Deck 11: Sales Promotion

Question 1

Giving the intermediaries incentives to carry and sell the product is most likely to be known as ________ activities.

A)vertical
B)pull
C)horizontal
D)push

Answer 1

D

Question 2

Which of the following statements is true about price-oriented promotions?

A)Price promotions increase brand equity.
B)Frequent price promotions lead customers to be less price-sensitive.
C)Sampling is a type of price-oriented promotion.
D)The dominant form of price-oriented promotion is couponing.

Answer 2

D

Question 3

Identify the objective of trade promotions.

A)Creating awareness about the product among the end consumers.
B)Identify the needs of final consumers.
C)Giving the intermediaries incentives to carry and sell the product.
D)Giving customers a reason to purchase the product.

Answer 3

C

Question 4

Identify the correct statement about coupons.

A)They are used for product-oriented promotion.
B)Coupons delivered in the old-fashioned way have much higher redemption rate than virtual coupons.
C)They are ineffective in targeting price-sensitive households.
D)The largest distribution channel for coupons is by far free-standing inserts (FSIs).

Question 5

Which of the following types of coupons is located on the outside of the package and can be used for a subsequent purchase?

A)free-standing inserts
B)on-package coupons
C)in-package coupon
D)cross-ruff coupon

Question 6

Which of the following types of coupon appears on the actual pages of newspapers rather than being inserted as a separate page or section?

A)cross-ruffs coupon
B)in-ad coupons
C)free-standing inserts
D)on-package coupons

Question 7

Which of the following is an action-focused marketing event that attempts to get customers to purchase within a limited period of time?

A)sales promotion
B)market penetration
C)marketing research
D)market segmentation

Question 8

Which of the following is one of the main reasons marketers use coupons heavily?

A)Coupon programs provide a competitive advantage.
B)Coupons are an effective way to target price-sensitive households.
C)The response rates for coupons are very high.
D)Expense per redemption of coupon is very low.

Question 9

Which of the following is almost always the measure of effectiveness of a sales promotion?

A)profit margin
B)cost of production
C)sales
D)brand equity

Question 10

Consumer-oriented promotion gives customers a reason to purchase the product.This process represents:

A)push promotion.
B)pull promotion.
C)horizontal promotion.
D)vertical promotion.

Question 11

Which of the following is an example of a consumer price-oriented promotion?

A)off-invoice allowance
B)money-back offer
C)market development funding
D)sampling

Question 12

With reference to price-oriented promotion,shelf "talkers" is best described by:

A)price signs posted on the shelf.
B)instant pull-off coupons.
C)end-of-aisle displays.
D)coupon distribution in the retail store.

Question 13

Which of the following statements is true about channel-originated promotion?

A)It is directed at intermediate channels of distribution.
B)It is run by the channel,either to the next channel in the distribution chain or to final customers.
C)It is an attempt to get the channels of distribution to stock more of a product.
D)It comes directly to the customer from the manufacturer.

Question 14

Which of the following is an effective way to target discounts and other incentives to households that are particularly sensitive to price?

A)couponing
B)market development funding
C)off-invoice allowance
D)sampling

Question 15

Bonus packs which offer larger sizes for the same price as a smaller size are used for:

A)trade promotion.
B)product-oriented promotion.
C)price-oriented promotion.
D)horizontal promotion.

Question 16

Rebates are an example of ________ promotion.

A)trade
B)product-oriented
C)price-oriented
D)horizontal

Question 17

Which of the following represents a coupon for another brand,manufactured by the same or a different firm and the coupon itself can be in- or on-package?

A)free-standing insert
B)in-ad coupon
C)run-of-press coupon
D)cross-ruff coupon

Question 18

Identify the discrete programs with well-defined beginning and starting dates that offer incentives to customers to purchase or use the product.

A)sales promotion
B)target marketing
C)marketing research
D)market segmentation

Question 19

Which of the following statements is true about customer promotion?

A)It comes directly to the customer from the manufacturer.
B)It is directed at intermediate channels of distribution.
C)It is an attempt to get the channels of distribution to stock more of a product.
D)It is run by the channel,either to the next channel in the distribution chain or to final customers.

Question 20

Which of the following is the dominant form of price-oriented promotions?

A)couponing
B)sweepstakes
C)rebates
D)contests

Question 21

Which of the following is a controversial form of sales-based incentive where direct prizes or bonuses are given to the channel's sales force for meeting or exceeding a quota?

A)place-based incentives
B)slotting allowances
C)spiffs
D)off-invoice allowances

Question 22

________ compensate retailers for prominently displaying and promoting goods.

A)Display allowances
B)Off-invoice allowances
C)Stocking allowances
D)Rebates

Question 23

When the company and the retailer share the expense of the retailer advertising the company's products in the local market,this is known as:

A)cooperative advertising.
B)direct advertising.
C)missionary advertising.
D)integrated advertising.

