- Information
- AI Chat
Chapter 18 Sales Promotion and Personal Selling
Principles of Marketing (MKT100)
Toronto Metropolitan University
Recommended for you
Related Studylists
MARKETINGPreview text
: s: e:
Chapter 18 - Sales Promotion and Personal Selling
- What is the term for marketing communication activities in which a short-term incentive is offered to induce the purchase of a particular good or service? a. publicity
b. sales
promotion c. promotion
d. advertising
ANSWER: b
- Which of the following best describes sales promotion? a. It is a publicity tool.
b. It is directed only to the ultimate consumer market.
c. It is more difficult to measure than advertising.
d. It offers a short-term incentive to buy.
ANSWER: d
- AFLAC Insurance Company has a duck in its ads that says the company’s name instead of “quack.” Since the advertising campaign began, AFLAC has created a duck premium, developed a line of clothing with the AFLAC duck, and used the AFLAC duck on its website. What has the AFLAC duck become a tool for? a. push strategies
b. comparative
advertising c. cause marketing
d. sales promotions
ANSWER: d
- What are the two types of sales promotion? a. consumer and trade
b. informative and reminder c. adoptive and diffusive
d. personal and impersonal
ANSWER: a
- What is the usual goal of sales promotion (regardless of what form it takes)? a. immediate purchase by consumers
b. return on investment
c. cost control
d. market share leadership
ANSWER: a
: s: e:
Chapter 18 - Sales Promotion and Personal Selling
- What are coupons, premiums, contests, free samples, and frequent buyer programs examples of? a. personal selling
b. publicity
c. advertising
d. consumer sales promotion
ANSWER: d
- Why have packaged-goods marketers such as Kellogg’s and Betty Crocker recently increased their use of coupons? a. intense competition and the introduction of new products
b. the growth of frequency programs
c. POP activities
d. user incentives from retailers
ANSWER: a
- HarperCollins and Sutter Home Winery formed a partnership to launch a promotion that features neck hangers on 1 million bottles of wine, each of which offers $2 off a HarperCollins book. What is this neck hanger an example of? a. a premium
b. a trade discount
c. a purchase allowance
d. an in-store coupon
ANSWER: d
- Papa John’s boosted its online pizza ordering service with a promotional tie-in with the release of King Kong on DVD. Consumers who ordered the pizza (online, by phone, or in-store) received $3 off the purchase price of the King Kong DVD. What is this an example of? a. premium
b. trade discount
c. rebate
d. coupon
ANSWER: d
- What type of coupon has the highest redemption rate? a. paper coupons
b. Internet coupons
c. flyer coupons
d. instant coupons on product packages
ANSWER: d
- What is the term for a cash refund given to consumers for the purchase of a product during a specific time
: s: e:
Chapter 18 - Sales Promotion and Personal Selling
- Consumers can send away for a foam version of the Gear Giggle glasses sold in stores with two proofs of purchase of Minute Maid 10-pack juice boxes. What are the glasses an example of? a. a loyalty incentive
b. a trade sample
c. a premium
d. a product placement
ANSWER: c
- What are cobranded credit cards used in conjunction with? a. self-perpetuating discounts
b. loyalty marketing programs
c. consumer discount programs
d. functional consumer discounts
ANSWER: b
- What is one of the best methods for creating and rewarding brand loyalty among consumers who might otherwise switch to competing brands? a. a directed coupon mailing
b. a sweepstakes
c. a loyalty marketing
program d. a sampling program
ANSWER: c
- What is the objective of a loyalty marketing program? a. to encourage brand switching
b. to appeal to bargain hunters who consistently buy the lowest priced brand
c. to take away customers from the competition
d. to build long-term, mutually beneficial relationships between a company and its key customers
ANSWER: d
- Whenever Hugo buys a soft drink at his nearby convenience store, he gets a stamp for the card that he carries in his wallet. When he has eight stamps, he can exchange the card for a free drink. What is this an example of? a. a self-liquidating
premium b. a frequent buyer program
c. a loyalty incentive
d. an in-store rebate
ANSWER: b
: s: e:
Chapter 18 - Sales Promotion and Personal Selling
- The Pillsbury Bake-Off requires people to submit a recipe using Pillsbury baking products. Finalists are brought to Pillsbury kitchens to bake their recipes so the winner of a cash prize can be chosen. What is this an example of? a. a contest
b. a sales promotion game
c. a sweepstakes
d. a push money deal
ANSWER: a
- Seagram’s Coolers has asked bartenders to submit cocktail recipes to its website. From these entries, the winning recipe will be selected. What is the term that best describes this? a. contest
b. push money deal
c. sampling
d. sweepstakes
ANSWER: a
- Under a partnership agreement between HarperCollins and Sutter Home Winery, consumers can visit the Sutter Home website monthly to learn which book and which wine are being featured. Each visit to the website qualifies the consumers for the opportunity to take their reading group for a weekend stay at the Sutter Home Victorian Inn and free books from HarperCollins. Since there is no skill involved, how will this prize package be awarded? a. through a contest
b. through a sweepstakes
c. through a loyalty incentive
plan d. through a, event sponsorship
ANSWER: b
- Which of the following statements best describes contests and sweepstakes? a. Contests depend on luck, and participation is free.
