Question 1

Freaky Lays,a leading bottled juice manufacturer,introduces a new range of potato chips.To promote this new product,it offers a packet of chips free with every bottle of Freaky Lays juice.Though very expensive,it is the most effective method of promotion.Which of the following promotional tools has Freaky Lays used here?

Accepted Answer

The answer of Freaky Lays,a leading bottled juice manufacturer,introduces a...

Question 2

AirNetwork,a telecommunication company,sponsors a rock concert by a famous band.This is an example of ________.

Accepted Answer

Event marketing refers to the promotion of a brand or product through sponsorship or participation in events such as concerts, sports events, or festivals. In this case, AirNetwork is promoting its brand by sponsoring a rock concert.

Question 3

________ are offers of a trial amount of a product.

Accepted Answer

Samples are offers of a trial amount of a product. Cash refunds, price packs, rebates, and coupons do not necessarily offer a trial amount of a product.

Question 4

Vintage is one of the largest companies in the country.Vintage produces a vast range of goods which includes cars,cameras,home appliances,personal-care products,and food items.The company also competes vigorously in the services market as it runs hotels,hospitals,and schools.Vintage entered the real-estate industry in the last decade and proved to be successful in this field too.Which of the following would classify as a business promotion tool used by Vintage?

Accepted Answer

Vintage promoting its real estate business by showcasing its new villas and condominiums at a trade show is an example of a business promotion tool. A, C, D, and E are all examples of sales promotion tools.

Question 5

La Viva,a chain of clubs and resorts,is known to be one of most preferred options for consumers seeking hospitality of a good standard.La Viva follows a mission which stresses long-term relationship building.It does not offer customers frequent price discounts which do increase footfalls,but fail to add value to the company.Which of the following statements,if true,strengthens the argument that La Viva uses the relationship-building approach over the transaction-oriented approach?

Accepted Answer

Option C provides evidence that La Viva focuses on building long-term relationships with customers. The fact that the majority of customers either hold a "Lifetime with La Viva" card or have been referred by satisfied customers indicates that customers are not just one-time visitors but have a higher level of loyalty to the brand. This supports the idea that La Viva values building relationships with customers over transaction-oriented approaches. Options A, B, D, and E do not provide enough evidence to support either approach.

Question 6

Which of the following statements is true of consumer promotions?

Accepted Answer

Consumer promotions include a wide range of tools like samples, coupons, refunds, and so on. The other options are not true. Display allowances are a type of trade promotion, not a consumer promotion. Consumer promotions are used primarily to generate consumer purchases, reward customers, and market products to end consumers, whereas lead generation, motivating salespeople, and convention participation are not specific to consumer promotions.

Question 7

"Buy one,get one free" is an example of ________.

Accepted Answer

"Buy one, get one free" is an example of price packs, which offer customers a discount for buying a certain quantity of a product. It is not a coupon, rebate, advertising specialty, or sample.

Question 8

Which of the following is a promotional tool used for trade promotions?

Accepted Answer

The answer of Which of the following is a promotional...

Question 9

Koffee,a brand of instant coffee,offers a free coffee mug with its logo imprinted on it with the purchase of every packet of its instant coffee powder.Which of the following promotional tools has Koffee used here?

Accepted Answer

Koffee has used advertising specialties as a promotional tool by offering a free coffee mug with its logo imprinted on it with the purchase of every packet of its instant coffee powder.

Question 10

________ are certificates that save buyers money while they purchase specified products.

Accepted Answer

Coupons are certificates that provide discounts or savings to buyers when they purchase specified products.

Question 11

Sales promotion tools used to persuade resellers to carry a brand,give it shelf space,promote it in advertising,and push it to consumers are collectively called ________ promotion.

Accepted Answer

Sales promotion aimed at persuading resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers is called trade promotion.

Question 12

In which of the following promotional tools does the customer send proof of purchase to the manufacturer,which then refunds a part of the purchase price by mail?

Accepted Answer

This describes the promotional tool of rebates, where customers send proof of purchase to the manufacturer and receive a refund of a portion of the purchase price via mail. Coupons are discounts given at the time of purchase, samples are free product trials, premiums are gifts with purchase, and price packs are combinations of products sold at a reduced price.

Question 13

________ are sales promotion tools used to generate new leads,stimulate purchases,reward customers,and motivate salespeople.

Accepted Answer

Business promotions are designed to generate new leads, stimulate purchases, reward customers, and motivate salespeople, encompassing a variety of promotional activities aimed at businesses.

Question 14

Wafers,a potato chips manufacturer,offers a free toy figure inside every packet of the potato chips.This is an example of which of the following promotional tools?

Accepted Answer

The offer of a free toy figure inside every packet of the potato chips is an example of a premium, which is a promotional tool that offers a free item as an incentive to purchase.

Question 15

Which of the following is true of trade promotions?

Accepted Answer

Trade promotions are primarily aimed at persuading resellers to carry a brand, give it shelf space, and promote it in their stores.

Question 16

Vintage is one of the largest companies in the country.Vintage produces a vast range of goods which includes cars,cameras,home appliances,personal-care products,and food items.The company also competes vigorously in the services market as it runs hotels,hospitals,and schools.Vintage entered the real-estate industry in the last decade and proved to be successful in this field too.Which of the following would classify as a trade promotion tool used by Vintage?

Accepted Answer

Off-invoice offers are a type of trade promotion tool where a discount is offered to a retailer or distributor when they purchase a certain quantity or type of product. In this case, Vintage is offering a discount for a new product for the first three months, which is a common trade promotion tool. The other options (A, B, C, and E) are consumer promotion tools, as they are aimed directly at the end user and do not involve any trade between businesses.

Question 17

ABM Connect is one of the largest providers of Internet services in the country.The company operates through a network of thousands of employees who manage its functions in their respective capacities.With the entry of new service providers in the industry,ABM Connect has also enhanced its sales and marketing efforts to retain its position as the market leader.Which of the following statements,if true,would indicate that ABM Connect adopts the transaction-oriented approach?

Accepted Answer

The transaction-oriented approach focuses on achieving sales targets quickly, often through price cutting or other promotional measures. Cutting prices drastically to meet sales targets indicates that ABM Connect is adopting a transaction-oriented approach. The other options indicate customer-oriented strategies, such as relationship-building and demonstrating the value of services, which are not indicative of a transaction-oriented approach.

Question 18

Conventions,trade shows,and sales contests are types of ________.

Accepted Answer

Conventions, trade shows, and sales contests are all examples of business promotions, which are designed to promote a company and its products or services to potential customers and clients. Point-of-purchase promotions, frequency marketing programs, advertising specialties, and premiums are all types of promotions as well but do not specifically refer to these types of events.

Question 19

Cream Bay has come out with a new range of ice creams.To promote its new products,it has set up kiosks outside malls which offer free samples of the ice cream to the potential customers.Which of the following promotional tools has Cream Bay adopted?

Accepted Answer

Cream Bay has adopted point-of-purchase promotions by setting up kiosks outside malls and offering free samples of its ice cream to potential customers.

Question 20

Sales promotions targeted at ________ are called trade promotions.

Accepted Answer

Trade promotions are targeted at intermediaries, such as retailers and wholesalers, to encourage them to promote and sell the product to the end consumers. Trade promotions can include discounts, allowances, and incentives for retailers and wholesalers to carry the product and promote it to their customers.

Quiz 13: Personal Selling and Sales Promotion