70) Consumer promotions are most important in which type of strategy?
A) push
B) pull
C) channel
D) wholesale
E) intermediate
71) Trade promotions are most important in which type of strategy?
A) push
B) pull
C) end-user
D) direct marketing
E) one-to-one
72) Which of the following is an example of a sales promotion?
A) a news release encouraging voters to support a new bond issue for a local elementary school
B) a staged dance routine promoting a new product in a busy public place
C) a coupon for $5 off a visit to an amusement park
D) a listing of all the television programs to be shown by Charter Cable the week of March 16
E) a plan to increase ice cream sales by adding two new flavors
73) When Kodak wanted to create excitement for its line of digital cameras, the company
encouraged consumers to submit pictures electronically in the “Kodak Moments” promotion.
Judges selected a grand prize winner to receive a vacation for four to Disney World, with several
other lower-level winners receiving Kodak products. What type of consumer promotion was
this?
A) coupon
B) sweepstakes
C) game
D) contest
E) premium
21
Copyright © 2019 Pearson Education, Inc.
Refer to the passage below to answer the questions that follow.
Everyone knows McDonald’s, the worldwide fast food chain. McDonald’s has used consumer
promotions for years. Restaurants offer a kids’ Happy Meal that always includes a toy, and
oftentimes the package itself is a promotion, such as pumpkin buckets at Halloween. McDonald’s
has also used a promotion patterned after the popular Monopoly game, in which everyone wins
something small, like a soft drink or French fries, but one participant could win $1 million
dollars. The Monopoly promotion usually lasts several months. McDonald’s also participates in
promotions with movies, such as Star Wars and several Disney movies. Another promotion
McDonald’s is considering is a program that will give consumers one free Happy Meal for every
10 they purchase.
74) What type of consumer promotion is the toy in the Happy Meal?
A) direct premium
B) self-liquidator premium
C) sample
D) price deal
E) game
75) Maria won $1 million playing Monopoly at McDonald’s. She won by collecting Monopoly
tokens with each McDonald’s purchase she made during the promotion, and eventually getting
the winning combination of tokens. What type of consumer promotion is this?
A) direct premium
B) self-liquidator premium
C) contest
D) price deal
E) game
76) The promotion in which customers receive one Happy Meal for every 10 they purchase is
best described as a ________.
A) price deal
B) premium
C) tie-in
D) refund
E) loyalty program
77) What type of partnership program does McDonald’s enter into when its promotions are
related to movies?
A) co-marketing
B) co-branding
C) specialty
D) cross promotion
E) loyalty program
78) ________ occurs when companies support an event either financially or by donating supplies
and services.
A) Ambush marketing
B) Sponsorship
C) Co-marketing
D) Co-branding
E) Tie-in marketing
79) ________ means building a product’s marketing program around a sponsored activity, such
as the Olympics or a golf tournament.
A) Event marketing
B) Sports marketing
C) Co-marketing
D) Co-branding
E) Tie-in marketing
80) Which of the following is a promotion designed specifically to increase customer retention?
A) event marketing
B) loyalty program
C) sampling
D) rebate
E) sweepstakes
81) ________ involves manufacturers developing marketing communication programs with their
main retail accounts, instead of for them.
A) Event marketing
B) Sponsorship
C) Cross promotion
D) Comarketing
E) Licensing
82) When two companies come together to offer a product, the effort is called ________.
A) cobranding
B) sponsorship
C) cross promotion
D) tie-in marketing
E) continuity marketing
83) Which of the following is a type of partnership program used by manufacturers of two or
more brands, such as Doritos corn chips and Pace salsa, to leverage similar strengths to achieve a
bigger impact in the marketplace?
A) cross promotion
B) licensing
C) sponsorship
D) comarketing
E) cobranding
84) Promotions should be designed to do which of the following?
A) appeal to consumers only
B) appeal to channel members only
C) replace costly advertising
D) work independently of other brand communications
E) work within a mix of brand communications
85) What do direct marketers use to keep track of customers, identify prospective customers, and
segment groups of customers and prospects?
A) databases
B) permission marketing
C) integrated marketing communication
D) opt-out strategies
E) opt-in strategies
86) Through ________, marketers can target individuals based on what they have purchased,
what shows they have watched, or what websites they have visited.
