Question 1

A _____ strategy consists of manufacturers directing advertising and promotion at the consumers.

Accepted Answer

A)  strategic channel 
B)  forced channel 
C)  planned 
D)  push 
E)  pull 
A)  strategic channel 
B)  forced channel 
C)  planned 
D)  push 
E)  pull E

Question 2

In contrast to advertising,which typically,though not always,is relatively long term in orientation and best suited to enhancing buyer attitudes and augmenting brand equity; promotion is more short-term oriented and capable of influencing _____.

Accepted Answer

A)  awareness 
B)  intentions 
C)  knowledge 
D)  perceptions 
E)  behavior 
A)  awareness 
B)  intentions 
C)  knowledge 
D)  perceptions 
E)  behavior E

Question 3

In order to avoid paying slotting allowances,a manufacturer can _____.

Accepted Answer

A)  invest in a "pull" strategy 
B)  invest heavily in R&D to develop meaningful new products 
C)  refuse to pay them 
D)  All of these are correct. 
E)  None of these are correct. 
A)  invest in a "pull" strategy 
B)  invest heavily in R&D to develop meaningful new products 
C)  refuse to pay them 
D)  All of these are correct. 
E)  None of these are correct. D

Question 4

A reason for the growth of sales promotion is _____.

Accepted Answer

A)  the increase in power for the manufacturers over the grocery stores 
B)  decreased brand parity and price sensitivity 
C)  increased brand loyalty 
D)  increased media effectiveness 
E)  emphasis on short-term results in corporate-reward structures 
A)  the increase in power for the manufacturers over the grocery stores 
B)  decreased brand parity and price sensitivity 
C)  increased brand loyalty 
D)  increased media effectiveness 
E)  emphasis on short-term results in corporate-reward structures

Question 5

The practice of forward buying is also known as _____.

Accepted Answer

A)  diverting 
B)  loading 
C)  street money 
D)  load buying 
E)  bridge buying 
A)  diverting 
B)  loading 
C)  street money 
D)  load buying 
E)  bridge buying

Question 6

The biggest users of sales promotion are _____.

Accepted Answer

A)  banks 
B)  insurance companies 
C)  automobile manufacturers 
D)  consumer packaged-goods companies 
E)  chemical companies 
A)  banks 
B)  insurance companies 
C)  automobile manufacturers 
D)  consumer packaged-goods companies 
E)  chemical companies

Question 7

Which of the following is NOT true regarding slotting allowances?

Accepted Answer

A)  They are a form of bribery. 
B)  In certain respects, they are a legitimate cost of doing business. 
C)  They are an entry fee for getting a new brand into a grocery chain's distribution center. 
D)  They are also called stocking allowances or street money. 
E)  Fees are consistent across retailers. 
A)  They are a form of bribery. 
B)  In certain respects, they are a legitimate cost of doing business. 
C)  They are an entry fee for getting a new brand into a grocery chain's distribution center. 
D)  They are also called stocking allowances or street money. 
E)  Fees are consistent across retailers.

Question 8

General Mills periodically offers a deal to the trade that permits retailers to deduct 15 percent from the invoice merely by placing an order during the period which General Mills is "dealing" a brand.This is an example of which type of trade promotion?

Accepted Answer

A)  bill-back allowance 
B)  slotting allowance 
C)  stocking allowance 
D)  off-invoice allowance 
E)  deductible allowance 
A)  bill-back allowance 
B)  slotting allowance 
C)  stocking allowance 
D)  off-invoice allowance 
E)  deductible allowance

Question 9

Pay-for-performance is a form of trade allowance that rewards retailers for _____.

Accepted Answer

A)  buying increased quantities of the manufacturer's brands 
B)  selling increased quantities of the manufacturer's brands to shoppers 
C)  giving the manufacturer's brands preferred shelf locations 
D)  featuring the manufacturer's brands in the retailer's advertisements 
E)  All of these are correct. 
A)  buying increased quantities of the manufacturer's brands 
B)  selling increased quantities of the manufacturer's brands to shoppers 
C)  giving the manufacturer's brands preferred shelf locations 
D)  featuring the manufacturer's brands in the retailer's advertisements 
E)  All of these are correct.

Question 10

A manufacturer of fruit juice has to pay retailers a fee if they want to get their new product onto the retailer's shelves.This is an example of a(n)_____ allowance.

Accepted Answer

A)  slotting 
B)  bill-back 
C)  spiff 
D)  off-invoice 
E)  co-marketing 
A)  slotting 
B)  bill-back 
C)  spiff 
D)  off-invoice 
E)  co-marketing

Question 11

Sales promotion can facilitate the introduction of new products and brands.

Accepted Answer

A) True 
 B)False

Question 12

How are retailers able to impose expensive slotting fees on manufacturers?