b. Contests are generally effective tools for creating long-term relationships with
customers. c. Sweepstakes are promotions that require participants to exhibit some skill.
d. Sweepstakes usually draw about 10 times more participants than contests.
ANSWER: d
- Montana’s Best is a new precooked meal-in-a-bag product made from bison meat. The company is having difficulty gaining consumer acceptance of its bison products even though bison is high in protein and low in cholesterol, fat, and calories. Those who have tried the meat have agreed that it is tender and as delicious as any choice steak, and it is less expensive. Montana’s Best should focus on which of the following sales promotion tools?
: s: e:
Chapter 18 - Sales Promotion and Personal Selling
a. its low costs
b. its ability to create long-term relationships with customers
c. the fact it has a captive audience
d. the low monetary requirements
ANSWER: c
- Which of the following statements best describes online sales promotions? a. Internet sales promotions are more effective and cost-efficient at generating responses than their offline counterparts. b of the few types of sales promotion that cannot be used online is sampling.
c. Online coupons have lower redemption rates than off-line coupons.
d marketing programs are ineffective when used at websites to encourage traffic.
ANSWER: a
- What do point-of-purchase promotions work best for? a. high-involvement products
b. complex products that require technical knowledge to operate c. impulse buys
d. expensive products such as perfume and jewellery
ANSWER: c
- Which of the following would NOT be a target for a trade sales promotion offered by Rubbermaid, a manufacturer of storage and organization products? a. a kitchen department in a large discount store
b. a wholesaler of plastic storage bins
c. a Rubbermaid distributor
d. a consumer who needs to organize her college dorm room
ANSWER: d
- Which type of strategy do trade sales promotions support? a. Push money
b. hierarchical
c. discontinuous innovation
d. pull
ANSWER: a
- Which of the following is NOT an example of a trade sales promotion? a. push money and training
b. premiums and coupons
: s: e:
Chapter 18 - Sales Promotion and Personal Selling
c. free merchandise and store demonstrations
d. trade shows
ANSWER: b
- What is the term for a price reduction offered by manufacturers to intermediaries such as wholesalers or retailers, in exchange for performance of specified functions or purchasing during special periods? a. a point-of-purchase discount
b. pull money
c. a quantity discount
d. a trade allowance
ANSWER: d
- Schwinn Cycling and Fitness Inc. is offering a chain of sporting goods superstores a 20 percent discount on all Schwinn bicycles if the stores will run their own special promotion on the new Schwinn Paramount Titanium bikes. What is Schwinn offering? a. a trade allowance
b. a life-cycle extension
promotion c. a P-O-P discount
d. a product development deal
ANSWER: a
- Broyhill is offering the sales force at Meers Furniture Emporium a $50 reward for each Broyhill Pleasant Isle Living Room Collection sold in the next 30 days. What type of trade sales promotion is the $50? a. a trade allowance
b. push money
c. a selling deal
d. a direct commission
ANSWER: b
- What is the term for money offered by a manufacturer to employees of channel intermediaries to encourage them to sell the manufacturer’s product? a. a trade allowance
b. push money
c. a selling deal
d. a premium
payment
ANSWER: b
- Maureen Kye is a sales associate at a store that sells new and used CDs and DVDs. Recently, she was given a DVD containing scenes not in the theatre-released Disney’s Pirates of the Caribbean: Dead Man’s Chest to encourage her to suggest that customers buy this movie. What is the CD an example of?