A) variable data marketing
B) permission-based marketing
C) behavioral targeting
D) predictive targeting
E) conversion marketing
87) Which of the following is NOT one of the four categories of data collected in organizations’
customer databases?
A) individual identity data
B) behavioral data
C) compiled information
D) self-identified data
E) social-identified data
88) Sorting information in a company’s database in order to maintain customer relationships is
called ________.
A) behavioral targeting
B) merging
C) variable data marketing
D) data mining
E) opt-in marketing
89) Kinder Clothes, an online children’s clothing marketer, uses data mining to identify and
segment customers who have purchased infant clothing, toddler clothing, and children’s clothing.
The company has also used data mining to further identify and segment these groups based on
whether they purchased clothing for boys or girls. In this example, Kinder Clothes is using
________.
A) skimming
B) behavioral targeting
C) prospecting
D) converting
E) opt-in marketing
90) Adams Cutlery has always relied upon advertising to market its products to final customers.
However, the marketing team at Adams Cutlery now wants to begin a direct-marketing campaign
consisting of a company website, emails to current customers, and an online catalog. Which of
the following would the marketing team expect to gain as a result of implementing this direct
marketing plan?
A) the ability to increase the range of products the company offers
B) a wealth of information about competitors and their products
C) more control over customers’ interactions with the company
D) the ability to learn more about their customers and tailor offerings to fit their needs
E) a higher cost-per-contact that could prove to be more cost effective than advertising in mass
media
91) Direct-response marketing is often used by nonprofit organizations and by political
associations.
92) The four main players in direct-response marketing are the advertisers, the agencies, the
media, and the government.
93) In direct-response marketing, service firms are agencies that specialize in supplying printing,
mailing, and list brokering.
94) Advertising agencies do not play a role in direct-response marketing.
95) Direct-response messages are constantly being measured, enabling direct marketers to learn
what works and to modify future campaigns based on results.
96) One of the primary advantages of direct mail is the low cost per thousand compared to mass
media.
97) The average response rate for a direct mail offer is 10 percent.
98) With inbound telemarketing, a call center employee calls unqualified numbers that are
sometimes just randomly selected.
99) Do-not-call lists restrict companies from calling their own customers.
100) Social selling, which is also called network marketing, relies on the reach and
persuasiveness of social media.
101) Direct-response marketing is a growth area because it is easy to evaluate its effectiveness.
102) Direct-response marketing is less expensive than personal sales.
103) According to the Supreme Court’s ruling, the free speech rights of the telemarketing
industry are infringed upon by the national Do Not Call Registry.
104) Sales promotions can target consumers, intermediaries, and sales representatives.
105) Shoppers today have come to expect frequent if not constant short-term price reductions.
106) Shoppers today are more brand loyal, so promotion incentives have to provide substantial
incentives to encourage brand switching.
107) Sales-force promotions include two general sets of promotional activities directed at
salespeople: (1) activities that better prepare salespeople to do their jobs and (2) incentives that
motivate salespeople to work harder.
108) Creating a high level of excitement about the product among distribution channel members
responsible for the product’s sale is one of the most important functions of a trade promotion.
109) A trade network is where companies within the same industry gather to present and sell
their merchandise, as well as to demonstrate their products.
110) Rebate and refund mean basically the same thing.
111) Games and sweepstakes are both types of contests, only differing by the length of time they
run.
112) One disadvantage of promotions is that, although they can help introduce a new product and
create brand awareness, they fail to create an immediate consumer response.
113) Promotions add tangible value to the good or service and can contribute greatly to the
profitability of the brand.
114) Response rates and redemption rates are used to evaluate the effectiveness of promotional
programs.
115) A price deal is a temporary price reduction or a sale price.
116) The two general types of coupons are immediate and delayed.
117) Store premiums, in-pack premiums, and on-pack premiums are all types of self-liquidator
premiums.
118) Specialty advertising presents a brand’s name on something that is given away as a
reminder, such as a pen, cap, or mouse pad.
119) Promotions and advertisements for a brand should share a common strategy and voice.
120) Loyalty programs that require membership are popular with marketers because they also
generate information for customer databases.
