Question 1

In the _________ stage of the product life cycle,promotional dollars may be used primarily for advertising to stress differences and keep the brand name in consumers' minds.

Accepted Answer

A)   introduction stage
B)   growth stage
C)   maturity stage
D)   decline stageE) All of the above
F) B) and C)

Question 2

_____ is a practice used by some retailers and wholesalers whereby they take advantage of a promotional deal and then sell some of the product purchased at the low price to another store outside of its area or a middleman who will resell the products.

Accepted Answer

A)   Forward buying
B)   Diverting
C)   Everyday low pricing
D)   Discount tradingE) A) and B)
F) A) and C)

Question 3

Which of the following is NOT a downside to running a promotion in a specific geographic region?

Accepted Answer

A)   Additional managerial commitment required
B)   Greater expenses resulting from fragmented efforts
C)   Consumer confusion when they shop at their local store
D)   National accounts' reluctance to run different promotions in different regionsE) A) and B)
F) B) and C)

Question 4

Which of the following statements describes a major concern marketers have with trade allowances?

Accepted Answer

A)   Trade allowances often are not passed on to consumers in the form of lower prices.
B)   Trade allowances are detracting from the image of the retailers who carry their brands.
C)   Consumers pocket most of the savings from trade promotion discounts.
D)   Trade allowances are encouraging retailers to stock and promote their products on a regular basis.E) A) and B)
F) A) and C)

Question 5

_____ has/have become very popular in recent years as marketers develop integrated marketing programs that create experiences for consumers in an effort to associate their brands with certain lifestyles and activities.

Accepted Answer

A)   Contests
B)   Premiums
C)   Bonus packs
D)   Event marketingE) None of the above
F) All of the above

Question 6

Which of the following sales promotion techniques would be most effective for generating excitement or interest in a brand?

Accepted Answer

A)   Coupons
B)   Price-off deals
C)   Bonus packs
D)   Contests/sweepstakesE) A) and D)
F) A) and C)

Question 7

Another term used for push money that is given to retailers' or wholesalers' sales staff to encourage them to promote and sell a company's product is:

Accepted Answer

A)   pull money
B)   a rebate
C)   a spiff
D)   an off-invoice allowanceE) All of the above
F) A) and D)

Question 8

Sampling would be an appropriate promotional strategy to do each of the following EXCEPT:

Accepted Answer

A)   increase the market share of an established brand
B)   provide the marketer with an immediate gauge as to how well the product will do in the marketplace
C)   assist consumers to experience the brand directly
D)   induce trial of a new brand that is clearly superior to the competitionE) A) and B)
F) A) and C)

Question 9

Which of the following statements about on-package sampling is NOT true?

Accepted Answer

A)   This can be a very costly sampling method, particularly for multiproduct companies.
B)   A limitation of this sampling method is that the sample is distributed only to purchasers of the carrier brand.
C)   On-package samples can be distributed by attaching them to products not made by the distributing company.
D)   The distribution of on-package samples can be broadened by attaching them to multiple brands or to products made by other companies.E) A) and B)
F) B) and C)

Question 10

Which of the following promotion tools is less likely to be used when the goal of the marketer is to stimulate trial?

Accepted Answer

A)   Sampling
B)   Loyalty programs
C)   Instant coupons
D)   Mail-in refunds and rebatesE) A) and D)
F) C) and D)

Question 11

Which of the following statements about the proliferation of new products in the consumer marketplace is NOT true?

Accepted Answer

A)   Consumer product companies are launching fewer new products each year.
B)   Sales promotion programs play an important role in motivating retailers to allocate shelf space to new products.
C)   Supermarkets now carry an average of 30,000 products compared to 13,000 in 1982.
D)   Many retailers require promotional deals such as discounts and allowances just to handle a new product.E) B) and C)
F) All of the above

Question 12

In the ________ stage of the product life cycle,a large amount of the promotion budget may be allocated to sales promotion techniques such as sampling and couponing to induce trial.

Accepted Answer

A)   introduction
B)   decline
C)   maturity
D)   growthE) C) and D)
F) A) and D)

Question 13

Which of the following would be the best example of a premium offer that contributes to consumer-franchise building efforts for a brand?

Accepted Answer

A)   A free tube of Colgate toothpaste in a box of Life cereal
B)   A pack of baseball cards in a box of Cheerios cereal
C)   A free sport bottle with the purchase of a four-pack of Gatorade
D)   A dish towel in a box of Tide laundry detergentE) A) and B)
F) C) and D)

Question 14

Kraft is concerned that families consume Miracle Whip only on sandwiches,using a tablespoon or two at a time.In order to increase consumption and therefore,sales,which of the following sales promotion tools would work best for Kraft?

