Question 1

A variation of the case allowance is the __________ approach,whereby retailers receive some amount of the product free based on the amount ordered,such as 1 case free for every 10 cases ordered.

Accepted Answer

The described approach is commonly known as free goods, where retailers receive a certain quantity of the product for free based on the amount ordered. Therefore, option D is the best choice. Complementary goods refer to products that are usually purchased together, BOGO stands for buy one get one free, and a promotional allowance is a discount or rebate offered to retailers for advertising or promoting the product. None of these options fit the described approach.

Question 2

A common publicity tool is the __________,where representatives of the media are all invited to an informational meeting and advance materials regarding the content are sent out in advance.

Accepted Answer

A news conference is a typical event for inviting representatives of the media to an informational meeting and sending advance materials regarding the content. Infomercials are pre-recorded programs that promote a product or service. News releases are written statements sent to the media. News flashes are short, urgent news stories while news huddles are not a common publicity tool.

Question 3

Publicity tools refer to

Accepted Answer

Publicity tools refer to methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost. This includes methods such as press releases, news articles, and social media mentions that generate buzz and attention for the company or product. However, it is important to note that publicity differs from advertising, which is a paid form of promotion.

Question 4

An announcement that German pharmaceutical giant Bayer is looking for a buyer for its household insecticide business as part of its restructuring program is an example of which type of publicity tool?

Accepted Answer

The announcement of Bayer's intention to sell its household insecticide business is an example of a news release, which is a type of publicity tool designed to disseminate information to the media and the public. A news release is typically used to announce news or events related to a company or organization, and is an effective way of generating media coverage and public interest.

Question 5

A trade promotion which compensates retailers that transport orders from the manufacturer's warehouse is referred to as a __________.

Accepted Answer

A freight allowance is a trade promotion that provides compensation to retailers for transporting orders from the manufacturer's warehouse. This encourages retailers to order larger quantities and also helps to reduce the manufacturer's transportation costs.

Question 6

A trade promotion that involves paying retailers for financing costs or financial losses associated with consumer sales promotions is referred to as a __________.

Accepted Answer

A finance allowance is a trade promotion that involves paying retailers for financing costs or financial losses associated with consumer sales promotions. The other options refer to different types of trade promotions, such as promotional allowance which is a payment to the retailer for advertising or promoting the manufacturer's product, merchandise allowance which is a payment to the retailer for carrying the manufacturer's product, slotting fee which is a payment to the retailer for listing the manufacturer's product, and failure fee which is a payment to the retailer for not meeting sales or inventory requirements.

Question 7

Methods for obtaining nonpersonal presentation of an organization,product,or service without direct cost,such as news releases,news conferences,and public service announcements,are referred to as

Accepted Answer

The methods mentioned in the question (news releases, news conferences, and public service announcements) are all examples of publicity tools, which are nonpersonal and typically free methods of promoting an organization, product, or service. Therefore, the answer is E, publicity tools.

Question 8

Cooperative advertising refers to

Accepted Answer

Cooperative advertising refers to an advertising program where a manufacturer pays a percentage of the retailer's local advertising expenses for advertising the manufacturer's products. This is done to promote the manufacturer's products at the local level and to share the cost burden of advertising between the manufacturer and the retailer. Therefore, option A is the correct definition of cooperative advertising.

Question 9

A trade promotion where the manufacturer gives a retailer a case allowance price for products in their warehouse,which prevents shelf stock from running down during the promotional period is referred to as a __________ stock protection program.

Accepted Answer

Manufacturers give retailers a case allowance price for products in their warehouse,which prevents shelf stock from running down during the promotional period.This is called a floor stock protection program.

Question 10

All of the following statements regarding the training of distributors' salesforces are true EXCEPT:

Accepted Answer

The statement is incorrect because resellers' salesforces are not necessarily more sophisticated and knowledgeable about the manufacturer's products compared to the manufacturer's own salesforce.

