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Chatper 10
| Question | Answer |
|---|---|
| 1) Which of the following is an action-focused marketing event that attempts to get customers to purchase within a limited period of time? | Answer: sales promotion |
| 2) Identify the discrete programs with well-defined beginning and starting dates that offer incentives to customers to purchase or use the product. | Answer: sales promotion |
| 3) Which of the following is almost always the measure of effectiveness of a sales promotion? | Answer: sales |
| 4) Which of the following statements is true about customer promotion? | Answer: It comes directly to the customer from the manufacturer. |
| 5) Identify the objective of trade promotions. | Answer: Giving the intermediaries incentives to carry and sell the product. |
| 6) Which of the following statements is true about channel-originated promotion? | Answer: It is run by the channel, either to the next channel in the distribution chain or to final customers. |
| 7) Giving the intermediaries incentives to carry and sell the product is most likely to be known as ________ activities. | Answer: push |
| 8) Consumer-oriented promotion gives customers a reason to purchase the product. This process represents: | Answer: pull promotion. |
| 9) Which of the following is the dominant form of price-oriented promotions? | Answer: couponing |
| 10) Which of the following is an effective way to target discounts and other incentives to households that are particularly sensitive to price? | Answer: couponing |
| 11) Which of the following statements is true about price-oriented promotions? | Answer: The dominant form of price-oriented promotion is couponing. |
| 12) Identify the correct statement about coupons. | Answer: The largest distribution channel for coupons is by far free-standing inserts (FSIs). |
| 13) Which of the following is one of the main reasons marketers use coupons heavily? | Answer: Coupons are an effective way to target price-sensitive households. |
| 14) Bonus packs which offer larger sizes for the same price as a smaller size are used for: | Answer: price-oriented promotion. |
| 15) Rebates are an example of ________ promotion. | Answer: price-oriented |
| 16) Which of the following is an example of a consumer price-oriented promotion? | Answer: money-back offer |
| 17) Which of the following types of coupon appears on the actual pages of newspapers rather than being inserted as a separate page or section? | Answer: in-ad coupons |
| 18) Which of the following represents a coupon for another brand, manufactured by the same or a different firm and the coupon itself can be in- or on-package? | Answer: cross-ruff coupon |
| 19) Which of the following types of coupons is located on the outside of the package and can be used for a subsequent purchase? | Answer: on-package coupons |
| 20) With reference to price-oriented promotion, shelf "talkers" is best described by: | Answer: price signs posted on the shelf. |
| 21) Identify the type of promotion that gives away the product itself or a closely related product. | Answer: product-oriented promotion |
| 22) Identify the product-oriented promotion in which a product is given away for free. | Answer: sampling |
| 23) Sampling is most likely to be used: | Answer: when a new product or brand is being introduced. |
| 24) Which of the following is an example of sampling? | Answer: offering a free drug to a physician |
| 25) Which of the following statements is true about sampling? | Answer: A sampling program may not target the right potential customers. |
| 26) Which of the following is an example of a consumer product-oriented promotion? | Answer: premiums |
| 27) Offering a free toy in a Cracker Jack box is an example of: | Answer: premiums. |
| 28) Procter & Gamble ran a repeat-purchase-oriented promotion for its Pampers brand of disposable diapers, where parents obtained points from each purchase redeemable for Fisher-Price toys. This is an example of: | Answer: premiums. |
| 29) Identify the product-oriented promotion where free merchandise is provided with a purchase or some free or reduced-price item for which the buyer must send in proof-of-purchase, with or without money. | Answer: premiums |
| 30) Identify the category of promotions which include contests and sweepstakes. | Answer: special events |
| 31) Market development funding, generous return policies, and off-invoice allowances are examples of: | Answer: trade promotions. |
| 32) Which of the following best describes off invoice allowance? | Answer: offering channel members a discount on orders for a fixed period of time |
| 33) Which of the following explains market development funding? | Answer: offering money to help the channel members sell its products |
| 34) Payments made to store chains for placing a product on a shelf are known as: | Answer: slotting allowances. |
| 35) ________ compensate retailers for prominently displaying and promoting goods. | Answer: Display allowances |
| 36) Which of the following types of trade promotion allows the channel member to return unsold merchandise for a full or partial refund, thus reducing the risk of carrying the product? | Answer: product-based promotion |
| 37) When the company and the retailer share the expense of the retailer advertising the company's products in the local market, this is known as: | Answer: cooperative advertising. |
| 38) Which of the following is a controversial form of sales-based incentive where direct prizes or bonuses are given to the channel's sales force for meeting or exceeding a quota? | Answer: spiffs |
| 39) Identify the trade promotion that is the most risky for a company. | Answer: price-based promotions |
| 40) When a retailer or distributor stocks up on a product at a discount while promotion is running and then sells the inventory at regular price, the process is called: | Answer: forward buying. |
| 41) Of all the trade promotions mentioned in the text, which of the following carries the most risk to the company? | Answer: price-based promotion |
| 42) "Endcaps" refer to: | Answer: end-of- aisle displays. |
| 43) A shelf talker is: | Answer: a sign hanging on the shelf with information, usually about a special price. |
| 44) Special displays and other company-paid advertisements inside the store (e.g. announcements for contests and sweepstakes, information about recipes, etc.) are examples of: | Answer: point-of-purchase advertising. |
| 45) If category sales are fixed and marketing managers are interested in profit margins rather than market share, companies are better off: | Answer: having low level of expenditure. |
| 46) The most common objective of a consumer promotion is: | Answer: short-run transactional goal. |
| 47) Which of the following is a short-run objective of customer promotion? | Answer: increased purchase by current customers |
