Deck 18: Sales Promotion and Personal Selling

Question 1

Trade shows are an excellent place to introduce new products to the marketplace.

Answer 1

True

Question 2

A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous shopping goods.

Answer 2

False
A trade allowance is a price reduction offered by manufacturers to intermediaries.

Question 3

Research shows that coupons tend to increae the amount of a product bought.

Answer 3

True

Question 4

Hewlett-Packard offered $25 to individual Office Depot salespeople for each HP Laser Jet printer they sold.The $25 is push money.

Question 5

Manufacturers use trade promotions because they generate excitement among consumers.

Question 6

Loyalty marketing programs are targeted to people who consistently buy the least expensive brand.

Question 7

Personal selling becomes a more important promotional tool as product complexity and buyer risk increase.

Question 8

With relationship selling,the objective is to build long-term branded relationships with customers,not just to sell products.

Question 9

Sales promotion offers an incentive to buy.

Question 10

The objectives of a promotion depend on the general behavior of target consumers.

Question 11

Sweepstakes are promotions in which participants use some skill or ability to compete for prizes.Winning a contest,on the other hand,depends on chance or luck.

Question 12

When cosmetics company Estée Lauder gives customers a bag of small-sized cosmetics with the purchase of a full-priced item,this is an example of a premium offer.

Question 13

The first step in the selling process is approaching the customer and probing needs.

Question 14

With relationship selling the salesperson would spend most of his or her contact time with the prospect talking about the product because the salesperson does not want to waste the customer's time.

Question 15

Marketers find it much easier to evaluate the effectiveness of advertising than the effectiveness of sales promotions.

Question 16

Point-of-purchase promotions are seldom used as a sales promotion tool because most purchase decisions are made before consumers ever enter a store.

Question 17

Relationship selling is more typical with selling situations for consumer goods.

Question 18

Manufacturers prefer coupons over rebates,because most customers who are eligible for rebates actually collect them.

Question 19

Dave is in charge of finding sponsors for the 2011 Riverbend Festival.He is meeting with marketing representatives from Wrangler jeans and First Tennessee National Bank,attempting to convince them to sponsor the event.Dave is engaged in personal selling.

Question 20

Online sales promotions have so far proven ineffective in generating acceptable response rates.

Question 21

What are the two types of sales promotion?

A) Consumer and trade
B) Informative and reminder
C) Start-up and continual
D) Adoptive and diffusive
E) Personal and impersonal

Question 22

_____ sales promotions are targeted toward the ultimate end-user market.

A) Facilitating
B) Intermediary
C) Pull
D) Consumer
E) Trade

Question 23

Compensation planning is one of the sales manager's easiest jobs.

Question 24

All of the following would be a target for a trade sales promotion offered by Rubbermaid,a manufacturer of storage and organization products,EXCEPT:

A) a retailer called The Container Store
B) a kitchen department in a large discount store
C) a wholesaler of plastic storage bins
D) a Rubbermaid distributor
E) a consumer who needs to organize her college dorm room

Question 25

Jayson typically negotiates the price with prospective customers because he knows price is the most effective negotiating tool when closing a sale.

Question 26

The goal of sales promotion (regardless of what form it takes)is usually:

A) immediate purchase
B) return on investment
C) cost control
D) market share leadership
E) economies of scale

Question 27

Tara is a salesperson with several satisfied customers.She asks her customers to recommend her to their business associates.Tara is using cold calling to generate leads.

Question 28

To qualify a sales lead,a salesperson must identify the person in an organization who has the authority to buy the product and must close the sale with that individual.

Question 29

The most widely used promotional medium is:

A) sampling
B) direct mail
C) in-store promotions
D) rebates
E) point-of-purchase promotions

Question 30

_____ is marketing communication activities in which a short-term incentive is offered to induce the purchase of a particular good or service.

A) Publicity
B) Sales promotion
C) Promotion
D) Advertising
E) Motivation selling

Question 31

Before approaching the customer,a salesperson should learn as much as possible about the prospect's organization and its buyer.

