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

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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.

Answer 3

False

Question 4

Coupons are one of the newer forms of sales promotion, introduced in the 1950s by cake mix manufacturers.

Question 5

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

Question 6

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

Question 7

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

Question 8

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 9

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

Question 10

Sales promotions have an advantage over advertising in that they offer great rewards with little or no risk.

Question 11

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

Question 12

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

Question 13

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

Question 14

Retailers often run trade promotions simultaneously along with consumer promotions.

Question 15

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

Question 16

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 17

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

Question 18

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 19

The great thing about sales promotion is that it is so inexpensive and so simple.In almost all instances, it's neither costly nor time-consuming.

Question 20

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

Question 21

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 22

Full-service advertising agencies specialize in a number of both traditional and innovative services, but typically do not provide ____ for their clients.

A)media placement
B)creative marketing techniques
C)brand management
D)sales promotion materials

Question 23

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

Question 24

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 25

Sales promotion tools can accomplish several objectives.For example, when a firm wants to make a push to ____, these tools can reduce the consumer's risk of trying something new.

A)change the IBP
B)stimulate repeat purchases
C)combat competitors' strategies
D)stimulate trial purchases

Question 26

Which of the following helps explain why marketers have shifted more of their budgets to sales promotion in recent years?

A)increased media clutter and ads that target all the same consumers
B)fewer brands on the market and a greater need to attract consumers' attention
C)more long-term perspective on marketing and longer wait for results
D)more powerful suppliers and more ways to control retail stores

Question 27

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

A)retailers.
B)manufacturers.
C)consumers.
D)wholesale distributors.

Question 28

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

Question 29

Compared to advertising, sales promotion is

A)more long-term.
B)more immediate.
C)more sophisticated.
D)harder to document.

Question 30

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

Question 31

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

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

Question 32

What 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 33

Several factors have affected sales promotion 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 ____ in many organizations today.

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

Question 34

Materials used in the retail setting to attract shoppers' attention to a product, convey primary product benefits, or highlight pricing information, are referred to as point-of-purchase advertising.

Question 35

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

Question 36

During the 1970s, sales promotion expenditures by marketers of consumer goods were about ____ percent of their budgets, while today they are about ____ percent.

A)10; 40
B)30; 75
C)50; 35
D)70; 45

Question 37

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 38

A retailer is trying to target the "precision shopper," who expects extra value in every single purchase.According to your text, which promotion techniques would be best to increase the value of a brand in these shopper' minds?

A)trial offers and samples
B)contests and sweepstakes
C)frequency programs and rebates
D)coupons and price-off deals

Question 39

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 40

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 41

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.What specific promotional concept for the trade channel does this involve?

A)push money
B)merchandise allowance
C)slotting fee
D)frequency program

Question 42

Home Depot is a powerful retailer with a high-volume, low-price position.Therefore, Home Depot can exert pressure on manufacturers and suppliers to offer its staff various forms of trade-market promotions.These come in four major types:

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 43

The CEO of a software manufacturer that sells to large insurance firms wants to look at all possible forms of business-market promotions in a new push 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

This type of promotion technique, often seen in the trade channel, comes in four different versions: merchandise, slotting, bill-back, and off-invoice formats.What is it?

A)the display
B)the premium
C)the allowance
D)the incentive

Question 45

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 46

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

A)usually promote low-priced convenience goods.
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 47

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

A)be rewarded 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 48

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)sampling technique.
C)free premium.
D)trial offer.

Question 49

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 50

Businesses like to promote their products with rebates because they

A)build brand loyalty.
B)often don't get cashed in.
C)are more popular with consumers than coupons.
D)require no maintenance.

Question 51

Shampoo manufacturers sometimes run a promotion in which they shrink-wrap two plastic bottles of shampoo for the price of one.They most often use this buy-one-get-one-free tactic when they want to

A)stimulate repeat purchases and add to their loyal customer base.
B)build a better brand image and create emotional bonds with consumers.
C)introduce a new brand and gain new buyers.
D)stimulate larger purchases of a product and reduce inventory.

Question 52

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.What kind of premium is this?

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

Question 53

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

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)already be loyal to the brand.

Question 54

You work for a well-known company that manufactures mattresses.To move your product during the Presidents' Day sales events held nationwide, you offer $200 to any retail salesperson who can sell ten mattresses throughout the second weekend of February.You also offer a case of sports drinks for each mattress sold.These are examples of trade-market sales promotion techniques in the form of

A)sweepstakes.
B)incentives.
C)allowances.
D)slotting fees.

