It is one of the objectives of trade promotions that the excess inventory lying with the company should be liquidated. D. Event sponsorship objectives are often part of an organization's public relations activities. Account-specific marketing is also known as, Kiddo Inc., a toy manufacturer, teamed with Game On, a retailer, to create direct-mail booklets offering discounts on Kiddo toys only at Game On stores. Answer: B. Diff: 2 Page Ref: 427-428. Which of the following is an example of a trade-oriented sales promotion activity? These are called _____ coupons. 93. d. They give consumers an opportunity to check out new products without the pressure of a salesperson. 118. E. Consumers gain a greater appreciation for a product's benefits. In business and marketing, “trade” refers to the relationship between manufacturers and retailers. 62. Tags: Question 7 . Sales promotion is very important for any product, especially for newly launched and designed product. Which of the following statements describes how brand equity is affected by the increased use of sales promotion? VB Inc., a shoe manufacturer, sponsors a campaign that advertises the availability of its running shoes at Shoe Rack, a retail chain. A) provides a tangible incentive to buyers B) provides accountability to marketing managers C) enables company to build its database D) builds long-term brand awareness E) develops relationship with customers Advantages: A wide choice of candidates could attract skilled applicants and put the organisation in a better position. Sales promotions are a short-term marketing tactic to create urgency and increase sales. Which of the following is an advantage of using online sales promotions? These include: Helps Create Awareness of New Products – Sales promotion is a highly effective methods for exposing customers and business partners to new products and for moving customers to take an action (e.g., sample a product). This is an example of a(n) _____ coupon. d. They give consumers an opportunity to check out new products without the pressure of a salesperson. Sales promotion is a marketing strategy where the product is promoted using short-term attractive initiatives to stimulate its demand and increase its sales. Promotion based on price creativity, where additional benefits are informed through price adjustments as used in restaurant… Cost-effectiveness - PR can be an economical way to reach a large audience in comparison to paid for advertising media placement, particularly if it is done in-house. Sales promotions are now considered an essential part of an organization's branding strategies. A study by Priya Raghubir and Kim Corfman showed, E. price promotions may inhibit trial of a brand in certain situations. A sales promotion is a marketing tactic used by retailers to drive sales. Strong, “Sales promotion includes all forms of sponsored communication apart from activities associated with personal selling. This is an example of a. 112. It can eliminate idle cycles in … Create Urgency. Hence, even small businesses use it quite effectively. A. purchase behavior is attributed to an external incentive. The managers of a fast-food chain want to publicize their restaurants. Sales promotions are indeed beneficial for driving revenue, creating brand identity and allowing brands to acquire new customers! 105. Programs involving cash payments directly to the sales force to reward them for selling the manufacturer's products involve the use of. It can be difficult to estimate how many consumers will use a coupon and when. B) Retailers have exclusive products that cannot be purchased from competitors. Loyalty programs support the goal of customer retention. This is an example of. advertising a new product on television. B. Coupons are often used by consumers who are already loyal to the brand. 87. Which of the following elements of the integrated marketing communications program is designed to provide an extra incentive to consumers to purchase a brand? Packages of Vinnie's Cornmeal have coupons that can be cut out and redeemed at the time of purchase. 57. 120. 121. Several different manufacturers of personal computers (PCs) have joined to create and sponsor ads that promote both the computer and the microprocessor by sharing the cost of advertising. 68. The importance of the service sector and more importantly the role of marketing inputs in services has been seen only in the last 20 years. 83. A. Sales promotion includes all those activities which promote sales such as distribution of samples, discount coupons, contests, display of goods, fairs and exhibitions, etc. Basically, sales promotion supplements other promotional activities viz: advertisement, personal selling etc. Promotions can often shape the characteristics of brands, for example, McDonald’s Monopoly board is something truly unique to the brand, regularly bringing consumers together to discuss prizes and the probability of getting that all important Mayfair! This is an example of. 32) Which of the following is not an advantage of using sales promotions? Brand managers tend to ignore sales promotion due to its primacy effect. Some retailers have demanded payment for new products that do not reach a minimum sales target. 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. 87. When reductions from the regular price of a product are offered at the point-of-purchase through specially marked packages, a marketer is using a, 90. B. consumer franchise-building promotions. E) sampling. 