MKTG 403: Chapter 16

Marketers use loyalty programs to encourage consumers to ______.

use their product on a continual basis

Sales promotion offers usually try to add ______ to a product or service.

value

True or false: Consumers are likely to develop favorable attitudes if they perceive a brand as being promotion dependent.

False

True or false: Due to the problems associated with sweepstakes, their use is decreasing.

False

Consumer franchise-building promotions are used to make consumers _____.

aware of a brand

Sales promotions that offer a consumer an extra amount of a product at the regular price by providing larger containers or extra units are known as ______.

bonus packs

Consumers' favorable image, impressions of differentiation, and/or strength of attachment to a brand generate an intangible asset of added value or goodwill which is known as ______.

brand equity

Marketing and advertising executives are most concerned with the effect of the increased use of sales promotion on ______.

brand equity

Consumer-oriented sales promotion is directed toward ______.

end users

Package-carried premiums such as toys, balls, and items included in cereal packages provide consumers with ______.

extra incentives to buy a product

Bonus packs provide consumers with ______.

extra value and product

To identify the activity of merging shopping skills with coupon use in an effort to save as much money as possible while shopping, the term was coined.

extreme couponing

If a new product does not hit a minimum sales level within a certain time, retailers charge ______ to cover the costs associated with stocking, maintaining inventories, and then pulling the product.

failure fees

According to the attribution theory, when no external incentive is available, consumers attribute their purchase behavior to ______.

favorable feelings about a brand

In-store sampling is most popular and effective for ______ products.

food

Consumer franchise-building promotions are modeled to create ______.

long-term brand preference

______ give marketers a direct way to provide extra value to consumers.

Bonus packs

Marketers attempt to combat the clutter problem associated with coupons in freestanding inserts (FSIs) using which of the following methods? (Check all that apply.)

Direct mail Electronic dispensing in stores In-person handouts

______ generates the highest trial rates among sales promotion techniques.

Sampling

An integrated marketing communications activity where a company builds up sponsorship relations with a particular activity is known as ______.

an event sponsorship

Packaged-goods marketers often use refund offers to ______.

assist in the trial of a new product

Usually, marketers do event marketing by ______.

associating their product with some popular activity or event

A deal or discount offered to resellers, during a fixed period, in the form of a price reduction on merchandise ordered is referred to as a(n) ______ allowance.

buying

The sales promotion effort can add to consumer franchise-building efforts for a brand by ______.

communicating the brand's unique attributes

Marketers must plan their consumer promotion programs by ______.

conducting a situation analysis

Coupons, price-offs, premiums, and bonus packs are examples of ______.

consumer-oriented sales promotions

A promotion where consumers compete on the basis of skills or ability for prizes or money is known as a ______.

contest

The objective of - cooperative advertising is to help establish end products that include a company's materials and ingredients.

ingredient-sponsored

An important reason for the increase in spending on sales promotions has been the ______.

maturity in the promotion industry

Configurations of products that occupy a shelf section in a store are referred to as ______.

planograms

Sales promotions appeal to a consumer's ______ more than advertising does.

pocketbook

An offer of an item of merchandise or service either free or at a low price that is an extra incentive for buyers is known as a ______.

premium

Cash payments that are made directly to a retailer's or wholesaler's staff to encourage them to promote and sell a manufacturer's product are known as money.

push

Value-added premiums reflect a product's ______.

quality

Trade-oriented promotions, contests, or special incentives are often directed toward ______.

sales personnel

Managers believe ______ is the most reliable way to produce short-term sales.

sales promotion

With the key objective of generating an immediate sale, a direct inducement that offers an extra value or incentive for a product to a sales force, distributors, or a consumer is known as ______.

sales promotion

Retail personnel can attend classes conducted by manufacturers to increase their knowledge of a product or a product line in a trade-oriented promotion known as ______.

sales training programs

Sales promotion tools are one of the primary vehicles in ______.

targeting specific markets

In a contest, the winner is usually determined by ______.

the company which conducts it

Discounts or deals that are offered to retailers or wholesalers by a manufacturer to stock, promote, or display the manufacturer's products are known as ______.

trade allowances

A forum where manufacturers can exhibit their products to current and prospective buyers is known as a ______.

trade show

True or false: Planograms are used by manufacturers to help retailers use shelf space more efficiently.

True

True or false: Whenever possible, the theme of consumer promotions should be merged with the positioning platform for a company for the successful integration of advertising and sales promotion programs.

True

Products are delivered directly to a prospect's residence in ______ sampling.

door-to-door

When it is important to control where a sample is delivered, ______ sampling is used.

door-to-door

Identify the oldest and most effective sales promotion tool.

Coupons

______ are more common in newspaper advertising than in magazine advertising.

Coupons

True or false: In an effective sampling program, the next purchase occasion will be far in the future.

False

______ of the consumer market has led to an increase in sales promotions.

Fragmentation

______ involve(s) a range of methods whereby consumers are given some quantity of a product for no charge to induce trial.

Sampling

Which of the following statements about coupons as a sales promotion tool are true?

They allow the producer to reduce the retail price of a product without the retailer's help. They are commonly used for cereal and for detergent. They are effective as a technique to generate trial consumer use.

Identify a problem with contests/sweepstakes.

They do little to contribute to brand image.

