Deck 16: Sales Promotion

Question 1

Media support for a sales promotion program is typically considered optional.
Media support for a sales promotion program is critical and should be coordinated with the media program for the ad campaign.

Answer 1

False

Question 2

In order to integrate advertising and sales promotion programs successfully, the theme of consumer promotion need not be tied in with the positioning platform for the company and/or its brand.
In order to integrate the advertising and sales promotion programs successfully, the theme of consumer promotion should be tied in with the positioning platform for the company and/or their brand wherever possible.

Answer 2

False

Question 3

A sales promotion spiral can result when several competitors use promotions extensively.
A potential problem with consumer-oriented promotions is that a sales promotion trap or spiral can result when several competitors use promotions extensively.

Answer 3

True

Question 4

Sales promotions are typically not considered a part of the IMC planning process.
While sales promotion has been part of the marketing process for a long time, its role and importance in a company's integrated marketing communications program have increased dramatically over the past decade.

Question 5

Promotion programs cannot be developed to coincide with peak sales periods for certain products and services.
Promotion programs also can be developed to coincide with peak sales periods for certain products and services.

Question 6

Sampling is generally considered the least effective way to generate trial.
Sampling involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial. Sampling is generally considered the most effective way to generate trial, although it is also the most expensive.

Question 7

One of the most important uses of sales promotion techniques is to encourage consumers to try a new product or service.
One of the most important uses of sales promotion techniques is to encourage consumers to try a new product or service.

Question 8

A major reason for decrease in sales promotion is that customers have become less brand loyal.
A major reason for the increase in sales promotion is that consumers have become less brand loyal and are purchasing more on the basis of price, value, and convenience.

Question 9

An objective for consumer-oriented promotions is to enhance or support the integrated marketing communications effort for a brand or company.
An objective for consumer-oriented promotions is to enhance or support the integrated marketing communications effort for a brand or company. While building and/or maintaining brand equity was traditionally viewed as something that was done through media advertising, it has also become an important goal for marketers as they develop their sales promotion programs.

Question 10

Sales promotion involves some type of inducement that provides an extra incentive to buy.
Sales promotion involves some type of inducement that provides an extra incentive to buy. This incentive is usually the key element in a promotional program; it may be a coupon or price reduction, the opportunity to enter a contest or sweepstakes, a money-back refund or rebate, or an extra amount of a product.

Question 11

Sampling through the mail is common for small, lightweight, nonperishable products.
Sampling through the mail is common for small, lightweight, nonperishable products. A major advantage of this method is that the marketer has control over where and when the product will be distributed and can target the sample to specific market areas.

Question 12

The use of newspapers and magazines as couponing vehicles has increased dramatically since the introduction of FSIs.
The use of newspapers and magazines as couponing vehicles has declined dramatically since the introduction of FSIs as only 1 percent of coupons is distributed via newspapers and magazines.

Question 13

Sales promotion activities cannot be targeted to different parties in the marketing channel.
An important point regarding sales promotion activities is that they can be targeted to different parties in the marketing channel.

Question 14

A major reason for the increase in spending on sales promotion is that the promotion industry has matured over the past several decades.
A major reason for the increase in spending on sales promotion is that the promotion industry has matured over the past several decades.

Question 15

Cross-cuff coupons are redeemable on the purchase of a different product, usually one made by the same company but occasionally through a tie-in with another manufacturer.
Cross-cuff coupons are redeemable on the purchase of a different product, usually one made by the same company but occasionally through a tie-in with another manufacturer.

Question 16

The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon.
The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon.

Question 17

A strategy for increasing sales of an established brand is to use promotions that attract nonusers of the product category or users of a competing brand.
A strategy for increasing sales of an established brand is to use promotions that attract nonusers of the product category or users of a competing brand.

Question 18

Event sampling is where a package is attached to another item.
On-package sampling, where a sample of a product is attached to another item, is a common sampling method.

Question 19

When a brand moves to the maturity stage, advertising is primarily used as a reminder to keep consumers aware of the brand.
When a brand moves to the maturity stage, advertising is primarily a reminder to keep consumers aware of the brand.

