Question 1

Which of the following serves as a reason for the increase in sales promotion?

Accepted Answer

The power shift in the market place from manufacturers to retailers has led to an increase in sales promotion. Retailers have more control over the sales process and are able to demand promotional support from manufacturers in exchange for shelf space and other benefits. As a result, manufacturers have had to increase their use of sales promotion to maintain their market share.

Question 2

Which of the following is an example of consumer-oriented sales promotion activity?

Accepted Answer

Coupons are an example of a consumer-oriented sales promotion activity as they are targeted towards end-consumers and encourage them to make purchases by offering discounts or free products. Off-invoice allowances and promotional allowances are targeted towards retailers or wholesalers, while point-of-purchase displays and trade shows are promotional activities aimed towards retailers or distributors.

Question 3

______ is defined as a direct inducement that offers an extra value or incentive for the product to the sales force,distributors,or to ultimate consumer with the primary objective of creating an immediate sale.

Accepted Answer

Sales promotion is the marketing activity that involves offering incentives or extra value to boost sales in the short run. It can be directed at the sales force, distributors, or consumers, and it aims to create an immediate sale. Examples of sales promotions include coupons, discounts, free samples, and contests.

Question 4

Marketing planning and reward systems may lead to an increase in the use of sales promotion because sales promotions encourage:

Accepted Answer

Marketing planning and reward systems are often focused on achieving short-term sales targets. Sales promotions, particularly price-oriented promotions, are effective in generating short-term sales. Therefore, the use of sales promotions may increase as a result of these factors.

Question 5

Coupons,bonus packs,premiums,and samples are promotional offers that are targeted towards:

Accepted Answer

The promotional offers of coupons, bonus packs, premiums, and samples are all directed towards consumers. These offers are designed to entice consumers to try a product, purchase a product, or become a repeat customer. Retailers, wholesalers, salespeople, and employees may also benefit from these promotional offers, but their main target audience is the consumer.

Question 6

_____ is a recent development whereby companies are customizing their sales promotion programs for key retailers.

Accepted Answer

Account-specific marketing is the recent development in which companies customize their sales promotion programs for key retailers. It is a strategy that focuses on meeting the specific needs and expectations of individual retail accounts, building long-lasting relationships and driving sales.

Question 7

Which of the following is an example of trade-oriented sales promotion activity?

Accepted Answer

Trade shows are events where businesses showcase their products and services to potential customers and other businesses. They are a form of trade-oriented sales promotion because they are designed to generate leads and sales for the participating businesses.

Question 8

How are marketers responding to the fragmentation of the consumer market?

Accepted Answer

Marketers are responding to the fragmentation of the consumer market by using more sales promotions that are tied to local events. This allows them to target specific groups of consumers who are interested in those events or activities, rather than trying to appeal to a broad audience. This type of marketing is often more effective because it is more relevant and personalized. Additionally, it allows marketers to connect with consumers on a more personal level, which can increase brand loyalty and customer engagement.

Question 9

Which of the following statements is true about sales promotion programs?

Accepted Answer

Sales promotion programs are not targeted only at consumers, but also at distributors and retailers. Many of these programs are designed to motivate distributors and retailers to carry a product and push it to their customers. Nearly three quarters of all sales promotion dollars are not spent on consumer promotions, making option C incorrect. Push strategies are aimed at marketing intermediaries, while pull strategies are aimed at customers, making option D and E incorrect.

Question 10

What do some businesspeople give as a reason for the increasingly short-term focus on performance and sales volume in business today?

Accepted Answer

The brand management system often emphasizes short-term performance and sales volume to meet immediate targets and objectives, which can lead to a focus on short-term results rather than long-term strategy.

Question 11

Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision-making.For this reason,many marketers rely on:

Accepted Answer

Sales promotions such as coupons and price discounts provide a measurable impact on sales and can be used as a concrete method to show the effectiveness of marketing strategies. Personal selling and event sponsorships may also be effective, but they are not as easily measurable. Mass-media advertising and out-of-home advertising may have carryover effects but may not provide as clear of a measure of effectiveness.

Question 12

Why are organizations like KFC,Heinz Foods,Toys R Us,and Anheuser Busch placing more emphasis on sales promotions than ever before?

Accepted Answer

These organizations are placing more emphasis on sales promotions because they believe that it can effectively and quickly build brand equity when compared to other promotional mix elements.

Question 13

Hasbro,a toy company,teamed with the retailer Toys R Us to create direct mail booklets offering discounts on Hasbro toys only at Toys R Us stores.This is an example of:

Accepted Answer

Account-specific marketing refers to marketing strategies that are tailored specifically to a particular retail account or distributor. In this case, Hasbro and Toys R Us are working together to offer specific discounts on Hasbro toys only at Toys R Us stores, making it an example of account-specific marketing.

Question 14

Another name for account-specific marketing is:

Accepted Answer

The answer of Another name for account-specific marketing is:
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Question 15

Consumer-oriented sales promotions are part of a promotional _____ strategy.

Accepted Answer

Consumer-oriented sales promotions are focused on creating demand and attracting customers to purchase a product or service. These promotions are aimed at the end consumer and are designed to be enticing and attractive. Pull strategies work by pulling customers towards the product, creating demand for it, and making it more likely that the customer will purchase it. Therefore, option B - pull, is the most suitable answer.

Question 16

Which of the following developments have resulted in a transfer of power from manufacturers to retailers?

Accepted Answer

Consolidation in the grocery industry has resulted in larger chains with greater buying power and clout, which has led to a transfer of power from manufacturers to retailers. Retailers have more bargaining power and can demand better terms from manufacturers.

Question 17

How has the view of sales promotions changed during the past decades?

Accepted Answer

Over the past decades, the view of sales promotions has shifted from being seen as a short-term tactic to increase sales, to being considered an essential part of an organization's branding strategies. Marketers now recognize the potential of sales promotions to not only drive sales but also to build brand image and loyalty. This shift in perception has led to the increased use and investment in sales promotions by companies.

Question 18

One reason for consumer's increased sensitivity to sales promotion is:

Accepted Answer

Consumers are increasingly sensitive to sales promotion because they save money. With the high cost of living and uncertain economic times, consumers are looking for ways to save money and sales promotions offer them an opportunity to do so. This has made them more sensitive to promotions such as discounts, coupons, and free samples.

Question 19

When a marketer distributes coupons for a brand with a specific expiration date,they are attempting to use sales promotion as a(n):

Accepted Answer

Coupons with a specific expiration date are an acceleration tool, as they encourage consumers to make a purchase before the coupon expires. This is a common sales promotion tactic to increase short-term sales. Choices A, B, D, and E are not the best choices, as they do not specifically relate to the use of coupons with expiration dates.

Question 20

Which of the following elements of the integrated marketing communications programs is designed to provide an extra incentive to consumers to purchase a brand?

Accepted Answer

Sales promotion is designed to provide an extra incentive to consumers to purchase a brand. This could include things like coupons, discounts, contests, or giveaways. The goal of sales promotion is to encourage immediate action and increase sales. The other options listed (advertising, direct mail, public relations, price) may indirectly influence consumer behavior, but they are not specifically designed to provide an extra incentive to purchase.

Quiz 14: Sales Promotion