Question 1

________ is the promotional tool used to build interest in or encourage purchase of a good or service during a specified period.

Accepted Answer

Sales promotion is the promotional tool used to build interest in or encourage purchase of a good or service during a specified period. Sales promotion techniques include coupons, discounts, giveaways, contests, and loyalty programs. These techniques are aimed at attracting customers and boosting sales in the short term.

Question 2

Which of the following is a discount to the retailer or wholesaler based on the volume of product ordered?

Accepted Answer

A case allowance is a discount given to the retailer or wholesaler based on the volume of product ordered. Merchandising allowance refers to payment made by a manufacturer to a retailer in return for the retailer's agreement to engage in certain promotional and merchandising activities. Forward buying refers to purchasing a large quantity of inventory from a supplier at a discounted price with the intention of reselling it at a later date. Push money refers to a commission paid to salespeople to motivate them to sell a specific product. Diverting refers to the practice of diverting a product from its intended distribution channel to one where the product is not usually sold.

Question 3

To encourage sales, a candy maker has a new promotion, randomly including a small number of "free lifetime supply of chocolate" vouchers hidden in the packaging of its chocolate bars. This is an example of a contest.

Accepted Answer

This is an example of a sweepstakes, not a contest, because winners are chosen by chance rather than skill or merit.

Question 4

________ are the most common price promotion.

Accepted Answer

Coupons are the most common type of price promotion, as they offer a direct discount to the consumer and are easily distributed through various channels such as newspapers, mail, email, and social media. While other types of promotions such as rebates, merchandising allowances, contests, and sweepstakes may also be effective, they are not as widely used as coupons. Premiums, which require the customer to purchase a product in order to receive a free gift or item, are also commonly used but are not technically a price promotion.

Question 5

Identify an important difference for marketers between Twitter and Facebook.

Accepted Answer

The answer of Identify an important difference for marketers between...

Question 6

A trade show is a way for a company to do all of the following EXCEPT which one?

Accepted Answer

Paying a bonus to members of its salesforce is not a primary purpose of a trade show. The primary purposes are to distribute literature about products, give away sample products, establish new business contacts, and showcase new products in elaborate exhibits.

Question 7

Discuss how marketers can use virtual worlds to convey marketing communications.

Accepted Answer

The answer of Discuss how marketers can use virtual worlds...

Question 8

A merchandising allowance is a discount to a wholesaler or retailer based on the order volume of a product.

Accepted Answer

The answer of A merchandising allowance is a discount to...

Question 9

Declining brand loyalty has led marketers to place less of their total marketing communication budgets in sales promotions.

Accepted Answer

Declining brand loyalty has often led marketers to increase their investment in sales promotions as a way to incentivize purchases and temporarily boost sales, rather than decreasing their budget allocation for such activities.

Question 10

An example of a(n) ________ is an airline's practice of awarding customers points for miles traveled that can be turned in for free airline trips.

Accepted Answer

The practice described in the question where customers are awarded points for their miles traveled, which can be turned in for free airline trips, is an example of a loyalty program. This program rewards customers for their continued loyalty to the airline by incentivizing them with free trips. Allowances are typically a set amount of money that is given to someone, rebates are refunds of a portion of a purchase price, sweepstakes are random drawings for prizes, and premiums are gifts or incentives given for purchasing a product or service.

Question 11

An office supply store that pays a discounted price when it orders more than 12 metal filing cabinets is receiving a ________.

Accepted Answer

A case allowance is a discount that buyers receive when they purchase a large quantity of a product, in this case, more than 12 metal filing cabinets.

Question 12

An example of a(n) ________ is a five-foot-high cardboard display of Cap'n Crunch next to Cap'n Crunch cereal boxes.

Accepted Answer

A point-of-purchase (POP) display is a marketing tactic used to draw consumers' attention to a particular product or brand at the location where the purchase is made. This description matches the example given in the question of a cardboard display of Cap'n Crunch placed adjacent to Cap'n Crunch cereal boxes.

Question 13

Which of the following is a bonus paid by a manufacturer to a salesperson for selling its product?

Accepted Answer

Push money is a bonus paid by a manufacturer to a salesperson for selling its product. Rebates are discounts given to customers after the sale, merchandising allowances are payments made to retailers for in-store displays, premiums are gifts given with a purchase, and sweepstakes are contests where winners are chosen randomly.

Question 14

________ are free goods offered as an incentive to buy a product; they may be in-pack, on-pack, or delivered through the mail.

Accepted Answer

Premiums are free goods offered as an incentive to buy a product. They may be in-pack, on-pack, or delivered through the mail. Rebates are money-back offers that require the customer to purchase the product first and then submit proof of purchase to receive a partial refund. Bonus packs are products that offer extra quantity or items for the same price as the regular product. Price-off packs are products that are sold at a reduced price. Sweepstakes are promotional events that offer customers the chance to win prizes through a random drawing.

Question 15

________ involves a retailer buying a product at a discounted promotional price, warehousing it, and after the promotion has expired, selling the inventory to other retailers at a price that is lower than the manufacturer's nondiscounted price but high enough to turn a profit for the retailer.

Accepted Answer

Diverting involves purchasing products at a promotional discount, storing them, and then selling them to other retailers at a lower price than the manufacturer's regular price but at a profit after the promotion ends.

Question 16

A traditional advertising medium can be used to publicize a sales promotion.

Accepted Answer

A traditional advertising medium such as television, radio, print materials like newspapers, magazines, flyers, and billboards can all be utilized to promote sales promotion.

Question 17

________ involves a channel member purchasing large quantities of a product during a discount period, warehousing the product, and not buying the product again until another discount is offered.

Accepted Answer

This practice is called forward buying, as the channel member is buying in advance to take advantage of a discount and then waiting until the next discount to purchase again. This can create issues with inventory management and can disrupt the supply chain.

Question 18

Most consumer sales promotions temporarily change the price/value relationship.

Accepted Answer

Consumer sales promotions aim to increase sales by offering temporary incentives such as discounts, coupons, and rebates. These promotions alter the price/value relationship to make the product or service more attractive to customers for a limited time period.

Question 19

Toro ran a clever preseason promotion on some of its snow blower models, offering money back if the snowfall in the buyer's market area turned out to be below average. This is an example of a ________.

Accepted Answer

The promotion offered money back, which is essentially a rebate.

Question 20

Which of the following types of sales promotions would NOT be offered to a consumer?

Accepted Answer

Push money is a type of sales promotion offered to the sales force or intermediaries, not to consumers. The other options (rebates, bonus packs, sweepstakes, and premiums) are typically offered to consumers.

Quiz 14: Promotion II: Social Media Marketing and Other Communication Tools