ARE 136 Ch. 15

Despite more advertising clutter, transit advertising works well in dense, urban cities rather than in rural small towns. a. True b. False

True

Sales promotion can break through the media clutter. a. True b. False

True

Sales promotions can be used to disrupt competitors' marketing strategies. a. True b. False

True

Today's forms of out-of-home media can target specific demographic segments by neighborhood using customized mobile messages. a. True b. False

True

P-O-P promotion can aid manufacturers by attracting consumers, but not by securing relationships within trade and business markets. a. True b. False

False

Premiums are items offered for a more expensive rate with the purchase of another item. a. True b. False

False

Sales promotion can attract attention and motivate trial purchase, but is not allowed for introducing new brands to the public. a. True b. False

False

Sales promotion is the use of techniques that create a perception of greater brand value among consumers, the trade, and business buyers, but the techniques can't entail an incentive. a. True b. False

False

A dentist offers a deal in which customers who have had two teeth whitening services over the last year get the third one free. This is an example of a sampling program to stimulate repeat purchases. a. True b. False

False

A manufacturer helps a retailer by sharing the cost of local advertising. This allows the manufacturer to have some control over the process, and the retailer to advertise for a lower cost. They are taking part in a form of business-market sales promotion. a. True b. False

False

A manufacturer of dental care products sets up a new promotion by attaching one of its toothbrushes to its boxes of toothpaste. This is an example of a mobile sampling technique. a. True b. False

False

Historically, more money has been budgeted for sales promotion than for advertising. a. True b. False

False

Coupons are the oldest and most widely used form of sales promotion. a. True b. False

True

Materials that are used in the retail setting to attract shoppers' attention to a product convey primary product benefits or highlight pricing information. They are referred to as Point-of-Purchase advertising. a. True b. False

True

Objectives for consumer-market sales promotion include stimulating a trial purchase, repeat purchases, larger purchases, or to introduce a new brand, service, or product. a. True b. False

True

One advantage of sales promotions is that the results are simple to measure. a. True b. False

True

One objective for promotions in the trade channel is to increase store traffic, which benefits both manufacturers and retailers. a. True b. False

True

Retailers often run trade promotions simultaneously along with consumer promotions. a. True b. False

True

The advantage that sales promotions have over advertising is that they are measurable and they can often motivate consumers to buy larger quantities or try new brands. a. True b. False

True

The complex and information-rich tools of IBP can help create brand loyalty and competitive advantage. a. True b. False

True

Payments in the form of slotting fees, cash allowances, and incentives are popular due to the power of __________. a. retailers b. manufacturers c. consumers d. shareholders

a. retailers

Antoine works for a well-known company that manufactures mattresses. To move the company's product during the President's Day sales events held nationwide, he offered $200 to any retail salesperson who can sell ten mattresses throughout the second weekend of February. He also offers a case of sports drinks for each mattress sold. These are examples of trade-market sales promotion techniques in the form of: a. in-store sampling. b. incentives. c. merchandise allowances. d. dividends.

b. incentives.

From the consumer's viewpoint, directories like the Yellow Book have some disadvantages as promotional tools. One particular problem is that it: a. has a massive volume of media clutter. b. requires long lead times that result in outdated information. c. annoys rather than provides information to potential buyers. d. is unable to offer detailed information. b. requires long lead times that result in outdated information.

b. requires long lead times that result in outdated information.

A retailer has been doing very well over the years, and can now expect to get cash payments from manufacturers and suppliers if they want their products on the retailer's shelves. Therefore, it regularly receives these payments, known as: a. bill-back allowances. b. slotting fees. c. merchandise allowances. d. off-invoice fees.

b. slotting fees.

During any given year, as much as _____ percent of brand management time might be devoted to designing, implementing, and overseeing sales promotions. a. 65 b. 80 c. 30 d. 10

c. 30

According to a classic quote, which of the following has been described as "the last five seconds of marketing?" a. Trade show b. Sampling c. Packaging d. Directory advertising

c. Packaging

Which of the following is a form of allowance allowed to retailers and wholesalers? a. Free premiums b. Rebates c. Slotting fees d. Contests

c. Slotting fees

The primary role for consumer sales promotion is to: a. encourage long-term loyalty of a brand. b. enhance the image of a brand. c. elicit a purchase from a customer. d. boost instant demand stimulation.

c. elicit a purchase from a customer.

