Deck 17: Promotions

Question 1

Which of the following is the most reasonable criticism of sales promotion?

A) cannot account for results
B) can lead to consumer brand insensitivity
C) difficult to integrate with other elements of the communications mix
D) ineffective in the short term
E) difficult to determine specific objectives

Answer 1

B

Question 2

Sales manuals,training programs,and supportive materials are all examples of ________ promotions.

A) retailer
B) partner
C) sales force
D) trade
E) channel

Answer 2

C

Question 3

Which of the following provide the consumer with something extra through the package itself?

A) prize-pack deals
B) cents-off deals
C) samples
D) self-liquidator premiums
E) coupons

Answer 3

A

Question 4

Through the process of ________,results derived from a promotion can be estimated and compared with the projected cost of the effort.

A) investment planning
B) payout planning
C) added value planning
D) allowance analysis
E) continuity analysis

Question 5

Which of the following most accurately describes an objective of advertising?

A) add tangible value to the product or service
B) encourage an immediate action
C) create a brand image over time
D) contribute to short-term profitability
E) emphasize price over value

Question 6

Which of the following are the two types of coupons?

A) refund and rebate
B) immediate and delayed
C) percentage and cents-off
D) retailer and manufacturer
E) price cut and added value

Question 7

Sales promotion is often the most effective strategy for increasing sales of a(n)________.

A) luxury product
B) parity product
C) business service
D) exclusive product
E) differentiated product

Question 8

The consumer promotion that provides a reduction in the normal price charged for a good or service announced at the point of sale or through mass or direct advertising is known as a ________.

A) prize-pack deal
B) cents-off deal
C) bonus pack
D) banded pack
E) coupon

Question 9

Which of the following is LEAST likely a typical target audience of sales promotion?

A) consumers
B) distributors
C) sales representatives
D) media
E) retailers

Question 10

Which of the following is a common consumer price deal?

A) banded packs
B) refund
C) rebate
D) premium
E) contest

Question 11

Which of the following is NOT a type of consumer promotion?

A) price deals
B) sampling
C) trade deals
D) sweepstakes
E) premiums

Question 12

Which of the following provide the consumer with more units of a product sold at a lower price than if they were bought at the single-unit price?

A) prize-pack deals
B) cents-off deals
C) bonus packs
D) banded packs
E) rebates

Question 13

Which of the following is NOT a reason for the growth of sales promotion?

A) consumer expectation of constant short-term price reductions
B) need for accountability
C) power of dominant retailers
D) reduction of consumers' risk
E) pressure for long-term profits

Question 14

The goal of creating a payout plan is to produce promotions that increase ________.

A) awareness and attachment
B) loyalty and attachment
C) loyalty and conviction
D) awareness and interest
E) sales and profits

Question 15

A temporary price reduction,sale price,or freebie is known as a ________.

A) refund
B) rebate
C) price deal
D) trade deal
E) price-off

Question 16

What is the ultimate goal of sales promotion?

A) consumer action
B) brand awareness
C) brand identification
D) intention to buy
E) brand liking

Question 17

Usually the go/no-go decision for a sales promotion is based on the ________.

A) creativity of the program
B) expected ROI of the program
C) quality of available premiums
D) number of channel members
E) level of product parity

Question 18

The ________ rate measures the rate at which people use coupons,refunds,or rebates offered in a promotion.

A) parity
B) conversion
C) retail
D) trade
E) redemption

Question 19

The media and non-media marketing pressure applied for a predetermined,limited period of time at the level of consumer,retailer,or wholesaler in order to stimulate trial,increase consumer demand,or improve product availability is categorized as ________.

A) advertising
B) public relations
C) sales promotion
D) personal selling
E) event sponsorship

Question 20

Promotions are typically LEAST effective at which of the following?

A) creating immediate sales
B) reinforcing brand image
C) building brand awareness
D) changing negative brand attitudes
E) generating product trial

Question 21

________ contain materials that support retailers' selling efforts or that help representatives make sales calls on prospective retailing customers.

A) Promotion kits
B) Point-of-purchase kits
C) Trade incentives
D) Retailer kits
E) Spiffs

Question 22

Which of the following is a type of trade promotion?

A) refund
B) premium
C) point-of-purchase display
D) sampling
E) rebate

Question 23

Which consumer sales promotion is a marketer's offer to return a certain amount of money to the consumer who purchases the product?

A) rebate
B) sample
C) coupon
D) premium
E) self-liquidating

Question 24

Which of the following is NOT an objective of consumer promotions such as coupons?

A) generate awareness
B) generate trial
C) maintain or increase market share
D) remind consumers about the brand
E) increase profit margins

Question 25

A ________ is a type of sweepstakes with a longer time frame.

A) game
B) contest
C) premium
D) swag
E) specialty

Question 26

Which of the following is NOT a type of trade promotion?

A) point-of-purchase displays
B) retailer kits
C) contests
D) trade shows and exhibits
E) coupons

Question 27

________ presents the brand's name on something that is given away as a reminder.Examples include calendars,pens,T-shirts,mouse pads,and so forth.

