Deck 14: Sales Promotion

Question 1

Advil ran a promotional bonus pack that provided 120 tablets for the price of 100. Their objective behind this incentive was to encourage:

A) retention of their current customer base
B) trial purchase among non-users
C) brand equity
D) stronger trade relations

Answer 1

A

Question 2

All of the following are examples of consumer-oriented sales promotion activities EXCEPT:

A) bonus packs
B) trade shows
C) refunds/rebates
D) samples

Answer 2

B

Question 3

The toy company Hasbro teamed with the retailer Toys R Us to create direct mail booklets offering discounts on Hasbro toys good only at Toys R Us stores. This is an example of:

A) brand equity building
B) account-specific marketing
C) a franchise building promotion
D) incentive marketing

Answer 3

B

Question 4

Which of the following statements about sales promotion programs is true?

A) Many sales promotion programs are designed to motivate distributors and retailers to carry a product and push it through to their customers.
B) Sales promotion dollars for most companies are allocated equally between consumers and the trade.
C) A promotional push strategy is directed at current and prospective consumers, in an attempt to push them into retailers who sell their product.
D) Sales promotion programs are targeted only at consumers.

Question 5

One problem resulting from the overuse of sales promotion is a decrease in:

A) promotional traps
B) ad readership scores
C) retailer power
D) brand equity

Question 6

Which of the following statements does NOT correctly describe the relationship between building brand equity and sales promotion?

A) Companies want promotions that require consumer involvement with their brands.
B) Sales promotion is an ineffective tool for building brand equity.
C) Companies are asking their promotion agencies to think strategically and develop programs that do more than increase short-term sales.
D) Sales promotion techniques such as contests and premium offers are often used to draw attention to an ad, increase involvement with the ad, and help build relationships with consumers.

Question 7

Over the past decade, the amount of money consumer products firms devote to ________ has been declining while the amount spent on has been increasing.

A) consumer promotions; media advertising
B) trade promotions; consumer promotions
C) trade promotions; media advertising
D) media advertising; sales promotions

Question 8

All of the following are examples of trade-oriented sales promotion activities EXCEPT:

A) coupons
B) point-of-purchase displays
C) dealer contests
D) trade allowances

Question 9

Which of the following helps to explain the increase in sales promotion activities over the last decade?

A) The increase of brand loyalty in many product categories
B) The increased emphasis on long term strategy and performance by most companies
C) The growing power of retailers and their demands for sales performance
D) The tremendous decrease in the number of new products

Question 10

How has the view of sales promotions changed during the past decades?

A) Sales promotions are now believed to be an ineffective tool for creating brand image.
B) Sales promotions are now considered an essential part of an organization's branding strategies.
C) Sales promotion tactics are now developed exclusively to provide incentives to purchase.
D) There is no difference between how marketers used to treat sales promotions and how they treat them now.

Question 11

is defined as a direct inducement that offers an extra value or incentive for the product to the salesforce, distributors, or to ultimate consumer with the primary objective of creating an immediate sale.

A) Brand advertising
B) Sales promotion
C) Promotional allowance
D) Direct marketing

Question 12

Coupons, bonus packs, premiums, and samples are promotional offers that are targeted toward:

A) wholesalers
B) salespeople
C) retailers
D) consumers

Question 13

is a recent development whereby companies are customizing their sale promotion programs for key retailers.

A) Incentive marketing
B) Trade marketing
C) Account-specific marketing
D) Accountability marketing

Question 14

Which of the following developments has resulted in a transfer of power from manufacturers to retailers?

A) Manufacturers are spending more money on media advertising.
B) Retailers have access to data concerning how quickly products turn over, and which products make money.
C) The advent of optical scanners and computers gave manufacturers access to sales information.
D) Manufacturers are introducing more private-label brands.

Question 15

Consumer-oriented sales promotions are part of a promotional strategy.

A) pull
B) premium
C) trade
D) push

Question 16

Consumers have become more sensitive and responsive to sales promotion for each of the following reasons EXCEPT:

A) consumers purchase more on the basis of price, value, and convenience than brand.
B) consumers tend to be loyal to their favourite brands.
C) many purchase decisions are made in the store where many sales promotions are found.
D) marketers are offering consumers more promotions to attract and maintain customers.

Question 17

Why are organizations like McDonald's, Wendy's, and Labatt placing more emphasis on sales promotions than ever before?

