Deck 13: Sales Promotion

Question 1

According to Resolve Corporation research, the average redemption rate for coupons distributed through addressed direct mail is

A) 22.5%
B) 6.5%
C) 15%
D) 1%
E) 10%

Answer 1

B

Question 2

Evaluating the financial impact of a coupon offer includes

A) interest rates
B) handling costs
C) creative costs
D) free samples
E) advertising costs

Answer 2

B

Question 3

It is common for companies to combine pull and push promotion strategies which means they direct their attention at both

A) final users and the media
B) primary suppliers and channel members
C) competitors and final users
D) strategic partners and the media
E) final users and channel members

Answer 3

E

Question 4

When a product is new or relatively new and a trial purchase is the primary objective, a marketer will most often use

A) an in-store coupon
B) instantly redeemable coupon
C) on-pack self-coupon
D) in-pack self-coupon
E) media-delivered coupon

Question 5

Of the 6.8 billion coupons distributed by the packaged goods industry annually, how many are redeemed?

A) 1.1 billion
B) 650 million
C) 330 million
D) 225 million
E) 86 million

Question 6

To encourage repeat purchases and continued brand loyalty, marketers most often use

A) media-delivered coupons
B) cross-coupon
C) in-pack self-coupons
D) in-store delivered coupons
E) soon-to-expire coupons

Question 7

In-store delivered coupons are distributed by

A) using a swipe card
B) in-store display centres
C) catalogues
D) newspapers
E) Canada Post

Question 8

A second objective of consumer promotion is to encourage

A) protection of loyalty
B) increase in listings
C) word-of-mouth advertising
D) sales support
E) a building of volume

Question 9

The most common objective of a consumer promotion activity is to have the consumer make

A) a trial purchase
B) a request for a coupon
C) a recommendation
D) a request for product information
E) a request for a sample

Question 10

Which of the following is an example of a consumer promotion activity?

A) co-operative advertising allowance
B) premiums
C) performance allowance
D) payola
E) delayed payment incentive

Question 11

Sales promotion can be defined as activity that provides special incentives to bring about

A) more movement in the product life cycle
B) immediate response from consumers
C) more creative advertising
D) more web sites
E) greater competitor activity

Question 12

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

A) becoming a major sponsor
B) distributing coupons
C) directing efforts at consumers
D) directing efforts at intermediaries
E) blitz media campaigns

Question 13

If Kellogg's Corn Flakes includes an in-pack coupon for Tropicana Orange Juice, this type of coupon is an example of a(n)

A) cross-ruff
B) in-store delivered coupon
C) media-delivered coupon
D) rebate
E) free sample

Question 14

One of the common types of trade promotions activities is

A) video games
B) DVDs
C) free radio advertising
D) co-operative advertising funds
E) social media

Question 15

Considering only those coupons redeemed for packaged goods, 2012 statistics showed consumers saved approximately

A) $54 million
B) $135 million
C) $75 million
D) $68 million
E) $100 million

Question 16

According to statistics, 6.8 billion of these were distributed to Canadian households in 2012.

A) coupons
B) samples
C) contests
D) cash refunds
E) premiums

Question 17

A frequent- buyer (loyalty) program is an example of

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

Question 18

Trade promotion activities are targeted towards

A) consumers
B) sales force
C) marketers
D) media
E) distributors

Question 19

Advertising and promotion are not necessarily viewed as two separate entities, since the strategy today is about

A) event marketing
B) the World Wide Web
C) the agency's responsibility
D) an integrated marketing approach
E) public relations and sponsorship

Question 20

Media-delivered coupons are coupons distributed

A) inside consumer goods
B) through television stations
C) through in-store kiosks
D) through radio stations
E) in newspapers, magazines or online

Question 21

A small replica pack of Cascade dishwashing detergent delivered to consumers by mail is an example of a(n)

A) on-pack premium
B) cross sample
C) instant premium
D) free sample
E) specialty pack

Question 22

The benefit of loyalty programs for the marketer is

A) the customer information it is collecting
B) retention of current customers
C) relationship building
D) the brand awareness it is creating
E) increasing profits

Question 23

Cross sampling refers to an arrangement whereby

A) one product carries a sample of another product
B) multiple products are sampled and compared
C) a competitor's product is sampled
D) a cash refund is returned to the consumer
E) free samples are distributed

Question 24

This type of sales promotion has become so ingrained in the automobile industry that consumers now postpone their new car purchases while they wait for an attractive ________.

