Deck 16: Sales Promotion, Events, and Sponsorships

Question 1

Who is the target audience of sales promotion?

A) consumers
B) trade, such as distributors and retailers
C) sales representatives
D) a and b
E) a, b, and c

Answer 1

a, b, and c

Question 2

Which of the following typically receives about half of the marketing communication budgets?

A) advertising
B) consumer sales promotion
C) trade promotions
D) event sponsorship
E) public relations

Answer 2

advertising

Question 3

Reasons for the move to sales promotion match changes in the marketplace do NOT include?

A) Consumers are more likely to switch brands because they are better educated, more selective, and less loyal to brand names than in the past.
B) Consumers have come to expect constant short-term price reductions such as coupons, sales, and price promotions.
C) In most industries, the battle is for market share rather than general product growth, and sales promotion encourages people to switch products, increasing market share.
D) Sales promotion is often the most effective strategy for increasing sales of a parity product.
E) Dominant retailers do want promotional incentives because they do not benefit the retailer.

Answer 3

Dominant retailers do want promotional incentives because they do not benefit the retailer.

Question 4

Which of the following is NOT a change in the marketplace that is a reason for the growth of sales promotion?

A) Consumers are more likely to switch brands because they are better educated, more selective, and less loyal to brand names than in the past.
B) Consumers have come to expect constant short-term price reductions such as coupons, sales, and price promotions.
C) In most industries, the battle is for market share rather than general product growth, and sales promotion encourages people to switch products, increasing market share.
D) Dominant retailers demand a variety of promotional incentives before allowing products into their stores.
E) Sales promotion is a useful tool for building brand equity.

Question 5

Which of the following is NOT a set of activities targeted to salespeople to motivate them to increase their sales levels?

A) programs to better prepare salespeople to do their jobs
B) incentives that motivate salespeople to work harder
C) advertising
D) sales manuals, training programs
E) sales presentations, and supportive materials

Question 6

Which of the following is a type of consumer promotion known as a consumer price deal?

A) cents-off deal
B) price-pack deal
C) bonus packs
D) banded packs
E) all of the above

Question 7

Which of the following is NOT a way manufacturer-sponsored coupons are delivered?

A) through media
B) directly, such as direct mail or door-to-door
C) in or on the package
D) through the retailer
E) All of the above are ways to deliver manufacturer-sponsored coupons.

Question 8

Which type of consumer sales promotion will more likely lead to consumer trial by giving the product to consumers?

A) price deals
B) coupons
C) refunds and rebates
D) sampling
E) premiums

Question 9

A ________ is a type of sweepstake, but it differs from a one-shot drawing type because the time frame is longer.

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

Question 10

Which of the following is NOT a use of consumer promotions?

A) generate awareness
B) generate trial
C) maintain or increase market share
D) used as a brand reminder
E) image creation

Question 11

Which of the following is NOT a recommended type of consumer promotion to encourage trial of a new product?

A) sampling
B) coupons
C) price deals
D) sweepstakes
E) special events where the consumer can try the product

Question 12

Which of the following is NOT a recommended type of consumer promotion to maintain or increase market share?

A) sampling
B) price deal
C) coupons
D) premiums
E) contests

Question 13

Which of the following is NOT a recommended type of consumer promotion in the reminder stage?

A) coupons
B) sampling
C) rebates
D) specialty items
E) All of the above are recommended for the reminder stage.

Question 14

Which of the following refers to the trade?

A) brokers
B) distributors
C) wholesalers
D) retailers
E) all of the above

Question 15

Which of the following is NOT a form of point-of-purchase (POP) display?

A) take-aways
B) merchandising display
C) price cards
D) dump bins
E) special racks

Question 16

Where do companies within the same industry gather to present and sell their merchandise, as well as to demonstrate their products?

A) trade shows
B) industry shows
C) industry forums
D) industry consortiums
E) trade consortiums

Question 17

Which of the following are ways that marketers can use the Internet for sales promotion programs?

A) sampling
B) sweepstakes and contests
C) price deals
D) coupons
E) all of the above

Question 18

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

A) event marketing
B) loyalty programs
C) sampling
D) coupons
E) sweepstakes

Question 19

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) tie-ins
B) licensing
C) sponsorship
D) bonuses
E) spiffs

Question 20

Which of the following is true regarding advertising?

