Question 1

Which of the following is an example of consumer sales promotion?

Accepted Answer

Coupons are a form of consumer sales promotion that offers discounts on products to encourage customers to try or purchase a certain brand. Spiffs, buyback allowances, and slotting allowances are forms of trade sales promotions that provide incentives for retailers to carry or promote a brand. Company conventions are not a form of sales promotion, but rather a corporate event or meeting.

Question 2

For a limited time, a Crest toothbrush is attached to a box of Crest toothpaste for the regular price of the toothpaste. Crest wants to encourage consumers to try the toothbrush. This is an example of a(n):

Accepted Answer

This is an example of an on-pack premium because the toothbrush is attached to the box of toothpaste as an incentive to encourage consumers to try it without increasing the price of the product they are already purchasing.

Question 3

What is the most expensive type of sales promotion?

Accepted Answer

Sampling is often the most expensive type of sales promotion because it involves giving away free products, which incurs high costs for production and distribution.

Question 4

_____ are coupons that reach consumers through colorful preprinted newspaper ads.

Accepted Answer

Freestanding inserts are also known as FSIs and are preprinted coupons that are inserted into newspapers.

Question 5

A trade deal is a(n):

Accepted Answer

A trade deal refers to a short-term dealer discount on the cost of a product that is offered by manufacturers or wholesalers to retailers to encourage them to stock the product or promote its sales. Trade deals are intended to increase sales in the short term and can often take the form of price discounts, buy-one-get-one-free offers, or other incentives. Options A, B, C, and D all refer to different types of marketing allowances or incentives, but none of them specifically describe a trade deal.

Question 6

In the Moose Head Cabin Fever Rescue promotion, beer retailers were sent an inflatable bush plane with a 30-inch wingspan that appeared to be dropping a parachute holding a 12-pack of Moose Head beer. Moose Head probably had to pay a(n) _____ to encourage retailers to use the large promotional material.

Accepted Answer

A display allowance is a payment made to retailers to encourage them to use promotional materials in their store displays. In this case, Moose Head sent an inflatable bush plane as a promotional material to retailers, and this would likely require a display allowance payment.

Question 7

The delivery of a free sample of Advil PM, a new pain reliever designed to aid in sleeping, in the same plastic bag as the Atlanta Journal was delivered in is an example of:

Accepted Answer

The delivery of free Advil PM samples in the same plastic bag as the Atlanta Journal is an example of polybagging, where multiple items are bundled together in a single plastic bag.

Question 8

To introduce its new line of sugar-free gum, Britannia distributed free packs of gum to consumers in Chicago grocery stores. Which type of promotion did Britannia employ?

Accepted Answer

Britannia employed sampling promotion, which involves giving free samples of a product to potential customers in order to encourage them to try it and ideally make a purchase.

Question 9

Keisha received a stiff cardboard mailer that contained a free sample of Advil PM, a pain reliever formulated to help people sleep. The mailer also included a certificate for $2 off the purchase of the over-the-counter drug. The manufacturer of Advil PM is most likely using a:

Accepted Answer

The manufacturer of Advil PM is using a coupon, which is a promotional tool that offers a discount or special offer to encourage customers to try or purchase a product.

Question 10

To promote a new Malibu Rum flavor, Pernod Ricard U.S.A. used a promotion called "How Do You Banana Malibu," which encouraged those of legal drinking age to submit video interpretations of the classic song, "Banana Boat," better known as "Day-O," on YouTube.com. The winner of the _____ won $25,000 in cash.

Accepted Answer

The promotion involved submitting video interpretations, which suggests a contest. A sweepstakes would involve chance rather than skill or effort. A lottery involves randomly selecting a winner from a pool of entries without any skill or effort involved. A reward is given for a specific action or achievement, but the promotion entailed competing with others to create the best video.

Question 11

Which of the following trends has most likely increased the importance of point-of-purchase (P-O-P) materials?

Accepted Answer

Self-service retailing, where customers are given the opportunity to browse and purchase products without the assistance of a salesperson, has increased the importance of P-O-P materials as they can provide valuable information to customers at the moment of purchase. With self-service, customers may not have access to sales associates who can provide additional information about the product, so P-O-P materials can help influence their purchasing decision.

Question 12

If you buy a case of Hanover kidney beans, you can mail eight UPC labels to Hanover and receive a "Kid Bean" stuffed toy. The toy is an example of a:

Accepted Answer

The "Kid Bean" stuffed toy is a premium, which is a type of promotional item given as a reward for purchasing a product.

