Deck 15: Sales Promotion, point-Of-Purchase Advertising, and Support Media

Question 1

One objective for promotions in the trade channel is to increase store traffic,which benefits both manufacturers and retailers.

Answer 1

True

Question 2

Sales promotion can break through the media clutter.

Answer 2

True

Question 3

Marketers must select only one sales promotion technique aimed at consumers,such as coupons,price-off deals,premiums,contests and sweepstakes,samples and trial offers,phone and gift cards,rebates,and frequency programs.

Answer 3

False

Question 4

Sales promotion is the use of techniques that create a perception of greater brand value among consumers,the trade,and business buyers,but the techniques can't entail an incentive.

Question 5

One advantage of using sweepstakes and contests is that they can quickly and easily communicate the brand message through the game.

Question 6

The fight for space on grocers' shelves has become very competitive,so manufacturers will do anything to get stores to stock their items-except paying a fee,which is illegal.

Question 7

Historically,more money has been budgeted for sales promotion than for advertising.

Question 8

It is estimated that almost one-fourth of corporate America gives rebates as a type of business-market promotional technique.

Question 9

The complex and information-rich tools of IBP can help create brand loyalty and competitive advantage.

Question 10

Retailers often run trade promotions simultaneously along with consumer promotions.

Question 11

One advantage of sales promotions is that the results are simple to measure.

Question 12

Sales promotion can attract attention and motivate trial purchase,but is not allowed for introducing new brands to the public.

Question 13

One of the more noteworthy examples of promotions depicted in the book is by Axe; Axe did one of the most unusual promotions by offering consumers a chance to go to space.

Question 14

Coupons are the oldest and most widely used form of sales promotion.

Question 15

Sales promotion is more oriented to techniques used to stimulate demand and attract attention in the consumer market.

Question 16

A manufacturer of dental care products sets up a new promotion by attaching one of its toothbrushes to its boxes of toothpaste.This is an example of a mobile sampling technique.

Question 17

A manufacturer helps a retailer by sharing the cost of local advertising.This allows the manufacturer to have some control over the process,and the retailer to advertise for a lower cost.They are taking part in a form of business-market sales promotion.

Question 18

A coupon entitles a buyer to a designated reduction in price for a product or service,and is the oldest and most widely used form of sales promotion.

Question 19

A dentist offers a deal in which customers who have had two teeth whitening services over the last year get the third one free.This is an example of a sampling program to stimulate repeat purchases.

Question 20

The advantage that sales promotions have over advertising is that they are measurable and they can often motivate consumers to buy larger quantities or try new brands.

Question 21

Out-of-home media is just another name for a billboard,and billboards are the only form of out-of-home media.

Question 22

P-O-P promotion can aid manufacturers by attracting consumers,but not by securing relationships within trade and business markets.

Question 23

Objectives for consumer-market sales promotion include stimulating a trial purchase,repeat purchases,larger purchases,or to introduce a new brand,service,or product.

Question 24

Support media are used to introduce a new message beyond the one being delivered by other advertising vehicles,marketing plans,and promotional techniques.

Question 25

Today's forms of out-of-home media can target specific demographic segments by neighborhood using customized mobile messages.

Question 26

Premiums are items offered for a more expensive rate with the purchase of another item.

Question 27

A price-off deal offers a consumer cents or even dollars off merchandise at the P-O-P through specially market packages.

Question 28

During any given year,as much as _____ percent of brand management time might be devoted to designing,implementing,and overseeing sales promotions.

A) 65 
B) 80 
C) 30 
D) 10

Question 29

A display rack that stocks cigarettes is placed above the cash register so the cashier can reach the product for the consumer.The rack has signage on the front advertising the cigarette brand.This is called an overhead merchandiser.

Question 30

Compared to advertising,sales promotion is: 

A) a long-term affair. 
B) designed to make things happen in the short run. 
C) a more sophisticated process. 
D) harder to document.

