Question 1

Sales promotion consists of long-term incentives to encourage the purchase of a product or service.

Accepted Answer

Sales promotion typically refers to short-term incentives designed to encourage immediate purchase or increase sales in the short term. Long-term incentives are often part of a company's overall marketing strategy and may include loyalty programs, rewards, and other initiatives aimed at cultivating ongoing customer relationships.

Question 2

Bose offers $50 cash back to customers who purchase a new speaker and send in a proof of purchase. This is an example of a ________.

Accepted Answer

This is a rebate promotion, as customers are offered cash back after purchasing the product and sending in proof of purchase.

Question 3

Monty Boyd, an account manager, travels frequently on West Coast Airlines. Monty earns points for every mile he flies, and he will soon have enough points to receive a free airline ticket. West Coast Airlines is attempting to build a strong customer relationship with Monty through a ________.

Accepted Answer

Monty Boyd is earning points for every mile he flies, indicating he is a participant in a frequency marketing program. This program is designed to reward customers for their loyalty and encourage them to continue doing business with the company. This demonstrates West Coast Airlines' efforts to build a strong customer relationship with Monty.

Question 4

Orion is planning to give away free mouse pads imprinted with the company logo and name to anyone who enters their store on the day they launch their new laser mouse. What kind of sales promotion is Orion planning?

Accepted Answer

Orion is planning a promotional products sales promotion by giving away mouse pads imprinted with their logo and name to anyone who enters their store on the day they launch their new laser mouse.

Question 5

Blue Fizz Inc. sponsors every race that takes place at the Sears Racing Track in Orange County, California. The high-octane racing at Sears is perfect for Blue Fizz to sell its energy drinks and to establish the desired brand image of the company. Which type of promotion is evident here?

Accepted Answer

The promotion evident here is event marketing, as Blue Fizz Inc. is sponsoring every race that takes place at the Sears Racing Track. This is a form of event marketing where a company sponsors an event to promote its brand or products.

Question 6

Renee's, a company selling winter clothing in Chicago, ran a preseason promotion on some of its fur jackets, offering cash refunds if the snowfall in the customer's market area turned out to be below average. This exemplifies ________.

Accepted Answer

This exemplifies a rebate, where the company offers a cash refund based on a certain condition, in this case if the snowfall in the customer's market area turned out to be below average.

Question 7

Refer to the scenario below to answer the following question(s).
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy truck industry. Although Reliable Tools only has 15 customers, the company is the sole supplier of hub and axle components to those customers. Monthly sales at Reliable Tools are approximately $1 million. "You might say we have all our eggs in one basket," says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but large accounts. Ninety-five percent of Reliable Tools' customers are located in Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively short. However, given the nature of the industry, time spent with each customer is crucial.
-Which of the following promotions would be most appropriate for Reliable Tools to use in its attempt to promote its products and generate new business leads?

Accepted Answer

Given that Reliable Tools only has 15 customers and they are the sole supplier to those customers, the best way for them to generate new business leads would be to attend conventions and trade shows. This allows them to showcase their products to a wider audience and potentially attract new customers. Rebates, price packs, premiums, specialty advertising, and samples may be more appropriate for businesses that have a larger customer base and are looking to incentivize purchases or promote brand recognition.

Question 8

Happy Pet is a large pet food company that has convinced the retailers and the wholesalers of the New England area to resell its products. Happy Pet promises to reimburse the advertising costs to its retailers and wholesalers for advertising its products. This is an example of a(n) ________.

Accepted Answer

This scenario describes a trade promotion, which is a form of promotion aimed at retailers, wholesalers, or distributors. Happy Pet is offering to reimburse advertising costs to its resellers as an incentive to encourage them to promote and sell their products to end consumers.

Question 9

A manufacturer that offers cash or gifts to dealers for encouraging the purchase of its products is using ________.

Accepted Answer

The manufacturer is using push money, which is a type of incentive paid to dealers or salespeople for pushing the sales of a particular product. It is also known as spiffs, kickbacks, or sales incentives. Push money aims to motivate and reward salespeople for selling more of a particular product, and it can be in the form of cash or gifts, such as trips, merchandise, or gift cards.

Question 10

Trade shows most likely help companies to ________.