A granola bar included in a box of cereal is a: a. self-liquidating premium. b. push strategy. c. free premium. d. price-off deal.

c. free premium.

A trend in P-O-P advertising and displays is with _________. a. static signage b. cart directories c. interactive units d. parking space advertising

c. interactive units

Although there appears to be some strong resistance, market research has indicated that 63 percent of consumers don't mind __________ advertising. a. transit b. aerial c. billboard d. cinema

d. cinema

For an item to be defined as an advertising specialty, it must: a. be a reward for meeting a goal or sales quota. b. contain no promotional message. c. be construed as a way of buying business. d. contain the sponsor's brand name or slogan.

d. contain the sponsor's brand name or slogan.

In an era of cost cutting and shareholder scrutiny, companies are demanding ___________ across all functions, including marketing, advertising, and promotions. a. more venture capitalists b. less transparency c. less hours d. greater accountability

d. greater accountability

The precision shopper is demanding greater __________across all purchases. a. flexibility b. return options c. technological interfaces d. value

d. value

Support media are used to introduce a new message beyond the one being delivered by other advertising vehicles, marketing plans, and promotional techniques. a. True b. False

False

The fight for space on grocers' shelves has become very competitive, so manufacturers will do anything to get stores to stock their items—except paying a fee, which is illegal. a. True b. False

False

A printed card or sign designed to mount on or under a shelf is known as a _________. a. shelf talker b. floor stand c. cash register d. door signage

a. shelf talker

A VP of marketing wants to look at all possible forms of business-market promotions to gain and maintain lucrative customers. He meets with associates, and they review the five main areas of promotion techniques aimed at business buyers. They are: a. trade shows, business gifts, premiums and advertising specialties, trial offers, and frequency programs. b. incentives, allowances, training programs, cooperative advertising, and sampling. c. merchandise allowances, cash allowances, trade shows, training programs, and incentives. d. premiums and advertising specialties, frequency programs, incentives, allowances, and cooperative advertising.

a. trade shows, business gifts, premiums and advertising specialties, trial offers, and frequency programs.

One advantage of using sweepstakes and contests is that they can quickly and easily communicate the brand message through the game. a. True b. False

False

A coupon entitles a buyer to a designated reduction in price for a product or service, and is the oldest and most widely used form of sales promotion. a. True b. False

True

A(n) ______ entitles a buyer to a designated reduction in price for a product or service. a. coupon b. off-invoice allowance c. bill-back allowance d. slotting fee

a. coupon

Experts suggest that the number of words on a billboard copy should not exceed _______. a. fifteen b. ten c. six d. three

c. six

Which is a reason for growth in the use of sales promotion? a. Restriction of bill-back allowances b. Less push money c. Elimination of off-invoice allowances d. Promotions are often measurable

d. Promotions are often measurable

Out-of-home media is just another name for a billboard, and billboards are the only form of out-of-home media. a. True b. False

False

It is estimated that almost one-fourth of corporate America gives rebates as a type of business-market promotional technique. a. True b. False

False

Marketers must select only one sales promotion technique aimed at consumers, such as coupons, price-off deals, premiums, contests and sweepstakes, samples and trial offers, phone and gift cards, rebates, and frequency programs. a. True b. False

False

A display rack that stocks cigarettes is placed above the cash register so the cashier can reach the product for the consumer. The rack has signage on the front advertising the cigarette brand. This is called an overhead merchandiser. a. True b. False

True

A medium where advertising, the product, and the consumer together in the same place at the same time is Point-of-Purchase advertising. a. True b. False

True

A price-off deal offers a consumer cents or even dollars off merchandise at the P-O-P through specially market packages. a. True b. False

True

A risk of sales promotion is that it could create a price orientation. a. True b. False

True

A self-liquidating premium requires a consumer to pay most of the cost of the item received as a premium. a. True b. False

True

Billboards have evolved from outdoor signs and posters, which represent one of the oldest forms of marketing dating back to the early promotional tools of the 1800s. a. True b. False

True

One of the more noteworthy examples of promotions depicted in the book is by Axe; Axe did one of the most unusual promotions by offering consumers a chance to go to space. a. True b. False

True

Sales promotion is more oriented to techniques used to stimulate demand and attract attention in the consumer market. a. True b. False

True

Increasingly, in-store demonstrators giving samples are also: a. explaining the difference to customers between their sales promotions and advertising objectives. b. telling the consumer the history of the brand. c. providing comedy routines. d. handing out coupons along with the sample.

d. handing out coupons along with the sample.

