Question 1

More money (in the U.S.) is spent on advertising than on sales promotion.

Accepted Answer

In the U.S. the total spending on sales promotion exceeds spending on advertising.

Question 2

Trade promotion usually stresses price-related matters.

Accepted Answer

Sales promotion aimed at intermediaries, sometimes called trade promotion, emphasizes price-related matters.

Question 3

Spending on sales promotion exceeds spending on advertising.

Accepted Answer

Sales promotion involves so many different types of activities that it is difficult to estimate accurately how much is spent in total. There is general consensus, however, that the total spending on sales promotion exceeds spending on advertising.

Question 4

Sales promotions can usually get sales results sooner than advertising.

Accepted Answer

Sales promotion can often be implemented quickly and get sales results sooner than advertising.

Question 5

When Intuit, a tax and financial planning software company, created a website where its QuickBooks customers could interact about problems facing their small businesses, this was an example of an online community.

Accepted Answer

Tax and financial planning software company Intuit hosts an online community site where its QuickBooks customers can interact with each other about problems facing their small businesses.

Question 6

Sales promotion problems are likely to be greater when an advertising or sales manager, instead of a sales promotion manager, has responsibility for sales promotion.

Accepted Answer

Sales promotion mistakes are likely to be worse when a company has no sales promotion manager.

Question 7

Only a few of the principles normally associated with advertising also apply to publicity.

Accepted Answer

Although publicity doesn't involve the use of paid media, most of the principles associated with advertising apply to publicity as well.

Question 8

Sales promotion is generally used instead of other promotion methods.

Accepted Answer

Sales promotion is generally used to complement (not replace) the other promotion methods.

Question 9

When a company includes videos on its website of how it has helped individual business customers solve an important problem, this is an example of offering online case studies.

Accepted Answer

Business customers often search the Internet for solutions to real business problems. They like to read case studies-success stories about how a company helped another customer.

Question 10

Because consumers are becoming less and less price-sensitive, the use of sales promotion is increasing.

Accepted Answer

Because of stiff competition, many consumers have become more price sensitive. So, sales promotion has been used as a tool to overcome consumer price resistance.

Question 11

In general, sales promotion tries to spark immediate interest, trial, or purchase.

Accepted Answer

Sales promotion refers to those promotion activities other than advertising, publicity, and personal selling that stimulate interest, trial, or purchase by final customers or others in the channel.

Question 12

Much of the sales promotion aimed at final consumers or users tries to increase demand, perhaps temporarily, or speed up the time of purchase.

Accepted Answer

Much of the sales promotion aimed at final consumers or users tries to increase demand, perhaps temporarily, or speed up the time of purchase.

Question 13

In total, advertising costs less than sales promotion.

Accepted Answer

The total spending on sales promotion exceeds spending on advertising.

Question 14

A sales promotion can cost more than it adds in sales.

Accepted Answer

If the increase in sales won't at least cover the cost of the promotion, it probably doesn't make sense to do it. Otherwise, the firm is "buying sales" at the cost of reduced profit.

Question 15

Producers of consumer-packaged goods typically stop using sales promotion when their product-markets mature.

Accepted Answer

In mature markets, frequent sales promotions may be needed just to offset the effects of competitors' promotions.

Question 16

Samsung's placement of charging stations in airports and on college campuses is a good example of a company offering its customers "branded services."

Accepted Answer

Samsung's placement of charging stations in airports and on college campuses is a good example of a company offering its customers "branded services" and building favorable attitudes in the process.

Question 17

Advertising can usually get sales results sooner than sales promotion.

Accepted Answer

Sales promotion can often be implemented quickly and get sales results sooner than advertising.

Question 18

Most M and M's are sold as consumer products, but M and M's printed with special messages or brand logos have become an effective (and sweet) sales promotion tool for business customers.

Accepted Answer

Most M and M's are sold as consumer products, but M and M's printed with special messages or brand logos are a sweet way to remind business customers about a firm.

Question 19

Procter and Gamble is an example of a consumer packaged goods firm that has dramatically increased its use of trade promotion in the promotion blend.

Accepted Answer

Procter & Gamble has changed its strategy, and promotion blend, to decrease its reliance on sales promotion targeted at intermediaries.

Question 20

It is against the law for industrial buyers to accept promotion items from suppliers.

Accepted Answer

Some sellers give promotion items like pen sets, watches, or clothing with the firm's brand name on them to remind business customers of their products. This is common, but it can be a problem. Some companies do not allow buyers to accept any gifts.

Quiz 15: Advertising, Publicity, and Sales Promotion

More money (in the U.S.) is spent on advertising than on sales promotion.

Trade promotion usually stresses price-related matters.

Spending on sales promotion exceeds spending on advertising.

Sales promotions can usually get sales results sooner than advertising.

When Intuit, a tax and financial planning software company, created a website where its QuickBooks customers could interact about problems facing their small businesses, this was an example of an online community.

Sales promotion problems are likely to be greater when an advertising or sales manager, instead of a sales promotion manager, has responsibility for sales promotion.

Only a few of the principles normally associated with advertising also apply to publicity.

Sales promotion is generally used instead of other promotion methods.

When a company includes videos on its website of how it has helped individual business customers solve an important problem, this is an example of offering online case studies.

Because consumers are becoming less and less price-sensitive, the use of sales promotion is increasing.

In general, sales promotion tries to spark immediate interest, trial, or purchase.

Much of the sales promotion aimed at final consumers or users tries to increase demand, perhaps temporarily, or speed up the time of purchase.

In total, advertising costs less than sales promotion.

A sales promotion can cost more than it adds in sales.

Producers of consumer-packaged goods typically stop using sales promotion when their product-markets mature.

Samsung's placement of charging stations in airports and on college campuses is a good example of a company offering its customers "branded services."

Advertising can usually get sales results sooner than sales promotion.

Most M and M's are sold as consumer products, but M and M's printed with special messages or brand logos have become an effective (and sweet) sales promotion tool for business customers.

Procter and Gamble is an example of a consumer packaged goods firm that has dramatically increased its use of trade promotion in the promotion blend.

It is against the law for industrial buyers to accept promotion items from suppliers.