Deck 18: Sales Promotion and Personal Selling

Question 1

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

Answer 1

False
Point-of-purchase promotions include any promotional display set up at the retailer's location to build traffic,advertise the product,or induce impulse buying.

Question 2

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

Answer 2

True

Question 3

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.

Answer 3

False
With relationship selling,the salesperson spends most of his or her time attempting to build a problem-solving environment with the customer.

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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 9

Sweepstakes are promotions in which participants use some skill or ability to compete for prizes.Winning a contest,on the other hand,depends on chance or luck.

Question 10

Research shows that coupons tend to increase the amount of a product bought.

Question 11

Sales promotion offers an incentive to buy.

Question 12

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

Question 13

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

Question 14

Manufacturers use trade promotions because they generate excitement among consumers.

Question 15

With relationship selling,the objective is to build long-term branded relationships with customers,not just to sell products.

Question 16

Relationship selling is more typical with selling situations for consumer goods.

Question 17

When cosmetics company Estée Lauder gives customers a bag of small-sized cosmetics with the purchase of a full-priced item,this is an example of a premium offer.

Question 18

Manufacturers prefer coupons over rebates,because most customers who are eligible for rebates actually collect them.

Question 19

The objectives of a promotion depend on the general behavior of target consumers.

Question 20

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

Question 21

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 22

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 23

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

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

Question 24

Consumers who buy your product most or all of the time are called:

A)loyal customers.
B)cherry pickers.
C)brand switchers.
D)regulars.
E)automatic customers.

Question 25

Which of the following sales promotion tools would be MOST appropriate for a competitor's customer?

A)Sampling
B)Rebates
C)Loyalty marketing programs
D)Bonus packs
E)Coupons

Question 26

Groupon.com and Crowdsaver combine elements of sales promotions with:

A)pull money.
B)rebates.
C)premiums.
D)social media.
E)push money.

Question 27

The most widely used promotional medium is:

A)sampling
B)direct mail
C)in-store promotions
D)rebates
E)point-of-purchase promotions

Question 28

Neutrogena offered customers who purchased $30 worth of facial moisturizers,facial cleaners,and facial treatment products a $10 rebate by mail.This is an example of:

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

Question 29

If a potential customer has objections after the salesperson has made a presentation,that is an indication that the salesperson has done a poor job.

Question 30

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 31

Martina buys cola every week at the grocery store,but she always buys whatever is on sale.Coca-Cola,Pepsi,RC Cola-it doesn't matter to her.She is happy with whatever costs the least.Martina would be characterized as a:

A)loyal customer.
B)competitor's customer.
C)price buyer.
D)cherry picker.
E)freeloader.

Question 32

_____ 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 33

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 retailer 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 34

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

Question 35

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

Question 36

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 37

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 38

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

Question 39

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

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

Question 40

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

Question 41

Consumers who send in ten UPC symbols as proof of purchase of Chips 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 42

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 43

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 44

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)P-O-P activities.
E)user incentives from retailers.

Question 45

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 46

A _____ is a cash refund given 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

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)P-O-P (participant of Pillsbury).

Question 48

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 49

To encourage consumers to redeem coupons,marketers are doing all of the following EXCEPT:

A)circulating more coupons.
B)shortening the time the coupon can be redeemed to create a feeling of urgency.
C)distributing single all-purpose coupons that can be redeemed for several brands.
D)offering online coupons that can be printed at home.
E)using instant coupons on product packages.

Question 50

Jack's Pet Store offers customers who purchase pet food a "Baker's Dozen" card.After customers purchase 12 bags of pet food from Jack's,they get the 13th bag free.The Baker's Dozen card is an example of a:

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

Question 51

Kaye noticed that Bounce dryer sheets have 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 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

Co-branded 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 54

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 55

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 56

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 57

When Maya purchased a full-size bottle of Purell Hand Sanitizer,she received a free,purse-sized bottle as well..The purse-sized bottle is an example of a:

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

Question 58

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

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

Question 59

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 60

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 61

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 62

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 63

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 64

Club Penguin is an online role-playing game for kids aged 6 to 14 operated by the Walt Disney Company.Players pay a monthly fee to gain access to all of Club Penguin's feature,although free memberships with limited access to games is also available.Disney offers free membership to Club Penguin in the hope that kids who like the game will ask their parents to pay for the full version.Disney is using which sales promotion tool?

A)Sponsorship
B)Sampling
C)Trade promotions
D)In-pack couponing
E)Premiums

Question 65

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 off-line 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 66

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 that it has a captive audience.
D)its ability to create long-term relationships with intermediaries.
E)the low monetary requirements.

Question 67

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 68

The use of trade shows:

A)is not an important aspect of sales promotion.
B)can help companies identify new prospects.
C)does not help introduce new products.
D)does not enhance corporate morale.
E)is a disadvantage in that it is usually impossible to display the product itself.

Question 69

General Motors is offering the sales force at Meers Furniture Emporium a $100 reward for each Chevy Volt sold in the next 30 days.What type of trade sales promotion is the $100?

A)A trade allowance
B)Push money
C)A selling deal
D)Premium payment
E)A direct commission

Question 70

_____ 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 71

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 72

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 73

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 74

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

A)Coupons
B)Rebates
C)Sampling
D)Sweepstakes
E)Allowances

Question 75

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 76

_____ is money offered to 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 77

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 78

Trade sales promotions support a _____ strategy.

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

Question 79

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 80

_____ is a price reduction offered by manufacturers to intermediaries,such as wholesalers and 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