Deck 14: Sales Promotion

Question 1

Which of the following serves as a reason for the increase in sales promotion?

A)Power shift in market place from manufactures to retailers
B)Increasing brand loyalty of the customers
C)Need for long-term increase in sales
D)Decreased promotional sensitivity
E)Decreased competition

Answer 1

A

Question 2

Which of the following is an example of consumer-oriented sales promotion activity?

A)Off-invoice allowances
B)Promotional allowances
C)Point-of-purchase displays
D)Trade shows
E)Coupons

Answer 2

E

Question 3

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

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

Answer 3

B

Question 4

Marketing planning and reward systems may lead to an increase in the use of sales promotion because sales promotions encourage:

A)managers to use advertising to build brand equity.
B)managers to use consumer-oriented sales promotion to meet long-term performance goals.
C)marketing managers not to use promotions to help get orders from retailers.
D)the use of price-oriented promotions to generate short-term sales.
E)long - term increased sales of the companies.

Question 5

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

A)consumers.
B)retailers.
C)wholesalers.
D)salespeople.
E)employees.

Question 6

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

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

Question 7

Which of the following is an example of trade-oriented sales promotion activity?

A)Samples
B)Coupons
C)Refunds/rebates
D)Trade shows
E)Bonus packs

Question 8

How are marketers responding to the fragmentation of the consumer market?

A)They are using more direct selling to make event sponsorship more successful.
B)They are using less direct marketing.
C)They are using more sales promotions that are tied to local events.
D)They are employing clipping services to determine the effectiveness of their press releases.
E)They have basically ignored the fragmentation of the consumer market and continued doing business as usual.

Question 9

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

A)Sales promotion programs are targeted only at consumers.
B)Many sales promotion programs are designed to motivate distributors and retailers to carry a product and push it to their customers.
C)Nearly three quarters of all sales promotion dollars are spent on consumer promotions.
D)Sales promotion strategies aimed at customers are called push strategies.
E)Sales promotion strategies aimed at marketing intermediaries are called pull strategies.

Question 10

What do some businesspeople give as a reason for the increasingly short-term focus on performance and sales volume in business today?

A)The primacy effect
B)The more rapid movement of consumers through the hierarchy of effects model
C)A habit of frequent repositioning
D)Synergistic buying
E)The brand management system

Question 11

Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision-making.For this reason,many marketers rely on:

A)personal selling instead of mass-media advertising.
B)a strategy that eliminates any advertising carryover effect.
C)sales promotions such as coupons and price discounts.
D)event sponsorships.
E)out-of-home advertising media.

Question 12

Why are organizations like KFC,Heinz Foods,Toys R Us,and Anheuser Busch placing more emphasis on sales promotions than ever before?

A)Because they want to use sales promotions rather than engage in price wars.
B)Because they are convinced that sales promotions can be used to build brand equity more effectively and more quickly than other promotional mix elements.
C)Because the use of sales promotions allows them to cut back and/or completely eliminate the use of coupons.
D)Because consumers have less time to shop.
E)Because the use of allowances,deals,and premiums confuse consumers.

Question 13

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

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

Question 14

Another name for account-specific marketing is:

A)a planogram program.
B)comarketing.
C)dual sponsorship.
D)piggyback marketing.
E)key-account communications.

Question 15

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

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

Question 16

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

A)The advent of optical scanners and computers gave manufacturers access to sales information.
B)Manufacturers are spending more money on media advertising.
C)Consolidation in the grocery industry has resulted in larger chains with greater buying power and clout.
D)Manufacturers are spending more money on marketing research.
E)Manufacturers are introducing more private-label brands.

Question 17

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

A)Sales promotions are now considered an essential part of an organization's branding strategies.
B)Sales promotion tactics are now developed before the strategy is determined.
C)Sales promotions are now believed to be an ineffective tool for creating brand image.
D)Creatives have become more sophisticated,and this sophistication has led to a decline in their dependence on sales promotion.
E)There is no difference between how marketers used to treat sales promotions and how they treat them now.

Question 18

One reason for consumer's increased sensitivity to sales promotion is:

A)decrease in competition.
B)increased brand loyalty.
C)the increased amount of power in the hands of the manufacturers.
D)that they save money.
E)the decline in consumer choice.

Question 19

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 franchise building promotion.
B)brand equity building promotion.
C)acceleration tool.
D)value added tool.
E)promotional marketing tool.

Question 20

Which of the following elements of the integrated marketing communications programs is designed to provide an extra incentive to consumers to purchase a brand?

A)Advertising
B)Direct mail
C)Public relations
D)Price
E)Sales promotion

Question 21

Promotional incentives such as coupons or refund offers are often included with a sample to:

A)develop customer loyalty.
B)build customer relationship management.
C)create awareness.
D)encourage repeat purchase.
E)impart information.

