Question 1

Broyhill is offering the sales force at Meers Furniture Emporium a $50 reward for each Broyhill Pleasant Isle Living Room Collection sold in the next 30 days.What type of trade sales promotion is the $50?

Accepted Answer

The $50 reward being offered to the sales force is an example of push money, which is a type of trade sales promotion that provides incentives to salespeople to push the sale of a particular product or brand. The reward is given to the sales force for each sale of the Broyhill Pleasant Isle Living Room Collection, which encourages them to focus on selling this particular product.

Question 2

_____ is direct communication between a sales representative and one or more prospective buyers,for the purpose of making a sale.

Accepted Answer

Personal selling involves direct communication between a sales representative and one or more prospective buyers, for the purpose of making a sale. Trade promotion, sales promotion, public relations, and direct marketing are all different types of marketing and communication strategies, but they do not necessarily involve direct personal communication between a sales representative and a prospective buyer.

Question 3

Schwinn Cycling and Fitness,Inc.,is offering a chain of sporting goods superstores a 20 percent discount on all Schwinn bicycles if the stores will run their own special promotion on the new Schwinn Paramount Titanium bikes.Schwinn is offering a:

Accepted Answer

Schwinn is offering a discount to the sporting goods superstores in exchange for the stores promoting the new Schwinn Paramount Titanium bikes. This is an example of a trade allowance, where a manufacturer offers a discount or other incentives to a trade partner in exchange for specific actions or promotions.

Question 4

You are responsible for sales promotion for a new brand of low-carb dairy products for people who are trying to lose weight.You need to introduce a new product to supermarket managers and owners,attract and identify new store contacts,and test market the response to your new product.Which type of trade promotion would most likely help you reach your objectives?

Accepted Answer

Trade shows are effective for introducing new products to supermarket managers and owners, attracting new store contacts, and testing market responses, as they provide a platform for direct interaction and feedback.

Question 5

Harland & Wolff in Belfast,North Ireland,makes ocean-going vessels.(It was the company that manufactured the Titanic.)Last year its primary customer was the U.S.government.You would expect Harland & Wolff to rely on _____ to promote its vessels.

Accepted Answer

Personal selling would be the best choice for promoting vessels to the U.S. government, as the sales process for such large and complex purchases typically involves negotiations and communication between representatives from both parties.

Question 6

The use of trade shows,conventions,and conferences to contact customers:

Accepted Answer

Trade shows, conventions, and conferences are effective ways to contact potential customers as they cost much less per potential customer compared to personal sales calls. This is because companies are able to reach a large number of potential customers at one location. Additionally, it allows for networking opportunities and increased brand exposure.

Question 7

You are responsible for sales promotion for VitaBalls,a vitamin in a bubble gum form.Your objectives are to encourage product trial and repurchase,encourage brand switching to your brand,and increase the amount of product purchased by current customers.You have used coupons in the past but found that many were sent to homes that were childless.To reach consumers who have an interest in your product,you may want to:

Accepted Answer

The answer of You are responsible for sales promotion for...

Question 8

_____ is money offered by a manufacturer to employees of channel intermediaries to encourage them to sell the manufacturer's product.

Accepted Answer

Push money is a cash incentive or bonus given by a manufacturer to salespeople, distributors, or retailers to motivate them to sell the manufacturer's product. It is a common practice in industries such as consumer electronics, where manufacturers need to push their products through intermediaries to reach the end consumer. Trade allowance is a discount or price reduction offered to intermediaries for promoting a manufacturer's product. A selling deal is a promotional offer or discount given to end consumers, and a premium payment is a reward given directly to consumers for buying a product. A direct trade sales promotion involves offering a discount or incentive directly to end consumers.

Question 9

Which of the following is NOT an example of a trade sales promotion?

Accepted Answer

Premiums and coupons are examples of consumer sales promotions, as they are directed towards the end consumer rather than trade partners. The other options are all examples of trade sales promotions, which are targeted towards the intermediaries involved in the distribution and sale of the product.

Question 10

Personal selling is more important than advertising and sales promotion if:

Accepted Answer

Personal selling is more important than advertising and sales promotion when the products being sold are technically complex, as personal selling allows for direct communication and explanation of the technical features and benefits of the product. This is especially important when customers may have questions or concerns that require in-depth knowledge to address.

