Question 1

Off-invoice allowances often induce retailers to stockpile products in order to take advantage of the temporary price reductions.

Accepted Answer

A) True 
 B)False

Question 2

____ are fees manufacturers pay retailers for access to the slot,or location,that the retailer must make available in its distribution center to accommodate the manufacturer's new brand.

Accepted Answer

A)  Bill-back allowances 
B)  Push money 
C)  Off-invoice allowances 
D)  SKU allowances 
E)  Slotting allowances 
A)  Bill-back allowances 
B)  Push money 
C)  Off-invoice allowances 
D)  SKU allowances 
E)  Slotting allowances

Question 3

The sales force,retailers,and consumers are targets of sales promotional efforts.

Accepted Answer

A) True 
 B)False

Question 4

The practice of _____ consists of retailers purchasing enough products on one deal to carry them over until the manufacturer's next regularly scheduled deal.

Accepted Answer

A)  pay-for-performance 
B)  forward buying 
C)  diverting 
D)  co-marketing 
E)  slotting 
A)  pay-for-performance 
B)  forward buying 
C)  diverting 
D)  co-marketing 
E)  slotting

Question 5

A manufacturer's objective for using trade-oriented sales promotion could include introducing new or revised products.

Accepted Answer

A) True 
 B)False

Question 6

Manufacturers can avoid paying slotting allowances by investing in a pull strategy to create consumer demand for their brands.

Accepted Answer

A) True 
 B)False

Question 7

The most effective trade promotions are those that target long-term sales goals.

Accepted Answer

A) True 
 B)False

Question 8

Many grocery retailers find it easy to rationalize slotting allowances on the grounds that their net profit margins in selling groceries are minuscule (typically _____ percent)and that slotting allowances enable them to earn returns comparable to those earned by manufacturers.

Accepted Answer

A)  less than one 
B)  1.0-1.5 
C)  2.0-2.5 
D)  3.0-3.5 
E)  4.0-4.5 
A)  less than one 
B)  1.0-1.5 
C)  2.0-2.5 
D)  3.0-3.5 
E)  4.0-4.5

Question 9

An objective of trade allowances is to increase consumers' purchases of the manufacturer's brand from retailers.

Accepted Answer

A) True 
 B)False

Question 10

The Lippincott Company,a manufacturer of canned vegetables,would like to sell the supermarket chain BuyRight on the idea of stocking a new line of pre-cooked salt-free vegetables.BuyRight informs Lippincott that in order to justify the cost of adding a new product line to its shelves,it will have to charge Lippincott $250 for every store in the BuyRight chain that stocks Lippincott's new product.What is this type of allowance called?

Accepted Answer

A)  spiffing 
B)  slotting 
C)  diverting 
D)  vendor support allowance 
E)  off-invoice 
A)  spiffing 
B)  slotting 
C)  diverting 
D)  vendor support allowance 
E)  off-invoice

Question 11

Which of the following statements is true?

Accepted Answer

A)  Push and pull strategies are mutually exclusive. 
B)  There has been a shift from a primarily push promotion strategy to a primarily pull strategy on the part of manufacturers. 
C)  There has been a shift from a primarily pull promotion strategy to a primarily push strategy on the part of manufacturers. 
D)  Push strategies are targeted to consumers. 
E)  Pull strategies are targeted to the trade. 
A)  Push and pull strategies are mutually exclusive. 
B)  There has been a shift from a primarily push promotion strategy to a primarily pull strategy on the part of manufacturers. 
C)  There has been a shift from a primarily pull promotion strategy to a primarily push strategy on the part of manufacturers. 
D)  Push strategies are targeted to consumers. 
E)  Pull strategies are targeted to the trade.

Question 12

Sales promotion is better suited than advertising to enhance buyer attitudes and augment brand equity.

Accepted Answer

A) True 
 B)False

Question 13

The proportion of switchers drifting from low to high-quality brands when the latter is on deal is higher than the proportion moving in the other direction when a low-quality brand is on deal.This situation describes a switching behavior that is _____.

Accepted Answer

A)  asymmetric 
B)  symmetric 
C)  correlated 
D)  elastic 
E)  inelastic 
A)  asymmetric 
B)  symmetric 
C)  correlated 
D)  elastic 
E)  inelastic

Question 14

One reason for increased budgetary allocations to promotions is the fact that consumers are less price sensitive.

