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Exam 11: Sales Promotion and Point of Purchase

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Question 1

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You work for a company that manufactures large appliances, like refrigerators and stoves In an effort to move your product, you offer a hundred dollars to any retail salesperson who can sell ten of your appliances in a week. This is an example of

A) a sweepstakes.
B) a slotting fee.
C) an allowance.
D) an incentive.

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Question 2

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Although sales promotion can attract attention and motivate trial purchase, it is rarely used for new brand introduction because advertising controls that aspect.

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Question 3

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Out-of-home media is a term used to describe any media other than television.

A ____ requires a consumer to pay most of the cost of an item received as a premium.

Jiffy Lube relies heavily on couponing in local newspapers and coupon sheets to promote its basic oil change service. What are four possible advantages that Jiffy Lube gains from using coupons?

Scenario 11-4 General Mills brand breakfast cereals face strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. Still, General Mills brand like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows that they must stimulate consumer demand for their brands, but they must also stimulate retailer support for these brands as well. Their market research shows that some consumers are very loyal to certain brands of cereal, but most consumers are interested in some level of variety seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider their brand when shopping for breakfast cereal. -(Scenario 11-4) General Mills had learned that, along with Kellogg's and Quaker Oats, they often target the same customers with their advertising. This problem of many customers receiving too many messages from too many different firms has been addressed by using sales promotion elements such as coupons. This is an example of ____ driving growth in sales promotion.

Scenario 11-7 You are a media planner at a small advertising agency. Since it is Friday, you decide to take a long lunch, returning to your office around 2:30 PM. When you get back to your desk, there is a stack of messages waiting for you from account executives about pressing client issues. You must answer them all before you get to start your weekend. -(Scenario 11-7) An account executive has sent a memo saying that a client is quite pleased the with the results of the network TV buy that you made the previous month. Now client would like to use a support media to target the specific geographic areas that have shown the strongest results. You fire off a note stating that

Unquestionably, there are numerous positive things that can result from a properly planned sales promotion. However, a manager must also realize that there are potential negatives to a sales promotion effort. As a wise manager, what kind of questions would you ask yourself before committing a substantial amount of money to a sales promotion?

Scenario 11-4 General Mills brand breakfast cereals face strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. Still, General Mills brand like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows that they must stimulate consumer demand for their brands, but they must also stimulate retailer support for these brands as well. Their market research shows that some consumers are very loyal to certain brands of cereal, but most consumers are interested in some level of variety seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider their brand when shopping for breakfast cereal. -(Scenario 11-4) General Mills has experimented with selling "two packs" of several brands of cereal. These are two standard size boxes of cereal shrink wrapped together and offered at a special price. The objective for this form of consumer-market sales promotion is likely to ____.

Scenario 11-1 When one runs a World Wide Web word search of the term sales promotion, the result is more than 700,000 matches. The list of links is as diverse as it is extensive. A click of a mouse button can bring you to the home page of a wide variety of full-service Sales Promotion Agencies providing strategic promotion planning and promotion development/implementation with emphasis on retail grocery products. -(Scenario 11-1) One of the tie-in packages offered by Co-op Promotions gives companies the opportunity to place a sample or a coupon inside 2 million Hamilton Beach/Proctor Silex toaster and toaster oven packages. Which of the following should not be considered a downside to a couponing program like this?

Two of the basic forms of sales promotion are ____ sales promotion and ____ sales promotion.

The most popular type of sampling for food and cosmetic products is ____ sampling.

Which one of the following is not a reason why sales promotions have become a more popular tool for companies over the past 10 to 15 years?

Sales promotion is the use of incentive techniques that create a perception of greater brand value among consumers, the trade and business buyers.

In order for an item to be defined as a specialty-advertising item, it must

Directory advertising is unique among support media in that it

Scenario 11-5 The local student chapter of the American Marketing Association (AMA) is preparing to begin a new student membership drive. Previously, these efforts have focused on merely making incoming students aware of the existence of the chapter and making announcements about upcoming events in classes. The student AMA officer team wants the chapter to double in size during the upcoming school year. While this seems like an overly ambitious objective, several of the officers are students in a marketing communications class that teaches sales promotion techniques. These students have argued at several recent meetings that the proper use of sales promotion can help the chapter to accomplish this goal. -(Scenario 11-5) The chapter's officers have decided to have a contest for all students who visit the first meeting of the semester. At the end of the meeting, a visitor's name will be drawn to win 25 free state lottery tickets. Which of the following is the most likely outcome of this contest?

Historically, more money has always been spent on sales promotions than on advertising.

Coupons are a good sales promotion because they induce brand switching and stimulate repeat purchases, and the timing and distribution are controlled by the manufacturer.

P-O-P refers to materials used in the retail setting to attract shoppers attention to ones product, convey primary product benefits, or highlight pricing information.