A) Because the use of sales promotions allows them to cut back and/or completely eliminate their use of coupons
B) Because consumers have less time to shop
C) Because sales promotions can be used to provide extra incentives for purchasing a brand
D) Because they want to use sales promotions rather than engage in price wars

Question 18

Which of the following types of sales promotions would NOT be used to help in the introduction of a new product?

A) Sampling
B) Premiums
C) New usage suggestions
D) Rebates and refunds

Question 19

Which of the following statements does NOT describe an aspect or characteristic of sales promotion?

A) Sales promotion can be targeted to different parties in the marketing channel.
B) A sales promotion is an acceleration tool designed to speed up the selling process.
C) Sales promotion offers may end up being used by current users of a brand rather than attracting new users.
D) One reason for the decrease in sales promotion is the power shift from manufacturers to retailers.

Question 20

When a marketer distributes coupons for a brand with a specific expiration date, they are attempting to use sales promotion as a(n):

A) brand equity building promotion
B) value added tool
C) promotional marketing tool
D) acceleration tool

Question 21

The building or reinforcement of consumer-franchise or equity for a brand:

A) can be done with carefully planned sales promotion programs
B) can really only be accomplished through advertising
C) is really not very important given the prolonged economic prosperity that Canadians have enjoyed
D) can be done more easily through trade-oriented promotions than through consumer-oriented promotions

Question 22

Tropicana developed a "Win the Perfect Vacation" sweepstakes to complement an advertising campaign theme promoting its grapefruit juice as the perfect beverage. This is an example of:

A) franchise building promotion
B) event marketing
C) high-involvement sales promotion
D) sales promotion trap

Question 23

Consumer-franchise or image building for a brand:

A) is becoming less important to marketers as competition intensifies
B) can be accomplished through consumer promotions that help build its brand equity
C) is accomplished through short-term price-oriented promotions
D) is the exclusive responsibility of advertising

Question 24

Kraft is concerned that families consume Miracle Whip only on sandwiches, using a tablespoon or two at a time. In order to increase consumption, which of the following sales promotion tools would work best for Kraft?

A) Recipe books showing alternative uses for Miracle Whip
B) Sampling and rebates
C) In-store coupons for $1.00 off Miracle Whip
D) Bonus packs, trade allowances, and slotting fees

Question 25

Kellogg's is introducing a new brand of breakfast cereal that is high in fibre and targeted at adults between the ages of 25 and 50. The marketing objectives for the introduction are to generate trial and repeat purchase during the 3-month product launch. Which of the following sales promotion tools work best for Kellogg's?

A) Rebates and high value checkout coupons
B) High value coupons and sampling
C) Bonus packs, trade allowances, and slotting fees
D) Sampling and rebates

Question 26

Each of the following is a reason for marketers to encourage repeat purchase EXCEPT:

A) reduce the likelihood that consumers will switch brands in response to a competitor's promotion
B) induce consumers to establish ongoing purchase patterns
C) persuade non-users of the category to try the product
D) retain current customer base

Question 27

Eastern Canadian Sea Foods devotes most of its marketing budget to trade discounts in the form of off-invoice and promotional allowances so its canned tuna and salmon brands can remain price competitive with private label brands. The heavy emphasis on trade promotion makes it difficult to:

A) build and maintain store equity for retailers that carry the Eastern Canadian brand
B) encourage consumers to buy on the basis of price
C) build an Eastern Canadian brand identity and image
D) encourage retailers to use Eastern Canadian's planograms

Question 28

Which of the following is an example of a sales promotion that can be used to contribute to franchise building?

A) A bonus jar of Hellmann's Mayonnaise, offering 1 L for the price of 750 mL.
B) A price reduction of $5 on a pair of Lee jeans.
C) A sweepstakes or contest that uses a theme which is consistent with the image or positioning of the brand.
D) A 50-cents off coupon on a box of Minute Rice to encourage repurchase.

Question 29

Promotional activities that are designed to accelerate the purchase process and generate an immediate increase in sales without communicating information about a brand's unique features or benefits are known as:

A) nonfranchise-building promotion
B) consumer franchise-building promotion
C) trade promotions
D) sweepstakes

Question 30

Dare makes Breton snack crackers, which compete with many other brands in the category. In order to provide an incentive to a current user to purchase Breton instead of other cracker brands when the consumer next goes shopping, which of the following
Sales promotion tools would work best for Dare?