Question 31

Sales promotions can be used to disrupt competitors' marketing strategies.

Question 32

A medium where advertising,the product,and the consumer together in the same place at the same time is Point-of-Purchase advertising.

Question 33

Despite more advertising clutter,transit advertising works well in dense,urban cities rather than in rural small towns.

Question 34

In recent years,several factors have affected sales promotion in organizations.Pressure from stockholders to produce high quarterly revenue,marketing plans based on quick results,and a bottom line-mentality have all contributed to a: 

A) focus on brand image. 
B) short-term orientation. 
C) sense of creative innovation. 
D) strong consumer bond.

Question 35

Billboards have evolved from outdoor signs and posters,which represent one of the oldest forms of marketing dating back to the early promotional tools of the 1800s.

Question 36

Which of the following are the three basic forms of sales promotion? 

A) At-home, in-store, and out-of-home 
B) At-home, in-store, and out-of-home 
C) Indoor, outdoor, and mobile 
D) Consumer-market, trade-market, and business-market

Question 37

Materials that are used in the retail setting to attract shoppers' attention to a product convey primary product benefits or highlight pricing information.They are referred to as Point-of-Purchase advertising.

Question 38

The primary role for consumer sales promotion is to: 

A) encourage long-term loyalty of a brand. 
B) enhance the image of a brand. 
C) elicit a purchase from a customer.  
D) boost instant demand stimulation.

Question 39

A self-liquidating premium requires a consumer to pay most of the cost of the item received as a premium.

Question 40

A risk of sales promotion is that it could create a price orientation.

Question 41

A difference between contests and sweepstakes is that: 

A) contests can require an entry fee, and sweepstakes cannot. 
B) contests generate long-term interest in a brand, and sweepstakes generate immediate interest.  
C) contests require skill, and sweepstakes require luck. 
D) contests focus on the game, and sweepstakes focus on the brand.

Question 42

In an era of cost cutting and shareholder scrutiny,companies are demanding ___________ across all functions,including marketing,advertising,and promotions.

A) more venture capitalists 
B) less transparency 
C) less hours 
D) greater accountability

Question 43

Trial offers have the same goal as samples,except that trial offers: 

A) are less expensive to utilize. 
B) are handed out in malls, retail stores, and other public places.  
C) involve more expensive items. 
D) arrive through mail or newspaper delivery.

Question 44

A granola bar included in a box of cereal is a: 

A) self-liquidating premium.  
B) push strategy. 
C) free premium.  
D) price-off deal.

Question 45

A regional office supply store wants to understand and serve its customers better and compete with nationwide giants.It is looking for the most effective way to encourage repeat visits and build long-term loyalty with its customers.Which of the following forms of sales promotion would work best? 

A) Mail sampling 
B) Self-liquidating premium 
C) Rebate 
D) Frequency programs

Question 46

A national merchandising company is a major distributor of grocery and beauty products,and uses many tactics to get samples into the hands of consumers.The most popular type of sampling for food and cosmetics products is _________ sampling.

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

Question 47

Payments in the form of slotting fees,cash allowances,and incentives are popular due to the power of __________.

A) retailers 
B) manufacturers 
C) consumers 
D) shareholders

Question 48

An objective of consumer-market sales promotion is to: 

A) stimulate the inelasticity of supply of a product.  
B) lower the economies of scale. 
C) encourage smaller purchases.  
D) stimulate trial purchases.

Question 49

Which of the following is true of a self-liquidating premium? 

A) It is a trade-market sales promotion technique. 
B) The consumer pays most of the cost of the item received as a premium. 
C) It is a business-market sales promotion technique. 
D) It is a point-of-purchase sales promotion technique.

Question 50

A retailer is trying to target the "precision shopper," who expects extra value in every single purchase.Which of the following promotional techniques would best increase the value of a brand in a customer's mind? 

A) Bill-back allowances 
B) Push money 
C) Off-invoice allowance  
D) Coupons

Question 51

Which of the following is true of sampling? 

