Question 1

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 an example of a rebate, where customers receive money back after providing proof of purchase.

Question 2

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

Accepted Answer

Push money is a type of promotional incentive that involves a manufacturer offering cash or gifts to dealers or salespeople for encouraging the purchase or sale of their products. Coupons, promotional products, premiums, and bonuses are all forms of incentives, but they do not specifically involve cash or gifts being offered to dealers.

Question 3

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 the company is offering a cash refund to customers if a certain condition (low snowfall) is met.

Question 4

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

The promotion mentioned is a rebate, as the customer can receive $50 cash back by mailing in their transaction receipt to Zip Wireless Services.

Question 5

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

The sales promotion that Orion is planning is a promotional product, as they are giving away a free mouse pad imprinted with their logo and name to anyone who enters their store on the day they launch their new laser mouse.

Question 6

Sales promotion consists of long-term incentives to encourage the purchase of a product or service.

Accepted Answer

Sales promotion typically focuses on short-term incentives to drive immediate sales, while long-term incentives are usually part of a loyalty or customer retention program.

Question 7

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

A point-of-purchase promotion is any promotional display or material placed next to a product to attract the customer's attention and encourage impulse purchases. In this case, the cardboard display of Terry the polar bear next to the shelf containing Terry's products is an example of a point-of-purchase promotion.

Question 8

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

Accepted Answer

The answer of Which of the following is used to...

Question 9

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 incentives and promotions offered by manufacturers to their channel partners (distributors, wholesalers, and retailers) to support the sale of their products. This can include offering free merchandise, volume discounts, or cooperative advertising.

Question 10

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 the company offers incentives or rewards to its retailers and wholesalers to encourage them to buy and resell its products. In this case, Happy Pet is reimbursing advertising costs, which is a common form of trade promotion.

Question 11

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

Accepted Answer

The question that would help a marketer evaluate the return on a sales promotion investment is "Did the promotion attract new customers or more purchasing from current customers?" This question directly relates to the goal of a sales promotion, which is to increase sales and generate more revenue. Options A, B, C, and E may be important metrics to consider in evaluating the overall success of a sales promotion but do not directly relate to measuring the return on investment.

Question 12

________ 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 designed to incentivize resellers to promote and sell a brand through various means such as product displays, preferential shelf space, and advertising support. Point-of-purchase promotions, frequency marketing programs, events, and coupons and inserts can also be used to support trade promotions, but they do not specifically target resellers like trade promotions do.

Question 13

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 is a contest promotion as Waldo Stores is offering a prize to the person who correctly guesses the date of their establishment in the Boston area.

Question 14

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 participating in brand-marketing events or sponsoring events created by others. Option A, point-of-purchase promotions, involves marketing at or near the location where the product or service is sold. Option B, sweepstakes, involves holding a contest or giveaway to promote a product or service. Option C, team selling, involves a group of salespeople working together to sell a product or service. Option E, personal selling, involves one-on-one interactions between a salesperson and a potential customer.

Question 15

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

Reliable Tools should focus on trade shows and conventions to generate new business leads. As a manufacturer of niche products, it is important for Reliable Tools to target a specific audience and showcase their products in a setting where potential customers from the industry gather. This will allow them to establish new relationships and expand their customer base beyond their current 15 customers. Rebates and price packs, premiums, specialty advertising, and samples may not be as effective in reaching new customers in the trailer and heavy truck industry.

Question 16

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 rewards customers for repeat business and encourages them to continue to do business with the company. This is the best choice because Monty earns points for every mile he flies and will soon receive a free airline ticket as a reward for his loyalty. Trade promotions, promotional products, rebate offers, and point-of-purchase promotions are all tactics used to stimulate short-term sales, but they do not necessarily build a long-term relationship with the customer.

Question 17

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

This is evident through the sponsorship of every race at the Sears Racing Track in Orange County, California.

Question 18

Trade shows most likely help companies to ________.

Accepted Answer

Trade shows provide companies with a gathering of industry professionals, potential customers, and other businesses in the same field. This presents opportunities for companies to make new connections, gain new sales leads, and potentially increase revenue. While trade shows may indirectly result in increased productivity or a shorter selling process, these are not the primary goals of attending a trade show. Trade shows do not directly impact overhead costs or the size of a company's sales force.

Question 19

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

Accepted Answer

POP promotions (Point of Purchase promotions) include displays and demonstrations that take place at the point of sale. Rebates (A) involve returning a portion of the purchase price to the customer after they have made the purchase. Price packs (B) offer a reduced price when a certain quantity is purchased. Premiums (C) are items given away for free or at a reduced cost with the purchase of another product. Samples (E) offer the customer a small amount of the product to try before making a purchase.

Question 20

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

Accepted Answer

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

Quiz 16: Personal Selling and Sales Promotion