| 48) Identify the situation in which a channel will want deals for forward buying. | Answer: high promotional elasticity and low holding cost |
| 49) Which of the following is the largest part of the advertising/promotion budget? | Answer: trade promotions |
| 50) When holding costs and price elasticity are high, the manager should use: | Answer: trade deals. |
| 51) Specialty cheeses are most likely to have: | Answer: low promotional elasticity and high holding cost. |
| 52) Paper products are most likely to have: | Answer: high promotional elasticity and high holding cost. |
| 53) Laxatives are most likely to have: | Answer: low promotional elasticity and low holding cost. |
| 54) Canned tuna fish is most likely to have: | Answer: high promotional elasticity and low holding cost. |
| 55) In order to maintain the profit level of the product to the channel member and keep the product on the shelves, the marketing manager uses ________ to compensate for the decline in sales. | Answer: price-oriented promotions |
| 56) A particularly important purpose of retail-oriented promotions is: | Answer: to gain or maintain distribution. |
| 57) An important criterion for evaluating ________ is how often a retail promotion is run when the channel members receive some kind of deal. | Answer: trade promotions |
| 58) Which of the following conditions is typical of consumer products and services? | Answer: The product is standardized. |
| 59) Which of the following factors affects the allocation of funds between advertising and promotions? | Answer: the total amount of resources available |
| 60) Most sales promotion money is spent on product categories in which: | Answer: decision making is routine. |
| 61) ________ activities are those activities that build brand equity, including advertising sampling, couponing, and product demonstrations. | Answer: Consumer franchise-building |
| 62) ________ activities focus on price alone and include trade promotions, short-term price deals, and refunds. | Answer: Non-consumer franchise-building |
| 63) In order for the brand to remain healthy, the least value of the consumer franchise-building percent ratio should be: | Answer: 50 percent. |
| 64) Bar codes are also known as: | Answer: universal product codes. |
| 65) "Sales promotion" involves boosting sales in short term. | Answer: TRUE |
| 66) Trade promotion is directed at end consumers. | Answer: FALSE |
| 66) Trade promotion is directed at end consumers. | Answer: TRUE |
| 68) Pull promotion activities give the intermediaries incentives to carry and sell the product. | Answer: FALSE |
| 69) For consumer-product companies that are the heaviest users of advertising and promotion, there has been a significant shift over time away from promotion toward media advertising. | Answer: FALSE |
| 70) The dominant form of price-oriented promotion is couponing. | Answer: TRUE |
| 71) The largest distribution channel for coupons is by far free-standing inserts (FSIs). | Answer: TRUE |
| 72) Coupons are an effective way to target discounts and other incentives to households that are particularly sensitive to price. | Answer: TRUE |
| 73) E-coupons delivered through the Web have a much lower redemption rate than those delivered the old-fashioned way. | Answer: FALSE |
| 74) Coupons permit marketing managers to price discriminate, that is, charge different prices to different households. | Answer: TRUE |
| 75) Coupon programs provide competitive advantage. | Answer: FALSE |
| 76) The response rates for coupons are very high, so the expense per redemption is low. | Answer: FALSE |
| 77) Rebates are rarely used in auto industry. | Answer: FALSE |
| 78) Price promotions can dilute brand equity. | Answer: TRUE |
| 79) In product-oriented promotions, giving away the product free is called sampling. | Answer: TRUE |
| 80) Sampling is less effective than coupons, advertising, and games or contests in helping consumers evaluate products. | Answer: FALSE |
| 81) A sampling program always targets the right potential customers. | Answer: FALSE |
| 82) Contests and sweepstakes fall under the category of promotions known as special events. | Answer: TRUE |
| 83) Offering off invoice allowance is an example of consumer-oriented promotion. | Answer: FALSE |
| 84) The money a company spends to help the channel members sell its products is called market development funding. | Answer: TRUE |
| 85) Off-invoice allowances are payments to store chains for placing a product on a shelf. | Answer: FALSE |
| 86) The largest amount of market development funds is spent on slotting allowances. | Answer: TRUE |
| 87) Product-based promotions carry the most risk to the company. | Answer: FALSE |
| 88) Displays and other company-paid advertisements inside a store are called point-of-purchase advertising. | Answer: TRUE |
| 89) Retailer promotions are ineffective in getting customers to increase their purchase quantities. | Answer: FALSE |
| 90) Promotions for existing products have been found to have a large impact on sales and other objectives, but most evidence shows that these effects are temporary. | Answer: TRUE |
| 91) Promotion typically takes the long-run view. | Answer: FALSE |
| 92) Sales increases from customer-oriented promotions reflect accelerated purchases by loyal buyers rather than new sales volume from brand switchers. | Answer: TRUE |
| 93) Trade promotion is the smallest part of the advertising/promotion budget. | Answer: FALSE |
| 94) One approach to evaluating trade promotions is tracking the before-and-after results. | Answer: TRUE |
| 95) The focus of retail promotions is on the retail store or chain rather than a specific brand. | Answer: TRUE |
| 97) Summarize the advantages and disadvantages of coupons. | Answer: The dominant form of price-oriented promotion is couponing. Marketers prefer coupons because of two main reasons. Firstly, coupons are an effective way to target discounts and other incentives to households that are particularly sensitive to price. Second, coupons are flexible in that they can achieve different kinds of goals. |
| 98) Write a short note on trade promotions. | Answer: Like customer-oriented promotions, trade promotions, or incentives offered to the members of the channel system, can also be divided into groups based on their characteristics. Product-based promotions include free goods and generous return policies. Return policies allow the channel to return unsold merchandise for a full or partial refund, reducing the risk of carrying the product. |
| 99) List the conditions in which companies spend more on advertising and promotion relative to sales. | Answer: |
| 100) What are the factors to be considered while allocating money between advertising and promotion? | Answer: |
Created by:
lonehorse