Deck 15: Sales Promotion Point-Of-Purchase Advertising and Support Media

Question 1

The advantage that sales promotions have over advertising is that they offer great rewards with little or no risk.

Answer 1

False

Question 2

Today's marketers use a number of sales promotion techniques aimed at consumers including coupons, price­off deals, premiums, contests and sweepstakes, samples and trial offers, phone and gift cards, rebates, and frequency programs.

Answer 2

True

Question 3

One objective for promotions in the trade channel is to increase store traffic, which benefits both manufacturers and retailers.

Answer 3

True

Question 4

The fight for space on grocers' shelves has become very competitive, so manufacturers will do anything to get
stores to stock their items-except paying a fee, which is now illegal.

Question 5

Materials that are used in the retail settings to attract shoppers' attention to a product convey primary product
benefits or highlight pricing information.They are referred to as Point-of-Purchase advertising.

Question 6

One drawback of sales promotions is that the results are difficult to document.

Question 7

A manufacturer helps a retailer by sharing the cost of local advertising.This allows the manufacturer to have some control over the process, and the retailer to advertise for a lower cost.They are taking part in a form of business- market sales promotion.

Question 8

Friendly Car Wash offers a deal in which customers who have bought nine car washes over the last year get the tenth one free.This is an example of a sampling program to stimulate repeat purchases.

Question 9

A manufacturer of dental care products sets up a new promotion by attaching one of its toothbrushes to its boxes of toothpaste.This is an example of a mobile sampling technique.

Question 10

Sales promotion can provide an affiliation value for a brand; meaning that the consumer wants to, or is able to, identify with the brand.

Question 11

Sales promotion is the use of incentive techniques that create a perception of greater brand value among consumers, the trade, and business buyers.

Question 12

One advantage of sales promotion is that it breaks through the media clutter.

Question 13

Historically, more money has been budgeted for mass media advertising than for sales promotion.

Question 14

The only medium that places the advertising, the product, and the consumer together in the same place at the same time is Point-of-Purchase advertising.

Question 15

Sales promotion can attract attention and motivate trial purchase so it is often used to introduce new brands to the public.

Question 16

One advantage of using sweepstakes and contests is that they can quickly and easily communicate the brand message through the game.

Question 17

It is estimated that almost one-fourth of corporate America gives rebates as a type of business-market promotional technique.

Question 18

Sales promotion is generally used as a long-term tactic and widespread strategy to promote an image for the brand and create emotional connections with the consumer.

Question 19

The great thing about sales promotions is that it is inexpensive, simple, and, well-timed.

Question 20

A display rack that stocks cigarettes is placed above the cash register so the cashier can reach the product for the consumer.The rack has signage on the front advertising the cigarette brand.This is called an overhead merchandiser.

Question 21

Compared to advertising, sales promotion is:

A)a long-term affair.
B)encourages an immediate response.
C)a more sophisticated process.
D)harder to document.

Question 22

A retailer is trying to target the "precision shopper," who expects extra value in every single purchase.Which of the following promotional techniques would best increase the value of a brand in a customer's mind?

A)Bill-back allowances
B)Push money
C)Off-invoice allowance
D)Coupons

Question 23

In the world of promotion today, payments in the form of slotting fees, cash allowances, and incentives are becoming more popular due to the growing power of .

A)retailers
B)manufacturers
C)consumers
D)shareholders

Question 24

A phone directory like the Yellow Book provides a strong link to consumer buying allowing people to follow through on their decisions to buy in a practical way.

Question 25

The marketers at Kraft are currently focusing on building brand loyalty and considering a number of consumer- market sales promotion techniques.Which of the following would work best at encouraging brand loyalty toward Kraft Macaroni and Cheese?

A)Offering a 50-cent rebate on the purchase of a box of Kraft Macaroni and Cheese
B)Offering an additional case of Kraft Macaroni and Cheese half-price
C)Saving George Clooney eat Kraft Macaroni and Cheese in his next movie
D)Placing a $1 off coupon for Kraft Macaroni and Cheese in the Redbook magazine for a month.

Question 26

P-O-P promotion can aid manufacturers not only by attracting consumers, but also by securing relationships within trade and business markets.For instance, it can encourage buyers to support their brand over another with more exposure and shelf space.

Question 27

Which of the following is true of a self-liquidating premium?