Question 22

_____ is an intangible asset of added value or goodwill that results from consumers' favorable image,impressions of differentiation,and/or strength of attachment to a brand.

A)Brand position
B)Patent
C)Brand equity
D)Customer loyalty
E)Logo

Question 23

The objective of a $.75-off coupon for Selsun Blue dandruff shampoo was most likely to:

A)attract non-users of the product category.
B)identify new uses for the brand.
C)defend current customers.
D)show new usage situation for the brand.
E)target a specific market segment.

Question 24

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)a nonfranchise building promotion.
B)a franchise building promotion.
C)a high-involvement sales promotion.
D)a sales promotion trap.
E)event marketing.

Question 25

Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are known as:

A)nonfranchise building promotions.
B)franchise building promotions.
C)high-involvement sales promotions.
D)sales promotion traps.
E)event marketing.

Question 26

Heinz Foods created a Cinco de Maio celebration for a large supermarket that targets Mexican-Americans,a market that Heinz sees as an area of potential growth.Heinz paid for a mariachi band to serenade shoppers during the day and also set up a food-sampling booth at the store's entry.This would be an example of:

A)incentive marketing.
B)a franchise building promotion.
C)brand equity building.
D)account-specific marketing.
E)horizontal cooperative integration

Question 27

Van Kamp 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)encourage consumers to buy on the basis of price.
B)build and maintain store equity for retailers that carry the Van Kamp brand.
C)build relationships with the traders.
D)build a Van Kamp brand identity and image.
E)encourage retailers to use Van Kamp's planograms.

Question 28

Critics of sales promotions contend the increase in sales promotions is leading to a decrease in:

A)retailer power.
B)ad readership scores.
C)brand equity.
D)promotional traps.
E)consumer primacy.

Question 29

Brand equity is also known as:

A)customer loyalty.
B)customer franchise.
C)brand position.
D)brand logo.
E)trademark.

Question 30

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

A)A 50-cents off coupon on a box of Minute Rice to encourage repurchase.
B)A sweepstakes or contest that uses a theme which is consistent with the image or positioning of the brand.
C)A $50-rebate offer on the purchase of a Lane cedar chest.
D)A price reduction of $5 on a pair of Lee jeans.
E)A 'buy one get one free' offer on a pack of noodles.

Question 31

Promotional activities 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)consumer franchise-building promotion.
B)nonfranchise-building promotion.
C)sweepstakes.
D)image promotions.
E)trade promotions.

Question 32

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)sweepstakes.
B)contests.
C)frequent patronage programs.
D)trade promotions.
E)event sponsorships.

Question 33

Which of the following is an example of consumer franchise building promotion?

A)Frequent flyer program of Lufthansa airways that gives the customer points on each travel that can be redeemed against various other purchases.
B)'Buy one get one free' offer by Heinz ketchup.
C)'Flat 30%' off on all merchandise at Nike exclusive stores only.
D)Limited offer of 'Get a toothbrush free along with a 50gm toothpaste' by Crest.
E)A premium by Kellogg's that provides the customer with 'Zip Zap toy' along with the purchase of a 200gm pack of 'Kellogg's Chocos'.

Question 34

Which of the following is an example of a nonfranchise building promotion?

A)Consumer sampling
B)Contests targeted to ultimate consumers
C)Price-off deals
D)Event sponsorship
E)Frequency programs

Question 35

Consumer-franchise-building for a brand:

A)is the exclusive responsibility of advertising.
B)is accomplished through short-term price-oriented promotions.
C)is impossible to achieve through consumer promotions.
D)can be accomplished through consumer promotions that reinforce established brand images or positioning.
E)is becoming less important to marketers as competition intensifies.

Question 36

In a sales promotion sponsored jointly by Puerto Rico Tourism Board and Rums of Puerto Rico,couples were invited to enter a contest for a chance to win the perfect wedding.According to the ad,enjoying Puerto Rican hospitality is "As Easy As Saying I Do." The contest is an example of:

A)a nonfranchise building promotion.
B)a franchise building promotion.
C)a high-involvement sales promotion.
D)a sales promotion trap.
E)event marketing.

Question 37

Which of the following statements describes how brand equity is affected by the increased role of sales promotion?

A)Critics argue sales promotions generally result in higher brand equity.
B)Sales promotions do not contribute to the erosion of brand equity.
C)Proponents of brand equity argue increased spending on sales promotion is coming at the expense of media advertising,and this is leading to decline in brand equity.
D)There is strong agreement that any type of sales promotion activity detracts from brand equity.
E)Marketing experts generally agree that sales promotion plays an important role in building and maintaining a brand's image and position.

Question 38

A promotional offer in an ad can _____ that is prevalent in most media today.