Question 20

Which of the following elements of the integrated marketing communications program is designed to provide an extra incentive to consumers to purchase a brand?

A)Magazine advertising
B)Direct mail
C)Public relations
D)Publicity
E)Sales promotion

Question 21

Which of the following serves as a reason for the increase in sales promotion?

A)Growing power of retailers
B)Increasing brand loyalty of customers
C)Lack of short-term focus among marketers
D)Decreased promotional sensitivity
E)Decreased competition

Question 22

How are marketers responding to the fragmentation of the consumer market?

A)They are using more media monitoring services to make event sponsorship more successful.
B)They are using more traditional mass-media based advertising.
C)They are using more sales promotions that are tied to local events.
D)They are employing clipping services to determine the effectiveness of their press releases.
E)They are ignoring the fragmentation of the consumer market and are continuing to do business as usual.

Question 23

Coupons, bonus packs, premiums, and samples are promotional offers that are targeted toward:

A)end users.
B)retailers.
C)wholesalers.
D)salespeople.
E)employees.

Question 24

Which of the following is true of consumer franchise building (CFB) promotions?

A)CFB promotions are designed to promote short-term brand preference.
B)CFB promotions cannot make consumers loyal to a brand that is of little value.
C)CFB promotions can make consumers loyal to a brand that does not provide a specific benefit.
D)CFB promotions typically do not contribute to the development of a favorable brand image.
E)CFB promotions are not suitable for brand extension strategies.

Question 25

Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision-making. Which of the following would best support a marketer in producing quick and easily measurable jump in sales?

A)Mass-media advertising
B)A strategy that enhances the advertising carryover effect
C)Sales promotions such as coupons and price discounts
D)Bait-and-switch marketing techniques
E)Out-of-home advertising media

Question 26

Brand equity is also known as:

A)customer loyalty.
B)customer franchise.
C)brand extension.
D)brand logo.
E)trademark.

Question 27

Kiddo Inc., a toy manufacturer, teamed with Game On, a retailer, to create direct-mail booklets offering discounts on Kiddo toys only at Game On stores. This is an example of:

A)guerilla marketing.
B)brand stretching.
C)evangelism marketing.
D)account-specific marketing.
E)brand extension.

Question 28

Promotional activities designed to accelerate the purchase process and generate an immediate increase in sales without communicating information about a brand's unique features or benefits are known as:

A)consumer franchise-building promotion.
B)nonfranchise-building promotion.
C)vertical integration marketing.
D)image promotions.
E)evangelism marketing.

Question 29

_____ marketing is a type of marketing in which a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives.

A)Evangelism
B)Close range
C)Account-specific
D)Call to action
E)Affinity

Question 30

Account-specific marketing is also known as:

A)a planogram program.
B)comarketing.
C)dual sponsorship.
D)piggyback marketing.
E)guerilla marketing.

Question 31

Which of the following is an example of a nonfranchise-building promotion?

A)Consumer sampling
B)Contests targeted to ultimate consumers
C)Price-off deals
D)Event sponsorship
E)Frequency programs

Question 32

Which of the following statements describes how brand equity is affected by the increased use of sales promotion?

A)Critics argue that sales promotions generally result in higher brand equity.
B)Sales promotions do not contribute to the erosion of brand equity.
C)Marketing experts argue that higher spending on sales promotion is at the expense of media advertising, which leads to a decline in brand equity.
D)There is strong agreement among marketing professionals that any type of sales promotion activity detracts from brand equity.
E)Marketing experts generally agree that advertising plays an important role in building and maintaining a brand's image and position, which are core components of its equity.

Question 33

Which of the following is an example of a trade-oriented sales promotion activity?

A)Samples
B)Coupons
C)Refunds/rebates
D)Dealer contests
E)Bonus packs

Question 34

Which of the following developments has resulted in a transfer of power from manufacturers to retailers?

A)The advent of optical scanners and computers has given manufacturers access to sales information.
B)An increase in brand loyalty among consumers has led to an increase in sales promotion activities.
C)Consolidation in the grocery industry has resulted in larger chains with greater buying power and clout.
D)A significant decrease in promotional sensitivity and time-sensitivity among consumers has occurred since the early 2000s.
E)Increasingly, manufacturers are introducing more private-label brands into the market.