A) Sponsorship of the local Easter parade
B) In-pack coupons for any variety of Breton crackers
C) In-store sampling
D) High value checkout coupons

Question 31

Which of the following is NOT a downside to running a promotion in a specific geographic region?

A) Consumer confusion when they shop at their local store
B) Additional managerial commitment required
C) Greater expenses resulting from fragmented efforts
D) National accounts' reluctance to run different promotions in different regions

Question 32

In order to encourage a current user to purchase Campbell's chicken broth instead of private label brands, which of these sales promotion tools would work best?

A) Trade promotion
B) Promotional pricing of 2 packages for $2.99 instead of the $1.69 regular price
C) In-store sampling
D) Image advertising

Question 33

generate(s) much higher trial rates than advertising and other sales promotion techniques.

A) Bonus packs
B) Sweepstakes
C) Contests
D) Sampling

Question 34

Which of the following is a reasonable objective for consumer-oriented sales promotions?

A) To enhance advertising and marketing efforts
B) To increase consumption of an established brand
C) To encourage off-shelf displays in major grocery stores
D) To obtain trial of a new brand

Question 35

The sales promotion tool that critics contend is most guilty of detracting from brand equity and at the same time being detrimental to a brand franchise is:

A) event sponsorships
B) trade promotions
C) frequent patronage programs
D) sweepstakes and contests

Question 36

If Beth experiences a positive outcome when buying a product with a sales promotion, the likelihood that she will buy this product again increases. This is explained by the theory of:

A) operant conditioning
B) path of least resistance
C) intermittent incentive
D) continuous reinforcement

Question 37

Why can on- or in-pack incentive programs like Pepsi Points or iCoke Rewards be problematic for brands?

A) The consumer may experience negative reinforcement when comparing competitive prices.
B) Retailers are not happy having to purchase large amounts of product to support the promotion.
C) Consumer switching behaviour is curtailed.
D) If the promotion is ongoing, it is difficult to predict consumer behaviour should the reinforcement ever stop.

Question 38

In order to expand usage beyond just sandwiches, the Kraft peanut butter brand team included baking recipes on the jar label. This is an example of which promotional objective?

A) retention of their current customer base
B) trial purchase among non-users
C) brand equity
D) increased consumption

Question 39

Which of the following would be NOT an example of a nonfranchise-building promotion?

A) Bonus packs
B) Price-off deals
C) Trade promotions
D) Image advertising

Question 40

Which of the following is NOT a tactical decision the marketer faces when planning a sales promotion?

A) The prime time evenings that attract the biggest percentage of the brand's target market
B) Seasonality of purchase and length of promotion
C) The percentage discount that the face value of checkout coupons represents
D) The value of the free in-pack premium

Question 41

An advantage of coupons is that they:

A) are very effective even without brand name awareness
B) build brand loyalty
C) allow a marketer to offer a price reduction to consumers who are price sensitive without having to reduce the price for everyone
D) generally elicit immediate response from consumers

Question 42

Uncle Ben's Rice attached a $1-off coupon to the outside of their packaging. They distributed 1,000,000 promotional packages, at a cost of $20,000 for design and production. They predict that the redemption rate will be 5%. They pay retailer handling and processing costs of 10¢ per coupon redeemed. What is the total cost of the coupon promotion to Uncle Ben's?

A) $150,000
B) $75,000
C) $7,500
D) $55,000

Question 43

Duncan Hines printed a 50 cents-off coupon on the inside of their brownie boxes. They distributed 200,000 promotional packages, at a cost of $9,900 for design and production. They predict that the redemption rate will be 3%. They pay retailer handling and
Processing costs of 10¢ per coupon redeemed. What is the total cost of the coupon promotion to Duncan Hines?

A) $16,500
B) $34,000
C) $3,500
D) $13,500

Question 44

Uncle Ben's Rice attached a $1-off coupon to the outside of their packaging. They distributed 1,000,000 promotional packages, at a cost of $20,000 for design and production. They predict that the redemption rate will be 5%. They pay retailer handling and processing costs of 10¢ per coupon redeemed. What is the cost per coupon redeemed to Uncle Ben's?

A) $1.10
B) $1.50
C) $1.00
D) $0.75

Question 45

Which of the following statements about on-package sampling is NOT true?

A) The distribution of on-package samples can be broadened by attaching them to multiple brands or to products made by other companies.
B) A limitation of this sampling method is that the sample is distributed only to purchasers of the carrier brand.
C) On-package samples can be distributed by attaching them to products not made by the distributing company.
D) This can be a very costly sampling method, particularly for multiproduct companies.