Question 24

Payments made to store chains for placing a product on a shelf are known as:

A)off-invoice allowances.
B)slotting allowances.
C)rebates.
D)stocking allowances.

Question 25

Which of the following best describes off invoice allowance?

A)offering channel members a long period of time before payment is due
B)offering channel members below-market interest rates
C)offering channel members a discount on orders for a fixed period of time
D)offering money to help the channel members sell its products

Question 26

Identify the product-oriented promotion where free merchandise is provided with a purchase or some free or reduced-price item for which the buyer must send in proof-of-purchase,with or without money.

A)sweepstakes
B)premiums
C)sampling
D)off-invoice allowances

Question 27

Identify the category of promotions which include contests and sweepstakes.

A)price-oriented promotions
B)product-oriented promotions
C)special events
D)trade promotions

Question 28

Identify the type of promotion that gives away the product itself or a closely related product.

A)price-oriented promotion
B)product-oriented promotion
C)trade promotion
D)vertical promotion

Question 29

Market development funding,generous return policies,and off-invoice allowances are examples of:

A)trade promotions.
B)product-oriented promotions.
C)price-oriented promotions.
D)horizontal promotions.

Question 30

Procter & Gamble ran a repeat-purchase-oriented promotion for its Pampers brand of disposable diapers,where parents obtained points from each purchase redeemable for Fisher-Price toys.This is an example of:

A)sampling.
B)premiums.
C)spiffs.
D)rebates.

Question 31

Which of the following is an example of sampling?

A)offering a free drug to a physician
B)offering a free toy in a Cracker Jack box
C)offering redeemable points with each purchase
D)offering a bonus pack which provides larger sizes for the same price as a smaller size 22

Question 32

Offering a free toy in a Cracker Jack box is an example of:

A)sampling.
B)premiums.
C)spiffs.
D)rebates.

Question 33

Identify the product-oriented promotion in which a product is given away for free.

A)rebate
B)sweepstakes
C)sampling
D)off-invoice allowance

Question 34

Which of the following explains market development funding?

A)offering money to subsidiaries
B)offering below-market interest rates
C)offering discounts on products that are on the introduction stage of the product life cycle
D)offering money to help the channel members sell its products

Question 35

Sampling is most likely to be used:

A)in the maturity stage of the product life cycle.
B)in the decline stage of the product life cycle.
C)when a new product or brand is being introduced.
D)to create interest among laggards and to generate sales in the decline stage.

Question 36

Identify the trade promotion that is the most risky for a company.

A)place-based promotions
B)sales-based incentives
C)product-based allowances
D)price-based promotions

Question 37

Which of the following types of trade promotion allows the channel member to return unsold merchandise for a full or partial refund,thus reducing the risk of carrying the product?

A)sales-based promotion
B)place-based promotion
C)an off-invoice allowance
D)product-based promotion

Question 38

Which of the following statements is true about sampling?

A)Sampling is a type of price-oriented promotion.
B)A sampling program may not target the right potential customers.
C)Sampling is inexpensive.
D)Sampling is less effective than coupons.

Question 39

When a retailer or distributor stocks up on a product at a discount while promotion is running and then sells the inventory at regular price,the process is called:

A)reverse buying.
B)forward buying.
C)seasonal buying.
D)promotional buying.

Question 40

Which of the following is an example of a consumer product-oriented promotion?

A)couponing
B)off-invoice allowance
C)rebates
D)premiums

Question 41

If category sales are fixed and marketing managers are interested in profit margins rather than market share,companies are better off:

A)having low level of expenditure.
B)increasing consumer-oriented promotions.
C)increasing advertising.
D)increasing trade promotions.

Question 42

Special displays and other company-paid advertisements inside the store (e.g.announcements for contests and sweepstakes,information about recipes,etc.)are examples of:

A)point-of-purchase advertising.
B)off-invoice allowances.
C)premiums.
D)missionary marketing.

Question 43

Paper products are most likely to have:

A)high promotional elasticity and high holding cost.
B)high promotional elasticity and low holding cost.
C)low promotional elasticity and high holding cost.
D)low promotional elasticity and low holding cost.

Question 44

Identify the situation in which a channel will want deals for forward buying.

A)high promotional elasticity and high holding cost
B)high promotional elasticity and low holding cost
C)low promotional elasticity and high holding cost
D)low promotional elasticity and low holding cost

Question 45

Which of the following conditions is typical of consumer products and services?

A)The product is premium priced.
B)The product is standardized.
C)The product line has a high contribution margin.
D)The product or service has a small market share.

Question 46

An important criterion for evaluating ________ is how often a retail promotion is run when the channel members receive some kind of deal.

A)consumer-oriented promotions
B)trade promotions
C)the impact of advertising
D)public relations

Question 47

"Endcaps" refer to:

A)displays in the front of the store.
B)displays in the store aisles themselves.
C)a sign hanging on the shelf with information,usually about a special price.
D)end-of- aisle displays.