A)It is a trade-market sales promotion technique.
B)It is a consumer-market sales promotion technique.
C)It is a business-market sales promotion technique
D)It is a Point-of-Purchase sales promotion technique

Question 28

The primary role for consumer sales promotion is to:

A)encourage long-term purchasing of a brand.
B)enhance the image of a brand.
C)elicit a purchase from a customer.
D)boost name recognition for a brand.

Question 29

Transit advertising works well in small towns, rural areas, and farm communities due to their lack of ad clutter.

Question 30

An objective of consumer-market sales promotion is to:

A)stimulate the inelasticity of demand of a product.
B)lower the economies of scale.
C)encourage smaller purchases.
D)stimulate trial purchases.

Question 31

Support media are used to introduce a new message beyond the one being delivered by other advertising vehicles, marketing plans, and promotional techniques.

Question 32

Billboards have evolved from outdoor signs and posters which represent one of the oldest forms of marketing dating back to the early promotional tools of the 1800s.

Question 33

Which of the following are the three basic forms of sales promotion?

A)At-home, in-store, and out-of-home
B)Short-term, long-term, and Point-of-Purchase
C)Indoor, outdoor, and mobile
D)Consumer-market, trade-market, and business-market

Question 34

Several factors have affected sales promotion in organizations, in recent years.Pressure from stockholders to produce high quarterly revenue, marketing plans based on quick results, and a bottom-line mentality have all contributed to a:

A)focus on brand image.
B)short-term orientation.
C)sense of creative innovation.
D)strong consumer bond.

Question 35

In recent years, the time spent on sales promotion has shifted.Today, about time is spent designing, implementing, and overseeing sales promotions.

A)65
B)45
C)30
D)15

Question 36

A(n) entitles a buyer to a designated reduction in price for a product or service.

A)coupon
B)off-invoice allowance
C)bill-back allowance
D)slotting fee

Question 37

A mother purchases a Happy Meal box and her son immediately picks up the little toy that accompanies it.The little boy's new toy is an example of a:

A)self-liquidating premium.
B)push strategy.
C)free premium.
D)price-off deal.

Question 38

Sales promotion techniques act as an incentive to purchase the brand featuring a promotion, even if another brand:

A)has more market share.
B)offers more variety.
C)offers more benefits.
D)has a lower basic price.

Question 39

Today's forms of out­of­home media can target specific demographic segments by neighborhood using customized
messages via wireless Internet.

Question 40

Out-of-home media describes various advertising venues that reach local audiences while they are out in public.

Question 41

Businesses like to promote their products with rebates because they:

A)are purely based on luck.
B)often do not get cashed in.
C)are more popular with consumers than coupons.
D)do not require maintenance.

Question 42

Which of the following sales promotion tactics runs a risk of eroding a brand image or value?

A)A frequency program
B)A price incentive
C)A sweepstake
D)A contest

Question 43

The CEO of a software manufacturing firm that supplies to large insurance firms wants to look at all possible forms of business-market promotions to gain and maintain lucrative customers.He meets with his marketing director, and they review the five main areas of promotion techniques aimed at business buyers.They are:

A)trade shows, business gifts, premiums and advertising specialties, trial offers, and frequency programs.
B)incentives, allowances, training programs, cooperative advertising, and sampling.
C)merchandise allowances, cash allowances, trade shows, training programs, and incentives.
D)premiums and advertising specialties, frequency programs, incentives, allowances, and cooperative advertising.

Question 44

Which of the following is a difference between advertising specialties and business gifts?

A)Specialties have the sponsor's logo on them, while business gifts do not.
B)Specialties promote brand awareness, while business gifts promote close working relationships.
C)Specialties are quite expensive, while business gifts are inexpensive.
D)Specialties are given on a selective basis, while business gifts are distributed to all.

Question 45

The biggest difference between contests and sweepstakes is that:

A)contests can require an entry fee, and sweepstakes cannot.
B)contests generate long-term interest in a brand, and sweepstakes generate immediate interest.
C)contests require skill, and sweepstakes require luck.
D)contests focus on the game, and sweepstakes focus on the brand.

Question 46

A kitchen appliance manufacturer devises a program to encourage members of the trade to purchase its brand.It offers salespeople an extra $75 for selling one of its refrigerators, $50 for selling one of its ovens, and $40 for selling one of its dishwashers.Which of the following promotional concepts for the trade channel does this involve?