A) A premium
B) A rebate
C) A bonus pack
D) Specialty advertising
E) Specialty sampling

Question 28

Which type of consumer sales promotion creates excitement by promising "something for nothing" and offering impressive prizes that consumers can win by chance?

A) price deals
B) specialty advertising
C) sweepstakes
D) sampling
E) premiums

Question 29

Brokers,distributors,wholesalers,dealers,franchisees,and retailers are referred to as ________.

A) consumers
B) trade
C) gatekeepers
D) suppliers
E) merchandisers

Question 30

What are the two general types of premiums?

A) direct and mail
B) free and self-liquidator
C) immediate and delayed
D) direct and indirect
E) retailer-sponsored and manufacturer-sponsored

Question 31

In a practice that is sometimes referred to as ________,trade promotions are directed at distribution channel members.

A) value-added marketing
B) payout planning
C) channel marketing
D) partner relationship management
E) customer relationship management

Question 32

Sampling is generally most effective when reinforced on the spot with a ________.

A) self-liquidator premium
B) specialty item
C) game
D) rebate
E) coupon

Question 33

________ coupons can be redeemed only at the specified retail outlet,and ________ coupons can be redeemed at any outlet distributing the product.

A) Retailer-sponsored; manufacturer-sponsored
B) Manufacturer-sponsored; retailer-sponsored
C) Refund; rebate
D) Rebate; refund
E) Immediate; delayed

Question 34

A consumer is able to try a product or service through ________.

A) a warranty
B) sampling
C) a premium
D) a specialty
E) self-liquidating

Question 35

Which of the following is a type of freebie given away to people who attend special events,such as award ceremonies?

A) sample
B) rebate
C) swag
D) banded pack
E) bonus pack

Question 36

Which type of premium usually requires that a payment be mailed in along with some proof of purchase before the customer receives the premium?

A) indirect premium
B) self-liquidator premium
C) direct premium
D) delayed premium
E) retail-sponsored premium

Question 37

________ require participants to compete for a prize or prizes based on some sort of skill or ability.

A) Sweepstakes
B) Swag offers
C) Contests
D) Premiums
E) Specialties

Question 38

________ require only that participants submit their names to be included in a one-shot drawing or other chance selection.

A) Sweepstakes
B) Rebates
C) Contests
D) Premiums
E) Specialties

Question 39

The consumer promotion that is a tangible reward for a particular act,usually purchasing a product or visiting the point-of-purchase,is known as a ________.

A) sample
B) price deal
C) contest
D) sweepstakes
E) premium

Question 40

Which of the following is NOT a type of direct premium?

A) co-op premiums, given to consumers at the retail site but paid for by the manufacturer
B) store premiums, given to customers at the retail site
C) in-pack premiums, inserted in the package at the factory
D) on-pack premiums, placed on the outside of the package at the factory
E) container premiums, in which the package is the premium

Question 41

________ occurs when companies support an event either financially or by donating supplies and services.

A) Ambush marketing
B) Sponsorship
C) Co-marketing
D) Co-branding
E) Tie-in marketing

Question 42

Point-of-purchase displays are provided by ________ and used by ________.

A) retailers; manufacturers
B) retailers; consumers
C) retailers; direct marketers
D) manufacturers; direct marketers
E) manufacturers; retailers

Question 43

Which are the most common types of trade deals?

A) point-of-purchase displays
B) push money and pull money
C) spiffs and self-liquidators
D) contests and games
E) buying allowances and advertising allowances

Question 44

Which of the following types of incentives reward retailers by giving them the display after the promotion period is over?

A) bonuses
B) display loaders
C) display allowances
D) buying allowances
E) trade exhibits

Question 45

Print ads that are ready to be sent to the local print media as soon as the retailer or dealer adds identification,location,promotion prices,or other information are known as ________.

A) spiffs
B) push incentives
C) ad slicks
D) ad comps
E) dealer loaders

Question 46

Companies within the same industry gather to present,demonstrate,and sell their merchandise at ________.

A) dealer loaders
B) point-of-purchase promotions
C) trade shows
D) multiplatform promotions
E) event markets

Question 47

Signs,price cards,and mechanical product dispensers are all examples of ________.

A) advertising specialties
B) point-of-purchase materials
C) rebates
D) spiffs
E) dealer loaders

Question 48

Trade buyers would most likely have the opportunity to sample products and view product demonstrations at a ________.

A) dealer loader
B) sponsored event
C) trade show
D) point-of-purchase display
E) cross promotion event

Question 49

Monetary bonuses paid to a store's salesperson based on the units that salesperson sells over a period of time are known as ________.

A) pull money
B) spiffs
C) loaders
D) rebates
E) allowances

Question 50

________ are premiums,such as a free trip,that a manufacturer gives to a retailer for buying a certain amount of a product.

A) Bonuses
B) Loaders
C) Spiffs
D) Allowances
E) Pulls

Question 51

The best measure of a successful trade promotion is whether ________.

