Deck 17: Promotions

Question 1

Usually the go/no-go decision for a sales promotion is based on the ________.

A)creativity of the program
B)expected ROI of the program
C)quality of available premiums
D)relationship with channel members
E)level of product parity

Answer 1

B

Question 2

The consumer promotion that provides a reduction in the normal price charged for a good or service announced at the point of sale or through mass or direct advertising is known as a ________.

A)prize-pack deal
B)cents-off deal
C)bonus pack
D)banded pack
E)coupon

Answer 2

B

Question 3

Which of the following provide the consumer with something extra through the package itself?

A)prize-pack deals
B)cents-off deals
C)samples
D)self-liquidator premiums
E)coupons

Answer 3

A

Question 4

Which of the following statements regarding sales promotion is false?

A)Shoppers today are better educated and more selective, which means they are more loyal to brands than in the past.
B)Although consumers are an important target for promotions, so are other people, such as the company's sales representatives and members of the trade.
C)Over the years advertising and sales promotion have been battling for their share of the marketing communication budget.
D)Two chief reasons for the growth of sales promotion are the pressure for short-term profits and the need for accountability of marketing communication efforts.
E)From the consumers' perspective, sales promotion reduces the risk associated with a purchase by giving them something of added value.

Question 5

Sales manuals, training programs, and supportive materials are all examples of ________.

A)retailer promotions
B)partner promotions
C)sales force promotions
D)trade promotions
E)channel promotions

Question 6

Allowing the consumer to try the product or service is called ________.

A)a warranty
B)sampling
C)a premium
D)a specialty
E)self-liquidating

Question 7

Which of the following is NOT a typical target audience of sales promotion?

A)consumers
B)distributors
C)sales representatives
D)media
E)retailers

Question 8

Which of the following is a common consumer price deal?

A)banded packs
B)refund
C)rebate
D)premium
E)contest

Question 9

A consumer sales promotion that is a marketer's offer to return a certain amount of money to the consumer who purchases the product is known as a ________.

A)rebate
B)refund
C)coupon
D)A or B
E)A, B, or C

Question 10

The media and non-media marketing pressure applied for a predetermined, limited period of time at the level of consumer, retailer, or wholesaler in order to stimulate trial, increase consumer demand, or improve product availability is categorized as ________.

A)advertising
B)public relations
C)sales promotion
D)personal selling
E)event sponsorship

Question 11

Which of the following is NOT a common consumer price deal?

A)cents-off deal
B)prize-pack deal
C)bonus packs
D)banded packs
E)refund

Question 12

Which of the following is NOT a reason for the growth of sales promotion?

A)consumer expectation of constant short-term price reductions
B)need for accountability
C)power of dominant retailers
D)reduction of consumers' risk
E)pressure for long-term profits

Question 13

A temporary price reduction or a sale price is known as a ________.

A)refund
B)rebate
C)price deal
D)spiff
E)price-off

Question 14

Which of the following is NOT a type of consumer promotion?

A)price deals
B)sampling
C)spiffs
D)contests and sweepstakes
E)premiums

Question 15

Sales promotion is often the most effective strategy for increasing sales of a(n)________.

A)luxury product
B)parity product
C)business service
D)exclusive product
E)differentiated product

Question 16

What is the ultimate goal of sales promotion?

A)action
B)awareness
C)identification
D)intention
E)liking

Question 17

Which of the following are the two types of coupons?

A)refund and rebate
B)immediate and delayed
C)percentage and cents-off
D)retailer and manufacturer
E)price cut and added value

Question 18

________ coupons can be redeemed only at the specified retail outlet, and ________ coupons can be redeemed at any outlet distributing the product.

A)Retailer-sponsored; manufacturer-sponsored
B)Manufacturer-sponsored; retailer-sponsored
C)Refund; rebate
D)Rebate; refund
E)Immediate; delayed

Question 19

The consumer promotion that is a tangible reward for a particular act, usually purchasing a product or visiting the point-of-purchase, is known as a ________.

