BHMC2003 Quiz #10 : Chapter 10 : Sales Promotion

Which of the following elements of the integrated marketing communications program is designed to provide an extra incentive to consumers to purchase a brand? 

• magazine advertising

• direct mail

• public relations

• publicity

• sales promotion

Answer explanation

Sales promotion involves some type of inducement that provides an extra incentive to buy. This incentive is usually the key element in a promotional program; it may be a coupon or price reduction, the opportunity to enter a contest or sweepstakes, a money-back refund or rebate, or an extra amount of a product.

Blooms: Understand

Difficulty: 2 (Medium)

Coupons, bonus packs, premiums, and samples are promotional offers that are targeted toward 

• end users

• retailers

• wholesalers

• salespeople

• employees

Answer explanation

Activities involved in consumer-oriented sales promotion include sampling, couponing, premiums, contests and sweepstakes, refunds and rebates, bonus packs, price-offs, frequency programs, and event marketing. These promotions are directed at consumers, the end purchasers of goods and services, and are designed to induce them to purchase the marketer's brand.

Blooms: Remember

Difficulty: 1 (Easy)

Which of the following serves as a reason for the increase in sales promotion?

• growing power of retailers

• increasing brand loyalty of customers

• lack of short-term focus among marketers

• decreased promotional sensitivity

• decreased competition

Answer explanation

There are a number of other factors that have led to the increase in the importance of sales promotion and the shift in marketing dollars from media advertising to consumer and trade promotions. Among them are the growing power of retailers, declining brand loyalty, increased promotional sensitivity, brand proliferation, fragmentation of the consumer market, the short-term focus of many marketers, increased accountability, competition, clutter, and the growth of digital and social media.

Blooms: Understand Difficulty: 2 (Medium)

Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision making. Which of the following would best support a marketer in producing a quick and easily measurable jump in sales?

• mass-media advertising

• a strategy that enhances the advertising carryover effect

• sales promotions such as coupons and price discounts

• bait-and-switch marketing techniques

• out-of-home advertising media

Answer explanation

Managers who are being held accountable to produce results often use price discounts or coupons, since they produce a quick and easily measured jump in sales. It takes longer for an ad campaign to show some impact and the effects are more difficult to measure.

Blooms: Understand

Difficulty: 2 (Medium)

_____ involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial.

• rebate

• refund

• sampling

• couponing

• sweepstakes

Answer explanation

Sampling involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial.

Blooms: Remember

Difficulty: 1 (Easy)

Which of the following is a disadvantage of couponing? 

• It can be difficult to estimate how many consumers will use a coupon and when.

• It discourages initial product trial.

• It assists in reducing the price of a product only by relying on retailers for cooperation.

• It assists only in attracting new customers but does not help in retaining existing customers.

• It may encourage regular users to trade down to inexpensive brands.

Answer explanation

There are a number of problems with coupons. First, it can be difficult to estimate how many consumers will use a coupon and when. Response to a coupon is rarely immediate; it typically takes several months to redeem one.

Blooms: Understand

Difficulty: 2 (Medium)

NapTime Inc., a manufacturer of mattresses, gave away a Sheep plush toy to any customer who purchased a mattress from a NapTime dealer. The toy was only available for a limited period. The plush toy is an example of a _________

• coupon

• sample

• free premium

• rebate

• self-liquidating premium

Answer explanation

In the above scenario, the plush toy is an example of a free premium. Free premiums are usually small gifts or merchandise included in the product package or sent to consumers who mail in a request along with a proof of purchase. In/on-package free premiums include toys, balls, trading cards, or other items included in cereal packages, as well as samples of one product included with another.

Blooms: Apply

Difficulty: 3 (Hard)

Got Game, a sports store, ran a promotion campaign in which it offered a box of 15 Pyramid golf balls at the price of 12 balls. This is an example of a

• price-off deal.

• premium.

• bonus pack.

• rebate.

• trade allowance.

Answer explanation

The above scenario is an example of a bonus pack. Bonus packs offer the consumer an extra amount of a product at the regular price by providing larger containers or extra units. Bonus packs result in a lower cost per unit for the consumer and provide extra value as well as more product for the money.

Blooms: Apply

Difficulty: 3 (Hard)

____ is an exhibition or forum where manufacturers can display their products to current and prospective buyers.

• A Planogram

• A Trade Layout

• Cooperative Advertising

• A Trade Show

• Event Marketing

Answer explanation

One important promotional activity targeted to resellers is a trade show, a forum where manufacturers can display their products to current as well as prospective buyers.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy

When McDonald's introduced its value menu in 2003 and competitors responded by putting popular items on their value meal menus to keep up, it was an example of a(n) ________________ or a spiral that results when several competitors use promotions extensively. 

• attribution trap

• sales promotion trap

• primary reinforcement spiral

• secondary reinforcement spiral

• external trap

Answer explanation

A sales promotion trap or spiral can result when several competitors use promotions extensively.

Blooms: Apply

Difficulty: 2 (Medium)