Question 11

_____ is a price reduction offered by manufacturers to intermediaries such as wholesalers or retailers,in exchange for performance of specified functions or purchasing during special periods.

Accepted Answer

This is the definition of a trade allowance.

Question 12

For which of the following products would its producer be more likely to choose personal selling rather than advertising or sales promotion to market it?

Accepted Answer

Insurance policies require a high level of personalization, negotiation, and relationship-building, which is best achieved through personal selling rather than advertising or sales promotion.

Question 13

When compared to other forms of promotion,personal selling:

Accepted Answer

Personal selling is the most effective form of promotion because it allows for a direct and personal interaction between the salesperson and the customer. This allows the salesperson to build a relationship with the customer, understand their needs, and tailor their sales pitch accordingly. Personal selling is also the best way to handle customer objections as they arise, as the salesperson can provide immediate and personalized responses. Finally, personal selling costs can be more easily controlled than other forms of promotion, as the salesperson can be paid on a commission basis or by salary.

Question 14

Trade sales promotions are popular among manufacturers because they do all of the following EXCEPT:

Accepted Answer

Trade sales promotions are primarily focused on obtaining support from wholesalers and retailers for consumer sales promotions, improving trade relations, and increasing store traffic. While they can help manufacturers gain new distributors, their primary goal is not to create long-term relationships between manufacturers and customers.

Question 15

Trianka Patel has recently started a mailing service in a region that is showing tremendous industrial growth.Her business has the capability to print,fold,insert,and mail all types of letters.Her customers include 3 local retailers,a small university,and a regional cable television provider.She needs more customers and plans to spend one day per week visiting businesses and introducing her services.Patel is engaged in:

Accepted Answer

Trianka Patel is personally visiting businesses and introducing her services, which falls under the category of personal selling. Direct sales management would involve managing a team of salespeople, which is not mentioned in the scenario. Public relations would involve managing the image and reputation of the business, which is not relevant to Patel's current task. Sales promotion involves short-term incentives to encourage sales, which is not mentioned in the scenario. Research and development would involve creating and improving products, which also does not apply to Patel's situation.

Question 16

Fiona is a sales associate at a store that sells new and used videos and DVDs.Recently she was given a CD of the music from Vanity Fair to encourage her to suggest customers buy this movie.The CD is an example of:

Accepted Answer

The CD given to Fiona is a trade sales promotion, as it is intended to incentivize her, a sales associate, to promote the movie to customers.

Question 17

Trade sales promotions support a(n)_____ strategy.

Accepted Answer

Trade sales promotions are promotions aimed at the middlemen or distributors, rather than the end consumer. The aim of these promotions is to push the product through the distribution channel and encourage them to promote the product to their customers. Therefore, trade sales promotions support a push strategy.

Question 18

Which of the following statements does NOT describe an advantage personal selling has over other forms of promotion?

Accepted Answer

The statement "Personal selling is less expensive on a per contact basis" is not true. Personal selling is typically more expensive on a per contact basis compared to other forms of promotion such as advertising or public relations.

Question 19

Mountain Valley Springs Company,a producer of bottled water,sells a highly standardized product to consumers all over the United States.You would expect Mountain Valley Springs to rely on _____ to promote its product.

Accepted Answer

As Mountain Valley Springs sells a highly standardized product to consumers all over the United States, it would be best for the company to rely on advertising and sales promotion to promote its product. This would enable the company to reach a large audience and create brand awareness, which is important in the bottled water industry where many products are similar. Personal selling and direct marketing may be more appropriate for products that require a more personal approach, while public relations and publicity may not be as effective for promoting a standardized product. Product innovation may also be important for the long-term success of the company, but it is not directly related to promoting the existing product.

Question 20

Which of the following statements about online sales promotions is true?

Accepted Answer

Internet sales promotions are generally more effective and cost efficient at generating responses than their offline counterparts due to the ability to track and target customers more precisely. Online promotions can also be easily shared through social media and email, increasing reach and effectiveness.

Quiz 16: Sales Promotion and Personal Selling