Question 1

Sales promotion can _____.

Accepted Answer

A)  permanently stop an established brand's declining sales trend 
B)  change the basic nonacceptance of an undesired product 
C)  obtain trial purchases from consumers 
D)  give consumers a compelling long-term reason to continue purchasing a brand 
E)  compensate for a lack of advertising 
A)  permanently stop an established brand's declining sales trend 
B)  change the basic nonacceptance of an undesired product 
C)  obtain trial purchases from consumers 
D)  give consumers a compelling long-term reason to continue purchasing a brand 
E)  compensate for a lack of advertising

Question 2

Which of the following channel member benefits the least from a scan-verified trade promotion?

Accepted Answer

A)  manufacturer 
B)  retailer 
C)  consumer 
D)  wholesaler 
E)  broker 
A)  manufacturer 
B)  retailer 
C)  consumer 
D)  wholesaler 
E)  broker

Question 3

Pay-for-performance programs reward the retailer for buying the brand at an off-invoice price.

Accepted Answer

A) True 
 B)False

Question 4

The target of sales promotion can be _____.

Accepted Answer

A)  retailers, consumers, and the sales force 
B)  retailers, manufacturers, and the sales force 
C)  retailers, consumers, and manufacturers 
D)  wholesalers, retailers, and manufacturers 
E)  competitors, retailers, and consumers 
A)  retailers, consumers, and the sales force 
B)  retailers, manufacturers, and the sales force 
C)  retailers, consumers, and manufacturers 
D)  wholesalers, retailers, and manufacturers 
E)  competitors, retailers, and consumers

Question 5

Advertising expenditures as a percentage of total marketing communications expenditures are approximately _____ percent.

Accepted Answer

A)  less than 25 
B)  25 
C)  35 
D)  45 
E)  55 
A)  less than 25 
B)  25 
C)  35 
D)  45 
E)  55

Question 6

Trade promotions represent approximately _____ percent of total marketing communications expenditures.

Accepted Answer

A)  20 
B)  30 
C)  40 
D)  50 
E)  60 
A)  20 
B)  30 
C)  40 
D)  50 
E)  60

Question 7

Which of the following is an effort by manufacturers to rectify trade allowance problems?

Accepted Answer

A)  efficient consumer response (ECR) 
B)  category management 
C)  every day low pricing (EDLP(M)) 
D)  account-specific marketing 
E)  All of these are correct. 
A)  efficient consumer response (ECR) 
B)  category management 
C)  every day low pricing (EDLP(M)) 
D)  account-specific marketing 
E)  All of these are correct.

Question 8

Diverting occurs when a manufacturer makes a deal available nationally.

Accepted Answer

A) True 
 B)False

Question 9

Discuss the six developments that have occurred in the past two decades that explain the increase on spending for sales promotion.

Accepted Answer

Major developments that have given rise

Question 10

The difference between the "old" and "new" accounting procedures with respect to promotions is in the amount for the top-line revenue.

Accepted Answer

A) True 
 B)False

Question 11

Pushing and pulling are mutually exclusive activities.

Accepted Answer

A) True 
 B)False

Question 12

American marketing has experienced a shift from less push marketing to more pull marketing.

Accepted Answer

A) True 
 B)False

Question 13

What is the difference between the "old" and "new" accounting procedures with respect to promotion?

Accepted Answer

A)  Promotion expenditures are now treated in exactly the same fashion as advertising expenditures, namely, as current expenses that are deducted from top-line revenue. 
B)  Promotion allowances received by retailers are now considered taxable income. 
C)  Many promotion allowances are no longer considered legal. 
D)  Those sales promotions used as a form of price discount must now be treated as reductions in sales revenues. 
E)  The "new" accounting system actually inflates manufacturers' actual revenue. 
A)  Promotion expenditures are now treated in exactly the same fashion as advertising expenditures, namely, as current expenses that are deducted from top-line revenue. 
B)  Promotion allowances received by retailers are now considered taxable income. 
C)  Many promotion allowances are no longer considered legal. 
D)  Those sales promotions used as a form of price discount must now be treated as reductions in sales revenues. 
E)  The "new" accounting system actually inflates manufacturers' actual revenue.