A)Push money
B)Merchandise allowance
C)Slotting fee
D)Rebates

Question 47

Advertisers are warned that they may face legal problems if they are not careful while conducting promotional activities.This is especially true of:

A)in-store sampling and door-to-door sampling.
B)price-off deals and rebates.
C)mail sampling and newspaper sampling.
D)sweepstakes and contests.

Question 48

Mark works for a well-known company that manufactures mattresses.To move the company's product during the President's Day sales events held nationwide, he offered $200 to any retail salesperson who can sell ten mattresses throughout the second weekend of February.He also offers a case of sports drinks for each mattress sold.These are examples of trade-market sales promotion techniques in the form of:

A)free premiums.
B)incentives.
C)merchandise allowances.
D)dividends.

Question 49

The sales-promotion techniques used within the trade market are:

A)couponing, cash allowances, incentives, and slotting fees.
B)incentives, allowances, training programs, and cooperative advertising.
C)case allowances, sweepstakes, couponing, and training programs.
D)slotting fees, Point-of-Purchase displays, consumer rebates, and merchandise allowances.

Question 50

Some airlines ran into big trouble when they tried to increase the mileage levels needed to earn awards in their frequent-flyer programs.Which of the follwoing risks associated with promotions have their actions demonstrated?

A)The risk of having a product or service perceived as cheap
B)The risk of alienating customers
C)The risk of putting in too much time
D)The risk of an increase in expenses over incomes

Question 51

A regional office supply store wants to understand and serve its customers better and compete with nationwide giants.It is looking for the most effective way to encourage repeat visits and build long-term loyalty with its customers.Which of the following forms of sales promotion would work best?

A)Mail sampling
B)Self-liquidating premium
C)Rebate
D)Frequency programs

Question 52

For an item to be defined as an advertising specialty, it must:

A)be a reward for meeting a goal or sales quota.
B)contain no promotional message.
C)be construed as a way of buying business.
D)contain the sponsor's brand name or slogan.

Question 53

Which of the following is true of Point-of-Purchase displays?

A)They are noticed only by a few consumers.
B)Many retailers ignore them or throw them out.
C)They rarely get shipped to stores.
D)They are poorly constructed and often unusable.

Question 54

Which of the following is a form of allowance allowed to retailers and wholesalers?

A)Free premiums
B)Rebates
C)Slotting fees
D)Push money

Question 55

A distinguishing feature of a self-liquidating premium is that it requires the consumer to:

A)mail in the premium to get reimbursed.
B)pay most of the cost of the item received.
C)buy two other items at regular price.
D)guarantee a repeat purchase.

Question 56

A national merchandising company is a major distributor of grocery and beauty products, and uses many tactics to get samples into the hands of consumers.The most popular type of sampling for food and cosmetics products is sampling.

A)on-package
B)door-to-door
C)mail
D)in-store

Question 57

Which of the following is true of sampling?

A)It is available to distributors alone.
B)The customer receives their money back.
C)The product is offered at a discounted price.
D)It involves little or no risk.

Question 58

Trial offers have the same goal as samples, except that trial offers:

A)are less expensive to utilize.
B)are handed out in malls, retail stores, and other public places.
C)involve more expensive items.
D)arrive through mail or newspaper delivery.

Question 59

A discount retailer has been doing very well over the years, and can now expect to get cash payments from manufacturers and suppliers if they want their products on the retailer's shelves.Therefore, it regularly receives these payments known as:

A)bill-back allowances.
B)slotting fees.
C)merchandise allowances.
D)off-invoice fees.

Question 60

A consumer buys a printer for her computer, and receives a money-back offer.To get the premium, she has to mail in a form requesting the money back from the manufacturer rather than the retailer.Which of the following consumer-market sales promotion techniques is exemplified here?

A)A rebate
B)A self-liquidating premium
C)Couponing
D)A free premium

Question 61

Experts suggest that the number of words on a billboard copy should not exceed .

A)fifteen
B)ten
C)six
D)three

Question 62

The oldest form of advertising is the .

A)coupon
B)dailie
C)directory
D)billboard

Question 63

From the consumer's viewpoint, directories like the Yellow Book have some disadvantages as promotional tools. One particular problem is that it:

A)has a massive volume of media clutter.
B)requires long lead times that result in outdated information.
C)annoys rather than providing information to potential buyers.
D)is unable to offer detailed information.