: s: e:
Chapter 18 - Sales Promotion and Personal Selling
- Which of the following involves direct communication between a sales representative and one or more prospective buyers for the purpose of making a sale? a. sales promotion
b. public relations
c. personal selling
d. direct
marketing ANSWER: c
- After deciding to end its backing of Canada’s top tennis tournament, Molson has now agreed to sponsor the Canadian Open Tennis Championships in a new five-year, $20 million rights fee and media deal. Which promotional activity was most likely used in making this deal? a. direct sales management
b. personal selling
c. public relations
d. sales promotion
ANSWER: b
- Which of the following does NOT describe an advantage personal selling has over other forms of promotion? a. Personal selling is less expensive on a per contact basis.
b. Personal selling is better for providing customers with detailed demonstrations
of products. c. It is easier to direct the marketing effort directly to qualified prospects with personal selling. d. Personal selling costs can be controlled by adjusting the size of the sales force.
ANSWER: a
- In which of the following cases is personal selling more important than advertising and sales promotion? a. The products being sold are standardized.
b. There are many customers for the product being
sold. c. The product being sold has a low value.
d. The products being sold are technically complex.
ANSWER: d
- For which of the following products would its producer be more likely to choose personal selling rather than advertising or sales promotion to market it? a. rosebushes
b. washing machine/dryer combo
c. snack food
d. romance novel
: s: e:
Chapter 18 - Sales Promotion and Personal Selling
ANSWER: b
- As a manufacturer of ready-to-drink iced tea, Nestea sells a highly standardized product to consumers all over North America. What would you expect Nestea to rely on to promote its product? a. public relations
b. personal selling
c. advertising and sales promotion d. publicity and direct marketing
ANSWER: c
- Harland & Wolff in Belfast, North Ireland, makes oceangoing vessels. (It was the company that built the Titanic .) Last year its primary customer was the US government. What would you expect Harland & Wolff to rely on to promote its vessels? a. advertising and sales promotion
b. sales promotion
c. personal selling
d. product innovations and direct marketing
ANSWER: c
- When compared to other forms of promotion, personal selling is which of the following? a. not as effective at satisfying customers
b. wastes more sales resources than any other promotion
c. a message customized to the immediate needs of the customers
d. best for selling simple, low-involvement products
ANSWER: c
- Jefferson Smurfit Company is a multibillion-dollar supplier of packaging materials. One of its salespeople rearranged production schedules at three different plants to satisfy an unexpected demand for boxes from General Electric. The salesperson’s action is typical of the company’s sales philosophy. What does it emphasize? a. consultative promotion
b. relationship selling
c. adaptive selling
d. collaborative promotion
ANSWER: b
- Which of the following is used because most businesses depend on repeat sales? a. traditional personal selling b. direct promotions
c. all trade promotions
: s: e:
Chapter 18 - Sales Promotion and Personal Selling
a. the AIDA concept
b. the hierarchy of needs
c. the traditional communications model
d. the JIT process
ANSWER: a
- Kenneth Lincoln is an Account Director for No Crease, a company that offers laundry and ironing services to hospitals and schools. Kenneth is recommending that his account team learn about the AIDA process. Why would he encourage the use of AIDA? a. It can help in the distribution process.
b. It can help in the networking process.
c. It can help in the selling process.
d. It can help in the cold calling process.
