Deck 15: Sales Promotion and Personal Selling

Question 1

Why do some marketers offer rebates instead of price reductions to induce short-term sales?

A) Rebates have a much higher redemption rate than coupons.
B) A price reduction of this type would have likely been an example of price discrimination.
C) Rebates offer a more immediate reward than price reductions.
D) Rebates are especially good at enticing purchases,but most consumers never bother to redeem them.

Answer 1

D

Question 2

Co-branded credit cards are used in conjunction with which of the following?

A) trade consumer promotion
B) consumer discount programs
C) functional consumer discount
D) loyalty marketing programs

Answer 2

D

Question 3

What is a cash refund given to consumers for the purchase of a product during a specific time period?

A) a trade discount
B) a functional allowance
C) a rebate
D) a purchase allowance

Answer 3

C

Question 4

When Craig purchased a VTech wireless mobile phone,he was able to mail in a proof-of-purchase and his cash register receipt to receive a cheque from VTech for $20.What did Craig receive?

A) a functional discount
B) a rebate
C) a purchase allowance
D) a trade allowance

Question 5

AFLAC Insurance Company introduced a duck in its ads that said the company's name instead of "Quack." Since the advertising campaign began,AFLAC has created a duck premium,developed a line of clothing with the AFLAC duck,and used the AFLAC duck on its website.What has the AFLAC duck become a tool for?

A) advocacy advertising
B) comparative advertising
C) push strategies
D) sales promotions

Question 6

Which of the following BEST describes sales promotion?

A) It is a publicity tool.
B) It is more difficult to measure than advertising.
C) It offers a short-term incentive to buy.
D) It is a smaller percentage of the promotion budget than advertising.

Question 7

What are the two types of sales promotion?

A) elastic and inelastic
B) hierarchical and functional
C) introductory and maturity
D) consumer and trade

Question 8

Which sales promotions are targeted toward the ultimate consumer market?

A) facilitating
B) pull
C) intermediary
D) consumer

Question 9

Why are many marketers shortening the time in which a coupon can be redeemed?

A) to track response rates
B) to respond to claims that coupons adversely affect consumer behaviour
C) to increase introductory sales
D) to create a greater sense of urgency to redeem the coupon

Question 10

What is the usual goal of sales promotion (regardless of what form it takes)?

A) immediate purchase by consumers
B) market share leadership
C) return on investment
D) economies of scale

Question 11

Which type of promotion is directed at wholesalers and retailers?

A) channel
B) consumer
C) trade
D) customer

Question 12

Which of the following comprises marketing communication activities in which a short-term incentive is offered to induce the purchase of a particular good or service?

A) promotion
B) sales promotion
C) advertising
D) publicity

Question 13

Unlike other sales promotion activities,what is the objective of a loyalty marketing program?

A) to take away customers from the competition
B) to appeal to bargain hunters who consistently buy the lowest-priced brand
C) to modify customers' attitudes toward a product
D) to build long-term,mutually beneficial relationships between a company and its key customers

Question 14

When Darrell purchased a five-kg bag of 9 Lives cat food,he received a free can of the manufacturer's new gourmet cat food.What is the can of cat food an example of?

A) product placement
B) a premium
C) a loyalty incentive
D) a trade sample

Question 15

When Janey Ming purchased a subscription to Western Living magazine,she received a free cookbook entitled Christmas Cookies.What is the cookbook an example of?

A) a trade sample
B) a premium
C) a contest
D) a loyalty incentive

Question 16

What is one of the best methods for creating and rewarding brand loyalty among consumers who might otherwise switch to competing brands?

A) a sweepstakes
B) a directed coupon mailing
C) a sampling program
D) a loyalty marketing program

Question 17

The maker of Serta mattresses gives away a stuffed sheep with every purchase of a new mattress.What is the sheep an example of?

A) a trade sample
B) a loyalty incentive
C) a premium
D) a trade product

Question 18

Which of the following would be a target for a trade sales promotion offered by Science Diet pet food?

