112)
Loyalty programs that require membership are popular with marketers because they also generate
information for customer databases.
112)
113)
Marketers license their brand identity to other manufacturers because it makes them money and
extends their brand visibility.
113)
114)
The general decline in consumer brand loyalty is due to the increase in sales promotion use by
marketers.
114)
115)
A manufacturer–designed display distributed to retailers who use it to call their customers’
attention to product promotions is known as a spiff.
115)
116)
The two general types of coupons are immediate and delayed.
116)
117)
A trade forum is where companies within the same industry gather to present and sell their
merchandise, as well as to demonstrate their products.
117)
118)
The chief reasons for the growth of sales promotion are the pressure for short–term profits and the
need for accountability.
118)
119)
Response rates and redemption rates are used to evaluate the effectiveness of promotional
programs.
119)
120)
A tie–in is where manufacturers develop marketing communication programs with their main
retail accounts, instead of for them.
120)
121)
Sales promotion often relies on rational appeals, and advertising often relies on emotional appeals.
121)
122)
The reason tie–ins are successful is that brands can leverage similar strengths to achieve a bigger
impact in the marketplace.
122)
123)
Most trade promotions are designed to motivate in some way trade members to cooperate with the
manufacturer’s promotion.
123)
124)
Turnover rate is an important measure of a promotion’s effectiveness.
124)
125)
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.
125)
126)
A price deal is a temporary price reduction or a sale price, and there are four types: cents–off deals,
price–pack deals, bonus packs, and banded packs.
126)
127)
Sales promotion not only targets consumers, but intermediaries and sales representatives as well.
127)
128)
About one half of marketing communication budgets is spent on consumer sales promotions.
128)
129)
Shoppers today are more brand loyal, so promotion incentives have to provide substantial
incentives to encourage brand switching.
129)
130)
Spiffs are monetary bonuses paid to a store’s salesperson based on the units that salesperson sells
over a period of time.
130)
131)
Promotions add tangible value to the good or service and contribute greatly to the profitability of
the brand.
131)
132)
Sweepstakes and contests are effective promotional tools for driving people to marketers‘ Internet
sites.
132)
133)
Consumer promotions can be used to generate awareness, trial, maintain or increase market share,
and as a brand reminder.
133)
134)
The most common types of trade deals are buying allowances, advertising allowances (including
cooperative advertising), and display allowances.
134)
135)
Specialty advertising presents a brand’s name on something that is given away as a reminder, such
as a pen, cap, or mouse pad.
135)
136)
Rebate and refund mean basically the same thing.
136)
137)
Sales promotion is primarily designed to motivate people to act by offering incentives.
137)
138)
One disadvantage of promotions is that, although they can help introduce a new product and
create brand awareness, they cannot build a brand over time.
138)
139)
Advertising is often the most effective strategy for increasing sales of a parity product when the
products in the category are largely undifferentiated.
139)
140)
One reason for the growth of sales promotion is that it reduces the risk of trying a new product by
giving something of added value to motivate action.
140)
141)
Ad slicks are print ads that are ready to be sent to the local print media as soon as the retailer adds
identification, location, promotion price, or other information.
141)
142)
A game is a type of contest, only differing by the length of time it runs.
142)
143)
Companies undertake sponsorships to build brand associations and to increase the perceived value
of the brand in the consumer’s mind.
143)
144)
In most cases, advertising is needed to support promotions.
144)
145)
Guerilla marketing is the term given to promotional stunts used at events by companies that are not
official sponsors.
145)
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
146)
Name and describe the seven common types of consumer promotions.
147)
Name and describe the five types of trade promotions.
148)
Name and describe the various partnership programs.
149)
Explain the purposes of consumer promotions and the useful types of consumer promotions for each.
150)
Discuss five reasons for the growth of sales promotion.
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