Accepted Answer

A)   Sampling and rebates
B)   Recipe books showing alternative uses for Miracle Whip
C)   Bonus packs, trade allowances, and slotting fees
D)   In-store coupons for $1.00 off Miracle WhipE) B) and C)
F) A) and D)

Question 15

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

Accepted Answer

A)   premium
B)   pull
C)   trade
D)   pushE) A) and B)
F) B) and C)

Question 16

Which of the following statements describes a major concern marketers have with trade allowances?

Accepted Answer

A)   Trade allowances often are not passed on to consumers in the form of lower prices.
B)   Trade allowances are detracting from the image of the retailers who carry their brands.
C)   Consumers pocket most of the savings from trade promotion discounts.
D)   Trade allowances are encouraging retailers to stock and promote their products on a regular basis.E) B) and D)
F) C) and D)

Question 17

Which of the following is a reasonable objective for consumer-oriented sales promotions?

Accepted Answer

A)   To obtain trial of a new brand
B)   To encourage off-shelf displays in major grocery stores
C)   To increase consumption of an established brand
D)   To enhance advertising and marketing effortsE) C) and D)
F) All of the above

Question 18

Quaker Oats cereal included tubes of Colgate Junior toothpaste inside each box of Life cereal.This is an example of a:

Accepted Answer

A)   free premium
B)   self-liquidating premium
C)   rebate
D)   bonus packE) A) and B)
F) All of the above

Question 19

Five Paradise Island,Bahamas Resort Hotels combining efforts to sponsor an "It's better in the Bahamas" ad campaign,is an example of:

Accepted Answer

A)   horizontal cooperative advertising
B)   vertical cooperative advertising
C)   integrated dyadic communications
D)   a joint trade promotionE) A) and B)
F) C) and D)

Question 20

Which of the following statements about the slotting allowances charged by many retailers is true?

Accepted Answer

A)   Retailers justify slotting allowances by pointing to the costs associated with taking on a new product.
B)   Retailers are not justified in charging slotting allowances since most new products are successful.
C)   Large companies with popular brands are the most likely to have to pay slotting allowances.
D)   Slotting allowances are illegal and banned by the federal government.E) B) and D)
F) B) and C)

Exam 14: Sales Promotion

Which of the following is a reasonable objective for consumer-oriented sales promotions?

Correct AnswerverifiedShow Answer

Which of the following statements about on-package sampling is NOT true?

Correct AnswerverifiedShow Answer

Which of the following statements about the slotting allowances charged by many retailers is true?

Correct AnswerverifiedShow Answer

_____ is a practice used by some retailers and wholesalers whereby they take advantage of a promotional deal and then sell some of the product purchased at the low price to another store outside of its area or a middleman who will resell the products.

Correct AnswerverifiedShow Answer

Five Paradise Island,Bahamas Resort Hotels combining efforts to sponsor an "It's better in the Bahamas" ad campaign,is an example of:

Correct AnswerverifiedShow Answer

Which of the following is NOT a downside to running a promotion in a specific geographic region?

Correct AnswerverifiedShow Answer

Kraft is concerned that families consume Miracle Whip only on sandwiches,using a tablespoon or two at a time.In order to increase consumption and therefore,sales,which of the following sales promotion tools would work best for Kraft?

Correct AnswerverifiedShow Answer

In the ________ stage of the product life cycle,a large amount of the promotion budget may be allocated to sales promotion techniques such as sampling and couponing to induce trial.

Correct AnswerverifiedShow Answer

_____ has/have become very popular in recent years as marketers develop integrated marketing programs that create experiences for consumers in an effort to associate their brands with certain lifestyles and activities.

Correct AnswerverifiedShow Answer

Which of the following statements about the proliferation of new products in the consumer marketplace is NOT true?

Correct AnswerverifiedShow Answer

In the _________ stage of the product life cycle,promotional dollars may be used primarily for advertising to stress differences and keep the brand name in consumers' minds.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements describes a major concern marketers have with trade allowances?

Correct AnswerverifiedShow Answer

Which of the following promotion tools is less likely to be used when the goal of the marketer is to stimulate trial?

Correct AnswerverifiedShow Answer

Sampling would be an appropriate promotional strategy to do each of the following EXCEPT:

Correct AnswerverifiedShow Answer

Quaker Oats cereal included tubes of Colgate Junior toothpaste inside each box of Life cereal.This is an example of a:

Correct AnswerverifiedShow Answer

Another term used for push money that is given to retailers' or wholesalers' sales staff to encourage them to promote and sell a company's product is:

Correct AnswerverifiedShow Answer

Which of the following statements describes a major concern marketers have with trade allowances?

Correct AnswerverifiedShow Answer

Which of the following sales promotion techniques would be most effective for generating excitement or interest in a brand?

Correct AnswerverifiedShow Answer

Which of the following would be the best example of a premium offer that contributes to consumer-franchise building efforts for a brand?

Correct AnswerverifiedShow Answer

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