Question 1

Scenario 15-4
General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well. Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal. 
-(Scenario 15-4)General Mills' salespeople handle and monitor a number of promotions for its cereals.Which of the following involves Point-of-Purchase advertising?

Accepted Answer

Point-of-Purchase advertising refers to any promotional display or material that is placed where the product is being sold, such as in-store displays. Therefore, the best choice that involves Point-of-Purchase advertising is a large display of cereal boxes at the end of the grocery aisle. Choices A, B, and C do not involve in-store displays and are not considered Point-of-Purchase advertising.

Question 2

Scenario 15-4
General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well. Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal. 
-(Scenario 15-4)The marketers at General Mills have learned that along with Kellogg's and Quaker Oats,they often target the same customers with their advertising.This problem of customers receiving too many messages from too many firms has been addressed with sales promotion tactics featured in advertising such as coupons included in magazine ads,or rebate offers mentioned in TV commercials.This is an example of _________ driving growth in sales promotion.

Accepted Answer

The problem of customers receiving too many messages from too many firms is an example of media clutter driving growth in sales promotion. In this scenario, General Mills is using sales promotion tactics in advertising to cut through the clutter and reach their target customers.

Question 3

Scenario 15-6
Ted's grocery store is extremely popular in a small neighborhood. Pretzels, a crisps company, has provided scratch cards inside each packet of crisps with the hope of a prize for the winner. Pretzels being a relatively new company had to pay Ted's grocery to sell its products. Quads, a blender manufacturer, has provided its customers with a chance to receive 10% of their money back by filling in and mailing the required details on a provided form. It also stated that employees who sell two blenders would receive a bonus. Quad had sent the owner of Ted's grocery an expensive hand crafted wooden sculptor. 
-(Scenario 15-6)Quad sent the owner of Ted's grocery an expensive hand crafted sculpture.This is an example of a(n)_______.

Accepted Answer

The expensive hand crafted wooden sculpture from Quad to the owner of Ted's grocery is an example of a business gift. It is not a bribe because there is no expectation of the owner of Ted's grocery to do anything in return. It is not an advertising specialty because it was not given to promote the Quad brand. It is not a premium because it was not given to customers for the purchase of a Quad product.

Question 4

Discuss the overall trend in spending on advertising and sales promotion over the past decade.Outline at least three reasons for this trend.

Accepted Answer

The answer of Discuss the overall trend in spending on...

Question 5

Scenario 15-3
Stacey is making her weekly trip to the grocery store. She takes with her a National brand coffee coupon worth 50 cents. While shopping she was asked if she would like to try a slice of pizza from a sales person. After tasting it, the sales personal directs her to where the brand is available. When Stacey arrives at her favorite brand oftoothpaste, she is delighted to find that she would receive a toothbrush along with the toothpaste attached to the box for no charge. She then runs into a cardboard cutout of an actor from a medical drama that she watches on TV, with a box full of pain relievers built into it. At her last stop, the cereal aisle, she notices that a brand offers a chance to buy a T-shirt with a picture of the brand's cartoon character. 
-(Scenario 15-3)Among all the products with sales promotions in the store,which of the following involved Point-of Purchase advertising that might have cost the manufacturer a few pennies?

Accepted Answer

The cardboard cutout of an actor from a medical drama used to promote the pain medicine is an example of Point-of-Purchase advertising, which is designed to attract customers' attention at the place where they make the purchase decision. This type of advertising typically involves displays or signage and can be relatively inexpensive, costing only a few pennies to the manufacturer in terms of the materials used.

Question 6

Scenario 15-4
General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well. Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal. 
-(Scenario 15-4)General Mills allows its retailers to deduct $2 from every box of cereal in the shipment it receives.This is an example of a(n):

Accepted Answer

An off-invoice allowance is a discount that is applied to the invoice for the ordered products. Therefore, General Mills allowing its retailers to deduct $2 from every box of cereal in the shipment it receives is an example of an off-invoice allowance. Slotting fees are fees paid by manufacturers to retailers to secure shelf space for their products. Merchandise allowances and bill-back allowances are also types of discounts, but they are applied to future purchases instead of being deducted from the invoice.

Question 7

List and describe the four main techniques commonly used in trade-market sales promotions.Choose one type and demonstrate how it would operate within a certain type of industry,profession,or business.

Accepted Answer

The answer of List and describe the four main techniques...

Question 8

Scenario 15-4
General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well. Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal. 
-(Scenario 15-4)On the back of its Cheerios boxes,General Mills has printed a form to fill out for a cookbook offer.The booklet is available to consumers for a nominal charge of $3.00,plus a $1.00 shipping and handling charge.This is an example of a(n):

Accepted Answer

This is an example of a self-liquidating premium as the consumer has to pay a nominal charge of $3.00 plus a $1.00 shipping and handling charge to receive the cookbook offer. The cost of the premium is covered by the amount paid by the consumer.

Question 9

Scenario 15-4
General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well. Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal. 
-(Scenario 15-4)General Mills inserts a sheet of coupons in the Sunday newspapers in major markets.This is a form of ___________ sales promotion.

