Question 1

According to consumer-packaged goods companies, which of the following effects is attributed to the heavy use of sales promotion?

Accepted Answer

Heavy use of sales promotion can lead to increased price sensitivity among consumers, meaning they may become more focused on getting the best deal rather than being loyal to a specific brand or product. This can have an impact on long-run marketing planning and potentially affect brand-quality image, as well as increase coupon redemption rates. However, increased brand loyalty is not typically a direct effect of heavy sales promotion.

Question 2

Sales promotion expenditures increased as a percentage of budget expenditure for a number of years. Growth has, however, recently slowed. Which of the following is a factor that has contributed to the growth of sales promotion expenditures?

Accepted Answer

The trade (retailers and distributors) demanding more deals from manufacturers would lead to an increase in sales promotion expenditures as manufacturers would need to offer discounts and incentives to secure distribution and sales for their products. Choices A, B, D, and E do not provide a plausible explanation for the growth of sales promotion expenditures.

Question 3

Which of the following elements of the marketing communications mix consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers, or the trade?

Accepted Answer

Sales promotion consists of short-term tactics intended to encourage the purchase or sale of a product or service. These tactics can include coupons, discounts, rebates, contests, and other incentive-based methods. Sales promotions are often used in conjunction with other elements of the marketing communications mix, such as advertising, public relations, and personal selling.

Question 4

Which of the following is a sales promotion tool that typically does NOT build brand image?

Accepted Answer

While consumer refund offers may entice customers to try a product or make a purchase, they typically do not contribute to building brand image.

Question 5

When Fred sends in the box top from his cereal to receive a free DVD of a cartoon featuring one of his favorite characters, he is responding to a ________.

Accepted Answer

Fred is responding to a free in-the-mail premium, where he sends in the box top in exchange for a free DVD. A self-liquidating premium requires payment to receive the premium, a with-pack premium is included in the package, a reduced-price pack offers a discount on the product, and a banded pack combines two or more products for a discounted price.

Question 6

Describe the communication-effect research method of evaluating advertising effectiveness.

Accepted Answer

The answer of Describe the communication-effect research method of evaluating...

Question 7

The forgetting rate is the rate at which the buyer forgets the brand; the higher the forgetting rate, the more continuous the advertising should be.

Accepted Answer

This statement is true. The forgetting rate refers to how quickly a buyer forgets a brand after being exposed to advertising or other marketing efforts. The higher the forgetting rate, the more frequently advertising needs to be displayed to maintain brand awareness and recognition.

Question 8

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

Accepted Answer

The answer of Which of the following is an example...

Question 9

The macroscheduling decision calls for allocating advertising expenditures within a short period to obtain maximum impact.

Accepted Answer

Macroscheduling refers to the decision of when to advertise over a longer period, such as a year, to align with overall marketing and business objectives, not the allocation of advertising expenditures within a short period.

Question 10

Describe the adjustments that an advertiser of high-end laptops has to make to the cost-per-thousand measure.

Accepted Answer

The answer of Describe the adjustments that an advertiser of...

Question 11

The rationale behind place advertising is that marketers are better off reaching people where they work, play, and shop.

Accepted Answer

Place advertising targets consumers at the locations where they spend most of their time, such as their workplace, leisure destinations, and shopping centers. This strategy aims to increase the likelihood of consumers noticing and engaging with the advertisement, ultimately leading to increased sales or brand awareness.

Question 12

The higher the forgetting rate associated with a brand, product category, or message, the lower the warranted level of repetition.

Accepted Answer

A higher forgetting rate actually justifies a higher level of repetition to reinforce memory and ensure the brand, product category, or message remains top of mind for consumers.

Question 13

An advertiser makes "local buys" when it buys TV time in just a few markets or in regional editions of magazines.

Accepted Answer

The answer of An advertiser makes "local buys" when it...

Question 14

Which of the following is a sales promotion tool that is consumer franchise building in nature?

Accepted Answer

Frequency awards are a type of sales promotion tool that are consumer franchise building in nature. They reward customers for making repeat purchases and encourage loyalty to the brand. Price-off packs, contests and sweepstakes, consumer refund offers, and trade allowances are all examples of sales promotion tools, but they may not necessarily focus on building long-term consumer loyalty.

Question 15

Which of the following is an example of a business and sales force promotion?

Accepted Answer

Contests for sales reps are a type of business and sales force promotion that motivate salespeople to increase their sales by offering prizes or rewards for achieving specific goals or objectives. This can help boost motivation and drive performance within a sales team. The other options listed are types of trade promotions that target consumers (discount coupons, free samples) or retailers (advertising allowances, display allowances).

Question 16

Outdoor advertising is more effective at creating new brand associations than enhancing brand awareness or brand image.

Accepted Answer

Outdoor advertising is effective at enhancing brand awareness and brand image by consistently exposing the brand to the public in high-traffic areas, but it is not necessarily more effective at creating new brand associations than other forms of advertising that allow for more detailed messaging and targeted audience engagement.

Question 17

Describe the methods used to measure sponsorship activities.

Accepted Answer

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Question 18

Which of the following is an example of a manufacturer promotion?

Accepted Answer