107. Although sales promotion is an important strategy for producing quick, short-term, positive results, it is not a cure for a bad product, poor advertising, or an inferior sales team. This is an example of _____ advertising. Manufacturers use them to increase sales to retailers (trade promotions) and Nearly _____ percent of consumers use coupons on a regular basis. 94. The following promotions work very well in services marketing. Management of this excess inventory is a cost to the company in terms of warehousing and capital invested. 81. _____ is advertising sponsored in common by a group of retailers or other organizations providing products or services to the market. B. Which of the following sampling methods, featuring media tie-ins, is the fastest growing and the most popular? A _____ is a promotion where winners are determined purely by chance. This is particularly true when competition is intense, when there is a long buying cycle, or when companies are selling highly technical products or expensive products with lots of options. 65. 96. 87. Which of the following is true of consumer franchise-building promotions? Advantages and disadvantages of external promotion. Which of the following is true of the increase in sales promotion by brand managers? Sales Promotion Karen Gedenk1, Scott A. Neslin2, and Kusum L. Ailawadi3 1 University of Cologne, Germany 2 TUCK School of Business at Dartmouth, Hanover, USA 3 TUCK School of Business at Dartmouth, Hanover, USA Introduction Sales promotions are a marketing tool for manufacturers as well as for retailers. With reference to the various sampling methods, _____ is used when it is important to control where the sample is delivered and when the products are of a perishable nature. Electronically dispensed checkout coupons. A package of Confident razor blades contains a 75 cents-off coupon for Confident Foamy shaving cream. C. Consolidation of the retail industry has resulted in larger chains with greater buying power and clout. Advertising implemented by retailers and paid for, at least in part, by a manufacturer is called, 116. Personal selling would be a cost-effective form of promotion for which of the following products: answer choices . NapTime Inc., a manufacturer of mattresses, gave away a Sheep plush toy to any customer who purchased a mattress from a NapTime dealer. Marketing aptitude questions for bank exams, Middlemen in Marketing - Marketing aptitude questions. Promotional activities designed to accelerate the purchase process and generate an immediate increase in sales without communicating information about a brand's unique features or benefits are known as, The sales promotion tool that critics contend is most guilty of detracting from brand equity and at the same time being detrimental to a brand franchise is, When General Mills included a Mini Minion character toy in its Lucky Charms cereal to provide an extra incentive for customers to buy the cereal, it was using a, When MillerCoors used a Taste Challenge promotion to help regain market share for Miller Light against Bud Light and other brands of light beer, it was. 70. In this scenario, Joe's is using a(n) _____ coupon. 113. Which of the following is a limitation of door-to-door sampling? Advantages of Sales Promotion. Some businesspeople think that the packaged-goods brand management system has contributed to marketers' increased dependence on. They do not attract nonusers of a particular brand. The costs of the sampling program can easily be recovered with just a few purchases. Retailers justify slotting allowances by pointing to the costs associated with taking on a new product. 114. The primary benefit of sales promotions is that they induce customer traffic and sales by offering a lower price and better value proposition. It is sponsored by a group of retailers. C. sales promotions such as coupons and price discounts. A. _____ is the factors contributing for the rapid growth of Sales Promotion. 64. Event sampling is where a package is attached to another item. Which of the following promotions is targeted toward the trade rather than consumers? 110. a. Sales promotion is very important for any product, especially for newly launched and designed product. Not only seasonal product, any consumer or industrial level product can be pushed in the market when the company has excess inventory. Sales promotions are special incentives or excitement-building programs that encourage consumers to purchase a particular product or service, typically used in conjunction with other advertising or personal selling programs. Which of the following would best support a marketer in producing a quick and easily measurable jump in sales? These payments are called. The advantage of sales promotion is that they are not too expensive for the company when compared with ATL advertising mediums like Television or newspaper. 67. 76. A. The several tools that facilitate the promotion objective of a firm are collectively known as the Promotion Mix. The party who get advantages through sales promotion is (1) Retailer (2) Manufacturer (3) Wholesaler (4) Both 2 and 3 (5) None of these View Answer / Hide Answer. This is an example of a(n) _____ coupon. In the words of Roger A. One of the most important uses of sales promotion techniques is to encourage consumers to try a new product or service. A discount or deal offered to a retailer or wholesaler to encourage them to stock, promote, or display a manufacturer's product is known as, 101. It is one of the objectives of trade promotions that the excess inventory lying with the company should be liquidated. 