Chapter 12

Of the total expenditures by all manufacturers on promotion about __________ of every dollar spent goes for push type promotions.

50%

Forward buying causes:

A slowdown in the distribution process

Which of the following is not an example of displays and/or selling aids?

Billboards

The belief underlying the so-called pull strategy is?

By building strong consumer demand for their products, manufacturers pressure channel members to promote these products.

Push and pull promotion:

Can be used together successfully.

Which of the following is not an example of in-store promotion?

Cardboard cutouts

Cooperative advertising dollars are also called:

Case allowances

For samples to be an effective in-store promotion, it is suggested that:

Channel managers and retailers will need to be more clever and develop situational sampling.

Which of the following activities is not usually performed by missionary salespeople calling on retailers?

Conducting customer surveys

One of the main issues Proctor & Gamble (P&G) Company had with its Max Factor is:

Giant mass market U.S. retailers were not willing to give more shelf space to Max Factor products.

Effective retail training programs should include all of the following except:

How retail customers can promote products.

Sales quotas are a way for the manufacturer to communicate:

Information regarding the channel member's territory sales potential

___________ is a term used to refer to the use of several promotional tools in a coordinated effort to achieve maximum promotional impact.

Integrated marketing communication

Which of the following is not a feature of the Evergreen and Ivy display for candles?

It handles product that comes in one size

From the standpoint of the manufacturer, using trade shows as a promotional strategy for motivating channel members is beneficial for all the following reasons except:

It is an effective way to gain government approval for new products.

Which of the following is not true about missionary selling in the industrial market?

It is inexpensive.

Training programs at the wholesale level should be aimed at improving all of the following except:

Knowledge of tax implications for their respective companies.

Consultants such as SymphonyIRIGroup have made it feasible for manufacturers to:

Measure the effects of promotional programs more accurately.

Which of the following is an accurate statement regarding displays and selling aids?

Often manufacturers have difficulty getting retailers to use displays and selling aids.

It is now easier for manufacturers to measure the effect of promotional allowances because of:

Outside consulting firms.

In order for a cooperative advertising program to work effectively, the channel members must do all of the following except:

Pass the high cost of print ads to the manufacturer

Channel members are often reluctant to support advertising programs if they feel there is too much emphasis on the manufacturer's products and not enough emphasis on:

Patronage appeals.

In a pull and push promotional strategy, the three main flows involved are:

Product, negotiation, and promotion

Which of the following is not an advantage of using trade shows as a promotional strategy?

Provides an opportunity to advise and give technical assistance to channel members

Which of the following is a common abuse of cooperative advertising money by retailers?

Retailers buying newspaper space at rates lower than what they bill manufacturers.

The effectiveness of the overall promotional strategy depends on how successful the manufacturer is in:

Securing cooperation from independent channel members in implementing the promotional strategy.

The underlying concept behind the push promotional strategy is:

Securing mutual effort and cooperation between manufacturers and channel members in the use of promotion.

Sales quotas for channel members:

Should be set in conjunction with the channel member

________ are payments made by manufacturers to encourage channel members to display and stock new products.

Slotting allowances

Which of the following is a false statement about slotting fees?

Slotting fees may discriminate against large manufacturers who are willing and able to pay high fees.

In using in-store promotions, the most critical factor for the channel manager to consider in judging the probable effectiveness of the promotion is:

The benefits of the program as perceived by retailers.

The increasing emphasis on push promotions in recent years is attributed to:

The increasing size and power of retailers and wholesalers.

Many channel members feel that when it comes to contests and incentives:

They are a one-sided deal in the manufacturer's favor.

The practice whereby intermediaries, under special promotional deals, buy more inventory than they possibly could sell in a reasonable period of time is known as:

Trade loading

Slotting fees are most commonly used in the ________ industry.

grocery

Retailers and wholesalers are __________ content to be conduits that giant manufacturers using massive national advertising can send their products smoothly through to final customers.

no longer

Trade shows, if conducted properly, provide the manufacturer with an opportunity to strengthen its __________ power base.

referent

It is expected that ________ may become the most dominant form of promotional allowance demanded by large retailers.

slotting fees