A) cash-back rebate offer
B) premium
C) loyalty program
D) coupon
E) contest

Question 25

These sales promotion methods are considered to be the most effective in inducing trial purchases:

A) contests
B) cash refunds
C) free samples
D) coupons
E) rebates

Question 26

One objective of trade promotion is to secure a listing with distributors. A listing is defined as

A) an offer to provide trade allowances
B) an agreement with retailers to distribute a manufacturer's goods to consumers
C) an agreement with a wholesaler to distribute a manufacture's goods to retailers
D) merchandising support
E) loading up at the end of a promotion

Question 27

Shoppers Drug Mart's Optimum rewards program allows shoppers to redeem points for

A) future purchases
B) beauty makeovers
C) air travel
D) Shoppers Drug Mart "money"
E) items in a gift catalogue

Question 28

The marketer who pioneered the delayed payment incentive concept in Canada is

A) Canadian Tire
B) Tim Hortons
C) Maxwell House
D) Leon's Furniture
E) Shoppers Drug Mart

Question 29

The most common type of refund is the

A) premium
B) multiple-purchase refund
C) single-purchase refund
D) slippage
E) buy one, get a dollar back

Question 30

Among media-delivered coupons, this distribution method has a higher rate of redemption than magazines.

A) direct mail
B) online
C) television
D) newspaper
E) free-standing insert

Question 31

A game contest (or instant win) is a promotion vehicle that includes a number of

A) seasons
B) predetermined winning tickets
C) market segments
D) different competitors
E) sports

Question 32

Frequently, Tim Hortons offers its Roll Up the Rim to Win promotion. This is an example of

A) couponing
B) an instant win contest
C) a rebate
D) a sweepstakes
E) sampling

Question 33

The main goal of a premium is to

A) increase sales
B) reward the customer for making the purchase
C) create brand loyalty
D) entice trial purchase
E) provide added value to customers

Question 34

A rebate is a predetermined

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

Question 35

An objective of trade promotion is to

A) encourage consumer loyalty
B) promote competition
C) encourage just-in-time inventory management
D) secure merchandising support from distributors
E) have consumers make trial purchases

Question 36

Because of consumer involvement, contests

A) are self-liquidating
B) are well supported by the retail trade
C) help dramatize a unique selling point
D) are the most effective promotion for generating product trial
E) are cost-effective

Question 37

When Melitta coffee offered consumers a chance to win tickets to HSBC Stars on Ice and a 75-cent coupon for any Melitta coffee, it was offering a

A) sweepstakes
B) cross sample
C) delayed payment premium
D) cross-promotion
E) combination offer

Question 38

This consumer promotion activity is considered to be the most effective method of generating trial purchase.

A) rebate
B) coupons
C) free sample
D) contest
E) loyalty program

Question 39

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

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

Question 40

An "on-pack" premium promotion is when

A) a consumer collects proof of purchase
B) a consumer is involved in a frequent buyer program
C) an item is attached to a package
D) a consumer buys in bulk
E) a consumer picks an instant win package

Question 41

A dealer premium is an additional incentive offered by a manufacturer to a distributer to

A) increase profit margins
B) encourage a special purchase
C) increase advertising
D) reduce inventory
E) increase stock turns

Question 42

Trade promotion is supposed to

A) pull a product through is distribution channel
B) secure end users
C) be an exchange of services between two companies
D) build brand loyalty for end users
E) Secure merchandising support from distributers

Question 43

If 1,000 coupons are distributed and 75 are returned, then the redemption rate is

A) 75%
B) 15%
C) 7.5%
D) 0.75%
E) 10%

Question 44

Sales promotion can be defined as activity that provides special incentives for an organization's sales force over the long term.