Question 64

Scenario 15-1
One of the nation's most popular times for sales promotions was a great deal longer than usual in 2010.Black Friday, which typically takes place the Friday following Thanksgiving, started in October for a number of retailers and was also scheduled to occur throughout the month of November.Sears and Walmart, who had been experiencing a continuous decline in sales recently, were the biggest names behind the move.Executives from a number of companies began to realize that consumers respond to the word "sale," regardless of the time of year, so they decided to simply stretch the period of time in which their biggest sales ran.Companies designed new sale flyers and circulars, and began to promote the various sales on their websites.Other companies such as Target
were also implementing a similar strategy-by emphasizing savings earlier in the season and for a longer period of time, company executives hoped their brand would be the first, second, and last choice for consumers during the holiday season.
(Stephanie Clifford, "Stores Push Black Friday Into October." The New York Times, October 28, 2010.)
(Scenario 15-1) Because companies realize consumers will be visiting stores more frequently during the holiday season, several toy manufacturers are paying direct cash to retailers in exchange for placing their brand in the most visible locations.These cash payments are known as .

A)rebates
B)push money
C)off-invoice allowances
D)slotting fees

Question 65

Though, there appears to be some strong resistance, market research has indicated that 63 percent of consumers don't mind advertising.

A)transit
B)aerial
C)billboard
D)cinema

Question 66

Scenario 15-1
One of the nation's most popular times for sales promotions was a great deal longer than usual in 2010.Black Friday, which typically takes place the Friday following Thanksgiving, started in October for a number of retailers and was also scheduled to occur throughout the month of November.Sears and Walmart, who had been experiencing a continuous decline in sales recently, were the biggest names behind the move.Executives from a number of companies began to realize that consumers respond to the word "sale," regardless of the time of year, so they decided to simply stretch the period of time in which their biggest sales ran.Companies designed new sale flyers and circulars, and began to promote the various sales on their websites.Other companies such as Target
were also implementing a similar strategy-by emphasizing savings earlier in the season and for a longer period of time, company executives hoped their brand would be the first, second, and last choice for consumers during the holiday season.
(Stephanie Clifford, "Stores Push Black Friday Into October." The New York Times, October 28, 2010.)
(Scenario 15­1) On one of the company's websites, a sweepstakes was designed to award one lucky customer after he or she provided feedback on a number of planned sales promotions for the holidays.One characteristic of a sweepstakes is:

A)winners can only be awarded with monetary prizes.
B)winners are determined purely by chance.
C)there can only be one winner per sweepstakes.
D)there is a complex system for determining a winner.

Question 67

The combination of transit, aerial, and cinema advertising is known as media advertising.

A)Point-of-Purchase
B)out-of-home
C)trade-channel
D)business-market

Question 68

Scenario 15-2
The Sounds Good recording company is getting ready to release the first compact disc from its newest band, Planet Moon.Sounds Good's last three releases have been dismal failures, and the struggling company needs a quick influx of cash.The owners decide to use sales promotions to move the Planet Moon disc through record stores and into customers' hands.
(Scenario 15-2) The displays commissioned by Sounds Good need to be set up and maintained.Any record store that agrees to do this gets several copies of Planet Moon CDs and past releases from Sounds Good for free.This is known as a(n) .

A)incentive
B)merchandise allowance
C)maintenance exchange
D)off-invoice allowance

Question 69

Scenario 15-1
One of the nation's most popular times for sales promotions was a great deal longer than usual in 2010.Black Friday, which typically takes place the Friday following Thanksgiving, started in October for a number of retailers and was also scheduled to occur throughout the month of November.Sears and Walmart, who had been experiencing a continuous decline in sales recently, were the biggest names behind the move.Executives from a number of companies began to realize that consumers respond to the word "sale," regardless of the time of year, so they decided to simply stretch the period of time in which their biggest sales ran.Companies designed new sale flyers and circulars, and began to promote the various sales on their websites.Other companies such as Target
were also implementing a similar strategy-by emphasizing savings earlier in the season and for a longer period of time, company executives hoped their brand would be the first, second, and last choice for consumers during the holiday season.
(Stephanie Clifford, "Stores Push Black Friday Into October." The New York Times, October 28, 2010.)
(Scenario 15-1) Implementing contests and sweepstakes can be a challenging task.One of the difficulties in implementing an effective sweepstakes is:

A)generating interest in the brand, not just in the sweepstakes.
B)choosing a winner in a manner which keeps everyone happy.
C)The entire implementation could falter and leave consumers disappointed.
D)notifying the winner when the sweepstakes is over.