ANSWER: c
- What process is used to identify those firms and people most likely to buy a company’s products? a. prospecting
b. lead qualification
c. sales presentation d. sales approach
ANSWER: b
- Mallory, a junior salesperson for Kraft Foods, has been given a list of all grocery retailers in her region. She has been instructed to call each number on the list and see if the respondent is interested in stocking several new Kraft product lines. What is Mallory doing? a. cold calling
b. networking
c. referring
d. quota setting
ANSWER: a
- Prospecting is the identification of those firms and people most likely to buy the seller’s offerings. What is another term for prospecting? a. lead generation
b. lead qualification
c. customer mining
d. cold calling
ANSWER: a
- Joe Hamas sells for Rush Beverages. He is trying to convince retailers to carry his company’s Ginseng Rush
: s: e:
Chapter 18 - Sales Promotion and Personal Selling
XXX, a new all-natural beverage that delivers an energy punch without caffeine. When he gets retailers to agree to stock his product, he asks them for the names of other retail operations that might be interested in carrying it. What is he using to get his sales leads? a. networking
b. cold calling
c. referrals
d. direct marketing
ANSWER: c
- Which of the following is a process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional or civic organizations? a. lead generation
b. networking
c. lead intermediation
d. looking for the golden
parachute
ANSWER: b
- Which of the following is most likely to generate sales leads? a. direct mail and telephone marketing programs
b. cold calling
c. reorders
d. networking
ANSWER: d
- AutoFry is the leading manufacturer of ventless deep fryers for supermarket deli and food service operations. It has developed a new high-capacity fryer. The company has decided to purchase a mailing list of thousands of food service managers and to send out brochures with a detachable card that the managers can use to request more information. What is AutoFry involved in? a. lead generation
b. sales presentation
c. the close procedure
d. moving through the sales continuum
ANSWER: a
- When Madison began selling all-natural cosmetics to consumers, she called friends, relatives, and fellow members of her sorority to see if they were interested in updating their appearances by using her products or eliminating chemicals from their beauty regimen. What is this technique for generating leads called? a. cold calling
b. networking
c. qualifying
: s: e:
Chapter 18 - Sales Promotion and Personal Selling
b. customerization
c. lead reciprocity
d. lead qualification
ANSWER: d
- What is determined about a prospect during lead qualification? a. whether he or she has a recognized need, buying power, and receptivity and accessibility b. whether he or she has any interest in a product
c. whether he or she has a real or imagined need for a product
d. whether he or she has the funds to pay
ANSWER: a
- Which process describes the homework that must be done by a salesperson before he or she contacts a prospect? a. pre-sales dialogue
b. preapproach
c. closing preamble
d. sale profiling procedure
ANSWER: b
- Often the task of lead qualification is handled by a telemarketing group or a sales support person. This frees the sales representative from this time-consuming task. What does the task involve? a. preapproach
b. database mining
c. co-opting
d. networking
ANSWER: a
- During the preapproach, what does the salesperson do? a. ask for referrals
b. learn as much as possible about the prospect’s organization and its buyers
c. create point-of-purchase displays
d. handle pricing objections
ANSWER: b
- What is the term for a determination of the customer’s specific needs and wants and the range of options the customer has for satisfying them? a. stimulus-response continuum
b. needs hierarchy
: s: e:
Chapter 18 - Sales Promotion and Personal Selling
c. needs assessment
d. sales probability
ANSWER: c
- Which of the following is a written document or professional presentation that outlines how a company’s product will meet or exceed the client’s needs? a. a customer profile
b. a needs assessment
c. a sales proposal
d. a forecast of needs
ANSWER: c
- Which of the following best describes the sales proposal and the sales presentation? a. They are the first step in the consultative selling process.
b. They are a relatively inexpensive step in the sales process.
c. They have to be face to face with the customer to be a success.
d. They follow the sales approach.
ANSWER: d
- For a powerful sales presentation, what must salespeople do? a. ask close-ended questions.
b. Incorporate visual elements that impart valuable information.
c. Avoid direct eye contact.
d. Use facial expressions and voice inflections.
ANSWER: b
- What should the salesperson do first at the end of a sales presentation? a. conduct an unplanned needs assessment
b. ask how the customer would like to proceed
c. ask for the sale
d. modify his or her sales proposal
ANSWER: b
- Which of the following statements best describes the relative amount of time spent in the selling process by different types of salespeople? a. A consultative salesperson would spend a lot of time generating leads.
b. A traditional salesperson would spend a lot of time following up the sale.
c. A relationship salesperson would spend a lot of time qualifying leads.
d. A consultative salesperson would spend a lot of time closing the sale.
