Question 1

Happy Pet is a large pet food company that has convinced the retailers and the wholesalers of the New England area to resell its products. Happy Pet promises to reimburse the advertising costs to its retailers and wholesalers for advertising its products. This is an example of a(n) ________.

Accepted Answer

This is an example of a trade promotion, where Happy Pet is providing incentives to its retailers and wholesalers to promote and sell its products. The reimbursement of advertising costs is a common type of trade promotion. Point-of-purchase promotions involve advertising specials or discounts at the point of sale, sweepstakes involve a chance to win a prize, price packs involve bundling products together at a discounted price, and advertising specialties involve giving away branded items like pens or keychains.

Question 2

Blue Fizz Inc. sponsors every race that takes place at the Sears Racing Track in Orange County, California. The high-octane racing at Sears is perfect for Blue Fizz to sell its energy drinks and to establish the desired brand image of the company. Which type of promotion is evident here?

Accepted Answer

The promotion evident here is event marketing, where Blue Fizz Inc. sponsors every race at the Sears Racing Track to sell its energy drinks and establish its brand image.

Question 3

Kirk Wilkins renewed his cell phone contract with Zip Wireless Services and purchased a new cell phone through the Zip Web site. If Kirk mails Zip Wireless Services his transaction receipt, he would be eligible to receive $50 as cash refund. Which of the following types of sales promotion is evident here?

Accepted Answer

This is an example of a rebate, which is a type of sales promotion that offers customers cash back or a reimbursement after they make a purchase. In this case, Kirk can receive $50 back by sending in his transaction receipt.

Question 4

Which of the following questions would help a marketer evaluate the return on a sales promotion investment?

Accepted Answer

Evaluating if the sales promotion attracted new customers or increased purchasing from current customers helps determine if the investment resulted in a positive return. The other options may be important, but they do not directly evaluate the return on investment.

Question 5

A manufacturer that offers cash or gifts to dealers for encouraging the purchase of its products is using ________.

Accepted Answer

Push money, also known as spiff, is a type of incentive program in which a manufacturer offers cash or gifts to dealers for promoting and encouraging the purchase of its products. The manufacturer "pushes" the sales of their products through these incentives.

Question 6

Monty Boyd, an account manager, travels frequently on West Coast Airlines. Monty earns points for every mile he flies, and he will soon have enough points to receive a free airline ticket. West Coast Airlines is attempting to build a strong customer relationship with Monty through a ________.

Accepted Answer

A frequency marketing program is a loyalty program designed to build strong customer relationships by rewarding customers for their repeated purchases or usage. In this case, Monty earns points for every mile he flies and will receive a free airline ticket once he earns enough points. This is a classic example of a frequency marketing program, which is aimed at fostering customer loyalty and boosting customer retention.

Question 7

________ include displays and demonstrations that take place at the point of sale.

Accepted Answer

POP promotions refer to point-of-purchase promotions that include displays and demonstrations that take place at the point of sale. Rebates (A) refer to a partial refund of the purchase price, price packs (B) offer consumers a reduced price when purchasing multiple units of a product, premiums (C) are items given away with a purchase, and samples (E) offer free product samples to consumers.

Question 8

Refer to the scenario below to answer the following question(s).
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy truck industry. Although Reliable Tools only has 15 customers, the company is the sole supplier of hub and axle components to those customers. Monthly sales at Reliable Tools are approximately $1 million. "You might say we have all our eggs in one basket," says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but large accounts. Ninety-five percent of Reliable Tools' customers are located in Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively short. However, given the nature of the industry, time spent with each customer is crucial.
-Sales promotion consists of long-term incentives to encourage the purchase of a product or service.

Accepted Answer

There is no mention in the scenario about sales promotion being a long-term incentive. It only discusses the importance of maintaining a competent sales force to nurture large accounts.

Question 9

Trade shows most likely help companies to ________.

Accepted Answer

Trade shows are a great way for companies to find new sales leads. Trade shows attract a range of people who are potentially interested in or involved in the industry. Therefore, companies can utilize trade shows as a platform to get in touch with potential clients and promote their products, leading to new sales leads. Trade shows also provide an opportunity for companies to showcase their latest products and services, network with other businesses, and gather market intelligence.

Question 10

Creating a brand-marketing event or serving as a sole or participating sponsor of events created by others is known as ________.