P-O-P displays have historically served several purposes for store owners. What do today's retailers increasingly expect P-O-P displays to do for them? a. To provide ambience and differentiate their store from others b. To minimize the costs of creating displays for the store c. To improve the orderliness and structure of the store environment d. To reduce the number of sales personnel required

a. To provide ambience and differentiate their store from others

A benefit with mail sampling is that ____________. a. certain zip-codes can be targeted b. it can be sent with push money to consumers c. it gives consumers off-invoice allowances d. it works best with heavy goods

a. certain zip-codes can be targeted

Sales promotion techniques act as an incentive to purchase the brand featuring a promotion, even if another brand: a. has more market share. b. offers more variety. c. offers more benefits. d. has a lower basic price.

d. has a lower basic price.

A consumer buys a printer for her computer and receives a money-back offer. To get the premium, she has to mail in a form requesting the money back from the manufacturer rather than the retailer. Which of the following consumer-market sales promotion techniques is exemplified here? a. A rebate b. A self-liquidating premium c. Couponing d. A free premium

a. A rebate

A manufacturer devises a program to encourage members of the trade to purchase its brand. It offers salespeople an extra $100 for selling one of its refrigerators, $75 for selling one of its ovens, and $50 for selling one of its dishwashers. Which of the following promotional concepts for the trade channel does this involve? a. Push money b. Merchandise allowance c. Slotting fee d. Rebates

a. Push money

Which of the following is true of sampling? a. It is available to distributors alone. b. The customer receives their money back. c. The product is offered at a discounted price. d. The consumer gets the opportunity to use a brand on a trial basis with less risk.

d. The consumer gets the opportunity to use a brand on a trial basis with less risk.

Which of the following sales promotion tactics runs a risk of eroding a brand image or value? a. A frequency program b. A price incentive c. A sweepstake d. A contest

b. A price incentive

Which of the following is true of Point-of-Purchase displays? a. They are noticed only by a few consumers. b. Many retailers ignore them or throw them out. c. They rarely get shipped to stores. d. They are poorly constructed and often unusable.

b. Many retailers ignore them or throw them out.

Which of the following is a difference between advertising specialties and business gifts? a. Specialties have the sponsor's logo on them, while business gifts do not. b. Specialties promote brand awareness, while business gifts promote close working relationships. c. Specialties are quite expensive, while business gifts are inexpensive. d. Specialties are given on a selective basis, while business gifts are distributed to all.

b. Specialties promote brand awareness, while business gifts promote close working relationships.

Which of the following is true of a self-liquidating premium? a. It is a trade-market sales promotion technique. b. The consumer pays most of the cost of the item received as a premium. c. It is a business-market sales promotion technique. d. It is a point-of-purchase sales promotion technique.

b. The consumer pays most of the cost of the item received as a premium.

Some airlines ran into big trouble when they tried to increase the mileage levels needed to earn awards in their frequent-flyer programs. Which of the following risks associated with promotions have their actions demonstrated? a. The risk of having a product or service perceived as cheap b. The risk of alienating customers c. The risk of putting in too much time d. The risk of an increase in expenses over incomes

b. The risk of alienating customers

_________ advertising is a close cousin to billboard advertising, and in many instances it is used in tandem with billboards. a. Directory b. Transit c. Aerial d. Cinema

b. Transit

Compared to advertising, sales promotion is: a. a long-term affair. b. designed to make things happen in the short run. c. a more sophisticated process. d. harder to document.

b. designed to make things happen in the short run.

The sales-promotion techniques used within the trade market are: a. couponing, cash allowances, incentives, and slotting fees. b. incentives, allowances, training programs, and cooperative advertising. c. case allowances, sweepstakes, couponing, and training programs. d. slotting fees, Point-of-Purchase displays, consumer rebates, and merchandise allowances.

b. incentives, allowances, training programs, and cooperative advertising.

Businesses like to promote their products with rebates because they: a. are purely based on luck. b. often do not get cashed in. c. are more popular with consumers than coupons. d. do not require maintenance.

b. often do not get cashed in.