Question 45

A cereal box that contains a voucher that can be used for $1 off a complementary product is referred to as a

A) refund
B) cross-ruff
C) premium
D) price-off
E) bonus pack

Question 46

The Air Miles points a consumer collects on a credit card is an example of a

A) loyalty program
B) cross-ruff
C) premium
D) sweepstakes
E) trade allowance

Question 47

While promotion strategies bring positive results in the short-term, the long-term risks of repeated promotions include

A) hurting the brand's image
B) alienating distributers
C) increasing costs
D) bringing attention to competitor's products
E) government interference

Question 48

After purchasing a Nintendo game, a customer sends in a proof of purchase and receives a cheque from the manufacturer for $5. This is an example of a

A) manufacturer's coupon
B) bonus offer
C) through-the-mail premium
D) rebate
E) sample

Question 49

Dealer display material consists of self-contained, custom-designed merchandising units that

A) are charged to the retailer
B) display the retailer's name and image
C) are the responsibility of the agency
D) display a manufacturer's product
E) contain free samples

Question 50

Organizations now use promotions, particularly contests, as a means to

A) increase store traffic
B) engage customers checking out brands on a website
C) develop effective reach
D) increase the number of coupons redeemed
E) increase the number of impressions

Question 51

Contests are most appropriate at which stage of the product life cycle?

A) trial stage
B) mature stage
C) growth stage
D) decline stage
E) introductory stage

Question 52

A free toy inside a box of Fruit Loops is an example of a(n)

A) bonus offer
B) delayed payment incentive
C) in-pack premium
D) cross-ruff
E) sample

Question 53

Which sales promotion technique is long-term in nature?

A) sampling
B) loyalty programs
C) rebates
D) coupons
E) premiums

Question 54

In Canada the most widely used promotional item is

A) beauty products
B) apparel
C) magazines
D) coupons

Question 55

To facilitate the selling process, the sales force must provide dealers and retailers with

A) a loyalty program
B) a combination premium
C) a free sample
D) point-of-purchase displays
E) collateral materials

Question 56

This type of promotion is viewed by manufacturers as the most important promotional activity:

A) cash refunds
B) free samples
C) coupons
D) trade shows
E) sweepstakes

Question 57

Bonus packs appeal to consumers because

A) they offer more for the same price
B) they change brand perception
C) they are a key strategy to build loyalty
D) they increase manufacturer's profits

Question 58

A temporary price reduction designed to encourage larger purchases by distributors is referred to as a

A) rebate
B) performance allowance
C) merchandising allowance
D) trade allowance
E) refund offer

Question 59

The industry term for the situation where a rebate offer creates a sale, but the customer never redeems the offer is

A) misredemption
B) slippage
C) dealer premium
D) collateral
E) trade allowance

Question 60

Premiums are usually offered by manufacturers in the form of

A) price discounts
B) exclusive contest ballots
C) coupons
D) cash-back
E) merchandise

Question 61

Experiential marketing involves potential customers interacting directly with the product.

Question 62

McDonald's "Monopoly" promotion is an example of a game contest.

Question 63

Frequent coupon users are more likely to be females over the age of 55.

Question 64

The method by which coupons are delivered depends on the demographics of the consumer.

Question 65

A delayed payment incentive promotion is when a consumer is granted a grace period during which he or she pays no interest or principal for the item purchased.

Question 66

One objective of consumer promotion activity is to protect distributor loyalty.

Question 67

A company can implement a contest however they want.

Question 68

Rebates can also occur before the final purchase has been made.

Question 69

Slippage is when a distributor loses customers during a promotion.

Question 70

Coupons, samples, contests and premiums are examples of activities that would be considered a pull strategy.

Question 71

Companies such as Kraft, Colgate, Palmolive and Apple advertise their products heavily to end users while their sales force sells the products among business customers or channel members.

Question 72

Beer manufacturers see premium offers as a vital tool for building business during the critical summer months.

Question 73

Trade shows are organized each year by an industrial association to demonstrate the latest products of member manufacturers.

Question 74

A free sample is a free product distributed to loyal customers.

Question 75

Premiums can be offered to consumers as a mail-in. In other words, consumers send in a proof of purchase and the item is returned by mail.

Question 76

Trade promotions refer to those activities designed to encourage distributors to purchase additional volume.

Question 77

A Cheerios box containing a small sample package of Lucky Charms cereal is an example of cross sampling.

Question 78

Experiential marketing is another name for on-site sampling.

Question 79

Contests are more effective in inducing trial purchases than coupons and free samples.

Question 80

In a push strategy, the organization creates demand by directing promotional efforts at consumers or final users of the product.