A) a Science Diet distributor
B) children
C) a dog food manufacturer
D) dog shows

Question 19

Because of the high costs of coupons and their disappointing redemption rates,marketers of packaged goods are doing which of the following?

A) distributing single-coupons that can be redeemed for exclusive brands
B) Lengthening the time the coupon can be redeemed to give consumers more time to use them
C) shortening the time the coupon can be redeemed to create a feeling of urgency
D) issuing more coupons and using more everyday low pricing

Question 20

What are coupons,premiums,contests,free samples,and frequent buyer programs examples of?

A) advertising
B) trade sales promotion
C) consumer sales promotion
D) publicity

Question 21

According to the text,as of 2005,what percentage of all Canadian companies sold products/services on-line?

A) 47 percent
B) 27 percent
C) 67 percent
D) 7 percent

Question 22

Why did the manufacturer of Claritin,a drug for allergy sufferers that was designed to not result in sleepiness,give physicians free samples of the drug?

A) Trial-size containers are a form of advertising.
B) It is an inexpensive promotional tool.
C) This allows the consumer to try the product risk-free.
D) This is an increasingly popular technique with manufacturers.

Question 23

The Pillsbury Bake-Off requires people to submit a recipe using Pillsbury baking products.Finalists are brought to Pillsbury kitchens to bake their recipes so the winner of the cash prize can be chosen.What is this an example of?

A) a contest
B) a push money deal
C) a sales promotion game
D) a sweepstakes

Question 24

You are responsible for sales promotion for VitaBalls,a vitamin in a bubble-gum form.Your objectives are to encourage product trial and repurchase,encourage brand switching to your brand,and increase the amount of product purchased by current customers.You have used coupons in the past but found that many were sent to homes that were childless.To reach consumers who have an interest in your product,what should you do?

A) hire a sales force
B) introduce point-of-purchase displays
C) continue with coupons through an on-line distributor
D) use sweepstakes

Question 25

According to the text,which of the following statements about the impact of technology on personal selling is true?

A) The use of technology severely limits the time a salesperson has to spend with his or her customers.
B) Technology is a threat to job security for most salespeople.
C) Technology is freeing salespeople from tedious administrative tasks,such as placing routine orders,shipping catalogues,and tracking orders.
D) Technology has had no impact on personal selling.

Question 26

Which of the following is a price reduction offered by manufacturers to intermediaries such as wholesalers or retailers,in exchange for performance of specified functions or purchasing during special periods.

A) pull money
B) a functional discount
C) a quantity discount
D) a trade allowance

Question 27

Trade sales promotions support which of the following strategies?

A) push
B) pull
C) hierarchical
D) disintermediation

Question 28

Which of the following are promotional exhibits set up at the retailer's location to build traffic,advertise the product,or induce impulse buying.(They are targeted to consumers. )

A) direct demonstrations
B) freestanding kiosks
C) indirect demonstrations
D) point-of-purchase displays

Question 29

Which of the following is an example of a point-of-purchase promotion?

A) shelf talkers
B) newspaper inserts
C) sample booths
D) television monitors in supermarket aisles

Question 30

When Monique took her home-delivered newspaper out of its plastic bag,she found a small box of Pepcid AC tablets in the bottom of the bag.The manufacturer of the new over-the-counter medication was using which form of sales promotion?

A) introductory premium
B) sampling
C) pull product
D) push product

Question 31

Every year SC Johnson gives its customers an opportunity to register on-line or through the mail to win $5,000 for a room makeover.This prize is awarded on Room by Room,a show on HGTV that SC Johnson sponsors.What has SC Johnson designed?

A) an annual loyalty incentive plan
B) an annual contest
C) an annual event sponsorship
D) an annual sweepstakes

Question 32

What is one of the major advantages to using point-of-purchase promotions?

A) its ability to create long-term relationships with intermediaries
B) its ability to create long-term relationships with customers
C) the fact it has a captive audience
D) its low costs

Question 33

Through loyalty programs,shoppers receive discounts,alerts on new products,and other offers.What is the chief benefit for a retailer's future?

