Question 1

Define what a premium is,and name and describe the four types of premiums.

Accepted Answer

Broadly defined,premiums are articles of merchandise or service offered as a form of gift by manufacturers to induce action on the part of the sales force,trade representative,or consumers.Brand managers use several forms of premium offers to motivate desired consumer behaviors:
1.Free-with-purchase premiums.These are also called free-gift-with-purchase premiums and are provided both by marketers of durable goods and CPG brands.This form of premium typically represents a delayed reward to consumers that is primarily designed to generate trial purchases.
2.Mail-in offers and online offers.This is a premium in which consumers receive a free item from the sponsoring manufacturer in return for submitting a required number of proofs of purchase.This represents a delayed reward to consumers that is primarily designed to generate trial purchases.However,this type of premium may also stimulate repeat purchasing when requiring more proofs of purchase than can be acquired on a single purchase occasion.
3.In-,on-,and near-pack premiums.In- and on-pack premiums offer a free item inside or attached to a package or make the package itself the premium item.In general,in- and on-package premiums offer consumers immediate value and thereby encourage increased product consumption from consumers who like or prefer the premium-offering brand.Near-pack premiums provide the retail trade with specially displayed premium pieces that retailers then give to consumers who purchase the promoted product.Near-pack premiums are less expensive because additional packaging is not required.Furthermore,near-pack premiums can build sales volume in stores that put up displays and participate fully.
4.Self-liquidating offers.These are named for the fact that the consumer mails in a stipulated number of proofs of purchase along with sufficient money to cover the manufacturer's purchasing,handling,and mailing costs of the item,meaning that the actual cost of the premium is paid for by consumers.Attractive offers can serve to enhance a brand's image and also can encourage repeat purchasing by requiring multiple proofs of purchase.

Question 2

Which of the following is one of the manufacturer's disadvantage of using price-offs?

Accepted Answer

A)   the retailer must provide display materials to announce the price-off label offer 
B)   there must be a hiatus of at least 45 days between price-off label promotions on any given brand size 
C)   they can be used only on new products 
D)  retailers often dislike price-offs 
E)  All of these are correct. 
A)   the retailer must provide display materials to announce the price-off label offer 
B)   there must be a hiatus of at least 45 days between price-off label promotions on any given brand size 
C)   they can be used only on new products 
D)  retailers often dislike price-offs 
E)  All of these are correct. D

Question 3

One drawback for manufacturers offering rebates is that many consumers never bother to redeem them.

Accepted Answer

A) True 
 B)False  False

Question 4

Mail-in offer premiums can be used to encourage repeat-purchase behavior.

Accepted Answer

A) True 
 B)False

Question 5

Price-offs cannot reverse a downward sales trend.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following are sometimes used as an alternative to price-off deals when price-off deals are either overused or resisted by the trade?

Accepted Answer

A)  coupons 
B)  rebates 
C)  add-ons 
D)  premiums 
E)  bonus packs 
A)  coupons 
B)  rebates 
C)  add-ons 
D)  premiums 
E)  bonus packs

Question 7

Which of the following should a manufacturer consider when choosing a premium?

Accepted Answer

A)  the brand's image 
B)  the target market 
C)  the objectives of the promotional period 
D)  the item's value 
E)  All of these are correct. 
A)  the brand's image 
B)  the target market 
C)  the objectives of the promotional period 
D)  the item's value 
E)  All of these are correct.

Question 8

Which type of consumer promotion offers consumers a delayed reward with the objective of reinforcing a brand's image?

Accepted Answer

A)  contest 
B)  mail-in offer 
C)  continuity programs 
D)  price-offs 
E)  bonus packs 
A)  contest 
B)  mail-in offer 
C)  continuity programs 
D)  price-offs 
E)  bonus packs

Question 9

Which of the following is the typical range of the reduction for a price-off promotion?

Accepted Answer

A)  2-5% 
B)  5-10% 
C)  9-15% 
D)  10-25% 
E)  15-30% 
A)  2-5% 
B)  5-10% 
C)  9-15% 
D)  10-25% 
E)  15-30%

Question 10

Continuity programs are also referred to as _____ programs.

Accepted Answer

A)  spiff 
B)  point 
C)  reward 
D)  planned 
E)  treated 
A)  spiff 
B)  point 
C)  reward 
D)  planned 
E)  treated

Question 11

When evaluating promotions,efficiency represents a promotion's cost-per-thousand.

Accepted Answer

A) True 
 B)False

Question 12

Compare and contrast overlay and tie-in promotions and give an example of each.

Accepted Answer

An overlay,or combination,program is the

Question 13

For which type of promotion must participants act according to the specific rules and may or may not be required to submit proofs of purchase?

Accepted Answer

A)  tie-in promotions 
B)  sweepstakes 
C)  cooperative promotions 
D)  contest 
E)  self-liquidating promotion 
A)  tie-in promotions 
B)  sweepstakes 
C)  cooperative promotions 
D)  contest 
E)  self-liquidating promotion

Question 14

Which type of premium can build sales volume in stores that put up displays and participate fully?