A) brand awareness increases
B) the number of channel members increases
C) brand loyalty increases
D) sales increase
E) inventories increase

Question 52

Trade promotions are most important in which of the following types of strategies?

A) push
B) pull
C) end-user
D) direct marketing
E) one-to-one

Question 53

Consumer promotions are most important in which of the following types of strategies?

A) push
B) pull
C) channel
D) wholesale
E) intermediate

Question 54

Which type of trade promotion rewards a reseller financially for purchase of a certain level of a product or support of a promotion?

A) trade incentives and deals
B) contest
C) point-of-purchase display
D) self-liquidator
E) retailer kit

Question 55

Manufacturers may offer a(n)________,which may be a set amount of money or a discount,to a reseller who purchases a certain amount of the product during a specified time period.

A) display allowance
B) advertising allowance
C) promotion allowance
D) buying allowance
E) loader allowance

Question 56

Manufacturers may offer a(n)________ allowance in return for the retailer's agreement to feature the manufacturer's products in its advertising.

A) display
B) advertising
C) promotion
D) buying
E) loader

Question 57

________ is a contractual arrangement between the manufacturer and the resellers,in which the manufacturer agrees to pay a part or all of the advertising expenses incurred by the resellers.

A) Co-op advertising
B) Display advertising
C) A buying allowance
D) An advertising allowance
E) A dealer loader

Question 58

________ means building a product's marketing program around a sponsored event,such as the Olympics or a golf tournament.

A) Event marketing
B) Sports marketing
C) Co-marketing
D) Co-branding
E) Tie-in marketing

Question 59

A manufacturer-designed display distributed to retailers who use it to call their customers' attention to product promotions is known as a ________.

A) trade incentive
B) point-of-purchase promotion
C) co-promotion
D) spiff
E) dealer loader

Question 60

Which of the following is NOT a type of sponsorship or event marketing?

A) providing financial support for a sports team
B) providing financial support for a festival or fair
C) cause marketing
D) co-marketing
E) providing financial support for an art museum

Question 61

Sales promotion is primarily designed to motivate people to act by offering incentives.

Question 62

Promotions add tangible value to the good or service and can contribute greatly to the profitability of the brand.

Question 63

Sales-force promotions include two general sets of promotional activities directed at salespeople: (1)activities that better prepare salespeople to do their jobs and (2)incentives that motivate salespeople to work harder.

Question 64

Until the 1980s,promotion was the dominant tool in marketing communication.

Question 65

Shoppers today have come to expect frequent if not constant short-term price reductions.

Question 66

________ is the term given to promotional stunts used at events,such as the Olympics,by companies that are not official sponsors of the event.

A) Ambush marketing
B) Sponsorship
C) Co-marketing
D) Co-branding
E) Cross promotion

Question 67

When two companies come together to offer a product,the effort is called ________.

A) co-branding
B) sponsorship
C) cross promotion
D) tie-in marketing
E) continuity marketing

Question 68

Shoppers today are more brand loyal,so promotion incentives have to provide substantial incentives to encourage brand switching.

Question 69

Which of the following is a promotion designed specifically to increase customer retention?

A) event marketing
B) loyalty program
C) sampling
D) rebate
E) sweepstakes

Question 70

In comparison to sales promotion,advertising is usually viewed as a longer term investment.

Question 71

________ involves manufacturers developing marketing communication programs with their main retail accounts,instead of for them.

A) Ambush marketing
B) Sponsorship
C) Cross promotion
D) Co-marketing
E) Licensing

Question 72

Advertising is often more effective than sales promotion for increasing sales of a parity product when the products in the category are largely undifferentiated.

Question 73

Which of the following is NOT an objective of frequency programs?

A) Increase customer retention.
B) Reward customers for their patronage.
C) Increase the purchase levels of current customers.
D) Generate information for customer databases.
E) Attract new customers to replace unprofitable current customers.

Question 74

Which of the following is a general rule for how promotions should be designed?

A) to appeal to consumers only
B) to appeal to channel members only
C) to replace costly advertising
D) to work independently of other brand communications
E) to work within a mix of brand communications

Question 75

Which of the following is a type of partnership program used by manufacturers of two or more brands,such as Doritos corn chips and Pace salsa,to leverage similar strengths to achieve a bigger impact in the marketplace?

A) cross promotion
B) licensing
C) sponsorship
D) co-marketing
E) co-branding

Question 76

Frequent flyer programs are the model for ________.

A) cross-promotion programs
B) continuity programs
C) partnership programs
D) tie-in promotions
E) promotion integration programs

Question 77

Which of the following is a type of partnership program?

A) continuity program
B) licensing
C) loyalty program
D) frequency program
E) sponsorship

Question 78

Sales promotion not only targets consumers,but intermediaries and sales representatives as well.

Question 79

One disadvantage of promotions is that,although they can help introduce a new product and create brand awareness,they cannot create an immediate consumer response.

Question 80

In which of the following does a company with an established brand "rent" that brand to other companies,allowing them to use its logo on their products and in their advertising and promotional events?

A) co-branding
B) sponsorship
C) tie-ins
D) co-marketing
E) licensing