Question 1

Usually the go/no-go decision for a sales promotion is based on the ________.

Accepted Answer

The most important factor in a go/no-go decision for a sales promotion is the expected return on investment (ROI) of the program. This involves analyzing the costs of the promotion, the expected increase in sales, and any other potential benefits or drawbacks. Creativity, quality of premiums, and relationship with channel members may be important considerations in designing the promotion, but they are not the primary factor in the go/no-go decision. The level of product parity may be relevant in determining how effective the promotion is likely to be, but it is not the deciding factor in the decision to proceed or not.

Question 2

The consumer promotion that provides a reduction in the normal price charged for a good or service announced at the point of sale or through mass or direct advertising is known as a ________.

Accepted Answer

The description matches the definition of a cents-off deal, where the consumer is given a reduction in the normal price charged for a good or service through advertising or at the point of sale. The other options listed refer to other types of consumer promotions, such as prize-pack deals, bonus packs, banded packs, and coupons.

Question 3

Which of the following provide the consumer with something extra through the package itself?

Accepted Answer

A

Question 4

Which of the following statements regarding sales promotion is false?

Accepted Answer

Shoppers today are actually less loyal to brands and more willing to try new products, which is why sales promotion has become an important tool for marketers to create product trial and encourage repeat purchases.

Question 5

Sales manuals, training programs, and supportive materials are all examples of ________.

Accepted Answer

Sales manuals, training programs, and supportive materials are all designed to promote and support the sales force. They are not retailer, partner, or trade promotions, and while they may be used within a channel promotion strategy, they are not inherently channel promotions themselves. Therefore, the best choice is C) sales force promotions.

Question 6

Allowing the consumer to try the product or service is called ________.

Accepted Answer

Allowing the consumer to try the product or service is called sampling. Option A is incorrect because a warranty is a promise made by the manufacturer to the consumer that the product is reliable and will last for a specific period of time. Option C is incorrect because a premium is an extra item offered to the consumer as an incentive to purchase the product or service. Option D is incorrect because a specialty item is a unique product or service that is not offered by competitors. Option E is incorrect because a self-liquidating promotion is when the cost of the promotion is equal to or less than the revenue generated by the promotion.

Question 7

Which of the following is NOT a typical target audience of sales promotion?

Accepted Answer

Media is not a typical target audience for sales promotion. Sales promotion is generally targeted towards consumers, distributors, sales representatives, retailers, or other intermediaries in the distribution channel, but not towards media.

Question 8

Which of the following is a common consumer price deal?

Accepted Answer

The answer of Which of the following is a common...

Question 9

A consumer sales promotion that is a marketer's offer to return a certain amount of money to the consumer who purchases the product is known as a ________.

Accepted Answer

The answer of A consumer sales promotion that is a...

Question 10

The media and non-media marketing pressure applied for a predetermined, limited period of time at the level of consumer, retailer, or wholesaler in order to stimulate trial, increase consumer demand, or improve product availability is categorized as ________.

Accepted Answer

Sales promotion is the type of marketing pressure applied for a predetermined, limited period of time at the level of consumer, retailer, or wholesaler in order to stimulate trial, increase consumer demand, or improve product availability. Advertising, public relations, personal selling, and event sponsorship do not necessarily have a limited time period or focus on stimulating trial or increasing availability.

Question 11

Which of the following is NOT a common consumer price deal?

Accepted Answer

Refunds are not typically considered a consumer price deal; they are a return of money after a purchase, rather than a discount or promotional offer.

Question 12

Which of the following is NOT a reason for the growth of sales promotion?

Accepted Answer

Pressure for long-term profits is not a reason for the growth of sales promotion. The growth of sales promotion is more focused on short-term gains and increasing sales volume, rather than long-term profitability.

Question 13

A temporary price reduction or a sale price is known as a ________.

Accepted Answer

A price deal refers to a temporary price reduction or a sale price offered by a retailer to boost sales or clear inventory. Option A refers to a return of money already paid, option B refers to a partial refund after a purchase, option D refers to a commission paid to salespeople, and option E refers to a reduced price offered by a manufacturer rather than a retailer.

Question 14

Which of the following is NOT a type of consumer promotion?

Accepted Answer

Price deals, sampling, contests and sweepstakes, and premiums are all types of consumer promotion. Spiffs, on the other hand, are incentives given to salespeople to motivate them to sell a particular product or brand.

Question 15

Sales promotion is often the most effective strategy for increasing sales of a(n)________.

Accepted Answer

Sales promotion is often used for parity products, as they are not inherently unique or exclusive and therefore require additional incentives to encourage consumers to choose one brand over another. Luxury or exclusive products may not need sales promotion, as their high status and demand can already create a sense of exclusivity and desirability. Business services and differentiated products may also benefit from sales promotion, but it is not necessarily the most effective strategy for these types of offerings.

Question 16

What is the ultimate goal of sales promotion?

Accepted Answer

The ultimate goal of sales promotion is to encourage or persuade customers to take action and make a purchase. While awareness, identification, intention, and liking are important for creating interest in a product, the primary objective of sales promotion is to drive sales and increase revenue.

Question 17

Which of the following are the two types of coupons?

Accepted Answer

The answer of Which of the following are the two...

Question 18

________ coupons can be redeemed only at the specified retail outlet, and ________ coupons can be redeemed at any outlet distributing the product.

Accepted Answer

Retailer-sponsored coupons are issued by the retailer and can only be redeemed at their store. Manufacturer-sponsored coupons are issued by the manufacturer and can be redeemed at any store that carries their product.

Question 19

The consumer promotion that is a tangible reward for a particular act, usually purchasing a product or visiting the point-of-purchase, is known as a ________.

Accepted Answer

A premium is a reward that consumers receive for purchasing a product or visiting the point-of-purchase. It is a tangible item like a toy given in kids meals or a free gift with purchase. Samples and price deals are not rewards for a particular act, but rather incentives to try or purchase a product. Contests and sweepstakes typically require an entry with no guaranteed reward for the consumer's act.

Question 20

Through the process of ________, results derived from a promotion can be estimated and compared with the projected cost of the effort.

Accepted Answer

Payout planning involves estimating results from a promotion and comparing them with the projected cost of the effort. This helps determine if the promotion is worth the investment. Investment planning involves determining how much budget to allocate to a promotion, added value planning involves identifying ways to increase the perceived value to the customer, allowance analysis involves evaluating sales performance of a product before and after a promotional allowance is offered, and continuity analysis involves measuring the effectiveness of a promotion over time.

Quiz 17: Promotions