet sales promotions are more effective and cost efficient at generating responses than their offline counterparts.
B) One of the few types of sales promotion that cannot be used on-line is sampling.
C) Online coupons are having the same problem with diminishing redemption rates as off-line coupons.
D) Loyalty marketing programs are ineffective when used at Web sites to encourage traffic.
E) There is no way for a marketer to build long-term,mutually beneficial relationships with customers online.