A)sample
B)price deal
C)contest
D)sweepstake
E)premium

Question 20

Through the process of ________, results derived from a promotion can be estimated and compared with the projected cost of the effort.

A)investment planning
B)payout planning
C)added value planning
D)allowance analysis
E)continuity analysis

Question 21

Which of the following is NOT a type of trade promotion?

A)point-of-purchase displays
B)retailer kits
C)contests
D)trade shows and exhibits
E)coupons

Question 22

Brokers, distributors, wholesales, dealers, franchisees, and retailers are referred to as ________.

A)consumers
B)trade
C)gatekeepers
D)suppliers
E)merchandisers

Question 23

Which type of consumer sales promotion creates excitement by promising "something for nothing" and offering impressive prizes that consumers can win by chance?

A)price deals
B)contests
C)sweepstakes
D)sampling
E)premiums

Question 24

A manufacturer-designed display distributed to retailers who use it to call their customers' attention to product promotions is known as a ________.

A)trade incentive
B)point-of-purchase (PoP)promotion
C)rack job
D)spiff
E)display slick

Question 25

Which of the following is NOT an objective of consumer promotions?

A)generate awareness
B)generate trial
C)maintain or increase market share
D)remind consumers about the brand
E)increase profit margins

Question 26

Which of the following is NOT a type of direct premium?

A)co-op premiums, given to consumers at the retail site but paid for by the manufacturer
B)store premiums, given to customers at the retail site
C)in-pack premiums, inserted in the package at the factory
D)on-pack premiums, placed on the outside of the package at the factory
E)container premiums, in which the package is the premium

Question 27

________ contain materials that support retailers' selling efforts or that help representatives make sales calls on prospective retailing customers.

A)Promotion kits
B)Point-of-purchase (PoP)kits
C)Trade incentives
D)Retailer kits
E)Spiffs

Question 28

Which of the following is a type of trade promotion?

A)refund
B)premium
C)point-of-purchase display
D)sampling
E)rebate

Question 29

Sampling is generally most effective when reinforced on the spot with a ________.

A)self-liquidator premium
B)specialty item
C)game
D)rebate
E)coupon

Question 30

What are the two general types of premiums?

A)direct and mail
B)free and self-liquidator
C)immediate and delayed
D)direct and indirect
E)retailer-sponsored and manufacturer-sponsored

Question 31

________ require participants to compete for a prize or prizes based on some sort of skill or ability.

A)Sweepstakes
B)Games
C)Contests
D)Premiums
E)Specialties

Question 32

A ________ is a type of sweepstake with a longer time frame.

A)game
B)contest
C)premium
D)spiff
E)specialty

Question 33

________ presents the brand's name on something that is given away as a reminder; examples include calendars, pens, T-shirts, mouse pads, and so forth.

A)A premium
B)A rebate
C)A bonus pack
D)Specialty advertising
E)Specialty sampling

Question 34

In a practice that is sometimes referred to as ________, trade promotions are directed at distribution channel members.

A)value-added marketing
B)payout planning
C)channel marketing
D)partner relationship management
E)customer relationship management

Question 35

________ require only that participants submit their names to be included in a one-shot drawing or other chance selection.

A)Sweepstakes
B)Games
C)Contests
D)Premiums
E)Specialties

Question 36

Which of the following promotions would a marketer be most likely to use to build relationships with customers and to remind customers about the brand?

A)coupons
B)sampling
C)rebates
D)specialty items
E)refunds

Question 37

Which type of premium usually requires that a payment be mailed in along with some proof of purchase before the customer receives the premium?

A)indirect premium
B)self-liquidator premium
C)cost-based premium
D)rebate
E)refund

Question 38

Which type of trade promotion rewards a reseller financially for purchase of a certain level of a product or support of a promotion?

A)trade incentives and deals
B)contests
C)point-of-purchase displays
D)price deals
E)retailer kits

Question 39

Which type of premium awards the incentive immediately, at the time of purchase?