121) A tie-in involves manufacturers developing marketing communication programs with their
main retail accounts, instead of for them.
122) Companies undertake sponsorships to build brand associations and to increase the perceived
value of the brand in consumers’ minds.
123) Tie-ins are successful because brands can leverage similar strengths to achieve a bigger
impact in the marketplace.
124) Advertisers use database information to target their campaigns to consumers who, based on
demographics, are likely to buy their products.
125) The database management process begins with a sale.
126) Name and describe the four types of agencies involved in direct-response communication.
127) Compare and contrast the three types of direct-marketing lists.
128) You are developing the offer for a direct-response campaign. Explain what is included in
the “offer.”
129) Converges is a nationwide call center operator and has several call centers in college towns.
They are recruiting on campus, and your roommate is interested because the pay is pretty good
and the hours are flexible. However, she doesn’t know much about telemarketing, so she asked
you about it because you are taking this class. Briefly describe the two types of telemarketing.
130) Explain what spam is.
131) Discuss three reasons for the growth of sales promotion.
132) Describe four purposes of consumer promotions.
133) Compare and contrast bonus packs and banded packs.
134) Clinique and other cosmetic counters at department stores frequently have gift-with-
purchase promotions in which customers receive a nice cosmetics bag filled with lotions, make-
up, and other items such as brushes and mirrors. For really nice gifts, customers have to pay a
certain amount, such as $29.99, but they usually get a larger bag and several full-sized products
that would cost considerably more if purchased separately. What type of promotion does this
describe? Why is it used?
34
Copyright © 2019 Pearson Education, Inc.
Refer to the passage below to answer the questions that follow.
Kraft is known for its cheese products, but the company also manufactures several consumer
packaged goods products, such as mayonnaise, salad dressing, barbecue sauce, macaroni and
cheese, and other types of food products sold in grocery stores. A large portion of Kraft’s
marketing communication budget is spent on incentives such as sales contests and retail kits.
135) What kind of audience is Kraft targeting with incentives to get its products to consumers in
the stores?
136) What is the most likely objective of Kraft’s promotion activities?
137) What type of promotion could Kraft provide to retailers to call their customers’ attentions to
Kraft’s products?
138) Name and describe four types of consumer promotions.
139) Name and describe five types of trade promotions.
140) James was with his mother in the grocery store, and near the cheese section he saw that
there was a cardboard display filled with little soccer balls. James saw them, grabbed one, and
immediately started dribbling it down the aisles of the store. His mother looked more closely at
the display and learned that the soccer ball was free with the purchase of two Kraft cheese
products that were on the shelf nearby. What type of consumer promotion is this? What kind of
trade promotion is this?
141) Why do some marketers see a conflict between brand building and promotions?
142) You are planning a presentation on why marketers use consumer promotions. What are the
reasons you would include in your presentation?
143) In what types of situations are price deals most likely to be effective?
144) What is the difference between a push strategy and a pull strategy? How do these two
strategies work together?
145) What type of sales promotion would benefit a political candidate the most?
146) Name and describe three partnership programs discussed in your text.
147) Bob watched the Cadillac Golf Classic last weekend on television. Name and describe the
type of promotion and explain why companies use this kind of promotion.
148) How have loyalty programs become reward programs?
149) Stephanie has a Target Visa card. It’s a regular Visa card, but when she uses it at a Target
store, her child’s school receives 1 percent of her purchase. When she uses the card elsewhere,
the school receives 0.5 percent of her purchase. In fact, the school has helped sign up people for
the cards by sending brochures home with every student, and now the school receives $500—
$2,000 every quarter from Target. What types of promotion are represented in this scenario?
150) Proactiv Solution is a skincare system to help people with acne. Proactiv was originally sold
only through direct marketing. The consumer had to enroll in the Proactiv Solution Clear Skin
Club. However, now some large malls have kiosks selling Proactiv Solution products without the
club membership, but the prices are much higher. Proactiv Solution has had one of the longest-
running infomercials on television, and its product line is also sold through magazine ads.
Through these mediums, consumers can purchase the product directly by calling, mailing, or
going through the Internet to submit an order. What do you think Proactiv Solution uses to track
consumer purchases? How can they use this to restart customers who have joined the club but
later quit?