Question 13

Chad is a sales representative at Great Electronics, an appliance retailer. Every time Chad sells an HG appliance, he receives $1.00 from HG. HG is most likely using _____ to encourage salespeople to pitch the HG brand over other brands.

Accepted Answer

A spiff is a payment made directly to a salesperson for selling a particular product. In this case, HG is offering Chad $1.00 for each HG appliance he sells, which is a spiff. This is a common incentive used by manufacturers to encourage salespeople to promote their brand over competitors. Option A, direct promotions, refers to marketing directly to consumers, and options B, D, and E are types of trade promotions that involve offering discounts or other incentives to retailers rather than individual salespeople.

Question 14

Adrienne Faith & Co. offered retailers of spas a four-tiered acrylic shelf unit that holds 36 bottles (2.4 ounces each) of spa fragrance or spa crystals. The unit is to be placed on the counter, next to the cash register, and would be an example of a(n):

Accepted Answer

The four-tiered acrylic shelf unit that holds 36 bottles of spa fragrance or crystals is a point-of-purchase material. It is intended to be placed next to the cash register, making it a convenient add-on purchase for customers who are already purchasing spa-related products.

Question 15

A(n) _____ offers prizes based on entrants' skill whereas a(n) _____ offers prizes based solely on a chance drawing of entrants' names.

Accepted Answer

A contest offers prizes based on entrants' skill, while a sweepstakes offers prizes based solely on chance drawing of entrants' names. Therefore, D is the correct option. The other choices (A, B, C, and E) do not differentiate between skill-based and chance-based competitions.

Question 16

By mailing in $3.95 and two proofs of purchase from Dannon yogurt, Laura can receive a digital calorie counter. Each counter costs Dannon $3.75 and is most likely an example of a(n):

Accepted Answer

This is a self-liquidating premium because the cost of the product ($3.75) is covered by the customer payment ($3.95) plus the two proofs of purchase.

Question 17

The manufacturer of Advil PM, a new pain reliever formulated to aid people sleep, conducted a _____ in which a winner was selected by a chance drawing of entrants' names. Contestants registered by visiting the Advil PM Web site. Each entrant had the same probability of winning the $10,000 grand prize.

Accepted Answer

The given scenario involves entrants registering to win a prize through a chance drawing, which fits the definition of a sweepstakes. A game implies that there are rules and a winner based on skill or strategy. A contest typically involves some form of competition and usually requires an entry fee. A lottery involves purchasing tickets and winning is based solely on chance. Reward implies a prize for a specific achievement rather than a random drawing.

Question 18

Procter & Gamble created one of the most outrageous promotions in marketing history. The offer itself was the soul of simplicity: Buy one giant-size box of Spic and Span and you can fill a clear plastic container with two free goldfish. The display even had its own net for scooping the little fish out. The fish were examples of:

Accepted Answer

The goldfish were a premium, an item given away for free or at a reduced price with the purchase of another product.

Question 19

_____ is generally considered the most effective method for generating consumer trial of a new product.

Accepted Answer

Sampling is the most effective method for generating consumer trial of a new product as it provides consumers with a direct experience of the product, allowing them to try it before buying it. This can lead to increased consumer confidence and higher purchase intention, resulting in higher sales in the long run. Other methods, such as buy-back allowances, rebate awards, contests, and diverting, may incentivize consumers to buy the product, but they do not provide the same level of direct experience and may not be as effective in generating long-term sales.

Question 20

Goode Paint is offering hardware stores a one-month deal to purchase its paints at 25 percent off the regular price. Goode hopes retailers will pass along these savings to consumers in the form of specials. Harmon Hardware, a small regional chain, purchases enough paint from Goode to last the chain for the next five months. Harmon Hardware is most likely engaging in:

Accepted Answer

Harmon Hardware is taking advantage of the one-month deal offered by Goode Paint by purchasing enough paint to last for the next five months. This is an example of forward buying, as the retailer is buying in advance to take advantage of the discounted price.

Quiz 15: IMC: Direct Marketing, Personal Selling, Packaging, and Sales Promotion

Which of the following is an example of consumer sales promotion?

For a limited time, a Crest toothbrush is attached to a box of Crest toothpaste for the regular price of the toothpaste. Crest wants to encourage consumers to try the toothbrush. This is an example of a(n) :

What is the most expensive type of sales promotion?

_____ are coupons that reach consumers through colorful preprinted newspaper ads.

A trade deal is a(n) :