A) detailed customer databases
B) higher gross margins
C) purchase dollars spent per visit increases
D) "stolen" top customers from other retailers

Question 34

According to the text,which of the following statements about on-line sales promotions is true?

A) There is no way for a marketer to build long-term,mutually beneficial relationships with customers on-line.
B) Internet sales promotions are more effective and cost efficient at generating responses than their offline counterparts.
C) One of the few types of sales promotion that cannot be used on-line is sampling.
D) Loyalty marketing programs are ineffective when used at websites to encourage traffic.

Question 35

According to the text,which of the following statements about contests and sweepstakes is true?

A) Contests are generally effective tools for creating long-term relationships with customers.
B) Sweepstakes usually draw about 10 times more participants than contests.
C) Contests depend on luck,and participation is free.
D) Sweepstakes are promotions that require participants to exhibit some skill.

Question 36

A men's health centre in Chicago offers free blood pressure tests,cholesterol screening tests,and prostate exams one day each year.What are these free health tests an example of?

A) a free sample
B) a premium
C) a service commission
D) a sponsorship

Question 37

Which of the following is an example of a trade sales promotion?

A) pull money and training
B) point-of-purchase displays
C) premiums and coupons
D) business meetings and conventions

Question 38

Whenever Hugo buys a soft drink at his nearby convenience store,he gets a stamp for the card that he carries in his wallet.When he has eight stamps,he can exchange the card for a free soda.What is this an example of?

A) a loyalty incentive
B) a frequent-buyer program
C) a consumer allowance
D) an in-store rebate

Question 39

Manitoba's Best is a new precooked meal-in-a-bag product made from bison meat.The company is having difficulty gaining consumer acceptance of its bison products even though bison is high in protein and low in cholesterol,fat,and calories.Those who have tried the meat have agreed that it is as tender and delicious as any choice steak,and it is less expensive.Manitoba's Best should focus on which of the following sales promotion tools?

A) sponsorship
B) sampling
C) premiums
D) in-pack couponing

Question 40

What do point-of-purchase promotions work best for?

A) complex products that require technical knowledge to operate
B) impulse buys
C) high-involvement products
D) purchases that require extensive decision making

Question 41

How does personal selling differ from other forms of promotion?

A) It wastes more sales resources than any other promotion.
B) It is not as effective at satisfying customers.
C) It can use a message customized to the immediate needs of the customers.
D) It is best for selling simple,low-involvement products.

Question 42

Trianka Patel has recently started a mailing service in a region that is showing tremendous industrial growth.Her business has the capability to print,fold,insert,and mail all types of letters.Her customers include three local retailers,a small university,and a regional cable television provider.She needs more customers and plans to spend one day per week visiting businesses and introducing her services.What is she engaged in?

A) personal selling
B) research and development
C) direct sales management
D) sales promotion

Question 43

Jefferson Smurfit Company is a multi-billion-dollar supplier of packaging materials.One of its salespeople rearranged production schedules at three different plants to satisfy an unexpected demand for boxes from General Electric.The salesperson's actions are typical of the company's sales philosophy and indicate an emphasis on which of the following?

A) transformational selling
B) adaptive selling
C) transactional buying
D) relationship selling

Question 44

Fiona is a sales associate at a store that sells new and used videos and DVDs.Recently,she was given a CD of the music from Vanity Fair to encourage her to suggest customers buy this movie.What is the CD an example of?

A) a trade sales promotion
B) free consumer sales promotion
C) an intermediary rebate
D) a trade allowance

Question 45

Mountain Valley Springs Company,a producer of bottled water,sells a highly standardized product to consumers all over Canada.You would expect Mountain Valley Springs to rely on which of the following to promote its product?

A) publicity and direct marketing
B) advertising and sales promotion
C) public relations
D) personal selling

Question 46

Which of the following statements characterizes the traditional personal selling approach?

A) Traditional selling uses long-term follow-ups that focus on product delivery.
B) Traditional personal selling is decreasing in popularity.
C) Salespeople sell advice and assistance.
D) Proposals and presentations used emphasize pricing and product features.

