Deck 18: Sales Promotion and Personal Selling

Question 1

Sales promotion offers an incentive to buy.

Answer 1

True

Question 2

Point-of-purchase promotions are seldom used as a sales promotion tool because most purchase decisions are made before consumers ever enter a store.

Answer 2

False
Point-of-purchase promotions are an extremely important sales promotion tool because between 70 and 80 percent of all purchase decisions are made in the store.

Question 3

A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous shopping goods.

Answer 3

False
A trade allowance is a price reduction offered by manufacturers to intermediaries.

Question 4

Manufacturers use trade promotions because they generate excitement among consumers.

Question 5

Relationship selling is really just a new name for transactional selling.

Question 6

When Apple offers to give any consumer who purchases a Macintosh computer a free iPod,this is an example of a premium offer.

Question 7

A rebate is a cash refund.

Question 8

Point-of-purchase (P-O-P)promotions are another name for the Web pop-ups that try to lure potential customers to other sites.

Question 9

Dave is in charge of finding sponsors for the 2011 Riverbend Festival.He is meeting with marketing representatives from Wrangler jeans and First Tennessee National Bank,attempting to convince them to sponsor the event.Dave is engaged in personal selling.

Question 10

Immediate purchase is usually the goal of sales promotion.

Question 11

Coupon distribution by packaged-goods manufacturers has been increasing in recent years.

Question 12

The first step in the selling processing is approaching the customer and probing needs.

Question 13

Hewlett-Packard offered $25 to individual Office Depot salespeople for each HP Laser Jet printer they sold.The $25 is push money.

Question 14

Trade shows are an excellent place to introduce new products to the marketplace.

Question 15

Loyalty marketing programs are targeted to people who consistently buy the least expensive brand.

Question 16

Contests generally draw more entries than sweepstakes do.

Question 17

With relationship selling the salesperson would spend most of his or her contact time with the prospect talking about the product because the salesperson does not want to waste the customer's time.

Question 18

Marketers find it much easier to evaluate the effectiveness of advertising than the effectiveness of sales promotions.

Question 19

Personal selling becomes a more important promotional tool as product complexity and buyer risk increase.

Question 20

Relationship selling is also called interactive selling.

Question 21

Dell's fall back-to-school program allows students who buy a new laptop computer for college to get a free printer.The printer giveaway is a:

A) push strategy
B) advocacy advertising
C) comparative advertising
D) cause marketing
E) sales promotion

Question 22

The final selling duty for most successful salespeople is closing the sale.

Question 23

In relationship selling,salespeople focus more time on generating leads than on qualifying leads.

Question 24

The goal of sales promotion (regardless of what form it takes)is usually:

A) immediate purchase
B) return on investment
C) cost control
D) market share leadership
E) economies of scale

Question 25

Packaged-goods marketers such as Kellogg's and Betty Crocker have increased their use of coupons recently due to:

A) intense competition and the introduction of new products
B) the growth of frequency programs
C) push money from retailers
D) POP activities
E) user incentives from retailers

Question 26

_____ sales promotions are targeted toward the ultimate end-user market.

A) Facilitating
B) Intermediary
C) Pull
D) Consumer
E) Trade

Question 27

Coupons,premiums,contests,free samples,and frequent buyer programs are examples of:

A) personal selling
B) trade sales promotion
C) publicity
D) advertising
E) consumer sales promotion

Question 28

Compensation planning is one of the sales manager's easiest jobs.

Question 29

Jayson typically negotiates the price with prospective customers because he knows price is the most effective negotiating tool when closing a sale.

Question 30

Tara is a salesperson with several satisfied customers. She asks her customers to recommend her to their business associates. Tara is using cold calling to generate leads.

Question 31

All of the following would be a target for a trade sales promotion offered by Rubbermaid,a manufacturer of storage and organization products,EXCEPT:

A) a store that is called The Container Store
B) a kitchen department in a large discount store
C) a wholesaler of plastic storage bins
D) a Rubbermaid distributor
E) a consumer who needs to organize her college dorm room

Question 32

AT&T offered customers who purchased a Blackberry a $100 rebate if they signed up for a 2-year service contract. This is an example of:

A) motivational selling
B) a trade promotion
C) a push strategy
D) personal selling
E) a sales promotion

Question 33

Before approaching the customer,a salesperson should learn as much as possible about the prospect's organization and its buyer.

Question 34

A good salesperson considers objections a legitimate part of the purchase decision.

Question 35

The final stage of sales management is evaluating the effectiveness and performance of the sales force.

Question 36

Meta Singh is expected to sell two surgical laser systems each month.This sales objective is an example of a quota.