Question 46

product.
Is generally considered the most effective method for generating trial of a new

A) Sampling
B) A bonus pack
C) A rebate award
D) Couponing

Question 47

The oldest, most widely used, and most effective sales promotion tool is:

A) coupons
B) sampling
C) event sponsorship
D) rebates

Question 48

Sampling for a product such as expensive skin cream that is designed to reduce wrinkles over a long period of time might not be feasible because:

A) it may be too expensive to give away sample sizes that would be adequate to demonstrate the cream's benefits since it has to be used repeatedly
B) it may be too difficult to find a way to distribute the samples
C) consumers may think it is of poor quality since samples are being given away
D) it cannot be broken down into small sizes

Question 49

Duncan Hines printed a 50 cents-off coupon on the inside of their brownie boxes. They distributed 200,000 promotional packages, at a cost of $9,900 for design and production. They predict that the redemption rate will be 3%. They pay retailer handling and
Processing costs of 10¢ per coupon redeemed. What is the cost per coupon redeemed to Duncan Hines?

A) $2.25
B) $1.25
C) $0.50
D) $0.57

Question 50

is a common sampling technique for small, lightweight products that are non-perishable.

A) Location sampling
B) On-package sampling
C) Door-to-door sampling
D) Sampling through the mail

Question 51

What advantage does distribution of coupons through direct mail have over other forms of coupon delivery?

A) Lower redemption rate
B) Most redeemers of direct mail coupons are non-users
C) Lower cost
D) Targeted to specific geographic or demographic segments

Question 52

Sampling would be an appropriate promotional strategy to do each of the following EXCEPT:

A) induce trial of a new brand that is clearly superior to the competition
B) increase the market share of an established brand
C) assist consumers to experience the brand directly
D) provide the marketer with an immediate gauge as to how well the product will do in the marketplace

Question 53

are used to distribute coupons through newspapers.

A) Coupon pages
B) Classified ads
C) Freestanding inserts (FSIs)
D) Editorials

Question 54

Which of the following is NOT a sampling distribution method?

A) Sampling through the mail
B) Self-liquidating sampling
C) In-or on-package sampling
D) Door-to-door sampling

Question 55

occurs at venues such as concerts, cultural festivals, and at a brand's marketing activities.

A) Door-to-door sampling
B) Sampling through the media
C) Event sampling
D) Sampling through the mail

Question 56

When calculating the costs of a couponing program, marketers should consider all of the following EXCEPT:

A) the copy and layout of the coupon
B) handling costs
C) production and distribution costs
D) the face value of the coupon redeemed

Question 57

An effective sampling program meets three criteria. Which of these is NOT one of them?

A) The purchase cycle should be short enough that the consumer will consider an immediate purchase.
B) The brand being sampled must be a packaged good such as food or health care products.
C) A small sample must be able to adequately demonstrate the product's core features and benefits.
D) The cost of the sample being provided should be relatively low.

Question 58

Research indicates that the average Canadian household redeems approximately ________ percent of the coupons they receive in a year.

A) 15
B) 40
C) 4
D) There is no general number associated with coupon redemption.

Question 59

Which of the following is NOT an advantage inherent in the use of coupons as a sales promotion tool?

A) Coupons can encourage non-users to try a brand.
B) Coupons offer price reductions to consumers who are price sensitive.
C) Coupons are often used by consumers who already use the brand and would purchase it without a coupon.
D) Coupons are an effective way of generating trial of a new product.

Question 60

A recent study of coupon redemption patterns found that:

A) most coupons are redeemed immediately following the initial coupon drop
B) most coupons are redeemed on Thursdays
C) many coupons are redeemed just before the expiration date rather than in the period following the initial drop
D) most consumers do not use coupons

Question 61

Which of the following is an advantage of digital coupon distribution?

A) Digital coupons can offer a lower coupon value because the consumer doesn't have to go to too much trouble to redeem them.
B) Digital coupons enjoy a higher redemption rate because consumers can access a coupon for a desired brand right while shopping.
C) Retailers prefer digital coupons because they don't have as much paper to manage when claiming their handling fees.
D) Technology associated with smartphones is inexpensive.

Question 62

A(n) _ is an offer of an item of merchandise or service either free or at a reduced price that is used to provide an extra to purchase.