Question 70

A printed card or sign designed to mount on or under a shelf is known as a .

A)Shelf talker
B)Floor stand
C)Cash register
D)Door signage

Question 71

Scenario 15-1
One of the nation's most popular times for sales promotions was a great deal longer than usual in 2010.Black Friday, which typically takes place the Friday following Thanksgiving, started in October for a number of retailers and was also scheduled to occur throughout the month of November.Sears and Walmart, who had been experiencing a continuous decline in sales recently, were the biggest names behind the move.Executives from a number of companies began to realize that consumers respond to the word "sale," regardless of the time of year, so they decided to simply stretch the period of time in which their biggest sales ran.Companies designed new sale flyers and circulars, and began to promote the various sales on their websites.Other companies such as Target
were also implementing a similar strategy-by emphasizing savings earlier in the season and for a longer period of time, company executives hoped their brand would be the first, second, and last choice for consumers during the holiday season.
(Stephanie Clifford, "Stores Push Black Friday Into October." The New York Times, October 28, 2010.)
(Scenario 15-1) During the holiday season, Snuggles, a winter clothing retail store, offers its employees $10 for every additional sweater that they sell.This is an example of:

A)a free premium.
B)a merchandise allowance.
C)push money.
D)a slotting fee.

Question 72

According to a classic quote, which of the following has been described as "the last five seconds of marketing?"

A)Trade show
B)Sampling
C)Packaging
D)Directory advertising

Question 73

Scenario 15-2
The Sounds Good recording company is getting ready to release the first compact disc from its newest band, Planet Moon.Sounds Good's last three releases have been dismal failures, and the struggling company needs a quick influx of cash.The owners decide to use sales promotions to move the Planet Moon disc through record stores and into customers' hands.
(Scenario 15-2) Sounds Good has placed a small catalog inside each compact disc.The catalog features a variety of Planet Moon items that can be ordered-the band's music video as well as T­shirts, ball caps, and travel mugs.These items are considered self-liquidating premiums because the consumer:

A)does not receive the actual product sample but only the advertisement for free.
B)is unknowingly helping to liquidate unwanted product inventory.
C)has the chance to buy them only by purchasing the CD.
D)pays most of the cost for them.

Question 74

Of all types of support media, directory advertising offers a unique advantage by:

A)offering technologically advanced and innovative options.
B)enhancing brand awareness and recall.
C)stressing on the brand name and keeping the message within six words.
D)helping consumers follow through on purchases.

Question 75

Which of the following are the two broad categories of Point-of-Purchase materials?

A)In-house displays and out-of-the-house displays
B)In-store merchandising formats and out-of-store promotional formats
C)Push messages and pull messages
D)Short-term promotional displays and long-term permanent displays

Question 76

The name support media denotes that they:

A)are supported and financed solely by business-market expenditures.
B)reinforce or support a message delivered by other media.
C)must be supported or upheld by physical structures.
D)support and enhance P-O-P within the retail environment.

Question 77

Scenario 15-2
The Sounds Good recording company is getting ready to release the first compact disc from its newest band, Planet Moon.Sounds Good's last three releases have been dismal failures, and the struggling company needs a quick influx of cash.The owners decide to use sales promotions to move the Planet Moon disc through record stores and into customers' hands.
(Scenario 15-2) Sounds Good knows that the release cannot succeed without gaining distribution in large record store chains.However, many of these chains are refusing to carry the product, saying that shelf space is too precious to be used for an unknown band like Planet Moon.However, buyers for these chains say that they might be willing to carry the product if Sounds Good makes a direct cash payment to the chain.This is known in the trade channel as a:

A)cooperative advertising fee.
B)merchandise allowance.
C)slotting fee.
D)rebate.

Question 78

advertising is a close cousin to billboard advertising, and in many instances it is used in tandem with billboards.

A)Directory
B)Transit
C)Aerial
D)Cinema

Question 79

P­O­P displays have historically served several purposes for store owners.What do today's retailers increasingly expect P-O-P displays to do for them?

A)To provide ambience and differentiate their store from others
B)To minimize the costs of creating displays for the store
C)To improve the orderliness and structure of the store environment
D)To reduce the number of sales personnel required

Question 80

Billboards offer several strong advantages, but they are most effective as a promotional medium when they are in a location that:

A)sends a message to the national and international market.
B)incorporates specialized lighting.
C)relates to an immediate need or desire.
D)offers round-the-clock exposure.