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Chap016 - M/C with answers
Marketing Communications (MR2400)
Memorial University of Newfoundland
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Chapter 16
Sales Promotion
Multiple Choice Questions
- (p. 507) In the opening vignette, Macy's learned the hard way that: A. organic is not necessarily natural B. consumers are sensitive to brand re-identification C. consumers love a deal D. fashion does not always equal style E. coupons are better than cost-cutting
See opening vignette.
- (p. 508) In the opening vignette, Macy's learned that extensive use of discounts and promotional offers: A. reduces the effectiveness of nonfranchise-building promotions B. undermines their ability to build and maintain brand equity C. creates a game that can only be refunded through bonus packs D. are effective substitutes for self-liquidating off-invoice allowances E. create accounting nightmares
See opening vignette.
(p. 509) ______ is defined as a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or to ultimate consumer with the primary objective of creating an immediate sale. A. Brand advertising B. A sales promotion C. Direct marketing D. A promotional allowance E. Specialty marketing
(p. 509) Which of the following elements of the integrated marketing communications programs is designed to provide an extra incentive to consumers to purchase a brand? A. advertising B. direct mail C. public relations D. price E. sales promotion
(p. 509) Which of the following statements does NOT describe an aspect or characteristic of sales promotion? A. A sales promotion provides an extra incentive to buy. B. A sales promotion is an acceleration tool designed to speed up the selling process. C. Sales promotion can be targeted to different parties in the marketing channel. D. Sales promotions now account for more of marketer's promotional budget than media advertising. E. Most of the sales promotional dollars are spent on consumer-oriented promotions.
(p. 509) Marketers can target sales promotion efforts to: A. consumers B. retailers C. distributors D. salespeople E. all of the above
(p. 509) When a marketer distributes coupons for a brand with a specific expiration date, they are attempting to use sales promotion as a(n): A. brand franchise building promotion B. brand equity building promotion C. acceleration tool D. value added tool E. promotional marketing tool
(p. 510) Which of the following statements about sales promotion programs is true? A. Sales promotion programs are targeted only at consumers. B. Many sales promotion programs are designed to motivate distributors and retailers to carry a product and push it to their customers. C. Nearly three quarters of all sales promotion dollars are spent on consumer promotions. D. Sales promotion dollars for most companies are allocated equally between consumers and the trade. E. Sales promotion strategies aimed at marketing intermediaries are called pull strategies.
(p. 511) Among major packaged goods companies, the greatest percentage of the promotional budget is allocated to: A. media advertising B. consumer promotions C. trade promotions D. direct marketing E. trade shows
(p. 511) Among major packaged goods companies, spending on _____ has remained relatively constant over the past decade. A. trade promotion B. consumer promotion C. media advertising D. direct mail E. public relations activities
(p. 511) How has the view of sales promotions changed during the past decades? A. Sales promotions are now considered an essential part of an organization's branding strategies. B. Sales promotion tactics are now developed before the strategy is determined. C. Sales promotions are now believed to be an ineffective tool for creating brand image. D. Creatives have become more sophisticated, and this sophistication has led to a decline in their dependence on sales promotion. E. There is no difference between how marketers used to treat sales promotions and how they treat them now.
(p. 511) Why are organizations like KFC, Heinz Foods, Toys R Us, and Anheuser Busch placing more emphasis on sales promotions than ever before? A. because they want to use sales promotions rather than engage in price wars B. because they are convinced sales promotions can be used to build brand equity more effectively and more quickly than other promotional mix elements C. because the use of sales promotions allows them to cut back and/or completely eliminate their use of coupons D. because consumers have less time to shop E. because the use of allowances, deals, and premiums confuse consumers
(p. 511) Which of the following helps to explain the increase in sales promotion activities over the last decade? A. the increase of brand loyalty in many product categories B. the tremendous decrease in the number of new products C. the increased emphasis on long term strategy and performance by most companies D. the advertising clutter problem E. all of the above
(p. 512) Which of the following developments have resulted in a transfer of power from manufacturers to retailers? A. The advent of optical scanners and computers gave manufacturers access to sales information. B. Manufacturers are spending more money on media advertising. C. Consolidation in the grocery industry has resulted in larger chains with greater buying power and clout. D. Manufacturers are spending more money on marketing research. E. Manufacturers are introducing more private-label brands.
