Question 1

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 2

In total, advertising costs less than sales promotion.

Accepted Answer

The total spending on sales promotion exceeds spending on advertising.

Question 3

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 4

Sales promotion aimed at company's own sales force is sometimes called trade promotion.

Accepted Answer

Sales promotion aimed at intermediaries is sometimes called trade promotion.

Question 5

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 6

Trade promotion usually stresses price-related matters.

Accepted Answer

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

Question 7

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 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

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 10

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 11

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 12

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 13

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 14

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 15

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 16

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 17

Sales promotion directed at employees is especially popular with service-oriented firms.

Accepted Answer

Service-oriented firms such as hotels and restaurants use sales promotions targeted at their employees. Sales promotion aimed at the company's own sales force might try to encourage providing better service, getting new customers, selling a new product, or selling the company's whole line. The sales force gets attractive rewards in return.

Question 18

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 19

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.

Question 20

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.

Quiz 15: Advertising, Publicity, and Sales Promotion

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.

In total, advertising costs less than sales promotion.

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.

Sales promotion aimed at company's own sales force is sometimes called trade promotion.

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

Trade promotion usually stresses price-related matters.

Advertising can usually get sales results sooner than sales promotion.

Sales promotion is generally used instead of other promotion methods.

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

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

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

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.

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

Spending on sales promotion exceeds spending on advertising.

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

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

Sales promotion directed at employees is especially popular with service-oriented firms.

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.

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

Sales promotions can usually get sales results sooner than advertising.