Accepted Answer

Inserting a sheet of coupons in the Sunday newspapers is a form of consumer-market sales promotion because it targets the end consumer directly to stimulate demand for General Mills' brands of cereal. The coupons are intended to entice consumers to purchase General Mills' brands over competitors' brands. Business-market sales promotion would target businesses or distributors rather than end consumers, while trade-market sales promotion would target retailers rather than end consumers. Bill-back is a form of trade-market sales promotion where the manufacturer offers a discount or reimbursement to the retailer for their promotional efforts.

Question 10

Assume that you are the marketing director for a business of your choice-it can be a real business or an imaginary one-and you need to reach a local audience.You are asked to compare billboard advertising and transit advertising,including their advantages and disadvantages,and prepare a short report detailing these issues.Briefly outline the report you would write,paying particular attention to the best way to promote the brand,the type of product or service you are selling,the geographic area you are in,the demographics of the local population,etc.

Accepted Answer

The answer of Assume that you are the marketing director...

Question 11

Scenario 15-6
Ted's grocery store is extremely popular in a small neighborhood. Pretzels, a crisps company, has provided scratch cards inside each packet of crisps with the hope of a prize for the winner. Pretzels being a relatively new company had to pay Ted's grocery to sell its products. Quads, a blender manufacturer, has provided its customers with a chance to receive 10% of their money back by filling in and mailing the required details on a provided form. It also stated that employees who sell two blenders would receive a bonus. Quad had sent the owner of Ted's grocery an expensive hand crafted wooden sculptor. 
-(Scenario 15-6)Employees receive a bonus from Quad for selling two or more blenders.This is an example of:

Accepted Answer

This is an example of push money or a spiff, which is a short-term incentive given to sales employees to motivate them to sell more of a particular product or service.

Question 12

Scenario 15-6
Ted's grocery store is extremely popular in a small neighborhood. Pretzels, a crisps company, has provided scratch cards inside each packet of crisps with the hope of a prize for the winner. Pretzels being a relatively new company had to pay Ted's grocery to sell its products. Quads, a blender manufacturer, has provided its customers with a chance to receive 10% of their money back by filling in and mailing the required details on a provided form. It also stated that employees who sell two blenders would receive a bonus. Quad had sent the owner of Ted's grocery an expensive hand crafted wooden sculptor. 
-(Scenario 15-6)Quads' customers need to mail them a form to receive 10% of their money back on purchases.This is an example of a ________.

Accepted Answer

The scenario describes Quads offering a percentage of money back to customers who fill in and mail a form, which is referred to as a rebate. The other options (slotting fee, merchandise allowance, and coupon) do not accurately describe the promotion offered by Quads.

Question 13

Describe the various sampling techniques used in consumer-market sales promotion.

Accepted Answer

The answer of Describe the various sampling techniques used in...

Question 14

Scenario 15-6
Ted's grocery store is extremely popular in a small neighborhood. Pretzels, a crisps company, has provided scratch cards inside each packet of crisps with the hope of a prize for the winner. Pretzels being a relatively new company had to pay Ted's grocery to sell its products. Quads, a blender manufacturer, has provided its customers with a chance to receive 10% of their money back by filling in and mailing the required details on a provided form. It also stated that employees who sell two blenders would receive a bonus. Quad had sent the owner of Ted's grocery an expensive hand crafted wooden sculptor. 
-(Scenario 15-6)Pretzels has provided a scratch card inside each packet of crisps.This is an example of a __________.

Accepted Answer

This scenario describes a sweepstake, where customers have the chance to win a prize by purchasing a product and finding a scratch card inside.

Question 15

Describe any five of the consumer-market sales promotion techniques.

Accepted Answer

The answer of Describe any five of the consumer-market sales...

Question 16

Scenario 15-6
Ted's grocery store is extremely popular in a small neighborhood. Pretzels, a crisps company, has provided scratch cards inside each packet of crisps with the hope of a prize for the winner. Pretzels being a relatively new company had to pay Ted's grocery to sell its products. Quads, a blender manufacturer, has provided its customers with a chance to receive 10% of their money back by filling in and mailing the required details on a provided form. It also stated that employees who sell two blenders would receive a bonus. Quad had sent the owner of Ted's grocery an expensive hand crafted wooden sculptor. 
-(Scenario 15-6)Pretzels paid Ted's grocery a fee to sell its products.This is known as:

Accepted Answer

The fee paid by Pretzels to Ted's grocery is a slotting fee, which is a fee charged by a retailer to stock a new product.

Question 17

What are the two main categories of Point-of-Purchase promotions? List and describe any five P-O-P formats available to retailers.

Accepted Answer

The answer of What are the two main categories of...

Quiz 15: Sales Promotion, point-Of-Purchase Advertising, and Support Media

Discuss the overall trend in spending on advertising and sales promotion over the past decade.Outline at least three reasons for this trend.

List and describe the four main techniques commonly used in trade-market sales promotions.Choose one type and demonstrate how it would operate within a certain type of industry,profession,or business.

Describe the various sampling techniques used in consumer-market sales promotion.

Describe any five of the consumer-market sales promotion techniques.

What are the two main categories of Point-of-Purchase promotions? List and describe any five P-O-P formats available to retailers.