A) It is available to distributors alone. 
B) The customer receives their money back. 
C) The product is offered at a discounted price. 
D) The consumer gets the opportunity to use a brand on a trial basis with less risk.

Question 52

Sales promotion techniques act as an incentive to purchase the brand featuring a promotion,even if another brand: 

A) has more market share.  
B) offers more variety. 
C) offers more benefits. 
D) has a lower basic price.

Question 53

Which is a reason for growth in the use of sales promotion? 

A) Restriction of bill-back allowances 
B) Less push money 
C) Elimination of off-invoice allowances 
D) Promotions are often measurable

Question 54

The marketers at Kraft are considering a number of consumer-market sales promotion techniques.Which of the following sales promotion techniques would work best for Kraft Macaroni and Cheese? 

A) Offering consumers a mail-in rebate on the purchase of a box of Kraft Macaroni and Cheese 
B) Offering a case of Kraft Macaroni and Cheese for free if the consumer buys one box 
C) In-store sampling and an in-store coupon 
D) Digital advertising

Question 55

A consumer buys a printer for her computer and receives a money-back offer.To get the premium,she has to mail in a form requesting the money back from the manufacturer rather than the retailer.Which of the following consumer-market sales promotion techniques is exemplified here? 

A) A rebate 
B) A self-liquidating premium 
C) Couponing 
D) A free premium

Question 56

Increasingly,in-store demonstrators giving samples are also: 

A) explaining the difference to customers between their sales promotions and advertising objectives. 
B) telling the consumer the history of the brand. 
C) providing comedy routines. 
D) handing out coupons along with the sample.

Question 57

Businesses like to promote their products with rebates because they: 

A) are purely based on luck.  
B) often do not get cashed in. 
C) are more popular with consumers than coupons. 
D) do not require maintenance.

Question 58

The precision shopper is demanding greater __________across all purchases.

A) flexibility 
B) return options 
C) technological interfaces 
D) value

Question 59

A distinguishing feature of a self-liquidating premium is that it requires the consumer to: 

A) mail in the premium to get reimbursed. 
B) pay most of the cost of the item received.  
C) buy two other items at regular price. 
D) guarantee a repeat purchase.

Question 60

A(n) ______ entitles a buyer to a designated reduction in price for a product or service.

A) coupon 
B) off-invoice allowance 
C) bill-back allowance 
D) slotting fee

Question 61

Antoine works for a well-known company that manufactures mattresses.To move the company's product during the President's Day sales events held nationwide,he offered $200 to any retail salesperson who can sell ten mattresses throughout the second weekend of February.He also offers a case of sports drinks for each mattress sold.These are examples of trade-market sales promotion techniques in the form of: 

A) in-store sampling. 
B) incentives. 
C) merchandise allowances. 
D) dividends.

Question 62

A benefit with mail sampling is that ____________.

A) certain zip-codes can be targeted 
B) it can be sent with push money to consumers 
C) it gives consumers off-invoice allowances 
D) it works best with heavy goods

Question 63

Some airlines ran into big trouble when they tried to increase the mileage levels needed to earn awards in their frequent-flyer programs.Which of the following risks associated with promotions have their actions demonstrated? 

A) The risk of having a product or service perceived as cheap 
B) The risk of alienating customers 
C) The risk of putting in too much time 
D) The risk of an increase in expenses over incomes

Question 64

Which of the following is true of Point-of-Purchase displays? 

A) They are noticed only by a few consumers. 
B) Many retailers ignore them or throw them out. 
C) They rarely get shipped to stores. 
D) They are poorly constructed and often unusable.

Question 65

The oldest form of advertising is the _________. 

A) coupon 
B) daily 
C) directory  
D) billboard

Question 66

Experts suggest that the number of words on a billboard copy should not exceed _______. 