Accepted Answer

A)  Retailers face intense competition to acquire distribution rights. 
B)  They are contractual agreements. 
C)  The balance of power has shifted away from manufacturers and toward retailers. 
D)  They are a form of pay-for-performance. 
E)  The Federal Trade Commission condones the action. 
A)  Retailers face intense competition to acquire distribution rights. 
B)  They are contractual agreements. 
C)  The balance of power has shifted away from manufacturers and toward retailers. 
D)  They are a form of pay-for-performance. 
E)  The Federal Trade Commission condones the action.

Question 13

To prevent retailers from forward buying,a manufacturer can _____.

Accepted Answer

A)  divert goods 
B)  use a bridge-buying program 
C)  avoid national deals 
D)  use a bill and hold program 
E)  threaten legal action against retailers who practice it 
A)  divert goods 
B)  use a bridge-buying program 
C)  avoid national deals 
D)  use a bill and hold program 
E)  threaten legal action against retailers who practice it

Question 14

Sales promotion can permanently stop an established brand's declining sales trend.

Accepted Answer

A) True 
 B)False

Question 15

While manufacturers incur increased costs due to forward buying,their margins are increased to off-set the price discounts.

Accepted Answer

A) True 
 B)False

Question 16

Sales promotion can be used to offset competitors' advertising and sales-promotion efforts.

Accepted Answer

A) True 
 B)False

Question 17

When a new brand fails to generate the promised sales volume,some retailers charge _____ to offset warehousing costs.

Accepted Answer

A)  setup fees 
B)  service fees 
C)  exit fees 
D)  slotting allowances 
E)  commissions 
A)  setup fees 
B)  service fees 
C)  exit fees 
D)  slotting allowances 
E)  commissions

Question 18

Which of the following is NOT a form of trade allowance?

Accepted Answer

A)  off-invoice allowance 
B)  bill-back allowance 
C)  push money 
D)  slotting allowance 
E)  All of these are correct. 
A)  off-invoice allowance 
B)  bill-back allowance 
C)  push money 
D)  slotting allowance 
E)  All of these are correct.

Question 19

The use of scanning technology is critical to the implementation of a pay-for-performance program.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following are legitimate costs of doing business for a large,multistore supermarket chain that takes on a new brand?

Accepted Answer

A)  Make space for that new brand in its distribution center. 
B)  Create a new entry in its computerized inventory system. 
C)  Possibly redesign store shelves. 
D)  Notify individual stores about the new SKU. 
E)  All of these are correct. 
A)  Make space for that new brand in its distribution center. 
B)  Create a new entry in its computerized inventory system. 
C)  Possibly redesign store shelves. 
D)  Notify individual stores about the new SKU. 
E)  All of these are correct.

Exam 18: Sales Promotion Overview and the Role of Trade Promotion

A _____ strategy consists of manufacturers directing advertising and promotion at the consumers.

In contrast to advertising,which typically,though not always,is relatively long term in orientation and best suited to enhancing buyer attitudes and augmenting brand equity; promotion is more short-term oriented and capable of influencing _____.

In order to avoid paying slotting allowances,a manufacturer can _____.

A reason for the growth of sales promotion is _____.

The practice of forward buying is also known as _____.

The biggest users of sales promotion are _____.

Which of the following is NOT true regarding slotting allowances?

General Mills periodically offers a deal to the trade that permits retailers to deduct 15 percent from the invoice merely by placing an order during the period which General Mills is "dealing" a brand.This is an example of which type of trade promotion?

Pay-for-performance is a form of trade allowance that rewards retailers for _____.

A manufacturer of fruit juice has to pay retailers a fee if they want to get their new product onto the retailer's shelves.This is an example of a(n)_____ allowance.

Sales promotion can facilitate the introduction of new products and brands.

How are retailers able to impose expensive slotting fees on manufacturers?

To prevent retailers from forward buying,a manufacturer can _____.

Sales promotion can permanently stop an established brand's declining sales trend.

While manufacturers incur increased costs due to forward buying,their margins are increased to off-set the price discounts.

Sales promotion can be used to offset competitors' advertising and sales-promotion efforts.

When a new brand fails to generate the promised sales volume,some retailers charge _____ to offset warehousing costs.

Which of the following is NOT a form of trade allowance?

The use of scanning technology is critical to the implementation of a pay-for-performance program.

Which of the following are legitimate costs of doing business for a large,multistore supermarket chain that takes on a new brand?

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 Communication Process and Consumer Behavior

The Role of Persuasion in Integrated Marketing Communications

Objective Setting and Budgeting

Overview of Advertising Management

Effective and Creative Ad Messages

Endorsers and Message Appeals in Advertising

Traditional Advertising Media

Online and Mobile Advertising

Social Media

Direct Marketing and Other Media

Advertising Media: Planning and Analysis

Measuring Ad Message Effectiveness

Consumer Sales Promotion: Sampling and Couponing

Consumer Sales Promotion: Premiums and Other Promotions

Public Relations,Word-of-Mouth Influence,and Sponsorships

Packaging, Point-of-Purchase Communications, and Signage

Personal Selling

Filters