Question 47

Which of the following BEST describes relationship selling?

A) It is also called adaptive selling.
B) It is more concerned with making a sale than with developing customer trust.
C) It emphasizes a win-win outcome.
D) It is more typically used when selling low-involvement products in the consumer market.

Question 48

Which of the following is direct communication between a sales representative and one or more prospective buyers,for the purpose of making a sale?

A) sales promotion
B) trade promotion
C) personal selling
D) direct marketing

Question 49

How does personal selling differ from other forms of promotion?

A) It is considerably less effective for obtaining sales and gaining a satisfied customer.
B) Its costs can be less easily controlled.
C) It is best able to handle customer objections as they arise.
D) It does have to deal with unqualified customers.

Question 50

When is personal selling more important than advertising and sales promotion?

A) if the products being sold are technically complex
B) if the product being sold has a low value
C) if there are many customers for the product being sold
D) if the buyers of the product are extremely dispersed

Question 51

What is an advantage personal selling has over other forms of promotion?

A) It is easier to vary the message according to what the customer needs to know with personal selling.
B) Personal selling is less expensive on a per contact basis.
C) Personal selling is better for convenience products
D) It is easier to direct the marketing effort to disgruntled customers with personal selling.

Question 52

Trade sales promotions are popular among manufacturers because they do all of the following EXCEPT which one?

A) obtain wholesaler and retailer support for consumer sales promotions
B) create long-term relationships between manufacturers and customers
C) provide retailers with increased store traffic
D) improve trade relations

Question 53

For which of the following products would its producer be more likely to choose personal selling rather than advertising or sales promotion to market it?

A) hammers
B) insurance policies
C) office supplies
D) satellite programming guide

Question 54

Which of the following is money offered by a manufacturer to employees of channel intermediaries to encourage them to sell the manufacturer's product?

A) push money
B) a trade allowance
C) a selling deal
D) a direct trade sales promotion

Question 55

Which of the following is a sales practice that involves building,maintaining,and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships?

A) adaptive selling
B) relationship selling
C) stimulus-response selling
D) needs-dependent selling

Question 56

Schwinn Cycling and Fitness,Inc. ,is offering a chain of sporting goods superstores a 20 percent discount on all Schwinn bicycles if the stores will run their own special promotion on the new Schwinn Paramount Titanium bikes.What is Schwinn offering?

A) a life cycle extension promotion
B) a trade allowance
C) a push money deal
D) a product development deal

Question 57

Which of the following BEST describes the use of trade shows,conventions,and conferences to contact customers?

A) It has been decreasing in recent years.
B) It is usually directed toward the consumer goods market.
C) It is most effective for mature products.
D) It costs much less per potential customer than personal sales calls.

Question 58

Harland & Wolff in Belfast,North Ireland,makes ocean-going vessels.Last year its primary customer was the U.S.government.You would expect Harland & Wolff to rely on which of the following to promote its vessels?

A) product innovations and direct marketing
B) personal selling
C) publicity
D) advertising and sales promotion

Question 59

Broyhill is offering the sales force at Meers Furniture Emporium a $50 reward for each Broyhill Pleasant Isle Living Room Collection sold in the next 30 days.What type of trade sales promotion is the $50?

A) a direct commission
B) push money
C) a trade allowance
D) a selling deal

Question 60

You are responsible for sales promotion for a new brand of low-carb dairy products for people who are trying to lose weight.You need to introduce a new product to supermarket managers and owners,attract and identify new store contacts,and test market the response to your new product.Which type of trade promotion would most likely help you reach your objectives?

A) direct sampling and store demonstrations
B) trade allowances and direct incentives
C) trade shows
D) push money

Question 61

Devone Kanudsky,the junior salesperson for NU-VU Food Services Systems,has been given a list of phone numbers for all the food service managers in his province.Kanudsky has been instructed to call each number on the list and see if the respondent is interested in buying a NU-VU pizza/bread baking system.What is George doing?