A) adds tangible value to the product or service
B) creates an immediate action
C) creates a brand image over time
D) contributes greatly to short-term profitability
E) added value strategies rely on rational appeals

Question 21

Which of the following is an important dimension of measurement of promotion effectiveness?

A) response rate
B) redemption rate
C) payout planning
D) a and b
E) a, b, and c

Question 22

A price deal is a temporary price reduction or a sale price, and there are four types: cents-off deals, price-pack deals, bonus packs, and banded packs.

Question 23

A game is a type of contest, only differing by the length of time it runs.

Question 24

Consumer promotions can be used to generate awareness, trial, maintain or increase market share, and as a brand reminder.

Question 25

The general decline in consumer brand loyalty is due to the increase in sales promotion use by marketers.

Question 26

Explain the purposes of consumer promotions and the useful types of consumer promotions for each.

Question 27

Name and describe the various partnership programs.

Question 28

Dan is creating a sales promotion for a client. Who would NOT be in the target audience of sales promotion?

A) consumers
B) retailers
C) sales representatives
D) distributors
E) company executives

Question 29

Dana is developing an integrated marketing communications campaign for a client, and she wants to include an element that will provide an incentive for consumers to purchase the product. She also wants to generate excitement for the brand. Which tool should she use to accomplish these goals?

A) advertising
B) personal selling
C) public relations
D) sales promotion
E) direct marketing

Question 30

Which of the following was NOT part of loyalty programs that were given in the text?

A) Increase customer retention.
B) Reward customers for their patronage.
C) The higher the purchase level, the greater the benefits.
D) Generate information for customer databases.
E) Focused on attracting new customers rather than rewarding current customers.

Question 31

What type of promotion is Upromise, which was discussed in the "Hands-On" case at the end of the chapter?

A) loyalty program
B) price deal
C) premium
D) sweepstake
E) game

Question 32

MINI-CASE
Everyone knows McDonald's, the worldwide fast food chain. McDonald's has been a user of consumer promotions for years. They offer a kids' Happy Meal that always includes a toy, and often times the package itself is a promotion, such as pumpkin buckets at Halloween. They have also used a promotion patterned after the popular Monopoly game where everyone wins something small, like a soft drink or french fries, but someone could win $1 million dollars by participating. The Monopoly promotion usually lasts several months. McDonald's also participates in promotions with movies, such as Star Wars and several Disney movies. Another promotion McDonald's is considering is a program where consumers will receive one free Happy Meal for every 10 they purchase.

-Refer to Mini-Case. What type of consumer promotion is the toy in the Happy Meal?

A) direct premium
B) self-liquidating premium
C) sample
D) price deal
E) game

Question 33

MINI-CASE
Everyone knows McDonald's, the worldwide fast food chain. McDonald's has been a user of consumer promotions for years. They offer a kids' Happy Meal that always includes a toy, and often times the package itself is a promotion, such as pumpkin buckets at Halloween. They have also used a promotion patterned after the popular Monopoly game where everyone wins something small, like a soft drink or french fries, but someone could win $1 million dollars by participating. The Monopoly promotion usually lasts several months. McDonald's also participates in promotions with movies, such as Star Wars and several Disney movies. Another promotion McDonald's is considering is a program where consumers will receive one free Happy Meal for every 10 they purchase.

-Refer to Mini-Case. Maria won $1 million playing Monopoly at McDonald's. What type of consumer promotion is this?

A) direct premium
B) self-liquidating premium
C) contest
D) price deal
E) game

Question 34

MINI-CASE
Everyone knows McDonald's, the worldwide fast food chain. McDonald's has been a user of consumer promotions for years. They offer a kids' Happy Meal that always includes a toy, and often times the package itself is a promotion, such as pumpkin buckets at Halloween. They have also used a promotion patterned after the popular Monopoly game where everyone wins something small, like a soft drink or french fries, but someone could win $1 million dollars by participating. The Monopoly promotion usually lasts several months. McDonald's also participates in promotions with movies, such as Star Wars and several Disney movies. Another promotion McDonald's is considering is a program where consumers will receive one free Happy Meal for every 10 they purchase.

-Refer to Mini-Case. What type of premium is the pumpkin bucket for the Happy Meals?