According to the ______ theory, people develop attitudes by observing their own behavior and considering why they acted in a particular manner.

attribution

The cost of advertising is shared by more than one party in ______ advertising.

cooperative

One type of program designed to motivate distributors and retailers to carry a product and make an extra effort to push it to their customers is ______.

cooperative advertising

The goal of self-liquidating premiums is to ______.

cover costs and offer value

An example of trade-oriented sales promotions is ______.

dealer contests

A major aspect of marketing strategies of many firms in recent years is the ______.

development of new products

In an event sponsorship, marketers provide financial support for an event in return for the right to ______.

display their brand name

The advantage of sampling through mail is that marketers can ______.

exert control over a product's geographic distribution

For an effective sampling program, products are ______. (Check all that apply.)

expected to have short purchase cycles of relatively low unit value easily broken into small sample sizes

Sampling helps consumers to ______.

experience a product directly

Consumer franchise-building promotions contribute to the development of a ______ by communicating its distinctive features and benefits.

favorable brand image

Four-color multipage printed advertising booklets that contain coupon offers for consumer packaged goods and are delivered with newspapers are known as ______.

freestanding inserts

A form of sweepstakes which has a chance element or odds of winning a prize or money that consumers are competing for is known as a(n) ______.

game

Advertising is sponsored in common by a group of retailers or other organizations providing products or services to a market in ______ cooperative advertising.

horizontal

What type of sampling do marketers use when they hire temporary demonstrators who set up a table or booth, prepare small samples of the product, and pass them out?

in-store sampling

Freestanding coupons are the most popular way of delivering coupons because they ______.

include high-quality four-color graphics

Usage of a promotion without prior or concurrent advertising can ______.

limit its effectiveness

Sales promotions that offer members of a store discounts, a chance to accumulate points that can be redeemed for rewards, newsletters, and other special services are known as ______ programs.

loyalty

In a price-off deal, the reduction in the regular price of a product comes out of the profit margin of the ______.

manufacturer

Advertising is primarily a reminder to keep consumers aware of a brand when the brand moves to the ______ in the product life cycle.

maturity stage

Sales promotions are routinely used by brand managers to ______.

meet quarterly sales

A drawback of on-package sampling is that it is extremely unlikely to reach ______.

nonusers of the carrier brand

An allowance where a certain per-case amount or percentage is deducted from an invoice is known as a(n) ______.

off-invoice allowance

Sales promotion includes some type of inducement that ______.

offers an extra incentive to buy

Samples of products are attached to another item in ______ sampling.

on-package

In order to attract price-sensitive consumers, marketers use ______.

price-off deals

Sales promotions wherein the price of a brand is reduced and which are typically offered right on the package through specially marked price packs are known as ______.

price-off deals

Coupons make it possible to offer a price reduction only to those consumers who are ______.

price-sensitive

Most consumers make purchasing decisions based on ______.

product price

Trade allowances are offered by manufacturers to encourage retailers and wholesalers to ______.

promote their product

-time data available from computerized checkout scanners make it possible for retailers to monitor promotions and track the results they yield on a daily basis.

real

Offers by a manufacturer to return a portion of a product purchase price after a consumer supplies some proof of purchase are known as ______.

refunds

The consolidation of the ______ has largely increased the power of retailers.

retail industry

Premiums that require a consumer to pay some or all the cost of the premium plus handling and mailing costs are known as ______ premiums.

self-liquidating

Sales training programs for retail salespeople provide information and ideas on how to ______.

sell a manufacturer's product

Fees that retailers charge for providing a position to accommodate a new product are known as ______.

slotting allowances

For ______ products, sampling through mail is most common.

small

In order to gain access to data concerning how quickly products turn over, which sales promotions are working, and which products make most money, retailers in recent years have begun to rely heavily on ______.

sophisticated in-store computer systems

A promotion where consumers compete for prizes or money and winners are determined purely by chance is known as a ______.

sweepstakes

A manufacturer pays for a portion of the advertising a retailer runs to promote the manufacturer's product and its availability in the retailer's place of business in cooperative advertising.

vertical

In ______ cooperative advertising, manufacturers generally share the cost of advertising run by a retailer on a percentage basis.

vertical

A reason for consumers' increased sensitivity to sales promotion is that they ______.

want to save money

A type of promotion where a company or brand is associated with an event or where a themed activity is created for the purpose of providing experiences for consumers and promoting a product or service is known as ______.

event marketing

True or false: Results from advertising are generally easier to measure than those from sales promotion programs.

False

______ promotions are sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity.

Consumer franchise-building

The most widely used sales promotion technique is ______.

coupons

Small gifts or merchandise included in a product package or sent to consumers who mail in a request along with a proof of purchase are known as ______.

free premiums

The role of sales promotions has been elevated in the IMC program of many companies because of its ______.

increased sophistication

Raw materials manufacturers support ______ cooperative advertising.

ingredient-sponsored

Trade shows are used by companies to ______.

introduce new products

Consumers are more likely to purchase a brand that ______.

is on a special sale

In recent years, markets have become saturated with new brands that mostly ______.

lack any significant advantages

Marketers can make consumers ______ with the help of bonus packs.

less susceptible to a competitor's promotional programs

An example of a consumer-oriented sales promotion is ______.

sampling

The most effective, but also the most expensive, way to generate trial is ______.

sampling

The popularity of coupons shows that they are a way for an average household to ______.

save considerable amounts of money

In order to think beyond the short-term sales fix of sales promotions, managers need to ______.

set clearly defined objectives