A)increase the clutter
B)break through the clutter
C)decrease competition
D)increase brand loyalty
E)inhibit flighting

Question 39

When Campbell Soup Company introduced its V8 Splash fruit medley juices,the company gave out free samples at Sam's Clubs and distributed millions of 50-cents-off coupons.The objective(s)of these sales promotion tools was to:

A)defend the brand's customer base.
B)obtain trial and repurchase.
C)target a specific market.
D)increase consumption of an established brand.
E)create long-term brand equity.

Question 40

Which of the following explains the reason for the increase in sales promotion activities over the last decade?

A)The increase of brand loyalty in many product categories
B)The tremendous decrease in the number of new products
C)The increased emphasis on long term strategy and performance by most companies
D)The advertising clutter problem
E)Increased long-term focus of the companies

Question 41

Smucker's ran a sweepstakes promoting Smucker's ice cream toppings.The sweepstakes was designed to let NASCAR fans know Smucker's sponsored a NASCAR racing team.The purchase of any specially-marked toppings gave customers a chance to win a new Ford Taurus or thousands of other prizes instantly from Smucker's.In this example,a sales promotion was used to:

A)attract non-users of the product category.
B)identify new uses for the brand.
C)attract users of a competitive brand.
D)show new usage situation for the brand.
E)target a specific market segment.

Question 42

_____ coupons are on/in pack coupons that are redeemable on the purchase of a different product,usually one made by the same company but occasionally through a tie-in with another manufacturer.

A)Bounce back
B)Cross-ruff
C)Instant
D)Cross sell
E)In-store

Question 43

Which of the following is an advantage of the sampling method of sales promotion?

A)It is the least expensive of all other methods of sales promotion.
B)The costs of the sampling program can easily be recovered with just a few purchases.
C)Results of sampling could be easily seen immediately for all products.
D)It is extremely useful for products and services that do not have subtle features.
E)Sampling generates much higher trial rates than advertising.

Question 44

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 cannot be broken down into small sizes.
B)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.
C)it may be too difficult to find a way to distribute the samples.
D)consumers may think it is of poor quality since samples are being given away.
E)it would create an easily imitated competitive advantage.

Question 45

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

A)Event marketing
B)Sampling
C)A rebate award
D)A bonus pack
E)A contest

Question 46

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

A)cents-off coupons.
B)sampling.
C)rebates.
D)event sponsorship.
E)bonus packs.

Question 47

The most popular method for distributing coupons is:

A)newspaper freestanding inserts.
B)direct mail.
C)in/on packs.
D)magazines.
E)newspaper supplements.

Question 48

_____ is used when it is important to control where the sample is delivered.

A)Mail Sampling
B)Couponing
C)Door-to-door sampling
D)On package sampling
E)Mobile coupon

Question 49

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

A)Precise reach
B)Lower cost
C)Lower redemption rate
D)Lack of geographic and demographic specialization
E)Cooperative advertising opportunities

Question 50

One of the main types of on package coupons is the _____ coupon which is attached to the outside of the package so the consumer can rip it off and redeem it immediately at the time of purchase.

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

Question 51

_____ involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial.

A)Rebates
B)Refunds
C)Sampling
D)Couponing
E)Sweepstakes

Question 52

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)cross-ruff
B)bounce back
C)same purchase coupon
D)instant coupon
E)rebate coupon

Question 53

_____ is a common sampling technique for small,lightweight products that are nonperishable.

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

Question 54

Samples would be an appropriate promotional strategy to:

A)support an every day low price (EDLP)strategy.
B)as the key tactic in a push promotional strategy.
C)introduce a new flavor of sport drink to the marketplace.
D)support reminder advertising for a product in the decline stage of its product life cycle.
E)to build long term relationship with customers.

Question 55

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

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

Question 56

Which of the following statements is true about couponing?

A)Coupons offer price reductions only to those consumers who are price sensitive.
B)Coupons are often used by consumers who are already loyal to the brand.
C)Coupons for established brands or products are not redeemed.
D)Coupons are more effective than sampling for inducing initial product trial in a short period.
E)The redemption rate of coupons is very high.

Question 57

An advantage of coupons is that they:

A)elicit faster consumer response than samples.
B)generally elicit immediate response from consumers.
C)are very effective even without brand name awareness.
D)allow a marketer to offer a price reduction to consumers who are price sensitive.
E)build brand loyalty.

Question 58

On the inside of the Tortino's brand pizza box was a $1-off coupon for the purchase of the next Tortino's pizza.Tortino's used a(n)_____ coupon.

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

Question 59

Which of the following is a disadvantage associated with couponing?

A)It can be difficult to estimate how many consumers will use a coupon and when.
B)It is not useful in encouraging trail.
C)Response to a coupon is immediate.
D)It does not help in encouraging non - users to try a brand.
E)It may encourage regular users to trade down to inexpensive brands.