Question 55

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.So it regularly receives these payments, known as

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

Question 56

The marketers at Kraft are currently focusing on building brand loyalty and considering a number of consumer-market sales promotion techniques.Which 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 a free case of Kraft Macaroni and Cheese with the proof-of-purchase for 15 boxes
C)having George Clooney eat Kraft Macaroni and Cheese in his next movie
D)placing a $1 off coupon for Kraft Macaroni and Cheese in Redbook magazine

Question 57

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 in its customers, both individuals as well as businesses.What form of promotion would work best?

A)a mail sampling
B)a free premium
C)a newspaper coupon
D)a frequency program

Question 58

What is the 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 very inexpensive.
D)Specialties are given on a selective basis, while business gifts are distributed to all.

Question 59

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

A)a frequency program
B)a price incentive
C)a training program
D)a contest

Question 60

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

A)the risk of devaluing the product
B)the risk of alienating customers
C)the risk of putting in too much time and expense
D)the risk of facing legal action

Question 61

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) In order to prepare for the holiday season, large retailers often take additional measures to ensure their sales personnel are ready to handle any number of unique situations they may encounter. Classes that feature product information and demonstrations are often implemented to educate employees. These efforts are called

A)employee enhancement activities.
B)cooperative advertising.
C)sales-training programs.
D)frequency programs.

Question 62

An automobile insurance company has noted an increase in its competitors' television and radio spots, so it considers transit advertising as a unique promotional vehicle.Its marketing team is aware that this works best in

A)informing consumer purchasing decisions.
B)building or maintaining brand awareness.
C)delivering complex messages.
D)promoting short-term exposure and immediate action.

Question 63

P-O-P 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 stocking shelves and replenishing merchandise
C)to improve the orderliness and structure of the store environment
D)to reduce inventory overhead

Question 64

As noted in the text, some advertising experts suggest that billboard copy should not exceed ____ words.

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

Question 65

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) 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 66

Which of the following is not a form of P-O-P advertising?

A)billboards at the entrances of all parking lots
B)computer kiosks at all stores to dispense recipes and product information
C)lighted outdoor signs at all stores to promote various brands
D)ads on all shopping carts

Question 67

What format seen today represents perhaps the oldest form of advertising and promotion?

A)the coupon
B)the premium
C)the directory
D)the billboard

Question 68

Though there appears to be some strong resistance, market research has indicated that more than 60 percent of consumers don't mind

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

Question 69

In a classic quote, what has been considered "the last five seconds of marketing"?

A)price
B)P-O-P
C)packaging
D)nutritional labeling

Question 70

A company that spends big promotional dollars on creating and distributing P-O-P displays can run into problems, as the text notes Gillette once did, if its marketing department is unaware that

A)few consumers notice them.
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 71

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 T-shirts, ball caps, and travel mugs.These items are considered self-liquidating premiums because the consumer

A)does not directly receive them within the packaging of a product.
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 72

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)allowing for repeat exposures of the same message.
D)helping consumers follow through on purchases.

Question 73

Advertisers are warned that they may face legal problems if they are not careful while conducting promotional activities.This is especially important with which types of consumer-market promotion techniques?

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 74

From the consumer's viewpoint, directories like the Yellow Book have some disadvantages as promotional tools.For one thing, they cause a particular problem with

A)getting lost in the massive volume of media clutter.
B)having long lead times that result in outdated information.
C)annoying rather than informing potential buyers.
D)being unable to offer detailed information.

Question 75

Support media are given that name because 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 76

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 a national market.
B)incorporates specialized lighting.
C)relates to an immediate need or desire.
D)offers around-the-clock exposure.

Question 77

The combination of transit, aerial, and cinema advertising is commonly called ____ media advertising.

A)P-O-P
B)out-of-home
C)trade-channel
D)business-market

Question 78

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)bribes.
B)improper gifts.
C)allowances.
D)slotting fees.

Question 79

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 the contest or sweepstakes itself.
B)choosing a winner in a manner which keeps everyone happy.
C)getting the word out.
D)notifying the winner when the sweepstakes is over.

Question 80

What are the two broad categories of P-O-P materials?

A)retail promotions and mobile promotions
B)in-store merchandising formats and out-of-store promotional formats
C)product containers and product signage
D)short-term promotional displays and long-term permanent displays