Question 1

Research has shown that the vast majority of manufacturers do not feel they receive good value from their trade promotion spending.

Accepted Answer

A) True 
 B)False

Question 2

Everyone benefits from forward buying because a substantial portion of retailers' savings are passed on to consumers.

Accepted Answer

A) True 
 B)False

Question 3

Scanning agents perform which of the following functions?

Accepted Answer

A)  Paying the retailer. 
B)  Verifying the amount of product movement that meets the manufacturer's promotional requirements and warrants compensation. 
C)  Collecting scanner data from retailers. 
D)  Collecting funds from the manufacturer along with a commission for services rendered. 
E)  All of these are correct. 
A)  Paying the retailer. 
B)  Verifying the amount of product movement that meets the manufacturer's promotional requirements and warrants compensation. 
C)  Collecting scanner data from retailers. 
D)  Collecting funds from the manufacturer along with a commission for services rendered. 
E)  All of these are correct.

Question 4

Consumers obtain _____ benefits when taking advantage of sales promotion offers,including a sense of being a wise shopper,and/or a need for stimulation and variety.

Accepted Answer

A)  functional 
B)  hedonic 
C)  reduced search 
D)  cost 
E)  utilitarian 
A)  functional 
B)  hedonic 
C)  reduced search 
D)  cost 
E)  utilitarian

Question 5

Recent changes in accounting standards now require that promotions expenditures be treated in exactly the same fashion as advertising expenditures,namely,as current expenses that are deducted from top-line revenue.

Accepted Answer

A) True 
 B)False

Question 6

Retailers receive a(n)_____ for featuring the manufacturer's brand in advertisements or for providing special displays.

Accepted Answer

A)  exit fee 
B)  spiff 
C)  slotting allowance 
D)  bill-back allowance 
E)  off-invoice allowance 
A)  exit fee 
B)  spiff 
C)  slotting allowance 
D)  bill-back allowance 
E)  off-invoice allowance

Question 7

Almost all retailers welcome everyday low pricing.

Accepted Answer

A) True 
 B)False

Question 8

Trade promotions are appropriately timed when they are tied in with a seasonal event during a time of growing sales.

Accepted Answer

A) True 
 B)False

Question 9

Assume that you are working in the marketing department of Keebler.The company is developing a new cracker.You are convinced that promotion is the best way to launch this new product.Explain what the term "promotion" means,discuss how it is different than advertising,and list the types of promotions appropriate for each of the potential targets of sales promotion for this type of product.

Accepted Answer

Promotion refers to any incentive used b

Question 10

A bill-and-hold program invoices the retailer as soon as the retailer places a forward-bought order but delays shipping the order until desired quantities are requested by the retailer.

Accepted Answer

A) True 
 B)False

Question 11

In certain respects,slotting allowances are a legitimate cost of doing business.

Accepted Answer

A) True 
 B)False

Question 12

A retailer can exercise its power in a channel by _____.

Accepted Answer

A)  requesting a pay-for-performance agreement from the manufacturer 
B)  requesting a deslotting agreement from the manufacturer 
C)  requesting a scanner-verified trade promotion 
D)  requesting an account-specific marketing program 
E)  requesting every day low pricing 
A)  requesting a pay-for-performance agreement from the manufacturer 
B)  requesting a deslotting agreement from the manufacturer 
C)  requesting a scanner-verified trade promotion 
D)  requesting an account-specific marketing program 
E)  requesting every day low pricing

Question 13

An objective that manufacturers can have for using trade-oriented promotion is to _____.

Accepted Answer

A)  introduce new or revised products 
B)  build retail inventories 
C)  obtain displays outside normal shelf locations 
D)  reduce excess inventories and increase turnover 
E)  All of these are correct. 
A)  introduce new or revised products 
B)  build retail inventories 
C)  obtain displays outside normal shelf locations 
D)  reduce excess inventories and increase turnover 
E)  All of these are correct.

Question 14

Pineway Grocery Stores receive a fee from a soft drink manufacturer for setting up a special display.Pineway receives a(n)_____ from the manufacturer.