Question 32

If a potential customer has objections after the salesperson has made a presentation,that is an indication that the salesperson has done a poor job.

Question 33

Meta Singh is expected to sell two surgical laser systems each month.This sales objective is an example of a quota.

Question 34

In relationship selling,salespeople focus more time on generating leads than on qualifying leads.

Question 35

Sales promotion:

A) is a publicity tool
B) is only directed to the ultimate consumer market
C) is more difficult to measure than advertising
D) offers a short-term incentive to buy
E) expenditures have been decreasing in recent years

Question 36

Typical performance measures for salespeople include sales volume,contribution to profit,calls per order and sales or profits per call.

Question 37

The final selling duty for most successful salespeople is closing the sale.

Question 38

Consumers who buy your product most or all of the time are called:

A) loyal customers
B) cherry pickers
C) brand switchers
D) regulars
E) automatic customers

Question 39

Neutrogena offered customers who purchased $30 worth of facial moisturizers,facial cleaners,and facial treatment products a $10 rebate by mail.This is an example of:

A) motivational selling
B) a trade promotion
C) a push strategy
D) personal selling
E) a sales promotion

Question 40

Dell's back-to-school program allows students who buy a new laptop computer for college to get a free printer.The printer giveaway is a(n):

A) push strategy
B) advocacy advertising
C) comparative advertising
D) cause marketing
E) sales promotion

Question 41

Packaged-goods marketers such as Kellogg's and Betty Crocker have increased their use of coupons recently due to:

A) intense competition and the introduction of new products
B) the growth of frequency programs
C) push money from retailers
D) POP activities
E) user incentives from retailers

Question 42

New subscribers to Men's Health magazine receive a free copy of Men's Health Total Fitness Guide.The Fitness Guide is an example of a(n):

A) contest
B) premium
C) trade sample
D) product placement
E) loyalty incentive

Question 43

Jack's Pet Store offers customers who purchase pet food a "Baker's Dozen" card.After customers purchase 12 bags of pet food from Jack's,they get the 13th bag free.The Baker's Dozen card is an example of a:

A) directed coupon mailing
B) sweepstakes
C) loyalty marketing program
D) trade sales promotion
E) sampling program

Question 44

Coupons,premiums,contests,free samples,and frequent buyer programs are examples of:

A) personal selling
B) trade sales promotion
C) publicity
D) advertising
E) consumer sales promotion

Question 45

Why are many marketers shortening the time in which a coupon can be redeemed?

A) To track response rates
B) To increase introductory sales
C) To create a greater sense of urgency to redeem the coupon
D) To respond to claims that coupons adversely affect consumer behavior
E) To limit the use of on-pack coupons

Question 46

Which of the following sales promotion tools would be MOST appropriate for a competitor's customer?

A) Sampling
B) Rebates
C) Loyalty marketing programs
D) Bonus packs
E) Coupons

Question 47

Consumers who send in 10 UPC symbols as proof of purchase of Chips Ahoy! cookies will receive a children's classic DVD.The DVD is an example of a:

A) loyalty incentive
B) trade sample
C) premium
D) trade product
E) product placement

Question 48

Groupon.com and Crowdsaver combine elements of sales promotions with:

A) pull money
B) rebates
C) premiums
D) social media
E) push money

Question 49

Which type of consumer sales promotion rewards loyal consumers for making multiple purchases of a particular good or service?

A) A frequent buyer program
B) An 80/20 program
C) A net worth program
D) A premium program
E) A continuity program

Question 50

A(n)_____ is an extra item offered to the consumer,usually in exchange for some proof that the promoted product has been purchased.

A) coupon
B) trade sample
C) supplement
D) premium
E) add-on

Question 51

To overcome low redemption rates for coupons,marketers are doing all of the following EXCEPT:

A) issuing fewer coupons and using more everyday low pricing
B) shortening the time the coupon can be redeemed to create a feeling of urgency
C) requiring multiple purchases to redeem the coupon
D) distributing single all-purpose coupons that can be redeemed for several brands
E) using instant coupons on product packages

Question 52

Why do some marketers offer rebates instead of price reductions to induce short-term sales?