(p. 512) Consumers have become more sensitive and responsive to sales promotion because: A. consumers are multi-brand loyal B. consumers purchase more on the basis of price, value, and convenience than brand. C. many purchase decisions are being made in the store where many sales promotions are found D. marketers are offering consumers more promotions to attract and maintain customers E. of all of the above reasons
(p. 514) How are marketers responding to the fragmentation of the consumer market? A. They are using more direct selling to make event sponsorship more successful. B. They are using less direct marketing. C. They are using more sales promotions that are tied into local events. D. They are employing clipping services to determine the effectiveness of their press releases. E. They have basically ignored the fragmentation of the consumer market and continued doing business as usual.
(p. 513) Wal-Mart is known for its marketing ______________, influencing all aspects of marketing including sales promotions by brand manufacturers. A. simplicity B. power C. linearity D. cooperation E. religion
See IMC Perspective 16-1.
(p. 515) What do many businesspeople give as a reason for the increasingly short-term focus on performance and sales volume in business today? A. the primacy effect B. the more rapid movement of consumers through the hierarchy of effects model C. a habit of frequent repositioning D. synergistic buying E. the brand management system
(p. 515) Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision-making. For this reason, many marketers rely on: A. personal selling instead of mass-media advertising B. a strategy that eliminates any advertising carryover effect C. sales promotions such as coupons and price discounts D. event sponsorships E. out-of-home advertising media
(p. 515) _____ is a recent development whereby companies are customizing their sales promotion programs for key retailers. A. Incentive marketing B. Accountability marketing C. Account-specific marketing D. Trade marketing E. Franchise building
(p. 516) Another name for account-specific marketing is: A. a planogram program B. comarketing C. dual sponsorship D. piggyback marketing E. key-account communications
(p. 516) The toy company Hasbro teamed with the retailer Toys R Us to create direct mail booklets offering discounts on Hasbro toys good only at Toys R Us stores. This is an example of: A. incentive marketing B. a franchise building promotion C. brand equity building D. account-specific marketing E. none of the above
(p. 516) Heinz Foods created a Cinco de Maio celebration for a large supermarket that targets Mexican-Americans, a market that Heinz sees as an area of potential growth. Heinz paid for a mariachi band to serenade shoppers during the day and also set up a food-sampling booth at the store's entry. This would be an example of: A. incentive marketing B. a franchise building promotion C. brand equity building D. account-specific marketing E. none of the above
(p. 517) Which of the following statements describes how brand equity is affected by the increased role of sales promotion? A. Critics argue sales promotions generally result in higher brand equity. B. Sales promotions do not contribute to the erosion of brand equity. C. Proponents of brand equity argue increased spending on sales promotion is coming at the expense of media advertising, and this is leading to declines in brand equity. D. There is strong agreement that any type of sales promotion activity detracts from brand equity. E. All of the above statements describe how brand equity is affected by the increased role of sales promotion.