Question 35

Which of the following is true of the increase in sales promotion by brand managers?

A)Brand managers tend to ignore sales promotion due to its primacy effect.
B)Many brand managers believe that sales promotions cannot be used to defend against competition.
C)Typically, sales promotions are not used by brand managers while introducing new products.
D)Sales promotions are typically used by brand managers to meet quarterly goals.
E)Sales promotions are generally a neglected part of the IMC process by most brand managers.

Question 36

Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are known as:

A)nonfranchise-building promotions.
B)consumer franchise-building promotions.
C)high-involvement sales promotions.
D)sales promotion traps.
E)event marketing.

Question 37

One reason for consumers' increased sensitivity to sales promotions is:

A)that they have become less time-sensitive.
B)the increase in perceived brand loyalty.
C)the increased power of manufacturers.
D)that they save money.
E)that consumers' choices have declined.

Question 38

How has the view of sales promotions changed during the past decades?

A)Sales promotions are now considered an essential part of an organization's branding strategies.
B)Sales promotion tactics are now developed before the branding strategy is determined.
C)Sales promotions are now believed to be an ineffective tool for creating brand image.
D)Creatives have become more sophisticated, and this sophistication has led to a decline in their dependence on sales promotion.
E)Sales promotion techniques are increasingly being considered as "obsolete."

Question 39

Which of the following is true of consumer franchise-building promotions?

A)They are designed to increase long-term brand preference.
B)They are designed to help consumers avoid full-price purchases in the long-term.
C)They do not always depend on a promotional offer.
D)They are a subset of public relations.
E)They are synonymous with publicity.

Question 40

Some businesspeople think that the packaged-goods brand management system has contributed to marketers' increased dependence on:

A)telemarketing.
B)direct mail.
C)publicity.
D)synergistic buying.
E)sales promotion.

Question 41

The sales promotion tool that critics contend is most guilty of detracting from brand equity and at the same time being detrimental to a brand franchise is:

A)sweepstakes.
B)contests.
C)frequent patronage programs.
D)trade promotions.
E)event sponsorships.

Question 42

On the inside of its pizza box, Joe's Pizza places a $1-off coupon, which can be redeemed at the next purchase. In this scenario, Joe's is using a(n) _____ coupon.

A)cross-ruff
B)bounce-back
C)instant
D)cross sell
E)checkout

Question 43

In a(n) _____ sampling, a multiproduct firm attaches the sample to an existing item of the firm.

A)checkout
B)spiff
C)in-store
D)on-package
E)bounce back

Question 44

With reference to the various sampling methods, _____ is used when it is important to control where the sample is delivered and when the products are of a perishable nature.

A)mail sampling
B)couponing
C)door-to-door sampling
D)on package sampling
E)mobile coupon

Question 45

Which of the following is an advantage of the sampling method of sales promotion?

A)It is the least expensive among all methods of sales promotion.
B)The costs of the sampling program can easily be recovered with just a few purchases.
C)Marketers believe that for all products the results of sampling can be seen immediately.
D)It is extremely useful for products and services that do not have subtle features.
E)Consumers gain a greater appreciation for a product's benefits.

Question 46

What advantage does distribution of coupons through direct mail have over other forms of coupon delivery?

A)Precise reach
B)Lower cost
C)Lower redemption rate
D)Lower economies of scale
E)Cooperative advertising opportunities

Question 47

Samples would be an appropriate promotional strategy:

A)to support an everyday low price (EDLP) strategy.
B)to facilitate a push promotional strategy.
C)to introduce a new product into the marketplace.
D)in the decline stage of a product's life cycle.
E)to build long term relationships with customers.

Question 48

In _____ sampling, a marketer hires temporary demonstrators who set up a table or booth within an outlet, prepare small samples of a product, and pass them out to shoppers.

A)door-to-door
B)event
C)on-package
D)in-store
E)direct mail

Question 49

The most popular method for distributing coupons is through:

A)newspaper freestanding inserts.
B)direct mail.
C)product packaging.
D)magazines.
E)the Yellow Pages.