Question 48

A shelf talker is:

A)a sales representative in a retail outlet who provides customers with information on different products in various shelfs.
B)a sign hanging on the shelf with information,usually about a special price.
C)a representative from a manufacturing firm who negotiaties shelf space with the retailers.
D)a representative from a retail outlet who negotiates shelf space with the manufacturer.

Question 49

Which of the following is a short-run objective of customer promotion?

A)awareness enhancement
B)image enhancement
C)induce retailers to display the brand
D)increased purchase by current customers

Question 50

Which of the following factors affects the allocation of funds between advertising and promotions?

A)the total amount of resources available
B)the mission and vision of the organization
C)the number of potential customers in the target market
D)the functional background of the CEO

Question 51

Which of the following is the largest part of the advertising/promotion budget?

A)trade promotions
B)consumer-oriented price promotions
C)retailer promotions
D)consumer-oriented product promotions

Question 52

Canned tuna fish is most likely to have:

A)high promotional elasticity and high holding cost.
B)high promotional elasticity and low holding cost.
C)low promotional elasticity and high holding cost.
D)low promotional elasticity and low holding cost.

Question 53

The most common objective of a consumer promotion is:

A)short-run transactional goal.
B)short-run relationship-building goal.
C)long-run transformational goal.
D)long-run market share goal.

Question 54

Specialty cheeses are most likely to have:

A)high promotional elasticity and high holding cost.
B)high promotional elasticity and low holding cost.
C)low promotional elasticity and high holding cost.
D)low promotional elasticity and low holding cost.

Question 55

Laxatives are most likely to have:

A)high promotional elasticity and high holding cost.
B)high promotional elasticity and low holding cost.
C)low promotional elasticity and high holding cost.
D)low promotional elasticity and low holding cost.

Question 56

A particularly important purpose of retail-oriented promotions is:

A)to create awareness about the product.
B)to obtain feedback about the product from the customers.
C)to gain or maintain distribution.
D)to identify additional features required to improve the product.

Question 57

Of all the trade promotions mentioned in the text,which of the following carries the most risk to the company?

A)price-based promotion
B)product-based promotion
C)sales-based incentives
D)cooperative advertising

Question 58

In order to maintain the profit level of the product to the channel member and keep the product on the shelves,the marketing manager uses ________ to compensate for the decline in sales.

A)price-oriented promotions
B)product-oriented promotions
C)special events
D)horizontal promotions

Question 59

When holding costs and price elasticity are high,the manager should use:

A)trade deals.
B)rebates.
C)sweepstakes.
D)couponing.

Question 60

Most sales promotion money is spent on product categories in which:

A)the product is very costly and exclusive.
B)the product is highly complicated.
C)decision making is routine.
D)the cost of producing goods is very high.

Question 61

The response rates for coupons are very high,so the expense per redemption is low.

Question 62

________ activities focus on price alone and include trade promotions,short-term price deals,and refunds.

A)Consumer franchise-building
B)Non-consumer franchise-building
C)Product building
D)Concept building

Question 63

"Sales promotion" involves boosting sales in short term.

Question 64

E-coupons delivered through the Web have a much lower redemption rate than those delivered the old-fashioned way.

Question 65

Channel-originated promotion events are run by the channel itself,either to the next channel in the distribution chain or to final customers.

Question 66

The dominant form of price-oriented promotion is couponing.

Question 67

In order for the brand to remain healthy,the least value of the consumer franchise-building percent ratio should be:

A)20 percent.
B)40 percent.
C)50 percent.
D)70 percent.

Question 68

Coupons are an effective way to target discounts and other incentives to households that are particularly sensitive to price.

Question 69

Pull promotion activities give the intermediaries incentives to carry and sell the product.

Question 70

Trade promotion is directed at end consumers.

Question 71

Rebates are rarely used in auto industry.

Question 72

Coupon programs provide competitive advantage.

Question 73

For consumer-product companies that are the heaviest users of advertising and promotion,there has been a significant shift over time away from promotion toward media advertising.

Question 74

Price promotions can dilute brand equity.

Question 75

________ activities are those activities that build brand equity,including advertising sampling,couponing,and product demonstrations.

A)Consumer franchise-building
B)Non-consumer franchise-building
C)Product building
D)Concept building

Question 76

The largest distribution channel for coupons is by far free-standing inserts (FSIs).

Question 77

Bar codes are also known as:

A)unique purchase codes.
B)universal producer codes.
C)unique producer codes.
D)universal product codes.

Question 78

In product-oriented promotions,giving away the product free is called sampling.

Question 79

Sampling is less effective than coupons,advertising,and games or contests in helping consumers evaluate products.

Question 80

Coupons permit marketing managers to price discriminate,that is,charge different prices to different households.