A)direct
B)self-liquidator
C)retailer-sponsored
D)manufacturer-sponsored
E)specialty

Question 40

Print ads that are ready to be sent to the local print media as soon as the retailer or dealer adds identification, location, promotion prices, or other information are known as ________.

A)spiffs
B)push incentives
C)ad slicks
D)ad comps
E)ad incentives

Question 41

Monetary bonuses paid to a store's salesperson based on the units that salesperson sells over a period of time are known as ________.

A)push money
B)spiffs
C)slicks
D)A and B only
E)A, B, and C

Question 42

________ means building a product's marketing program around a sponsored event, such as the Olympics or a golf tournament.

A)Event marketing
B)Sports marketing
C)Co-marketing
D)Co-branding
E)Tie-in marketing

Question 43

Which of the following is NOT considered a type of sponsorship or event marketing?

A)sports sponsorships
B)festivals, fairs, and other annual events
C)cause marketing
D)co-marketing
E)supporting the arts

Question 44

A manufacturer that offers cash or gifts to dealers for encouraging the purchase of the manufacturer's goods is using ________.

A)price-offing
B)push money
C)off-listing
D)off-invoicing
E)pull money

Question 45

Which of the following is a promotion designed specifically to increase customer retention?

A)event marketing
B)loyalty program
C)sampling
D)rebate
E)sweepstake

Question 46

A direct payment of cash or goods given to the retailer if the retailer agrees to set up a point-of-sale display is known as a ________.

A)buying allowance
B)bonus
C)dealer loader
D)display allowance
E)cooperative allowance

Question 47

________ is a contractual arrangement between the manufacturer and the resellers, in which the manufacturer agrees to pay a part or all of the advertising expenses incurred by the resellers.

A)Co-op advertising
B)Display advertising
C)A buying allowance
D)An advertising allowance
E)A dealer loader

Question 48

Which of the following is NOT an objective of frequency programs?

A)Increase customer retention.
B)Reward customers for their patronage.
C)Increase the purchase levels of current customers.
D)Generate information for customer databases.
E)Attract new customers to replace unprofitable current customers.

Question 49

Which of the following types of incentives reward retailers by giving them the display after the promotion period is over?

A)bonuses
B)display loaders
C)display allowances
D)buying allowances
E)trade exhibits

Question 50

Consumer promotions are most important in which of the following types of strategies?

A)push
B)pull
C)channel
D)wholesale
E)intermediate

Question 51

________ is the term given to promotional stunts used at events, such as the Olympics, by companies that are not official sponsors.

A)Ambush marketing
B)Sponsorship
C)Co-marketing
D)Co-branding
E)Tie-in marketing

Question 52

________ are premiums, such as a free trip, that a manufacturer gives to a retailer for buying a certain amount of a product.

A)Bonuses
B)Loaders
C)Spiffs
D)Co-ops
E)Pulls

Question 53

What are the two primary roles for a trade promotion?

A)trade support and consumer acceptance
B)consumer acceptance and excitement
C)trade support and excitement
D)switching behavior and excitement
E)trade support and image enhancement

Question 54

Trade promotions are most important in which of the following types of strategies?

A)push
B)pull
C)end-user
D)direct marketing
E)one-to-one

Question 55

Manufacturers may offer a(n)________, which may be a set amount of money or a discount, to a reseller who purchases a certain amount of the product during a specified time period.

A)PoP promotion
B)advertising allowance
C)incentive promotion
D)buying allowance
E)premium

Question 56

________ occurs when companies support an event either financially or by donating supplies and services.

A)Ambush marketing
B)Sponsorship
C)Co-marketing
D)Co-branding
E)Tie-in marketing

Question 57

Which of the following are the most common type of trade deals?

A)point-of-purchase displays
B)push money
C)spiffs
D)contests
E)buying allowances and advertising allowances

Question 58

PoP displays are provided by ________ and used by ________.

