Question 1

Point-of-purchase promotions are seldom used as a sales promotion tool because most purchase decisions are made before consumers ever enter a store.

Accepted Answer

Point-of-purchase promotions, such as displays or coupons, are commonly used as a sales promotion tool to influence purchase decisions at the store.

Question 2

Personal selling becomes a more important promotional tool as product complexity and buyer risk increase.

Accepted Answer

Personal selling involves direct communication between the seller and the potential buyer, which allows for the seller to provide detailed and personalized information about the product. This is particularly important in situations where the product is complex and the buyer is facing higher levels of risk, such as when making a significant investment or purchasing a high-end product. Therefore, personal selling becomes a more important promotional tool in these types of situations.

Question 3

Hewlett-Packard offered $25 to individual Office Depot salespeople for each HP Laser Jet printer they sold. The $25 is push money.

Accepted Answer

Push money is a type of incentive where manufacturers give money to individual salespeople to push their products to customers. In this case, HP is offering $25 to Office Depot salespeople for selling their Laser Jet printers.

Question 4

Sales promotions are primarily short-term incentives. Immediate purchase is usually the goal of sales promotion.

Accepted Answer

Sales promotions are intended to encourage immediate action or purchase, making them short-term incentives. This distinguishes them from long-term branding and marketing strategies.

Question 5

Relationship selling is typically used to sell industrial-type goods, such as oil drilling equipment.

Accepted Answer

Relationship selling is a sales approach that focuses on building long-term relationships with customers based on trust, communication, and customer service. This approach is used in various industries, including industrial-type goods such as oil drilling equipment.

Question 6

Consultative selling is also called relationship selling.

Accepted Answer

Consultative selling involves building a relationship with the customer by understanding their needs and providing customized solutions. Therefore, it is often referred to as relationship selling.

Question 7

Coupon distribution by packaged-goods manufacturers has been increasing in recent years.

Accepted Answer

According to industry reports, coupon distribution by packaged-goods manufacturers has been increasing in recent years.

Question 8

Manufacturers use trade promotions because they help manufacturers gain new distributors, obtain intermediary support for consumer promotions, and improve trade relations.

Accepted Answer

Trade promotions are widely used by manufacturers as they assist in gaining new distributors, getting support from intermediaries for consumer promotions, and enhancing trade relationships.

Question 9

In relationship selling, the salesperson would spend most of his or her contact time with the prospect talking about the product because the salesperson does not want to waste the customer's time.

Accepted Answer

In relationship selling, the salesperson would spend most of his or her contact time with the prospect discussing and understanding the customer's needs and desires, building a rapport, and developing a long-term relationship. The focus is on building trust and providing value, rather than just pushing a product.

Question 10

When Hasbro Games offers to pay a $2 refund to any customer who purchases a Connect Four, Trouble, Operation, Battleship, Twister, or Guess Who? game, it is an example of a premium offer.

Accepted Answer

This is an example of a rebate, not a premium offer. A rebate involves offering a partial refund after the purchase, while a premium offer typically involves giving something extra at the time of purchase or as an incentive to purchase.

Question 11

During the month of July 2006, any child who got a McDonald's Happy Meal also received a toy inspired by Disney's Pirates of the Caribbean: Dead Man's Chest. The toy is an example of a premium.

Accepted Answer

This statement is true. The toy given with a McDonald's Happy Meal in July 2006 was a premium, which is an item given away for free with a purchase.

Question 12

Scenario 18-3
Successful selling of complex products such as computer software requires excellent salespeople. Lack of quality service in the marketplace led Alan Hall, head of a small computer networking company, to open Technology Advancement Corporation in 1988. Today, Technology Advancement is a national field marketer with several divisions. The bulk of its business involves training and educating salespeople on the features, benefits, competitors, and market potential of Technology Advancement's clients' products. To date, Technology Advancement has focused on computer software and hardware makers and has launched most of the marquee names in the industry: Novell, Lotus Development, IBM, Microsoft, Apple Computer, Hewlett-Packard, Motorola, Intel, and Xerox, as well as smaller firms.
Here's how the Technology Advancement client relationship works for training. A marketer hires the company to promote its product or to launch a new product, and Technology Advancement assigns a team exclusively to that client. The team gathers, usually at a ski resort, and the client comes in for the training. The training starts with explaining how to use direct communication with a prospective purchaser and how it fits the company strategy and differs from sales promotion. Latest developments in the selling process are explained with special emphasis on networking, follow-up strategies, and post-purchase customer service. Many computer giants have reported that this type of training program has significantly improved their business.
-Refer to the scenario. When John Cason began selling IBM computers, he used what he had learned at the training seminar and called friends, relatives, former business acquaintances, and former fraternity brothers to see if they were looking for new computer systems. What is this lead generation technique known as?