Accepted Answer

Trade shows provide an opportunity for companies to interact with potential customers face-to-face and showcase their products, which can result in finding new sales leads. While trade shows may indirectly contribute to maximizing productivity and shortening the selling process by generating new business, they do not necessarily directly achieve these goals. Triming overhead costs and reducing inside sales force are not typically associated with the benefits of attending trade shows.

Question 11

A ________ calls for consumers to submit an entry to be judged by a panel that will select the best entries.

Accepted Answer

A contest typically involves consumers submitting entries that will be judged based on a set of criteria, with the winners being selected by a panel of judges. Sweepstakes, on the other hand, are typically based on chance and do not involve a judging process. Samples, premiums, and rebates involve different types of promotional offers or products.

Question 12

Which of the following is an example of trade promotion?

Accepted Answer

Manufacturers offering free merchandise to resellers who feature a certain flavor or size is an example of trade promotion. Trade promotion refers to promotions aimed at intermediaries, such as wholesalers and retailers, to encourage them to stock and sell the product. Offering free merchandise is one way to incentivize resellers to feature a particular product. The other options listed are examples of other types of promotions, such as direct selling (B), advertising (D), and niche marketing (E). Option A refers to a pricing strategy rather than a promotion strategy.

Question 13

________ include displays and demonstrations that take place at the point of sale.

Accepted Answer

POP promotions refer to point-of-purchase promotions, which include displays and demonstrations that take place at the point of sale. Rebates are discounts offered after the sale and may not be visible at the point of sale. Price packs refer to packaging deals such as buy-one-get-one-free and may not involve displays or demonstrations. Premiums refer to free gifts with purchase and may not involve displays or demonstrations. Samples refer to small quantities of a product given out for free and may not involve displays or demonstrations.

Question 14

A five-foot high cardboard display of Terry the polar bear, mascot of Terry's protein shake, next to the shelf containing Terry's products in a supermarket is an example of a(n) ________.

Accepted Answer

A point-of-purchase promotion is a marketing strategy used to encourage customers to make a purchase by creating attractive product displays directly at the point of sale, such as a supermarket shelf. The cardboard display of Terry the polar bear is an example of a point-of-purchase promotion, as it is placed next to the shelf containing Terry's products to catch the customers' attention and possibly influence their buying decision. Samples, business promotions, advertising specialties, and rebates are other types of marketing strategies that are distinct from point-of-purchase promotions.

Question 15

Which of the following is used to generate business leads, stimulate purchases, reward customers, and motivate salespeople?

Accepted Answer

Business promotion is used to generate business leads, stimulate purchases, reward customers, and motivate salespeople.

Question 16

Creating a brand-marketing event or serving as a sole or participating sponsor of events created by others is known as ________.

Accepted Answer

Event marketing involves creating brand-marketing events or sponsoring/participating in events created by others in order to promote a brand or product. Option A, B, C, and E are not the correct choices because they refer to other marketing tactics such as in-store promotions, contests, team selling, and one-on-one sales techniques, respectively.

Question 17

Which of the following questions would help a marketer evaluate the return on a sales promotion investment?

Accepted Answer

Evaluating if the promotion attracted new customers or increased purchases from current ones is a key way to determine the return on investment for a sales promotion. The other options (A, B, C, E) may be important considerations, but they do not directly evaluate the effectiveness of the promotion in generating sales.

Question 18

Kirk Wilkins renewed his cell phone contract with Zip Wireless Services and purchased a new cell phone through the Zip Web site. If Kirk mails Zip Wireless Services his transaction receipt, he would be eligible to receive $50 as cash refund. Which of the following types of sales promotion is evident here?

Accepted Answer

The promotion mentioned is a rebate, as the customer can receive $50 cash back by mailing in their transaction receipt to Zip Wireless Services.

Question 19

________ refer to sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers.

Accepted Answer

Trade promotions are specifically designed to persuade resellers (such as retailers, wholesalers, and distributors) to carry and promote a brand. These promotions may include trade shows, discounts, and promotional allowances to encourage resellers to give a brand shelf space and promote it in advertising.

Question 20

Waldo Stores will reward an all-expense-paid trip to Hawaii to anyone who correctly guesses the date on which Waldo Stores was first established in the Boston area. Which type of sales promotion is evident here?

Accepted Answer

The sales promotion evident here is a contest, as customers are being asked to submit their guesses for the date of establishment and the winner will receive a prize.

Quiz 16: Personal Selling and Sales Promotion