Question 37

What are the two types of sales promotion?

A) consumer and trade
B) informative and reminder
C) start-up and continual
D) adoptive and diffusive
E) personal and impersonal

Question 38

_____ is marketing communication activities in which a short-term incentive is offered to induce the purchase of a particular good or service.

A) Publicity
B) Sales promotion
C) Promotion
D) Advertising
E) Motivation selling

Question 39

Sales promotion:

A) is a publicity tool
B) is only directed to the ultimate consumer market
C) is more difficult to measure than advertising
D) offers a short-term incentive to buy
E) expenditures have been decreasing in recent years

Question 40

To qualify a sales lead,a salesperson must identify the person in an organization who has the authority to buy the product and must close the sale with that individual.

Question 41

One of the best methods for creating and rewarding brand loyalty among consumers who might otherwise switch to competing brands is a:

A) directed coupon mailing
B) sweepstakes
C) loyalty marketing program
D) trade sales promotions
E) sampling program

Question 42

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

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

Question 43

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

A) to track response rates
B) to increase introductory sales
C) to create a greater sense of urgency to redeem the coupon
D) to respond to claims that coupons adversely affect consumer behavior
E) to limit the use of on-pack coupons

Question 44

The Starbucks Reward program rewards frequent Starbucks customers with free refills on brewed coffee,free beverages with whole bean purchases,beverage customization,and free Wi-Fi computer access.The program is an example of a:

A) directed coupon mailing
B) sweepstakes
C) loyalty marketing program
D) trade sales promotion
E) sampling program

Question 45

Kaye noticed Bounce fabric softener dryer sheets had a peel-off sticker worth $1.00 off that purchase.The peel-off stickers are:

A) premiums
B) trade discounts
C) purchase allowances
D) in-store coupons
E) functional allowances

Question 46

A _____ is a cash refund given to consumers for the purchase of a product during a specific time period.

A) premium
B) trade discount
C) purchase allowance
D) rebate
E) functional allowance

Question 47

When Rick purchased a Xerox color printer for his law office,he was able to mail in a proof-of-purchase and his cash register receipt to receive a check from Xerox for $200.Rick received a:

A) premium
B) trade allowance
C) purchase allowance
D) rebate
E) functional discount

Question 48

To overcome low redemption rates for coupons,marketers are doing all of the following EXCEPT:

A) issuing fewer coupons and using more everyday low pricing
B) shortening the time the coupon can be redeemed to create a feeling of urgency
C) requiring multiple purchases to redeem the coupon
D) distributing single all-purpose coupons that can be redeemed for several brands
E) using instant coupons on product packages

Question 49

Unlike other sales promotion activities,the objective of a loyalty marketing program is to:

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

Question 50

A certificate that entitles consumers to an immediate price reduction when they buy the product is called a(n):

A) coupon
B) premium
C) push money
D) entitlement
E) allowance

Question 51

Whenever Jeff buys a box lunch at Heavenly Ham,he gets a stamp on his "Lunch Bunch" card.When he has 10 stamps,he can exchange the card for a free box lunch.This is an example of a(n):

A) self-liquidating premium
B) frequent buyer program
C) loyalty incentive
D) in-store rebate
E) consumer allowance

Question 52

New subscribers to Men's Health magazine receive a free copy of Men's Health Total Fitness Guide.The Fitness Guide is an example of a(n):

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

Question 53

Consumers who send it 10 UPC symbols as proof of purchase of Chip Ahoy cookies will receive a children's classic DVD.The DVD is an example of a:

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

Question 54

Cobranded credit cards are used in conjunction with:

A) self-perpetuating premiums
B) loyalty marketing programs
C) trade consumer promotions
D) consumer discount programs
E) functional consumer discounts

Question 55

By visiting the priceless.com site,Mastercard users can register for a chance to win an all-expense-paid trip for two to New York to see two Broadway plays.This prize package will be awarded through a(n)_____ since there is no skill involved.

A) contest
B) P-O-P promotion
C) sweepstakes
D) loyalty incentive plan
E) event sponsorship

Question 56

All of the following are types of consumer sales promotions EXCEPT:

A) coupons
B) rebates
C) premiums
D) contests and sweepstakes
E) push money

Question 57

Which type of consumer sales promotion rewards loyal consumers for making multiple purchases of a particular good or service?

A) frequent buyer program
B) 80/20 program
C) net worth program
D) premium program
E) continuity program

Question 58

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 a cash prize can be chosen.This is an example of a:

A) contest
B) sales promotion game
C) sweepstakes
D) push money deal
E) POP (participant of Pillsbury)

Question 59

A(n)_____ is an extra item offered to the consumer,usually in exchange for some proof that the promoted product has been purchased.