A) Rebates are especially good at enticing purchases,but most consumers never bother to redeem them.
B) A price reduction of this type would likely be an example of price discrimination.
C) Rebates offer a more immediate reward than price reductions.
D) Rebates have a much higher redemption rate than coupons.
E) Rebates result in brand-loyal consumers.

Question 53

A certificate that entitles consumers to an immediate price reduction when they buy the product is called a(n):

A) coupon
B) premium
C) push money
D) entitlement
E) allowance

Question 54

When Rick purchased a Xerox color printer for his law office,he was able to mail in a proof-of-purchase and his cash register receipt to receive a check from Xerox for $200.Rick received a:

A) premium
B) trade allowance
C) purchase allowance
D) rebate
E) functional discount

Question 55

A _____ is a cash refund given to consumers for the purchase of a product during a specific time period.

A) premium
B) trade discount
C) purchase allowance
D) rebate
E) functional allowance

Question 56

When Maya purchased a full-size bottle of Purell Hand Sanitizer,she received a free,purse-sized bottle as well.The purse-sized bottle is an example of a:

A) product placement
B) trade sample
C) contest
D) premium
E) loyalty incentive

Question 57

Kaye noticed Bounce dryer sheets had a peel-off sticker worth $1.00 off that purchase.The peel-off stickers are:

A) premiums
B) trade discounts
C) purchase allowances
D) in-store coupons
E) functional allowances

Question 58

One of the best methods for creating and rewarding brand loyalty among consumers who might otherwise switch to competing brands is a:

A) directed coupon mailing
B) sweepstakes
C) loyalty marketing program
D) trade sales promotions
E) sampling program

Question 59

All of the following are types of consumer sales promotions EXCEPT:

A) coupons
B) rebates
C) premiums
D) contests and sweepstakes
E) push money

Question 60

Martina buys cola every week at the grocery store,but she always buys whatever is on sale.Coca-Cola,Pepsi,RC Cola-it doesn't matter to her.She is happy with whatever costs the least.Martina would be characterized as a:

A) loyal customer
B) competitor's customer
C) price buyer
D) cherry picker
E) freeloader

Question 61

All of the following are examples of point-of-purchase promotions EXCEPT:

A) television monitors at supermarket checkouts
B) shelf talkers
C) newspaper inserts
D) shelf extenders
E) end-aisle and floor-stand displays

Question 62

Which of the following statements about online sales promotions is true?

A) Internet sales promotions are more effective and cost-efficient at generating responses than their offline counterparts.
B) One of the few types of sales promotion that cannot be used online is sampling.
C) Online coupons have lower redemption rates than off-line coupons.
D) Loyalty marketing programs are ineffective when used at Web sites to encourage traffic.
E) There is no way for a marketer to build long-term,mutually beneficial relationships with customers online.

Question 63

_____ are promotional exhibits set up at the retailer's location to build traffic,advertise the product,or induce impulse buying.They are targeted to consumers.

A) Point-of-purchase displays
B) Trade shows
C) Indirect demonstrations
D) Direct demonstrations
E) Freestanding kiosks

Question 64

Club Penguin is an online role-playing game for kids aged 6 to 14 operated by the Walt Disney Company.Players pay a monthly fee to gain access to all of Club Penguin's feature,although free memberships with limited access to games is also available.Disney offers free membership to Club Penguin in the hope that kids who like the game will ask their parents to pay for the full version.Disney is using which sales promotion tool?

A) Sponsorship
B) Sampling
C) Trade promotions
D) In-pack couponing
E) Premiums

Question 65

_____ is a price reduction offered by manufacturers to intermediaries such as wholesalers or retailers,in exchange for performance of specified functions or purchasing during special periods.