Question 50

The oldest, most widely used, and most effective sales promotion tool is:

A)cents-off coupons.
B)sampling.
C)rebates.
D)event sponsorship.
E)bonus packs.

Question 51

_____ coupons are in/on-pack coupons that are redeemable on the purchase of a different product, usually one made by the same company, but occasionally through a tie-in with another manufacturer.

A)Bounce back
B)Cross-ruff
C)Instant
D)Cross-sell
E)In-store

Question 52

Which of the following is a disadvantage of couponing?

A)It can be difficult to estimate how many consumers will use a coupon and when.
B)It discourages initial product trial.
C)It assists in reducing the price of a product only by relying on retailers for cooperation.
D)It assists only in attracting new customers but does not help in retaining existing customers.
E)It may encourage regular users to trade down to inexpensive brands.

Question 53

One of the main types of on-package coupons is the _____ coupon, which is attached to the outside of the package so the consumer can rip it off and redeem it at the time of the purchase.

A)bounce back
B)cross-ruff
C)instant
D)cross sell
E)premium

Question 54

An advantage of coupons is that they:

A)elicit faster consumer responses than samples, unlike sweepstakes and rebates.
B)generally elicit immediate response from consumers.
C)are very effective even without brand name awareness.
D)allow a marketer to offer a price reduction only to consumers who are price sensitive.
E)build brand loyalty.

Question 55

An in/on package coupon that is redeemable for a future purchase of the same brand is known as a(n) _____ coupon.

A)cross-ruff
B)bounce-back
C)instant
D)cross-sell
E)checkout

Question 56

_____ is generally considered the most effective method for generating trial of a new product.

A)Couponing
B)Sampling
C)Rebating
D)Sweepstakes promotion
E)A contest

Question 57

_____ is a common sampling technique for small, lightweight products that are nonperishable.

A)Door-to-door sampling
B)Sampling through the mail
C)In-store sampling
D)On-package sampling
E)Location sampling

Question 58

Which of the following have the highest redemption levels of all types of coupons?

A)Bounce-back coupons
B)Cross-ruff coupons
C)Instant coupons
D)Cross-sell coupons
E)Premium coupons

Question 59

Which of the following statements is true of couponing?

A)Coupons always assist in providing an immediate response.
B)Coupons are often used by consumers who are already loyal to the brand.
C)Coupons are useless when it comes to promoting established products.
D)Coupons are more effective than sampling for inducing initial product trial in a short period.
E)Coupons have an extremely high redemption ratE.A problem associated with using coupons to attract new users to an established brand is that it is difficult to prevent the coupons from being used by consumers who already use the brand.Rather than attracting new users, coupons can end up reducing the company's profit margins among consumers who would probably purchase the product anyway.However, they can help retain users.

Question 60

_____ involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial.

A)A rebate
B)A refund
C)Sampling
D)Couponing
E)A sweepstakes

Question 61

Packages of Vinnie's Cornmeal have coupons that can be cut out and redeemed at the time of purchase. These are called _____ coupons.

A)bounce-back
B)cross-ruff
C)instant
D)premium
E)cross-sell

Question 62

Which of the following is true of in-store couponing?

A)It is a highly expensive method of couponing.
B)It is typically distributed through checkout counters.
C)It is typically a long-term strategy used during the maturity stage.
D)It is also known as bond couponing.
E)It is also known as cross-ruff couponing.

Question 63

Which of the following is a limitation of sampling through the mail?

A)It can be used only by multiproduct firms.
B)It must always be used in combination with another sampling method.
C)It involves extensive postal restrictions.
D)It cannot be used for nonperishable products.
E)It can be used only for food samples.

Question 64

Which of the following is a limitation of using in-store sampling?

A)It can be used only for food products.
B)It requires the cooperation of retailers.
C)It is a highly ineffective method.
D)It must always be used in combination with another sampling method.
E)It is typically considered effective only for high-end luxury products.

Question 65

Which of the following is a disadvantage of bounce-back coupons?