A) coupon
B) trade sample
C) supplement
D) premium
E) add-on

Question 60

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

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

Question 61

Which of the following statements about contests and sweepstakes is true?

A) Contests depend on luck, and participation is free.
B) Contests are generally effective tools for creating long-term relationships with customers.
C) Sweepstakes are promotions that require participants to exhibit some skill.
D) Sweepstakes usually draw about ten times more participants than contests.
E) Contests and sweepstakes are not useful for creating interest and publicity.

Question 62

Trade sales promotions support a _____ strategy.

A) push
B) hierarchical
C) disintermediation
D) discontinuous innovation
E) pull

Question 63

_____ 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) Point-of-purchase displays
B) Trade shows
C) Indirect demonstrations
D) Direct demonstrations
E) Freestanding kiosks

Question 64

All of the following are examples of point-of-purchase promotions EXCEPT:

A) television monitors at supermarket checkouts
B) shelf talkers
C) newspaper inserts
D) shelf extenders
E) end-aisle and floor-stand displays

Question 65

Seagram's Coolers has asked bartenders in New York City to submit cocktail recipes to its Web site.From these entries,the winning recipe will be selected.The winner of this _____ gets to take a friend on a five-night trip to Tahiti.

A) contest
B) push money deal
C) sampling
D) relationship game
E) sweepstakes

Question 66

You are responsible for sales promotion for Replenishmints,long-lasting breath mints that contain a blend of vitamins and other nutrients specifically formulated for smokers and for people exposed to tobacco in their environment.You need to introduce the mints to supermarket managers and owners,attract and identify new store contacts,and test market the response to Replenishmints.Which type of trade promotion will help you reach your objectives in the most cost effective way?

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

Question 67

One of the major advantages to using point-of-purchase promotion is:

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

Question 68

_____ is money offered by a manufacturer to employees of channel intermediaries to encourage them to sell the manufacturer's product.

A) A trade allowance
B) Push money
C) A selling deal
D) A premium payment
E) A direct trade sales promotion

Question 69

Trade sales promotions are popular among manufacturers because they can do all of the following at trade shows EXCEPT:

A) introduce new products
B) create long-term relationships between manufacturers and customers
C) enhance the corporate image
D) test the market response to new products
E) gather competitive information

Question 70

All of the following are examples of trade sales promotions EXCEPT:

A) push money
B) store demonstrations
C) premiums and coupons
D) free merchandise
E) trade shows

Question 71

Lopez is the largest Hispanic-owned meat processor in the United States.To assist retailers in marketing its products,Lopez provides point-of-sale materials and offers special introductory discounts to retailers.Lopez uses:

A) functional marketing
B) relationship selling
C) consumer promotions
D) startup marketing
E) trade promotions

Question 72

Point-of-purchase promotions work best for:

A) high-involvement products
B) purchases that require extensive decision making
C) complex products that require technical knowledge to operate
D) impulse buys
E) expensive products like perfume and jewelry

Question 73

Which sales promotion tool allows the consumer the opportunity to try a product or service for free?

A) coupon
B) rebate
C) sampling
D) sweepstake
E) allowance

Question 74

The use of trade shows,conventions,and conferences to contact customers:

A) has been decreasing in recent years
B) costs much less per potential customer than personal sales calls
C) is most effective for mature products
D) is usually directed toward the consumer goods market
E) has a disadvantage in that it is usually impossible to display the product itself

Question 75

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 trade allowance
B) push money
C) a selling deal
D) premium payment
E) a direct commission

Question 76

The Men's Health Center offers free blood pressure tests,cholesterol screening tests,and prostate exams one day each year.These free health tests are an example of a:

A) premium
B) free sample
C) service commission
D) sponsorship
E) point-of-purchase promotion

Question 77

_____ 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) A point-of-purchase discount
B) Pull money
C) A quantity discount
D) A functional discount
E) A trade allowance

Question 78

Which of the following statements about online sales promotions is true?

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

Question 79

General Mills is offering resellers a 10 percent discount on all cases of its granola bars purchased during the month of June. General Mills is offering a:

A) trade allowance
B) life cycle extension promotion
C) P-O-P discount
D) push money deal
E) product development deal

Question 80

Pirates of the Caribbean Online is Disney's multiplayer game based on the Pirates of the Caribbean movie franchise.For $9.99 per month,the online game lets players sink ships,hunt for buried treasure and go on various Pirate-oriented quests.Disney also offers a limited version of the game for free in the hope that those who like the game will decide to pay for the complete version.Disney is utilizing which sales promotion tool?

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