A) networking
B) using cold referrals
C) lead qualifying
D) cold calling

Question 62

When Jeffrey began selling water treatment systems to consumers,he called friends,relatives,and college roommates to see if they were concerned about water quality and looking for a deal on a water treatment system for their home.What is this technique for generating leads called?

A) quota driving
B) networking
C) qualifying
D) cold calling

Question 63

Which of the following BEST describes consultative selling?

A) It emphasizes closing the sale during the sales presentation.
B) It uses limited sales planning.
C) It sells advice,assistance,and counsel rather than products.
D) It uses short-term follow-ups,which focus on product delivery.

Question 64

What are the set of steps a salesperson goes through to sell a particular product?

A) the sales presentation
B) the sales continuum
C) the stimulus-response hierarchy
D) the sales process

Question 65

Which of the following,also known as prospecting,is the identification of those firms and people most likely to buy the seller's offerings?

A) lead generation
B) lead qualification
C) referral calling
D) cold calling

Question 66

What is the last step in the personal selling process?

A) signing the contract
B) closing the sale
C) following up
D) handling objections

Question 67

Ramas Llewelyn sells display shelving used in retail stores.He is asking his current customers for the names of other retail operations that might be interested in buying his company's shelving.What is he using to get his sales leads?

A) networking
B) noncompeting sales
C) referrals
D) cold calling

Question 68

The seven steps of the selling process closely follow which of the following?

A) the process of forecasting and satisfying industry demand
B) the traditional communications model
C) the AIDA concept
D) the hierarchy of needs

Question 69

According to the text,which of the following statements about the relative amount of time spent in the selling process for different types of salespeople is true?

A) A traditional salesperson would spend a lot of time following up the sale.
B) A consultative salesperson would spend a lot of time closing the sale.
C) A consultative salesperson would spend a lot of time generating leads.
D) A relationship salesperson would spend a lot of time qualifying leads.

Question 70

How are "webinars" used in personal selling?

A) to support relationship selling tasks
B) to facilitate transactional selling
C) to test market sales presentations
D) to help consumers shop at on-line sites

Question 71

Sales leads are LEAST likely to be generated by which of the following?

A) trade shows and conventions
B) networking
C) reorders
D) cold calling

Question 72

Which of the following consists of determining which sales prospects have a recognized need,buying power,receptivity,and accessibility?

A) lead reciprocity
B) lead qualification
C) prospect examination
D) customerization

Question 73

Which of the following is a process that describes the homework that must be done by a salesperson before he or she contacts a prospect?

A) pre-sales dialogue
B) prospect customerization
C) sale profiling procedure
D) preapproach

Question 74

Lead qualification consists of determining whether a prospect has which of the following?

A) any resources
B) a real or imagined need for a product
C) any interest in a product
D) a recognized need,buying power,and receptivity and accessibility

Question 75

Which of the following is a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status?

A) networking
B) cold calling
C) lead qualification
D) lead follow-up

Question 76

Often the task of lead qualification is handled by a telemarketing group or a sales support person who frees the sales representative from the time-consuming task by engaging in which of the following?

A) database mining
B) networking
C) cold calling
D) prequalification

Question 77

Which of the following is a process of finding out about potential clients from friends,business contacts,coworkers,acquaintances,and fellow members in professional or civic organizations?

A) lead intermediation
B) people surfing
C) looking for the golden parachute
D) networking

Question 78

What is the most basic criterion for determining whether someone is a prospect for a product?

A) size of buying centre
B) a need that is not being satisfied
C) degree of autonomy
D) need for reciprocity

Question 79

AutoFry is the leading manufacturer of ventless deep fryers for supermarket deli and food service operations.It has developed a new high-capacity fryer.The company has decided to purchase a mailing list of thousands of food service managers and to send out brochures with a detachable card that the managers can use to request more information.What is AutoFry involved in?

A) lead generation
B) sales presentation
C) moving through the sales continuum
D) lead qualification

Question 80

A salesperson should learn as much as possible about the prospect's organization and its buyers.What is this process?

A) the needs assessment
B) prospecting
C) the preapproach
D) lead generation