Accepted Answer

A) True 
 B)False

Question 15

Slotting allowances could be considered a form of bribery because the retailer demands an up-front fee in order for the manufacturer to receive space for a new brand.

Accepted Answer

A) True 
 B)False

Question 16

Promotion refers to any incentive used by a _____ to induce the trade.

Accepted Answer

A)  wholesaler 
B)  retailer 
C)  manufacturer 
D)  salesperson 
E)  channel partner 
A)  wholesaler 
B)  retailer 
C)  manufacturer 
D)  salesperson 
E)  channel partner

Question 17

What advice would you give a manufacturer that wanted to avoid paying slotting allowances?

Accepted Answer

Ways manufacturers can avoid paying slot

Question 18

Slotting allowances are the fees that manufacturers pay retailers for access to more or better shelf space for existing brands.

Accepted Answer

A) True 
 B)False

Question 19

_____ refers to any incentive used by a manufacturer to encourage the sales force to aggressively sell it.

Accepted Answer

A)  Promotion 
B)  Placement 
C)  Advertising 
D)  Marketing 
E)  Inducement 
A)  Promotion 
B)  Placement 
C)  Advertising 
D)  Marketing 
E)  Inducement

Question 20

Which of the following is FALSE regarding trade allowances?

Accepted Answer

A)  One objective is to increase consumer retail sales of the manufacturer's brand. 
B)  Retailers usually pass along to consumers the discounts they receive from manufacturers. 
C)  An objective is to increase purchases of the manufacturer's brand by wholesalers and/or retailers. 
D)  Most manufacturers rate the value of trade allowances as fair or poor. 
E)  Most retailers think that trade promotions should serve to increase sales and profits of entire product categories without concern for whether a manufacturer's specific brand benefits from the trade promotion. 
A)  One objective is to increase consumer retail sales of the manufacturer's brand. 
B)  Retailers usually pass along to consumers the discounts they receive from manufacturers. 
C)  An objective is to increase purchases of the manufacturer's brand by wholesalers and/or retailers. 
D)  Most manufacturers rate the value of trade allowances as fair or poor. 
E)  Most retailers think that trade promotions should serve to increase sales and profits of entire product categories without concern for whether a manufacturer's specific brand benefits from the trade promotion.

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

Off-invoice allowances often induce retailers to stockpile products in order to take advantage of the temporary price reductions.

____ are fees manufacturers pay retailers for access to the slot,or location,that the retailer must make available in its distribution center to accommodate the manufacturer's new brand.

The sales force,retailers,and consumers are targets of sales promotional efforts.

The practice of _____ consists of retailers purchasing enough products on one deal to carry them over until the manufacturer's next regularly scheduled deal.

A manufacturer's objective for using trade-oriented sales promotion could include introducing new or revised products.

Manufacturers can avoid paying slotting allowances by investing in a pull strategy to create consumer demand for their brands.

The most effective trade promotions are those that target long-term sales goals.

Many grocery retailers find it easy to rationalize slotting allowances on the grounds that their net profit margins in selling groceries are minuscule (typically _____ percent)and that slotting allowances enable them to earn returns comparable to those earned by manufacturers.

An objective of trade allowances is to increase consumers' purchases of the manufacturer's brand from retailers.

Which of the following statements is true?

Sales promotion is better suited than advertising to enhance buyer attitudes and augment brand equity.

The proportion of switchers drifting from low to high-quality brands when the latter is on deal is higher than the proportion moving in the other direction when a low-quality brand is on deal.This situation describes a switching behavior that is _____.

One reason for increased budgetary allocations to promotions is the fact that consumers are less price sensitive.

Slotting allowances could be considered a form of bribery because the retailer demands an up-front fee in order for the manufacturer to receive space for a new brand.

Promotion refers to any incentive used by a _____ to induce the trade.

What advice would you give a manufacturer that wanted to avoid paying slotting allowances?

Slotting allowances are the fees that manufacturers pay retailers for access to more or better shelf space for existing brands.

_____ refers to any incentive used by a manufacturer to encourage the sales force to aggressively sell it.

Which of the following is FALSE regarding trade allowances?

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