(p. 517) In a sales promotion sponsored jointly by Puerto Rico Tourism Board and Rums of Puerto Rico, couples were invited to enter a contest for a chance to win the perfect wedding. According to the ad, enjoying Puerto Rico hospitality is "As Easy As Saying I Do." The contest is an example of: A. a nonfranchise building promotion B. a franchise building promotion C. a high-involvement sales promotion D. a sales promotion trap E. event marketing
(p. 517) Tropicana developed a "Win the Perfect Vacation" sweepstakes to complement an advertising campaign theme promoting its grapefruit juice as the perfect beverage. This is an example of: A. a nonfranchise building promotion B. a franchise building promotion C. a high-involvement sales promotion D. a sales promotion trap E. event marketing
(p. 517) Consumer-franchise-building for a brand: A. is the exclusive responsibility of advertising B. is accomplished through short-term price-oriented promotions C. is impossible to do through consumer promotions D. can be accomplished through consumer promotions that reinforce established brand images or positioning E. is becoming less important to marketers as competition intensifies
(p. 517) The building or reinforcement of consumer-franchise or equity for a brand: A. can really only be accomplished through advertising B. can be done with carefully planned sales promotion programs C. can be done with more easily through trade-oriented promotions than through consumer- oriented promotions D. is really not very important given the prolonged economic prosperity the U. economy has been in E. is accurately described by none of the above
(p. 5017) Which of the following is an example of a sales promotion that can be used to contribute to franchise building? A. a 50-cents off coupon on a box of Minute Rice to encourage repurchase B. a sweepstakes or contest that uses a theme which is consistent with the image or positioning of the brand C. a $50-rebate offer on the purchase of a Lane cedar chest D. a price reduction of $5 on a pair of Lee jeans E. all of the above
(p. 517) Which of the following is an example of a nonfranchise building promotion? A. consumer sampling B. contests targeted to ultimate consumers C. price-off deals D. event sponsorship E. frequency programs
(p. 518) Which of the following is a reasonable objective for consumer-oriented sales promotions? A. to obtain trial of a new brand B. to encourage repurchase of a brand C. to increase consumption of an established brand D. to enhance advertising and marketing efforts E. all of the above
(p. 518) When Campbell Soup Company introduced its V8 Splash fruit medley juices, the company gave out free samples at Sam's Clubs and distributed millions of 50-cents-off coupons. The objective(s) of these sales promotion tools was to: A. defend the brand's customer base B. obtain trial and repurchase C. target a specific market D. increase consumption of an established brand E. create long-term brand equity
(p. 519) Which of the following statements about sales promotions is true? A. Ivory soap carving contests were used to support the war effort in World War II. B. McDonald's was sued for illegally using the Monopoly game contest. C. The Oscar Mayer Wienermobile was the first sales promotion premium offer. D. Sweepstakes are seen as more involving and more motivating than contests. E. The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon.
See IMC Perspective 16-2.
- (p. 519) The American Airline AAdvantage promotional program rewarded consumer: A. loyalty B. diversity C. diversification D. price sensitivity E. demographic segmentation
See Figure 16-2.
(p. 520) Post Cereal is introducing a new kind of breakfast cereal that is soy-based and targeted at health-conscious adults between the ages of 25 and 50. The marketing objectives for the introduction are to generate trial and repeat purchase during the 3-month product launch. Which of the following sales promotion tools should work best for Post? A. sampling and rebates B. rebates and high value checkout coupons C. bonus packs, trade allowances, and slotting fees D. high value in package coupons and sampling E. sweepstakes, contests, and rebates
(p. 520) Sales promotion tools could be used to increase sales of an established brand by: A. giving away samples to attract nonusers of the brand B. using coupons to give users of a competitive brand an incentive to switch C. identifying new uses for the product D. using a premium offer that appeals to people who use a competitive brand E. doing all of the above
(p. 520) The objective of a $.75-off coupon for Selsun Blue dandruff shampoo was most likely to: A. attract non-users of the product category B. identify new uses for the brand C. attract users of a competitive brand D. show new usage situation for the brand E. do none of the above
(p. 521) Which of the following describes a sales promotion that can be used by a marketer to defend its current customer base? A. Use special price promotions to encourage consumers to stock up on the brand. B. Use bonus pack promotions to get consumers to buy larger sizes. C. Use coupons to encourage consumers to continue to buy the brand. D. Use trade promotions to encourage retailers to display and promote the brand. E. Do any or all of the above.