A)They do not attract nonusers of a particular brand.
B)They are redeemable on the purchase of a different product.
C)They do not induce customers to repurchase the brand.
D)They are not useful for a brand that has reached the maturity stage.
E)They are not useful for products that are in the early phases of their life cyclE.The main limitation of bounce-back coupons is that they go only to purchasers of the brand and thus do not attract nonusers.

Question 66

Which of the following is an advantage of sampling through the mail?

A)It offers a greater markup for the retailer than other sampling techniques.
B)It can take place in stores as well as at a variety of other venues such as concerts.
C)The marketer has control over where and when the product will be distributed.
D)The distribution system is unaffected by postal restrictions and increasing postal rates.
E)This sampling method is always used in combination with another sampling method.

Question 67

A(n) _____ is an offer of an item of merchandise or services, either free or at a reduced price, that is used to provide an extra incentive to purchase.

A)mnemonic
B)heuristic
C)premium
D)prommercial
E)exhibition

Question 68

Which of the following is a limitation of using on-package sampling?

A)It will not reach nonusers of the carrier brand.
B)It cannot be used by multiproduct firms.
C)It is highly expensive.
D)It can be used only for food products.
E)It requires extensive product guarantees.

Question 69

A package of Confident razor blades contains a 75 cent-off coupon for Confident Foamy shaving cream. This is an example of a(n) _____ coupon.

A)cross-ruff
B)bounce-back
C)checkout
D)instant
E)rebate

Question 70

Consumers must pay the manufacturers' cost-price or a _____ premium.

A)cost-covered
B)self-liquidating
C)subsidized
D)cost-plus
E)base-cost

Question 71

_____ is a sampling method in which the product is delivered directly to the prospect's residence.

A)In-house sampling
B)In-store sampling
C)Event sampling
D)Door-to-door sampling
E)Bounce back sampling

Question 72

Which of the following sampling methods, featuring media tie-ins, is the fastest-growing and the most popular?

A)Event sampling
B)Bounce back sampling
C)On-package sampling
D)In-store sampling
E)Door-to-door sampling

Question 73

Which of the following is a limitation of door-to-door sampling?

A)It can be used only by multiproduct firms.
B)It is subject to increasing postal rates.
C)It can be used only for food products.
D)It involves high labor costs.
E)It must always be used in combination with another sampling method.

Question 74

Which of the following is true of self-liquidating premiums?

A)They are used for lightweight, nonperishable products.
B)They require customers to pay for the mailing costs.
C)They are typically offered at higher-than-retail prices.
D)They are also known as cost-plus premiums.
E)They are usually delivered directly to the customers' doorsteps.

Question 75

A _____ is a promotion where consumers compete for prizes and/or money on the basis of skills or ability.

A)sweepstake
B)contest
C)refund
D)rebate
E)sample

Question 76

Pluto Inc. places a 50 cent-off coupon for another brand, Krispies maple syrup, on the outside of boxes of its Pluto Rice Cereal. This is an example of a(n) _____ coupon.

A)bounce-back
B)cross-ruff
C)instant
D)premium
E)cross-sell

Question 77

Electronically dispensed checkout coupons:

A)generate impulse buying and product trial.
B)have no redemption deadline.
C)are available on a company's website and must be printed out to be used.
D)are cost-effective and can be targeted to specific categories of consumers.
E)are attached to the outside of the package so they can be ripped off and redeemed immediately.

Question 78

Yummy Oats cereal included tubes of ToothFairy Junior toothpaste inside each of its boxes. This is an example of a:

A)free premium.
B)self-liquidating premium.
C)rebate.
D)bonus pack.
E)non-subsidized premium.

Question 79

NapTime Inc., a manufacturer of mattresses, gave away a Sheep plush toy to any customer who purchased a mattress from a NapTime dealer. The toy was only available for a limited period. The plush toy is an example of a:

A)coupon.
B)sample.
C)free premium.
D)rebate.
E)self-liquidating premium.

Question 80

The in-store sampling approach can be very effective for food products because:

A)customers get to taste the sample.
B)customers get the sample delivered to their homes.
C)it is an inexpensive sampling method.
D)it does not require a great deal of planning.
E)it does not require the cooperation of retailers.