A)retailers; manufacturers
B)retailers; consumers
C)retailers; direct marketers
D)manufacturers; direct marketers
E)manufacturers; retailers

Question 59

Manufacturers may offer a(n)________ in return for the retailer's agreement to feature the manufacturer's products in its advertising.

A)PoP promotion
B)advertising allowance
C)incentive promotion
D)buying allowance
E)premium

Question 60

Which of the following is NOT a reason for the growth in the relationship between sports and advertising?

A)Media in general has become more and more fractured.
B)Sports leagues and sponsors have organized to make sports an effective tool for marketing.
C)The window of opportunity for this relationship is expected to close soon.
D)Sponsors have organized to leverage their association with major leagues and events.
E)Small sports events can hold tremendous value for advertisers.

Question 61

The two general types of coupons are immediate and delayed.

Question 62

In comparison to sales promotion, advertising is usually viewed as a longer term investment.

Question 63

Which of the following is false regarding advertising and sales promotion?

A)Sales promotion strategies can be rational or emotional.
B)Advertising creates a brand image over time, and sales promotion creates immediate action.
C)Advertising contributes to short-term profitability, and sales promotion contributes to long-term profitability.
D)Advertising adds intangible value to the product or service.
E)Sales promotion adds tangible value to the product or service.

Question 64

The goal of creating a payout plan is to produce promotions that increase ________.

A)awareness and attachment
B)loyalty and attachment
C)loyalty and conviction
D)awareness and interest
E)sales and profits

Question 65

A price deal is a temporary price reduction or a sale price.

Question 66

The chief reasons for the growth of sales promotion are the pressure for short-term profits and the need for accountability.

Question 67

Frequency programs are also known as ________ programs.

A)cross-promotion
B)continuity
C)partnership
D)premium
E)specialty

Question 68

Sales promotion not only targets consumers, but intermediaries and sales representatives as well.

Question 69

________ involves manufacturers developing marketing communication programs with their main retail accounts, instead of for them.

A)Ambush marketing
B)Sponsorship
C)Cross promotion
D)Co-marketing
E)Licensing

Question 70

Sales promotion is primarily designed to motivate people to act by offering incentives.

Question 71

Shoppers today are more brand loyal, so promotion incentives have to provide substantial incentives to encourage brand switching.

Question 72

Which of the following is a type of partnership program used by manufacturers of two or more brands, such as Doritos corn chips and Pace salsa, to leverage similar strengths to achieve a bigger impact in the marketplace?

A)cross promotion
B)licensing
C)sponsorship
D)co-marketing
E)co-branding

Question 73

In which of the following does a company with an established brand "rent" that brand to other companies, allowing them to use its logo on their products and in their advertising and promotional events?

A)co-branding
B)sponsorship
C)tie-ins
D)co-marketing
E)licensing

Question 74

Which of the following is the most reasonable criticism of sales promotion?

A)cannot account for results
B)can lead to consumer brand insensitivity
C)difficult to integrate with other elements of the communications mix
D)ineffective in the short term
E)difficult to determine specific objectives

Question 75

Sales-force promotions include two general sets of promotional activities directed at salespeople: (1)activities that better prepare salespeople to do their jobs and (2)incentives that motivate salespeople to work harder.

Question 76

About one half of marketing communication budgets is spent on consumer sales promotions.

Question 77

Advertising is often more effective than sales promotion for increasing sales of a parity product when the products in the category are largely undifferentiated.

Question 78

Which of the following most accurately describes an objective of advertising?

A)add tangible value to the product or service
B)encourage an immediate action
C)create a brand image over time
D)contribute to short-term profitability
E)emphasize price over value

Question 79

When two companies come together to offer a product, the effort is called ________.

A)co-branding
B)sponsorship
C)cross promotion
D)tie-in marketing
E)continuity marketing

Question 80

Which of the following is NOT a type of partnership program?

A)co-branding
B)licensing
C)loyalty programs
D)tie-ins
E)All of the above are types of partnership programs.