Question 60

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

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

Question 61

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 incentive to purchase.

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

Question 62

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)sweepstakes;premiums
D)contests;premiums
E)contests;rebates

Question 63

Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal.This is an example of a _____ premium.

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

Question 64

Serta,the manufacturer of mattresses,gave away a Serta Sheep Plushie toy to any customer who purchased a mattress from a Serta dealer.The toy was only available for a limited time.The stuffed toy is an example of a:

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

Question 65

Consumers must pay the manufacturers' out-of-pocket costs for a _____ premium.

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

Question 66

Which of the following couponing methods allows companies to reach users of competitive brands rather than consumers who already use their brand?

A)On-package coupons
B)Bounce back coupons
C)In package coupons
D)Checkout coupons
E)Direct mail coupons

Question 67

Affixed to the front of a bag of Aunt Jemima corn meal was a(n)_____ coupon that could be torn off (without damaging the bag)and redeemed at the time of the purchase.

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

Question 68

Arm & Hammer maker of Crystal Blend scoopable cat litter,Super Scoop,the baking soda clumping litter,Super Clay,the premium lightweight clay litter,and Cat Litter Deodorizer ran a contest to find the "Coolest Cat Trick." First prize was $10,000,and several smaller prizes were awarded to other participants.The most likely reason why Arm & Hammer used this contest was to:

A)move consumers to the conviction stage of the hierarchy of effects model.
B)reposition the brand name.
C)create an easily measured ad recency effect.
D)generate excitement and interest about the Arm & Hammer brand cat litters.
E)get users of other brands to try Arm & Hammer brand.

Question 69

Which of the following is a disadvantage associated with bounce back coupons?

A)It does not attract non-users of the particular brand.
B)It is redeemable on the purchase of a different product.
C)It does not induce customers to repurchase the brand.
D)It is not useful for a brand that has reached the maturity stage.
E)It is not useful for products that are in their early phases of their life cycle.

Question 70

Which of the following statements about the use of premium offers by fast-food chains such as McDonald's and Burger King is true?

A)Many of the premiums used by these companies have cross-promotional tie-ins with popular movies.
B)Most of the premiums used by these companies are self-liquidating.
C)Many of the premium offers used by these companies are targeted at adults.
D)Most of the premium offers used by these restaurants are not effective at generating incremental sales.
E)Free premiums always produce positive public relations for the company providing them.

Question 71

Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal.The appearance of Bart Simpson on the watch instead of the Kellogg's logo would:

A)detract from the consumer franchise building value of the promotion.
B)create problems in supply and demand.
C)make inventory forecasting easier.
D)fully support Kellogg's in its consumer franchise building promotion.
E)make it unnecessary for Kellogg's to run a nonfranchise building promotion.

Question 72

An effective premium is one that:

A)distracts consumers from the firm's main reason for existing.
B)ties into the overall positioning and communications campaign of the brand.
C)induces one-time trial purchase of a brand for which there is low awareness.
D)encourages repeat purchase of some brand other than that for which the premium is delivered.
E)has no impact on an organization's pioneering advertising.

Question 73

Electronically dispensed checkout coupons:

A)generate impulse buying and product trial.
B)have no redemption deadline.
C)are available at Web sites and must be printed off to be used.
D)are cost-effective and can be targeted to specific categories of consumers.
E)are attached to the outside of the package so they could be ripped off and redeemed immediately.

Question 74

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 among fast food restaurants as a way of attracting children.
B)Premiums are not subject to restrictions from industry and government agencies.
C)Redemption rates for mail-in premium offers are very high.
D)Consumers are always required to pay at least some of the costs of a premium offer.
E)Mail-in premiums offer immediate reinforcement to the purchaser.

Question 75

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 should be most effective for Gillette's Right Guard brand?

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

Question 76

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

A)free premium.
B)self-liquidating premium.
C)rebate.
D)bonus pack.
E)non-subsidized premium.

Question 77

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

Question 78

_____ couponing is a method for distributing coupons by identifying a customer's purchases through bar codes scanners and then printing the coupon for a competing or complementary product.

A)On-package
B)In-Store
C)Shelf-dispensed
D)Cross-ruff
E)Instant

Question 79

Sweepstakes and contests:

A)are primarily used to move consumers into the conviction stage of the hierarchy of effects model.
B)can be used to generate excitement and involvement with a popular and timely event.
C)contribute minimally to consumer franchise building.
D)do not distract from consumer franchise building activities.
E)are synonymous to one another.

Question 80

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 free tube of Colgate toothpaste in a box of Life cereal
B)A pack of baseball cards in a box of Cheerios cereal
C)A free sport bottle with the purchase of a four-pack of Gatorade
D)A dish towel in a box of Tide laundry detergent
E)A pack of golf tees inside a box of golf balls