Accepted Answer

The lead generation technique that John Cason used is known as networking. He used his personal network to generate leads and potential customers.

Question 13

Contests generally draw more entries than sweepstakes do.

Accepted Answer

Contests typically require a form of skill or effort for entry, which can limit the number of participants, whereas sweepstakes are based on chance and often attract more entries due to their ease of participation.

Question 14

Scenario 18-3
Successful selling of complex products such as computer software requires excellent salespeople. Lack of quality service in the marketplace led Alan Hall, head of a small computer networking company, to open Technology Advancement Corporation in 1988. Today, Technology Advancement is a national field marketer with several divisions. The bulk of its business involves training and educating salespeople on the features, benefits, competitors, and market potential of Technology Advancement's clients' products. To date, Technology Advancement has focused on computer software and hardware makers and has launched most of the marquee names in the industry: Novell, Lotus Development, IBM, Microsoft, Apple Computer, Hewlett-Packard, Motorola, Intel, and Xerox, as well as smaller firms.
Here's how the Technology Advancement client relationship works for training. A marketer hires the company to promote its product or to launch a new product, and Technology Advancement assigns a team exclusively to that client. The team gathers, usually at a ski resort, and the client comes in for the training. The training starts with explaining how to use direct communication with a prospective purchaser and how it fits the company strategy and differs from sales promotion. Latest developments in the selling process are explained with special emphasis on networking, follow-up strategies, and post-purchase customer service. Many computer giants have reported that this type of training program has significantly improved their business.
-Refer to the scenario. One of the key areas of training provided by Technology Advancement Corporation involves postpurchase customer satisfaction surveys. What is this part of?

Accepted Answer

Post-purchase customer satisfaction surveys are part of the follow-up strategies covered in the training program provided by Technology Advancement Corporation.

Question 15

A sales promotion campaign could include any (or all) of the four promotional elements of the promotional mix.

Accepted Answer

The answer of A sales promotion campaign could include any...

Question 16

In relationship selling, salespeople focus more time on generating leads than on qualifying leads.

Accepted Answer

In relationship selling, salespeople prioritize qualifying leads over lead generation. This is because the goal is to build long-term relationships with customers, and therefore it's important to ensure that the leads being pursued are a good fit for the company's products and services.

Question 17

Trade shows are an excellent place to introduce new products to the marketplace.

Accepted Answer

Trade shows provide a platform for businesses to showcase their latest products and innovations to potential customers, industry peers, and the media. Therefore, they can be an effective way to introduce new products to the marketplace.

Question 18

Josh Moran is in charge of finding sponsors for the Reno Rodeo. He is currently talking to a marketing representative from Wrangler jeans to try to convince Wrangler to sponsor the event. Moran is engaged in personal selling.

Accepted Answer

Personal selling involves a one-on-one interaction between a salesperson and a potential customer or client. In this scenario, Josh Moran is personally selling the idea of sponsoring the Reno Rodeo to Wrangler, so the statement is true.

Question 19

A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous shopping goods.

Accepted Answer

A trade allowance is a discount or deal offered by manufacturers to wholesalers or retailers, typically for buying in bulk, promoting the product, or placing products in favorable shelf locations, not a price reduction offered by retailers to customers.

Question 20

"You have to be odd to be number one."-Dr. Seuss

Accepted Answer

In this quote, Dr. Seuss is suggesting that a person needs to embrace their differences and be unique in order to achieve great success and become the best at something. So, being odd or different is actually a positive thing in this context.

Quiz 18: Sales Promotion and Personal Selling