Accepted Answer

A)  near-pack premium 
B)  self-liquidating offer 
C)  mail-in offer 
D)  add-on premium 
E)  continuity premium 
A)  near-pack premium 
B)  self-liquidating offer 
C)  mail-in offer 
D)  add-on premium 
E)  continuity premium

Question 15

One regional discount apparel chain ran a promotion in which paper shopping bags were mailed out to shoppers-paper bags of the sort that one sees in grocery stores.The bags were printed with statements such as,"20% off everything you can stuff in this bag." The deal was offered on a one-day-only basis and then repeated again at different times throughout the year.This is an example of a retailer _____.

Accepted Answer

A)  special price deal 
B)  sample 
C)  premium 
D)  frequent-shopper program 
E)  coupon 
A)  special price deal 
B)  sample 
C)  premium 
D)  frequent-shopper program 
E)  coupon

Question 16

_____ refers to two or more brands from different companies promoted in a single promotional effort.

Accepted Answer

A)  Intracompany tie-in 
B)  Intercompany tie-in 
C)  Intracompany overlay 
D)  Intercompany overlay 
E)  Cooperative tie-in 
A)  Intracompany tie-in 
B)  Intercompany tie-in 
C)  Intracompany overlay 
D)  Intercompany overlay 
E)  Cooperative tie-in

Question 17

If Sun Cosmetics were to use both coupons and sweepstakes in promoting After-Sun Aloe,it would be using a(n)_____ promotion.

Accepted Answer

A)  overlay 
B)  intracompany tie-in 
C)  intercompany tie-in 
D)  cooperative 
E)  synergistic 
A)  overlay 
B)  intracompany tie-in 
C)  intercompany tie-in 
D)  cooperative 
E)  synergistic

Question 18

Which of the following is FALSE regarding rebates?

Accepted Answer

A)  Rebates are also called refunds. 
B)  Automobile companies are among the major users of rebate programs. 
C)  Many consumers never bother to redeem them. 
D)  Rebates offer consumers immediate rewards. 
E)  Rebate fraud occurs by manufacturers, retailers, and consumers themselves. 
A)  Rebates are also called refunds. 
B)  Automobile companies are among the major users of rebate programs. 
C)  Many consumers never bother to redeem them. 
D)  Rebates offer consumers immediate rewards. 
E)  Rebate fraud occurs by manufacturers, retailers, and consumers themselves.

Question 19

Retailers also design promotions for their present and prospective customers.

Accepted Answer

A) True 
 B)False

Question 20

A model such as      could be used to evaluate a completed promotional program.In this model the "Eij" represents the ____.

Accepted Answer

A)  effectiveness of the program 
B)  execution proficiency 
C)  expense 
D)  evaluative criteria 
E)  equity enhancement 
A)  effectiveness of the program 
B)  execution proficiency 
C)  expense 
D)  evaluative criteria 
E)  equity enhancement

Exam 20: Consumer Sales Promotion: Premiums and Other Promotions

Define what a premium is,and name and describe the four types of premiums.

Which of the following is one of the manufacturer's disadvantage of using price-offs?

One drawback for manufacturers offering rebates is that many consumers never bother to redeem them.

Mail-in offer premiums can be used to encourage repeat-purchase behavior.

Price-offs cannot reverse a downward sales trend.

Which of the following are sometimes used as an alternative to price-off deals when price-off deals are either overused or resisted by the trade?

Which of the following should a manufacturer consider when choosing a premium?

Which type of consumer promotion offers consumers a delayed reward with the objective of reinforcing a brand's image?

Which of the following is the typical range of the reduction for a price-off promotion?

Continuity programs are also referred to as _____ programs.

When evaluating promotions,efficiency represents a promotion's cost-per-thousand.

Compare and contrast overlay and tie-in promotions and give an example of each.

For which type of promotion must participants act according to the specific rules and may or may not be required to submit proofs of purchase?

Which type of premium can build sales volume in stores that put up displays and participate fully?

_____ refers to two or more brands from different companies promoted in a single promotional effort.

If Sun Cosmetics were to use both coupons and sweepstakes in promoting After-Sun Aloe,it would be using a(n)_____ promotion.

Which of the following is FALSE regarding rebates?

Retailers also design promotions for their present and prospective customers.

A model such as 11ea5c6c_f904_1895_945b_43e6de6be273__11 could be used to evaluate a completed promotional program.In this model the "Eij" represents the ____.

An Overview of Integrated Marketing Communications

Enhancing Brand Equity and Accountability

Brand Adoption, Brand Naming and Intellectual Property Issues

Environmental, Regulatory and Ethical Issues

Segmentation, Targeting, and Positioning

The Communications Process and Consumer Behavior

The Role of Persuasion in IMC

Imc Objective Setting and Budgeting

An Overview of Advertising Management

Effective and Creative Ad Messages

Endorsers and Message Appeals in Advertising

Traditional Ad Media

Digital Media: Online, Mobile and App Advertising

Social Media

Direct Marketing, CRM, and Other Media

Media Planning and Analysis

Measuring Ad Message Effectiveness

Sales Promotion Overview and the Role of Trade Promotion

Consumer Sales Promotion: Sampling and Couponing

Public Relations, Content Marketing, Viral Marketing, and Sponsorships

Packaging, Pop Communications, and Signage

Personal Selling

Filters

A model such as 11ea5c6c_f904_1895_945b_43e6de6be27311 could be used to evaluate a completed promotional program.In this model the "Eij" represents the __.