Accepted Answer

A)  exit fee 
B)  slotting allowance 
C)  spiff 
D)  off-invoice allowance 
E)  bill-back allowance 
A)  exit fee 
B)  slotting allowance 
C)  spiff 
D)  off-invoice allowance 
E)  bill-back allowance

Question 15

Because no off-invoice allowances are offered when a manufacturer uses everyday low pricing,EDLP(M),retailers _____.

Accepted Answer

A)  make profits from selling merchandise, rather than from buying it. 
B)  retain the power in the channel 
C)  have incentives to engage in forward buying 
D)  have incentives to engage in diverting 
E)  demand higher slotting allowances 
A)  make profits from selling merchandise, rather than from buying it. 
B)  retain the power in the channel 
C)  have incentives to engage in forward buying 
D)  have incentives to engage in diverting 
E)  demand higher slotting allowances

Question 16

The objectives of trade allowances for retailers often conflict with the objectives of manufacturers.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements regarding slotting allowances is FALSE?

Accepted Answer

A)  Such allowances are charged by manufacturers to retailers as a requirement for permitting the retailer to stock the manufacturer's new product. 
B)  They have been criticized as representing a form of bribery. 
C)  In certain respects, slotting allowances are a legitimate cost of doing business inasmuch as a retailer incurs extra expenses when stocking a new product. 
D)  Large, powerful manufacturers are less likely to pay slotting allowances than are small, regional manufacturers. 
E)  Actual charges are highly variable. 
A)  Such allowances are charged by manufacturers to retailers as a requirement for permitting the retailer to stock the manufacturer's new product. 
B)  They have been criticized as representing a form of bribery. 
C)  In certain respects, slotting allowances are a legitimate cost of doing business inasmuch as a retailer incurs extra expenses when stocking a new product. 
D)  Large, powerful manufacturers are less likely to pay slotting allowances than are small, regional manufacturers. 
E)  Actual charges are highly variable.

Question 18

Large retail chains,unlike smaller chains,are able to merchandise their own _____ brands,and because these brands can be sold at lower prices than manufacturers' comparable brands,large chains are able to use their brands to satisfy the needs of price-sensitive consumers while selling manufacturers' brands at their normal price and pocketing the trade allowance as extra profit.

Accepted Answer

A)  generic 
B)  private 
C)  national 
D)  regional 
E)  local 
A)  generic 
B)  private 
C)  national 
D)  regional 
E)  local

Question 19

Explain how retailers can charge manufacturers slotting allowances when many people feel that these allowances are a form of bribery.

Accepted Answer

Retailers demand this fee of manufacture

Question 20

Most retailers acknowledge that they have engaged in the practice of diverting.

Accepted Answer

A) True 
 B)False

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

Research has shown that the vast majority of manufacturers do not feel they receive good value from their trade promotion spending.

Everyone benefits from forward buying because a substantial portion of retailers' savings are passed on to consumers.

Scanning agents perform which of the following functions?

Consumers obtain _____ benefits when taking advantage of sales promotion offers,including a sense of being a wise shopper,and/or a need for stimulation and variety.

Recent changes in accounting standards now require that promotions expenditures be treated in exactly the same fashion as advertising expenditures,namely,as current expenses that are deducted from top-line revenue.

Retailers receive a(n)_____ for featuring the manufacturer's brand in advertisements or for providing special displays.

Almost all retailers welcome everyday low pricing.

Trade promotions are appropriately timed when they are tied in with a seasonal event during a time of growing sales.

A bill-and-hold program invoices the retailer as soon as the retailer places a forward-bought order but delays shipping the order until desired quantities are requested by the retailer.

In certain respects,slotting allowances are a legitimate cost of doing business.

A retailer can exercise its power in a channel by _____.

An objective that manufacturers can have for using trade-oriented promotion is to _____.

Pineway Grocery Stores receive a fee from a soft drink manufacturer for setting up a special display.Pineway receives a(n)_____ from the manufacturer.

Because no off-invoice allowances are offered when a manufacturer uses everyday low pricing,EDLP(M),retailers _____.

The objectives of trade allowances for retailers often conflict with the objectives of manufacturers.

Which of the following statements regarding slotting allowances is FALSE?

Explain how retailers can charge manufacturers slotting allowances when many people feel that these allowances are a form of bribery.

Most retailers acknowledge that they have engaged in the practice of diverting.

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