ANSWER: c
: s: e:
Chapter 18 - Sales Promotion and Personal Selling
ANSWER: b
- Which of the following statements best describes the impact of technology on personal selling? a. Technology is freeing salespeople from tedious administrative tasks, such as
placing routine orders, shipping catalogues, and tracking orders. b is a threat to job security for most salespeople.
c. Technology has made relationship selling obsolete.
d use of technology severely limits the time a salesperson has to spend with his or her customers.
ANSWER: a
Scenario 18-
Digital Cookware has developed a new kind of skillet that should make cooking easier for many nonchefs. The skillet has a display on its handle that beeps to alert the cook when the pan’s target temperature is reached. With the aid of an accompanying cookbook, the skillet will take much of the guesswork out of cooking. Digital Cookware is a small company, and it has invested considerable money in developing this new technology, which it eventually hopes to use in an entire line of pots and pans. It has run some small ads for the new skillet in cooking magazines and been featured on some morning talk shows. It needs a quick infusion of cash to maintain its current operational level and to develop the rest of the cookware line. Digital Cookware is considering some kind of sales promotion.
- Refer to the scenario. The company’s first task is to define its exact sales promotion objective. If the goal of the company is to persuade customers to buy its brand of skillet as opposed to one of the skillets made by its competition, what should it do? a. use on-pack coupons
b. use a cooking contest that has contestants enter recipes that use the new skillet
c. use price-off packages
d. use bonus packs
ANSWER: b
- Refer to the scenario. Why might rebates be a really good sales promotion for Digital Cookware to use? a. They are useful in building long-term relationships with customers.
b. They can create a great amount of publicity.
c. They are good at enticing purchases, but most rebates are not redeemed.
d. They can be piggybacked with similar products.
ANSWER: c
- Refer to the scenario. If Digital Cookware offered sales associates at a chain of cooking stores a bonus for each digital skillet they sold, what would it be an example of? a. push money
b. a trade allowance
c. pull money
: s: e:
Chapter 18 - Sales Promotion and Personal Selling
d. a functional discount
ANSWER: a
- Refer to the scenario. Which of the following trade sales promotions would NOT be appropriate for Digital Cookware to use? a. push money
b. event sponsorship
c. store demonstrations
d. trade shows
ANSWER: b
Scenario 18-
The Entertainment Book is jammed with discounts on dining, travel, and entertainment provided by both local and national businesses. It was created by Entertainment Publications over 30 years ago. People are so excited about good, cheap fun that they’re willing to pay between $40 and $50 for the book. Consumers justify the cost because total values offered in any Entertainment Book are worth hundreds of dollars. And as the books grow in popularity, more marketers are requesting that a coupon for their businesses be featured in the book. Over 5 million copies of the book are sold each year, and sales are growing steadily. In all, more than 100, merchants, including 40,000 restaurants, are represented in the Entertainment Book, making it the largest national discount dining program. Further, the Entertainment Book is sold through clubs, youth groups, and schools. Entertainment Publications creates and distributes ads, posters, and other sales materials to all its sales organizations. Entertainment Publications has teamed up with Esso to provide a premium item called the MultiCard Savings Book. Esso distributes the book to all its MultiCard members. It contains local and national advertisers that are of interest to Esso members. In a joint venture with American Airlines, Entertainment Publications created a program called Advantage Dining, which was offered to the airline’s frequent flyer customers as another way to earn miles.
- Refer to the scenario. What is American Airlines’ distribution of the Entertainment Book an example of? a. the Entertainment Book’s trade promotion
b. the Entertainment Book’s publicity
c. the Entertainment Book’s advertising
d. the Entertainment Book’s sales promotion
ANSWER: d
- Refer to the scenario. What is the sales promotion objective of the Entertainment Book and the companies that sponsor coupons in the book? a. to generate immediate purchase by customers
b. to control costs
c. to control market share
d. to raise funds
ANSWER: a
- Refer to the scenario. What did Esso use to enhance its relationships with its customers?
Chapter 18 Sales Promotion and Personal Selling
Course: Principles of Marketing (MKT100)
University: Toronto Metropolitan University
This is a preview
Access to all documents
Get Unlimited Downloads
Improve your grades