A) in-pack premium
B) on-pack premium
C) container premium
D) bonus pack
E) self-liquidating premium

Question 35

MINI-CASE
Everyone knows McDonald's, the worldwide fast food chain. McDonald's has been a user of consumer promotions for years. They offer a kids' Happy Meal that always includes a toy, and often times the package itself is a promotion, such as pumpkin buckets at Halloween. They have also used a promotion patterned after the popular Monopoly game where everyone wins something small, like a soft drink or french fries, but someone could win $1 million dollars by participating. The Monopoly promotion usually lasts several months. McDonald's also participates in promotions with movies, such as Star Wars and several Disney movies. Another promotion McDonald's is considering is a program where consumers will receive one free Happy Meal for every 10 they purchase.

-Refer to Mini-Case. The promotion in which customers receive one Happy Meal for every 10 they purchase is known as a(n) ________.

A) price deal
B) premium
C) tie-in
D) refund
E) loyalty program

Question 36

MINI-CASE
Everyone knows McDonald's, the worldwide fast food chain. McDonald's has been a user of consumer promotions for years. They offer a kids' Happy Meal that always includes a toy, and often times the package itself is a promotion, such as pumpkin buckets at Halloween. They have also used a promotion patterned after the popular Monopoly game where everyone wins something small, like a soft drink or french fries, but someone could win $1 million dollars by participating. The Monopoly promotion usually lasts several months. McDonald's also participates in promotions with movies, such as Star Wars and several Disney movies. Another promotion McDonald's is considering is a program where consumers will receive one free Happy Meal for every 10 they purchase.

-Refer to Mini-Case. What type of partnership program does McDonald's enter into when its promotions are related to movies?

A) co-marketing
B) co-branding
C) licensing
D) tie-in
E) loyalty program

Question 37

What was the objective for Frontier Airline's Favorite Animal Contest discussed in the chapter's opening vignette?

Question 38

Consumer packaged goods manufacturers are heavy users of one type of consumer promotions called price deals, and there are four common types of price deals. Name and describe them.

Question 39

What are the reasons for the growth in the relationship between sports and advertising as described in "A Matter of Practice"?

Question 40

There has been a shift from a pull promotion strategy to a push promotion strategy over that past few decades. Compare and contrast these two strategies, and name and describe three common types of incentives and trade deals used with retailers as part of a push strategy.

Question 41

Your roommate is taking this class with you because he thought it would be a fun course to take, but he's an engineering major and is having trouble seeing the differences between all these IMC tools. Specifically, he doesn't really see much difference between advertising and sales promotion. Discuss four differences between advertising and sales promotion to help him understand better.

Question 42

As described in "It's a Wrap" at the end of the chapter, what were the results of the Favorite Animal Contest?

Question 43

The Upromise program that was described in the "Hands-On" case at the end of the chapter can be described as a "win-win" situation. Describe the Upromise promotion and explain why you think it is a "win-win" situation?

Question 44

MINI-CASE
Kraft is known for its cheese products, but this company also manufactures several consumer packaged goods products, such as mayonnaise, salad dressing, barbeque sauce, macaroni and cheese, and other types of food products that are sold in grocery stores. A large portion of Kraft's marketing communication budget (i.e., more than 50 percent) is spent on incentives given to wholesalers and retailers to get its products to the consumers.
-Refer to Mini-Case. What is the target audience called that Kraft is targeting with incentives to get its products to consumers in the stores? Name and describe the other targets of sales promotion as well.

Question 45

MINI-CASE
Kraft is known for its cheese products, but this company also manufactures several consumer packaged goods products, such as mayonnaise, salad dressing, barbeque sauce, macaroni and cheese, and other types of food products that are sold in grocery stores. A large portion of Kraft's marketing communication budget (i.e., more than 50 percent) is spent on incentives given to wholesalers and retailers to get its products to the consumers.
-Refer to Mini-Case. What audience is Kraft targeting in this case, and what are the two primary roles of this type of promotion?

Question 46

MINI-CASE
Kraft is known for its cheese products, but this company also manufactures several consumer packaged goods products, such as mayonnaise, salad dressing, barbeque sauce, macaroni and cheese, and other types of food products that are sold in grocery stores. A large portion of Kraft's marketing communication budget (i.e., more than 50 percent) is spent on incentives given to wholesalers and retailers to get its products to the consumers.
-Refer to Mini-Case. What type of promotion could Kraft provide to retailers to call their customers' attentions to Kraft's products? Discuss different examples of this type of promotion.