Question 11

A printed or an e-mailed announcement that is sent to members of the business press from German pharmaceutical giant Bayer stating that it is looking for a buyer for its household insecticide business as part of its restructuring program is an example of which type of publicity tool?

Accepted Answer

A printed or e-mailed announcement sent to the press is a news release, which is a common type of publicity tool used to communicate news or information to the media. The announcement is not a public trade announcement as it is only being sent to the press and not to the general public. Lobbying, news conferences, and event management are not applicable to this scenario.

Question 12

All of the following are publicity tools EXCEPT:

Accepted Answer

The answer of All of the following are publicity tools...

Question 13

Advertising programs in which a manufacturer pays a percentage of a retailer's local advertising expense for advertising the manufacturer's products are referred to as

Accepted Answer

Cooperative advertising programs are advertising programs in which a manufacturer pays a percentage of a retailer's local advertising expense for advertising the manufacturer's products.

Question 14

While reading the newspaper,Belinda noticed an advertisement containing a coupon from Bayer that is redeemable only at Target stores.This ad is an example of

Accepted Answer

This advertisement is an example of cooperative advertising because it involves two companies, Bayer and Target, working together to promote a product and offering a coupon that is only redeemable at Target stores.

Question 15

In planning and obtaining publicity,a frequently used tool is the __________,which is an announcement regarding changes in the company or the product line.

Accepted Answer

A news release, also known as a press release, is a common tool used in public relations to announce news about a company or its products. It is sent to media outlets in the hopes of obtaining media coverage and generating publicity. A trade announcement may also be used, but it is typically more specific to the industry and may not reach as wide of an audience. Infomercials and news conferences are other tools used in public relations, but they are not specifically related to announcing changes in the company or product line. A public trade announcement is not a commonly used term in public relations.

Question 16

The reimbursement a retailer gives for extra in-store support or special featuring of a brand is referred to as a(n)__________.

Accepted Answer

A merchandise allowance is specifically given by a manufacturer to a retailer to reimburse them for extra in-store support or special featuring of a brand. Organizational allowance refers to an allowance given by a manufacturer to cover the expenses of running a retailer's organization. Case allowance refers to a discount given to a retailer for purchasing in bulk, and finance allowance refers to a discount given to a retailer for paying for their purchases within a specified time frame. Manufacturer's inducement is a vague term that could refer to any number of incentives or rewards offered to retailers by manufacturers.

Question 17

__________ reimburses a retailer for extra in-store support or special featuring of a brand.

Accepted Answer

A merchandise allowance reimburses a retailer specifically for in-store support or featuring of a brand, whereas the other options (organizational allowance, case allowance, finance allowance, and manufacturer's inducement) may refer to other types of allowance or incentive programs.

Question 18

A discount on each case ordered during a specific period of time is referred to as a

Accepted Answer

The discount on each case ordered during a specific period of time is referred to as a case allowance. The other options either do not accurately describe the specific type of discount or are not commonly used industry terms.

Question 19

The objective of a __________ is to inform a newspaper,radio station,or other medium of an idea for a story.

Accepted Answer

A news release, also known as a press release, is specifically designed to inform the media of a story idea or news item. Infomercials, news flashes, news broadcasts, and news summaries are all types of media content, but they are not specifically intended to pitch a story idea to the media.

Question 20

A hardware store owner placed an advertisement for Sylvania LED light bulbs in the local newspaper.Sylvania provided the storeowner with several high-quality,camera-ready sample advertisements.In addition to supplying the advertising formats,Sylvania also paid 50 percent of the cost to place the ad in the paper.Sylvania was using __________ to promote its products.

Accepted Answer

Cooperative advertising involves a manufacturer and a retailer sharing the cost and content of an advertisement. In this scenario, Sylvania provided the storeowner with sample advertisements and paid 50 percent of the cost to place the ad in the paper, indicating a cooperative advertising strategy.

Quiz 15: Advertising, Sales Promotion, and Public Relations