54. Which of the following developments has resulted in a transfer of power from manufacturers to retailers? 109. B. Ingredient-sponsored cooperative advertising. C. It involves extensive postal restrictions. Which of the following statements is true of couponing? When she has purchased five books at regular price, she is sent a coupon for a free book to be picked out on her next visit to the store. Pluto Inc. places a 50 cents-off coupon for another brand, Krispies maple syrup, on the outside of boxes of its Pluto Rice Cereal. In contrast, advertising and sales promotion must often be purchased in fairly large amounts. They require customers to pay for the mailing costs. 111. C. The marketer has control over where and when the product will be distributed. Where recruitment agency has been used, candidates might have passed the initial screening done by recruitment agency and save the organisation time and money. using specialist magazines to advertise the product ... One of the advantages of sales promotion is that it: answer choices . 95. Sampling is generally considered the least effective way to generate trial. 108. B) provides accountability to marketing managers. _____ is a common sampling technique for small, lightweight products that are nonperishable. D) sweepstakes promotion. 3. Methods used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes. 117. 85. Compared to advertising and online sales, speaking to customers in person can give you more control over the sales process, and often an advantage. B. One objective of trade-oriented promotions is to encourage retailers to display and promote an established brand. c. Which of the following sales promotion techniques is impacted negatively by the presence of professionals or hobbyists who take advantage of the promotion without making a purchase? This payment by J&J Appliance is known as, 99. Which of the following is an advantage of the sampling method of sales promotion? Which of the following is true of allocation of the promotional budget when a brand enters the introductory stage? C) A company can expand its existing brand into a category it otherwise might have difficulty entering alone. _____ marketing is a type of marketing in which a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives. For more advice on sales promotion management visit the Mando’s promotional risk management page. Trade Promotion refers to marketing activities that are executed in retail between these two partners. SURVEY . C. Nonusers of rebates perceive the rebate redemption process as too complicated. ANSWER: (4) Both 2 and 3. © Copyright 2016. Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision making. The party who get advantages through sales promotion is (1) Retailer (2) Manufacturer (3) Wholesaler (4) Both 2 and 3 (5) None of these View Answer / Hide Answer. According to attribution theory, a consumer who purchases a product on promotion may not repurchase it because the. An appliance manufacturer offers a $50 payment to salespeople who work at J&J Appliance Inc., a retailer, for each sale of the company's new line of refrigerators. Sales promotion can prove useful for marketers in several ways. The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon. With respect to the allocation of the promotional budget, when a brand moves to the maturity stage. How are marketers responding to the decline of consumers' attention to mass-media advertising? As the noise of competitors rises, you will find more and more companies using sales promotions techniques. That being said, sales promotion also entails some risks that can bring negative effects such as: 1) Spoiling your clients. A major reason for decrease in sales promotion is that customers have become less brand loyal. A. Limitations of Sales Promotion: The following are the limitations of sales promotion as follows: ADVERTISEMENTS: 1. 51. The Promotion Mix is the integration of Advertising, Personal Selling, Sales Promotion, Public Relations and Direct Marketing. These points can be used to purchase cookware, dishes, and other similar hard goods. What advantage does distribution of coupons through direct mail have over other forms of coupon delivery? 72. A) Manufacturers do not have to invest in creating their own brand names. A. It involves offering shoppers a deal that would enable them to either purchase a product for a lower price (e.g., $10 off) OR get more value of the sale (e.g., Buy One Get One Free). 42) Which of the following is NOT an advantage of using sales promotions? Every time Beth buys a book at The Venus Bookstore, she presents her Venus card, and the sales associate enters her purchase in a database. Media support for a sales promotion program is typically considered optional. It is one of the most credible forms of promotion and can be persuasive. Sales promotion is needed to attract new customers, to hold present customers, to counteract competition, and to take advantage of opportunities that are revealed by market research. Laptop computer . Which of the following serves as a reason for the increase in sales promotion? D. Sales promotions are typically used by brand managers to meet quarterly goals. 