Chapter 15 Practice Questions

The annual "Roll Up the Rim to Win" promotion at Tim Hortons is a prime example of which promotional vehicle? premiums free samples instant-win contests redemption prizes

instant-win contests

During which stage of the product life cycle is the use of free samples most appropriate? introductory stage maturity stage secondary stage primary stage

introductory stage

In addition to generating sales for the organization, an important function of a salesperson is: to inform management of product performance to inform management of competitors' products to inform management of competitors' promotions All of the above

All of the above

Which of the following principles guides corporations in their decision to participate in event marketing? The organization should select sponsorships that allow them an exclusive presence The organization should give careful consideration to how the demographics of the event audience match with the demographics of the target market The organization must consider the long-term benefit that the sponsorship will offer and compare this to the costs in the short term All of the above

All of the above

Canadian Tire's well known "Canadian Tire Money" program rewards customers with up to 4% of the value of a cash purchase. This program is called: a frequent-buyer program a monopoly strategy a cash refund a refund incentive

a frequent-buyer program

When an organization is handling a crisis and needs to make an important announcement, the best way to disseminate information is through: a press release a press conference social media local radio

a press conference

Publicity: communicates newsworthy information about people, goods, or services rather than the corporate image only communicates newsworthy information dealing with an organization's production operations communicates only newsworthy information from press releases put out by corporations or their agencies communicates newsworthy information that is paid for by an advertiser

communicates newsworthy information about people, goods, or services rather than the corporate image

Which of the following best describes event sponsorship? financial support of an event in return for advertising privileges associated with the event integration of market communications around a specific event private association of a brand or company name with a sports, entertainment, or cultural event promotional exploitation of a popular event to increase sales or enhance public image

financial support of an event in return for advertising privileges associated with the event

The final step in the selling process is: closing presentation handling objections follow-up

follow-up

Allowing customers to actually use or experience products before deciding on a purchase is an example of: in-store sampling pre-sale experiences trial sponsorships practice sessions

in-store sampling

An advantage that manufacturers gain from participating in a trade show is that: it allows them to display their products alongside the competition it allows them to develop leads for the sales force it is a good way to bring in sales on new products the originality of their displays can attract many customers

it allows them to develop leads for the sales force

Contests are most appropriate during which stage of the product life cycle? introduction growth maturity decline

maturity

A _________________ is a discount offered by manufacturers to encourage retailers to perform specific merchandising functions. partnership trade-in bartering quota performance allowance channel swap

performance allowance

Self-contained, custom-designed merchandising units provided by a manufacturer are called: free-standing stores display kiosks point-of-purchase material premium displays

point-of-purchase material

During which stage of the selling process are customers qualified, which is the procedure for determining if a prospect needs the product, has the authority to buy it, and has the ability to pay for it? approach pre-approach presentation closing

pre-approach

Premiums are useful in the mature stage of the product life cycle because: people have never heard of the product before premiums offer the consumer a chance to purchase valuable warranties premiums provide added value to new and current users at this stage the product is in sales decline, and premiums increase revenue for the firm

premiums provide added value to new and current users

When a manufacturer gives free products to trendsetters who, in turn, influence others to become aware of a product and hopefully purchase the product, the manufacturer is using: sampling product seeding market seeking penetration marketing

product seeding

Event marketing and sponsorship are important factors in the promotion mix of many companies because: such organizations cannot spend money on any other type of promotion such promotion leads to consumers forming strong associations between the event and brands or companies such promotions increase sales where advertising does not it is much cheaper than giving away free samples

such promotion leads to consumers forming strong associations between the event and brands or companies

The follow-up is an important part of the sales process because: the customer might return the item if they are not completely satisfied and the salesperson could lose the commission this is how salespeople make long-term customers the organization needs to secure word of mouth advertising, and follow-up generally guarantees this follow-up is the salesperson's best chance to get potential customers, those who did not purchase on the first encounter, back into the store

this is how salespeople make long-term customers

A good salesperson will attempt to close a sale: when the trial close has been completed when the customer agrees with a sales argument when the customer has inquired about financing options before there are any objections

when the customer agrees with a sales argument