Question 14

Pay-for-performance programs reward retailers for selling increased quantities of the manufacturer's brand to consumers.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is NOT a reason that accounts for why many retailers resist manufacturers' EDLP pricing initiatives?

Accepted Answer

A)  EDLP pricing takes some of the excitement out of retailing. 
B)  Some retailers that established distribution infrastructures necessary to practice forward buying have resisted EDLP. 
C)  There is some evidence that EDLP pricing benefits the manufacturers that price their products in this fashion more than it does the retailers that pay EDLP rather than high-low prices. 
D)  a and b only 
E)  a, b, and c 
A)  EDLP pricing takes some of the excitement out of retailing. 
B)  Some retailers that established distribution infrastructures necessary to practice forward buying have resisted EDLP. 
C)  There is some evidence that EDLP pricing benefits the manufacturers that price their products in this fashion more than it does the retailers that pay EDLP rather than high-low prices. 
D)  a and b only 
E)  a, b, and c

Question 16

Off-invoice allowances are deals offered periodically to the trade that permit retailers to deduct a fixed amount from the invoice,merely by placing an order during the period which the manufacturer is "dealing" a brand.

Accepted Answer

A) True 
 B)False

Question 17

The promotional incentive _____ changes a brand's perceived price or value.

Accepted Answer

A)  permanently 
B)  temporarily 
C)  positively 
D)  concurrently 
E)  always 
A)  permanently 
B)  temporarily 
C)  positively 
D)  concurrently 
E)  always

Question 18

As with off-invoice allowance promotion,account-specific marketing directs promotional dollars to specific retailers.

Accepted Answer

A) True 
 B)False

Question 19

Explain how everyday low pricing (M)reduces the usage of diverting and forward buying.

Accepted Answer

EDLP(M)is a form of pricing whereby a ma

Question 20

Deals offered periodically to the trade that permit retailers to deduct a fixed amount from the invoice are called _____.

Accepted Answer

A)  pay-for-performance 
B)  exit fees 
C)  off-invoice allowances 
D)  slotting allowances 
E)  bill-back allowances 
A)  pay-for-performance 
B)  exit fees 
C)  off-invoice allowances 
D)  slotting allowances 
E)  bill-back allowances

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

Sales promotion can _____.

Which of the following channel member benefits the least from a scan-verified trade promotion?

Pay-for-performance programs reward the retailer for buying the brand at an off-invoice price.

The target of sales promotion can be _____.

Advertising expenditures as a percentage of total marketing communications expenditures are approximately _____ percent.

Trade promotions represent approximately _____ percent of total marketing communications expenditures.

Which of the following is an effort by manufacturers to rectify trade allowance problems?

Diverting occurs when a manufacturer makes a deal available nationally.

Discuss the six developments that have occurred in the past two decades that explain the increase on spending for sales promotion.

The difference between the "old" and "new" accounting procedures with respect to promotions is in the amount for the top-line revenue.

Pushing and pulling are mutually exclusive activities.

American marketing has experienced a shift from less push marketing to more pull marketing.

What is the difference between the "old" and "new" accounting procedures with respect to promotion?

Pay-for-performance programs reward retailers for selling increased quantities of the manufacturer's brand to consumers.

Which of the following is NOT a reason that accounts for why many retailers resist manufacturers' EDLP pricing initiatives?

Off-invoice allowances are deals offered periodically to the trade that permit retailers to deduct a fixed amount from the invoice,merely by placing an order during the period which the manufacturer is "dealing" a brand.

The promotional incentive _____ changes a brand's perceived price or value.

As with off-invoice allowance promotion,account-specific marketing directs promotional dollars to specific retailers.

Explain how everyday low pricing (M)reduces the usage of diverting and forward buying.

Deals offered periodically to the trade that permit retailers to deduct a fixed amount from the invoice are called _____.

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