A) fifteen 
B) ten 
C) six 
D) three

Question 67

Billboards offer several strong advantages,but they are most effective as a promotional medium when they are in a location that: 

A) sends a message to the national and international market.  
B) incorporates specialized lighting. 
C) relates to an immediate need or desire.  
D) offers round-the-clock exposure.

Question 68

Which of the following is a form of allowance allowed to retailers and wholesalers? 

A) Free premiums 
B) Rebates 
C) Slotting fees 
D) Contests

Question 69

The sales-promotion techniques used within the trade market are: 

A) couponing, cash allowances, incentives, and slotting fees. 
B) incentives, allowances, training programs, and cooperative advertising. 
C) case allowances, sweepstakes, couponing, and training programs. 
D) slotting fees, Point-of-Purchase displays, consumer rebates, and merchandise allowances.

Question 70

Which of the following is a difference between advertising specialties and business gifts? 

A) Specialties have the sponsor's logo on them, while business gifts do not. 
B) Specialties promote brand awareness, while business gifts promote close working relationships.  
C) Specialties are quite expensive, while business gifts are inexpensive. 
D) Specialties are given on a selective basis, while business gifts are distributed to all.

Question 71

For an item to be defined as an advertising specialty,it must: 

A) be a reward for meeting a goal or sales quota.  
B) contain no promotional message. 
C) be construed as a way of buying business. 
D) contain the sponsor's brand name or slogan.

Question 72

A manufacturer devises a program to encourage members of the trade to purchase its brand.It offers salespeople an extra $100 for selling one of its refrigerators,$75 for selling one of its ovens,and $50 for selling one of its dishwashers.Which of the following promotional concepts for the trade channel does this involve? 

A) Push money 
B) Merchandise allowance 
C) Slotting fee 
D) Rebates

Question 73

Advertisers are warned that they may face legal problems if they are not careful while conducting promotional activities.This is especially true of: 

A) in-store sampling and door-to-door sampling.  
B) price-off deals and rebates. 
C) mail sampling and newspaper sampling. 
D) sweepstakes and contests.

Question 74

Which of the following sales promotion tactics runs a risk of eroding a brand image or value? 

A) A frequency program  
B) A price incentive 
C) A sweepstake 
D) A contest

Question 75

A printed card or sign designed to mount on or under a shelf is known as a _________. 

A) shelf talker 
B) floor stand 
C) cash register 
D) door signage

Question 76

A VP of marketing wants to look at all possible forms of business-market promotions to gain and maintain lucrative customers.He meets with associates,and they review the five main areas of promotion techniques aimed at business buyers.They are: 

A) trade shows, business gifts, premiums and advertising specialties, trial offers, and frequency programs. 
B) incentives, allowances, training programs, cooperative advertising, and sampling. 
C) merchandise allowances, cash allowances, trade shows, training programs, and incentives. 
D) premiums and advertising specialties, frequency programs, incentives, allowances, and cooperative advertising.

Question 77

The name support media denotes that they: 

A) are supported and financed solely by business-market expenditures. 
B) reinforce or support a message delivered by other media. 
C) must be supported or upheld by physical structures. 
D) support and enhance P-O-P within the retail environment.

Question 78

P-O-P displays have historically served several purposes for store owners.What do today's retailers increasingly expect P-O-P displays to do for them? 

A) To provide ambience and differentiate their store from others  
B) To minimize the costs of creating displays for the store 
C) To improve the orderliness and structure of the store environment 
D) To reduce the number of sales personnel required

Question 79

A retailer has been doing very well over the years,and can now expect to get cash payments from manufacturers and suppliers if they want their products on the retailer's shelves.Therefore,it regularly receives these payments,known as: 

A) bill-back allowances. 
B) slotting fees. 
C) merchandise allowances. 
D) off-invoice fees.

Question 80

Which of the following are the two broad categories of Point-of-Purchase materials? 

A) In-house displays and out-of-the-house displays 
B) In-store merchandising formats and out-of-store promotional formats 
C) Push messages and pull messages 
D) Short-term promotional displays and long-term permanent displays