A) rebate
B) premium
C) off-price deal
D) coupon

Question 63

Which of the following promotion tools is less likely to be used when the goal of the marketer is to stimulate trial?

A) Mail-in refunds and rebates
B) Instant coupons
C) Loyalty programs
D) Sampling

Question 64

Which of the following would be the best example of a premium offer that contributes to consumer-franchise building efforts for a brand?

A) A crystal figurine in a box of Tide laundry detergent
B) A free tube of Colgate toothpaste in a box of Life cereal
C) A pack of baseball cards in a box of Cheerios cereal
D) A free sport bottle with the purchase of a four-pack of Gatorade

Question 65

Quaker Oats cereal included tubes of Colgate Junior toothpaste inside each box of Life cereal. This is an example of a:

A) self-liquidating premium
B) bonus pack
C) free premium
D) rebate

Question 66

Which of the following is NOT a problem associated with the use of contests and sweepstakes?

A) The contest or sweepstakes offer may overshadow the brand.
B) Professional entrants often defeat the purpose of contest and sweepstakes and undermine their effectiveness.
C) The contest or sweepstakes can create excitement and interest in a brand.
D) The contest or sweepstakes often fails to contribute to the brand franchise.

Question 67

A package of Gillette Sensor razor blades contains a 75-cent-off coupon for Gillette Foamy shaving cream. This is an example of a(n) coupon.

A) instant
B) same purchase
C) cross-ruff
D) bounce back

Question 68

Which of the following statements about the use of premiums as a sales promotion tool is true?

A) The use of premiums is very popular in fast food restaurants such as McDonald's.
B) Mail-in premiums offer immediate reinforcement to the purchaser.
C) Redemption rates for mail-in premium offers are very high.
D) Premiums are not subject to restrictions from industry and government agencies.

Question 69

Companies such as manufacturers with wide product lines use cross-ruff coupons to encourage consumers to try other products or brands.

A) car
B) beer
C) cereal
D) baby stroller

Question 70

Which of the following sales promotion techniques is impacted negatively by the presence of professionals or hobbyists who take advantage of the promotion without making a purchase?

A) Premiums
B) Contests and sweepstakes
C) Event sponsorships
D) Sampling

Question 71

Consumers must pay the manufacturer's out-of-pocket costs for a premium.

A) cost-plus
B) self-liquidating
C) subsidized
D) cost-covered

Question 72

Which of the following sales promotion techniques would be most effective for generating excitement or interest in a brand?

A) Contests/sweepstakes
B) Price-off deals
C) Bonus packs
D) Coupons

Question 73

Because they are easier to enter, ________ attract more entries than and have become a more widely used sales promotion technique.

A) contests; sweepstakes
B) sweepstakes; contests
C) contests; rebates
D) sweepstakes; premiums

Question 74

Gillette's market research shows that most consumers decide upon a brand of deodorant at the point-of-purchase rather than before entering the store. Based on these findings, what form of promotion is most effective for Gillette's Right Guard brand?

A) Coupons distributed through freestanding inserts in newspapers
B) In-store coupons
C) Event marketing
D) Direct mail coupons

Question 75

Perhaps the most successful in-package in Canada in 2001 was a General Mills giveaway of six CD-ROM computer games.

A) bonus pack
B) contest
C) premium
D) coupons

Question 76

With a , consumers compete for prizes and/or money on the basis of skills or ability, while with a(n) _, winners are determined purely by chance.

A) contest; sweepstakes
B) sweepstakes; event sponsorship
C) contest; rebate
D) sweepstakes; contest

Question 77

Kellogg's places a 50-cent-off coupon for Rice Krispies cereal in a box of its Frosted Mini-Wheats brand of cereal. This is an example of a(n) coupon.

A) bounce-back
B) cross-sell
C) cross-ruff
D) instant

Question 78

Which of the following promotion tools is less likely to be used when the goal of the marker is to build brand equity?

A) Self-liquidating premiums
B) Loyalty programs
C) Price-off deals
D) Sweepstakes

Question 79

An effective premium is one that:

A) has no impact on an organization's pioneering advertising
B) induces one-time trial purchase of a brand for which there is low awareness
C) reflects the overall quality of the product and is consistent with its image and positioning
D) distracts consumers from the firm's main reason for existing

Question 80

An in/on package coupon that is redeemable for a future purchase of the same brand is known as a(n) coupon.

A) instant
B) cross-ruff
C) bounce-back
D) same purchase