82. B. Spring Supermarket gives its customers VIC (very important customer) cards, which give customers additional discounts on certain products and notifications of special, customer-only sales. Sales promotion could promote these products successfully. This is a consumer focused promotional activity and hence can be called as consumer sales promotions. 89. B. advertising is primarily a reminder to keep consumers aware of the brand. encourages consumers to buy the product more often. Dewy, a fruit juice manufacturer, offers its retail accounts a $3.00 per case discount on all purchases of cranberry juice during the month of May. A brand that is constantly promoted may lose perceived value. This strategy is usually brought to use in the following cases – to introduce new products, sell out existing inventories, _____ is a sampling method in which the product is delivered directly to the prospect's residence. B. 78. Which of the following is true of consumer franchise building (CFB) promotions? 115. In addition, customers can accrue points each time they present their cards while making a purchase. 69. Which of the following is an advantage of personal selling over other forms of promotion? 66. ... One of the advantages of sales promotion is that it: answer choices . Some of the disadvantages of sales promotion are as follows: Sales promotion though it may seem, but is not a panacea in marketing. C. Marketing experts argue that higher spending on sales promotion is at the expense of media advertising, which leads to a decline in brand equity. _____ involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial. Sales promotions draw attention to a particular product or service being offered. Management of this excess inventory is a cost to the company in terms of warehousing and capital invested. Which of the following is true of allocation of the promotional budget when a brand enters the decline stage? It involves offering shoppers a deal that would enable them to either purchase a product for a lower price (e.g., $10 off) OR get more value of the sale (e.g., Buy One Get One Free). 2. 56. Reach - a good story can be picked up by several news outlets, exposing your message to a large audience. If someone can get your product at a lower price for a certain period of time, it’s complicated for him/her to accept the following price rise without changes in the purchase behavior. An objective for consumer-oriented promotions is to enhance or support the integrated marketing communications effort for a brand or company. 88. Which of the following is a limitation of sampling through the mail? Sales Promotion is a tool used to stimulate sales by employing incentive element to attract customers. 119. Which of the following is a disadvantage of couponing? A sales promotion is a tried and true way to ramp up your sales, acquire new customers, and take advantage of seasonal opportunities. Garden rake . 122. When sales promotions are offered for a limited time, they create urgency among customers because they have to act before the promotion expires. _____ is generally considered the most effective method for generating trial of a new product. Which of the following is an example of sales promotion? Advantage of Sales Promotion 1. 80. Bundles. Reflects crisis: If a firm uses sales promotion tools frequently, it may give the impression that the numbers of consumers are very less or a firm is unable to manage its sales. Example – if an E-commerce website gives 10% discount on its products, then it wants the consumers to make the best of this deal. A strategy for increasing sales of an established brand is to use promotions that attract nonusers of the product category or users of a competing brand. 52. Sales promotion includes all those activities which promote sales such as distribution of samples, discount coupons, contests, display of goods, fairs and exhibitions, etc. All Rights Reserved. 63. Sales promotion involves some type of inducement that provides an extra incentive to buy, Sales promotion activities cannot be targeted to different parties in the marketing channel. A manufacturer of skis and skiing accessories provides sales personnel in ski shops with instruction classes, detailed manuals, and other tools to help them better understand how to sell the company's ski boots. 97. Which of the following is true of in-store couponing? These incentives are discount, free gift offer, distribution of free samples, rebate, sales contents etc. D. In this stage, all the promotional support for the brand will be removed. Everyone loves a bargain, right? Which of the following have the highest redemption levels of all types of coupons? 88. A. 59. In order to integrate advertising and sales promotion programs successfully, the theme of consumer promotion need not be tied in with the positioning platform for the company and/or its brand. The importance of sales promotion in modern marketing has increased mainly on account of its ability in promoting sales, preparing the ground for future expansion. Samples would be an appropriate promotional strategy. Which of the following statements about event sponsorships and event marketing is true? Not only seasonal product, any consumer or industrial level product can be pushed in the market when the company has excess inventory. C. Results of sampling could be … ANSWER: (4) Both 2 and 3. (a) Pressurizing by manager to increase sales (b) More external competition (c) Least difference among the brands (d) All of these 9. 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