(p. 522) Sampling programs are most effective when the product: A. is of low unit value and samples do not cost too much B. is divisible and can be broken into small sampling units C. has a short purchase cycle so that consumers will be motivated to make an immediate purchase D. has features and benefits that are easily experienced and appreciated E. has any or all of the above characteristics
(p. 522) Sampling for a product such as expensive skin cream that is designed to reduce wrinkles over a long period of time might not be feasible because: A. it cannot be broken down into small sizes B. it may be too expensive to give away sample sizes that would be adequate to demonstrate the cream's benefits since it has to be used repeatedly C. it may be too difficult to find a way to distribute the samples D. consumers may think it is of poor quality since samples are being given away E. it would create an easily imitated competitive advantage
(p. 522-523) Which of the following is NOT a sampling distribution method? A. door-to-door sampling B. sampling through the mail C. in-store sampling D. in or on package sampling E. self-liquidating sampling
(p. 523) _____ is a common sampling technique for small, lightweight products that are nonperishable. A. Door-to-door sampling B. Sampling through the mail C. In-store sampling D. On-package sampling E. Location sampling
(p. 523) Which of the following statements about on-package sampling is true? A. This can be a very cost effective sampling method, particularly for multiproduct companies. B. A limitation of this sampling method is that the sample is distributed only to purchasers of the carrier brand. C. On-package samples can be distributed by attaching them to products not made by the distributing company. D. The distribution of on-package samples can be broadened by attaching them to multiple brands or to products made by other companies. E. All of the above statements about on-package sampling are true.
(p. 523) Which of the following statements explains why marketers have recently increased their use of sampling? A. Major companies have entered the sampling business and created more competition, which has helped to keep sampling costs down. B. New technologies and creative marketing are driving new sampling methods that allow marketers to target their samples more effectively. C. The simplification of sales promotion programs by companies such as Procter & Gamble is prompting these marketers to move away from coupons and price promotions in favor of samples. D. Marketers believe sampling meets the complementary goals of introducing consumers to their products and getting retailers to support their programs. E. All of the above statements explain why marketers have recently increased their use of sampling.
(p. 524) The oldest, most widely used, and most effective sales promotion tool is: A. cents-off coupons B. sampling C. rebates D. event sponsorship E. bonus packs
(p. 525) Which of the following is NOT an advantage inherent in the use of coupons as a sales promotion tool? A. Coupons offer price reductions to consumers who are price sensitive. B. Coupons are an effective way of generating trial of a new product. C. Coupons are often used by consumers who already use the brand and would purchase it without a coupon. D. Coupons can encourage repeat purchase of a brand. E. Coupons can encourage non-users to try a brand.
(p. 525) When calculating the costs of a couponing program, marketers should consider: A. production costs B. redemption costs C. handling costs D. distribution costs E. all of the above
See Figure 16-2.
(p. 526) The most popular method for distributing coupons is: A. newspaper freestanding inserts (FSIs) B. direct mail C. in/on packs D. magazines E. newspaper supplements
(p. 526) What advantage does distribution of coupons through direct mail have over other forms of coupon delivery? A. more precise reach B. lower cost C. lower redemption rate D. lack of geographic and demographic specialization E. all of the above
(p. 527) Valpak uses advertising to: A. measure redemption rates B. avoid having to hand deliver coupons for competitive brands at retail checkout C. develop and operate in-store sampling booths D. promote the value of the coupons inside E. deal with coupon misredemption problems
Exhibit 16-13.
(p. 528) An in/on package coupon that is redeemable for a future purchase of the same brand is known as a(n) _____ coupon. A. cross-ruff B. bounce-back C. instant D. cross sell E. same purchase
(p. 528) On the inside of the Tortino's brand pizza box was a $1-off coupon for the purchase of the next Tortino's pizza. Tortino's used a(n) _____ coupon. A. cross-ruff B. bounce-back C. instant D. cross sell E. same purchase
(p. 528) A package of Gillette Sensor razor blades contains a 75-cent-off coupon for Gillette Foamy shaving cream. This is an example of a(n) _____ coupon. A. cross-ruff B. bounce back C. same purchase coupon D. instant coupon E. rebate coupon
Chap016 - M/C with answers
Course: Marketing Communications (MR2400)
University: Memorial University of Newfoundland
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