A) A point-of-purchase discount
B) Pull money
C) A quantity discount
D) A functional discount
E) A trade allowance

Question 66

Lopez is the largest Hispanic-owned meat processor in the United States.To assist retailers in marketing its products,Lopez provides point-of-sale materials and offers special introductory discounts to retailers.Lopez uses:

A) functional marketing
B) relationship selling
C) consumer promotions
D) startup marketing
E) trade promotions

Question 67

Co-branded credit cards are used in conjunction with:

A) self-perpetuating premiums
B) loyalty marketing programs
C) trade consumer promotions
D) consumer discount programs
E) functional consumer discounts

Question 68

Trade sales promotions support a _____ strategy.

A) push
B) hierarchical
C) disintermediation
D) discontinuous innovation
E) pull

Question 69

Point-of-purchase promotions work best for:

A) high-involvement products
B) purchases that require extensive decision making
C) complex products that require technical knowledge to operate
D) impulse buys
E) expensive products like perfume and jewelry

Question 70

By visiting the priceless.com site,MasterCard users can register for a chance to win an all-expense-paid trip for two to New York to see two Broadway plays.This prize package will be awarded through a(n)_____ since there is no skill involved.

A) contest
B) P-O-P promotion
C) sweepstakes
D) loyalty incentive plan
E) event sponsorship

Question 71

One of the major advantages to using point-of-purchase promotion is:

A) its low costs
B) its ability to create long-term relationships with customers
C) the fact it has a captive audience
D) its ability to create long-term relationships with intermediaries
E) the low monetary requirements

Question 72

The Pillsbury Bake-Off requires people to submit a recipe using Pillsbury baking products.Finalists are brought to Pillsbury kitchens to bake their recipes so the winner of a cash prize can be chosen.This is an example of a:

A) contest
B) sales promotion game
C) sweepstakes
D) push money deal
E) POP (participant of Pillsbury)

Question 73

Unlike other sales promotion activities,the objective of a loyalty marketing program is to:

A) encourage brand switching
B) appeal to bargain hunters who consistently buy the lowest priced brand
C) take away customers from the competition
D) build long-term,mutually beneficial relationships between a company and its key customers
E) modify customers' attitudes toward a product

Question 74

The Men's Health Center offers free blood pressure tests,cholesterol screening tests,and prostate exams one day each year.These free health tests are an example of a:

A) premium
B) free sample
C) service commission
D) sponsorship
E) point-of-purchase promotion

Question 75

General Mills is offering resellers a 10 percent discount on all cases of its granola bars purchased during the month of June.General Mills is offering a:

A) trade allowance
B) life cycle extension promotion
C) P-O-P discount
D) push money deal
E) product development deal

Question 76

Which of the following statements about contests and sweepstakes is true?

A) Contests depend on luck,and participation is free.
B) Contests are generally effective tools for creating long-term relationships with customers.
C) Sweepstakes are promotions that require participants to exhibit some skill.
D) Sweepstakes usually draw about ten times more participants than contests.
E) Contests and sweepstakes are not useful for creating interest and publicity.

Question 77

Which sales promotion tool allows the consumer the opportunity to try a product or service for free?

A) Coupon
B) Rebate
C) Sampling
D) Sweepstake
E) Allowance

Question 78

General Motors is offering the sales force at Kings Chevrolet a $100 reward for each Chevy Volt sold in the next 30 days.What type of trade sales promotion is the $100?

A) A trade allowance
B) Push money
C) A selling deal
D) Premium payment
E) A direct commission

Question 79

_____ is money offered to channel intermediaries to encourage them to sell the manufacturer's product.

A) A trade allowance
B) Push money
C) A selling deal
D) A premium payment
E) A direct trade sales promotion

Question 80

Seagram's Coolers has asked bartenders in New York City to submit cocktail recipes to its Web site.From these entries,the winning recipe will be selected.The winner of this _____ gets to take a friend on a five-night trip to Tahiti.

A) contest
B) push money deal
C) sampling
D) relationship game
E) sweepstakes