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)Music Mixers,a manufacturer of recording equipment,speakers,and microphones based in Baltimore,is a supplier for Sounds Good.The owners of Sounds Good have purchased most of their studio equipment from Music Mixers.Now,Music Mixers is running a promotion of its own.When the sales representative visits,he drops off two expensive leather jackets with a small Music Mixers logo on one sleeve.The jackets are considered ___________,and are part of a business-market sales promotion.

Question

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)Music Mixers,a manufacturer of recording equipment,speakers,and microphones based in Baltimore,is a supplier for Sounds Good.The owners of Sounds Good have purchased most of their studio equipment from Music Mixers.Now,Music Mixers is running a promotion of its own.When the sales representative visits,he drops off two expensive leather jackets with a small Music Mixers logo on one sleeve.The jackets are considered ___________,and are part of a business-market sales promotion.

Quizplus · Accepted Answer

The jackets are being given as a gift to the owners of Sounds Good, who are Music Mixers' business clients. As such, this is a business-market sales promotion, and the jackets are considered a business gift. Advertising specialties are typically lower cost items with a logo or message that are given out to promote a brand, while premiums are items offered as an incentive for purchasing a product or service. Merchandise allowances are discounts given to retailers for purchasing a certain amount of product from a manufacturer or supplier. None of these terms accurately describes the jackets being given to Sounds Good by Music Mixers.

Scenario 15-2 The Sounds Good Recording Company Is Getting Ready to Release