The combination of transit, aerial, and cinema advertising is known as ___________ media advertising. a. Point-of-Purchase b. out-of-home c. trade-channel d. business-market

b. out-of-home

A distinguishing feature of a self-liquidating premium is that it requires the consumer to: a. mail in the premium to get reimbursed. b. pay most of the cost of the item received. c. buy two other items at regular price. d. guarantee a repeat purchase.

b. pay most of the cost of the item received.

The name support media denotes that they: a. are supported and financed solely by business-market expenditures. b. reinforce or support a message delivered by other media. c. must be supported or upheld by physical structures. d. support and enhance P-O-P within the retail environment.

b. reinforce or support a message delivered by other media.

In recent years, several factors have affected sales promotion in organizations. Pressure from stockholders to produce high quarterly revenue, marketing plans based on quick results, and a bottom line-mentality have all contributed to a: a. focus on brand image. b. short-term orientation. c. sense of creative innovation. d. strong consumer bond.

b. short-term orientation.

The oldest form of advertising is the _________. a. coupon b. daily c. directory d. billboard

d. billboard

The marketers at Kraft are considering a number of consumer-market sales promotion techniques. Which of the following sales promotion techniques would work best for Kraft Macaroni and Cheese? a. Offering consumers a mail-in rebate on the purchase of a box of Kraft Macaroni and Cheese b. Offering a case of Kraft Macaroni and Cheese for free if the consumer buys one box c. In-store sampling and an in-store coupon d. Digital advertising

c. In-store sampling and an in-store coupon

A difference between contests and sweepstakes is that: a. contests can require an entry fee, and sweepstakes cannot. b. contests generate long-term interest in a brand, and sweepstakes generate immediate interest. c. contests require skill, and sweepstakes require luck. d. contests focus on the game, and sweepstakes focus on the brand.

c. contests require skill, and sweepstakes require luck.

Trial offers have the same goal as samples, except that trial offers: a. are less expensive to utilize. b. are handed out in malls, retail stores, and other public places. c. involve more expensive items. d. arrive through mail or newspaper delivery.

c. involve more expensive items.

Billboards offer several strong advantages, but they are most effective as a promotional medium when they are in a location that: a. sends a message to the national and international market. b. incorporates specialized lighting. c. relates to an immediate need or desire. d. offers round-the-clock exposure.

c. relates to an immediate need or desire.

Which of the following are the three basic forms of sales promotion? a. At-home, in-store, and out-of-home b. At-home, in-store, and out-of-home c. Indoor, outdoor, and mobile d. Consumer-market, trade-market, and business-market

d. Consumer-market, trade-market, and business-market

A retailer is trying to target the "precision shopper," who expects extra value in every single purchase. Which of the following promotional techniques would best increase the value of a brand in a customer's mind? a. Bill-back allowances b. Push money c. Off-invoice allowance d. Coupons

d. Coupons

A regional office supply store wants to understand and serve its customers better and compete with nationwide giants. It is looking for the most effective way to encourage repeat visits and build long-term loyalty with its customers. Which of the following forms of sales promotion would work best? a. Mail sampling b. Self-liquidating premium c. Rebate d. Frequency programs

d. Frequency programs

Which of the following are the two broad categories of Point-of-Purchase materials? a. In-house displays and out-of-the-house displays b. In-store merchandising formats and out-of-store promotional formats c. Push messages and pull messages d. Short-term promotional displays and long-term permanent displays

d. Short-term promotional displays and long-term permanent displays

Of all types of support media, directory advertising offers a unique advantage by: a. offering technologically advanced and innovative options. b. enhancing brand awareness and recall. c. stressing the brand name and keeping the message within six words. d. helping consumers follow through on purchases.

d. helping consumers follow through on purchases.

A national merchandising company is a major distributor of grocery and beauty products, and uses many tactics to get samples into the hands of consumers. The most popular type of sampling for food and cosmetics products is _________ sampling. a. on-package b. door-to-door c. mail d. in-store

d. in-store

An objective of consumer-market sales promotion is to: a. stimulate the inelasticity of supply of a product. b. lower the economies of scale. c. encourage smaller purchases. d. stimulate trial purchases.

d. stimulate trial purchases.

Advertisers are warned that they may face legal problems if they are not careful while conducting promotional activities. This is especially true of: a. in-store sampling and door-to-door sampling. b. price-off deals and rebates. c. mail sampling and newspaper sampling. d. sweepstakes and contests.

d. sweepstakes and contests.