Accepted Answer

Event marketing involves creating or sponsoring events that promote a brand, product or service. This can include hosting a product launch party or participating in a trade show as a sponsor. It is a form of experiential marketing that allows customers to interact with a brand in a more personal and meaningful way.

Question 11

Which of the following is an example of trade promotion?

Accepted Answer

Offering free merchandise to resellers who feature a certain flavor or size is an example of trade promotion. Trade promotion involves activities that encourage resellers to stock and promote a manufacturer's products. These promotions can include offering discounts, free merchandise, or other incentives to entice resellers to promote and sell the products.

Question 12

Which of the following is used to generate business leads, stimulate purchases, reward customers, and motivate salespeople?

Accepted Answer

Business promotion is used to generate business leads, stimulate purchases, reward customers, and motivate salespeople. It encompasses various marketing and communication activities aimed at increasing awareness, sales, and loyalty.

Question 13

A ________ calls for consumers to submit an entry to be judged by a panel that will select the best entries.

Accepted Answer

A contest typically involves consumers submitting an entry that is judged based on specific criteria, whereas sweepstakes involve random selection of winners. Samples, premiums, and rebates all involve some sort of free or discounted product, but they do not involve consumer submissions or judging panels.

Question 14

Orion is planning to give away free mouse pads imprinted with the company logo and name to anyone who enters their store on the day they launch their new laser mouse. What kind of sales promotion is Orion planning?

Accepted Answer

Orion is planning to use promotional products by giving away free mouse pads imprinted with their logo and name to anyone who enters their store on the day of the new laser mouse launch.

Question 15

Waldo Stores will reward an all-expense-paid trip to Hawaii to anyone who correctly guesses the date on which Waldo Stores was first established in the Boston area. Which type of sales promotion is evident here?

Accepted Answer

This sales promotion is a contest, as it involves customers guessing the correct date for a chance to win a prize.

Question 16

________ refer to sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers.

Accepted Answer

Trade promotions are specifically targeted towards resellers in order to get them to stock and promote a brand to consumers. This a type of sales promotion tool that tries to persuade distributors, wholesalers, and retailers to carry a brand and push it to their customers.

Question 17

Bose offers $50 cash back to customers who purchase a new speaker and send in a proof of purchase. This is an example of a ________.

Accepted Answer

This is a rebate, as customers receive cash back after purchasing the product and sending in proof of purchase.

Question 18

Renee's, a company selling winter clothing in Chicago, ran a preseason promotion on some of its fur jackets, offering cash refunds if the snowfall in the customer's market area turned out to be below average. This exemplifies ________.

Accepted Answer

This is an example of a rebate, where customers are offered a cash refund if certain conditions are met. In this case, the condition is the snowfall in the customer's market area turning out to be below average.

Question 19

A five-foot high cardboard display of Terry the polar bear, mascot of Terry's protein shake, next to the shelf containing Terry's products in a supermarket is an example of a(n) ________.

Accepted Answer

The five-foot high cardboard display of Terry the polar bear is a point-of-purchase promotion because it is located next to the shelf containing Terry's products in a supermarket, which encourages customers to make a purchase. The other options (sample, business promotion, advertising specialty, and rebate) do not accurately describe this type of promotion.

Question 20

Refer to the scenario below to answer the following question(s).
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy truck industry. Although Reliable Tools only has 15 customers, the company is the sole supplier of hub and axle components to those customers. Monthly sales at Reliable Tools are approximately $1 million. "You might say we have all our eggs in one basket," says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but large accounts. Ninety-five percent of Reliable Tools' customers are located in Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively short. However, given the nature of the industry, time spent with each customer is crucial.
-Which of the following promotions would be most appropriate for Reliable Tools to use in its attempt to promote its products and generate new business leads?

Accepted Answer

Conventions and trade shows would be the most appropriate promotion for Reliable Tools to generate new business leads. As a company with only 15 customers, it would be beneficial to attend industry events and expos where potential customers can learn about the company's products and services. This type of promotion allows for face-to-face interactions with potential customers and provides the opportunity to showcase products and answer any questions they may have. Additionally, since the majority of Reliable Tools' customers are located in Michigan, Ohio, and Indiana, attending local trade shows would be cost-effective in terms of travel expenses.

Quiz 16: Personal Selling and Sales Promotion