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Chapter 12—Promotion through the Marketing Channel
MULTIPLE CHOICE
1. One of the main issues Proctor & Gamble (P&G) Company had with its Max Factor is:
a.
Giant mass market U.S. retailers were not willing to give more shelf space to Max
Factor products.
b.
P&G’s marketing team had failed to gain sufficient brand recognition.
c.
Even though P&G threw millions of dollars in trade promotions, sales of the Max
Factor brand continued to fall.
d.
Foreign sales of Max Factor products were falling.
e.
Offering big trade discounts to retailers simply did not work.
2. The effectiveness of the overall promotional strategy depends on how successful the
manufacturer is in:
a.
Implementing its advertising, sales promotion, personal selling, and publicity.
b.
Securing cooperation from independent channel members in implementing the
promotional strategy.
c.
Keeping its promotional budget in check.
d.
Developing creative promotional tactics.
e.
How its promotions compare to its competitors.
3. ___________ is a term used to refer to the use of several promotional tools in a coordinated
effort to achieve maximum promotional impact.
a.
Exponential marketing
b.
Integrated marketing communication
c.
Expanded promotion
d.
Advertising materials
e.
Persuasive advertising
4. In a pull and push promotional strategy, the three main flows involved are:
a.
Product, negotiation, and promotion.
b.
Product, price, and distribution.
c.
Negotiation, promotion, and payment.
d.
Promotion, negotiation, and price.
e.
Distribution, negotiation, and product.
Promotion through the Marketing Channel
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5. Of the total expenditures by all manufacturers on promotion about __________ of every
dollar spent goes for push type promotions.
a.
10%
b.
33%
c.
50%
d.
60%
e.
75%
6. Push and pull promotion:
a.
Tend to cancel each other out.
b.
Can be used together successfully.
c.
Are most effective if used sequentially.
d.
Must be implemented simultaneously.
e.
Are unrelated.
7. The belief underlying the so-called pull strategy is?
a.
Frequent promotion deals erode consumer confidence.
b.
Frequent promotions to channel members on products in trade deals result in deal-
to-deal purchases by channel members.
c.
Requires more direct involvement by the manufacturer with channel members in
the use of promotional strategies.
d.
Some channel members respond to excessive promotions by dropping
manufacturer’s products.
e.
By building strong consumer demand for their products, manufacturers pressure
channel members to promote these products.
8. The underlying concept behind the push promotional strategy is:
a.
Manufacturer dominance of promotion, especially national advertising.
b.
Using power to “force” acceptance of products by channel members.
c.
Using massive advertising to get consumers to push retailers into selling certain
products.
d.
Securing mutual effort and cooperation between manufacturers and channel
members in the use of promotion.
e.
Signaling the consumer that this is a product they must have.
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9. The increasing emphasis on push promotions in recent years is attributed to:
a.
New technologies being available.
b.
The much lower cost of push promotions.
c.
The dissatisfaction of consumers with pull promotions.
d.
The increasing size and power of retailers and wholesalers.
e.
Increasing expertise of advertising agencies in this type of promotion.
10. Retailers and wholesalers are __________ content to be conduits that giant manufacturers
using massive national advertising can send their products smoothly through to final
customers.
a.
no longer
b.
increasingly
c.
still
d.
more than ever
e.
have finally become
11. In order for a cooperative advertising program to work effectively, the channel members must
do all of the following except:
a.
Have a sufficient inventory of the product.
b.
Pass the high cost of print ads to the manufacturer.
c.
Provide personal selling support as needed.
d.
Offer adequate point of purchase display.
e.
Expect the manufacturer to carefully administer the program.
12. Which of the following is a common abuse of cooperative advertising money by retailers?
a.
Poor promotional planning.
b.
Retailers not agreeing to branding strategy of manufacturer.
c.
Retailers buying newspaper space at rates lower than what they bill manufacturers.
d.
Not setting up point of purchase displays properly.
e.
Resisting manufacturer control over the advertising campaign.
13. Cooperative advertising dollars are also called:
a.
Ad fares.
b.
Detail fees.
c.
Case allowances.
d.
Trade fees.
e.
Special allowances.
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14. Channel members are often reluctant to support advertising programs if they feel there is too
much emphasis on the manufacturer’s products and not enough emphasis on:
a.
The channel member’s product line.
b.
Product quality.
c.
The reputation and image of the channel member.
d.
Patronage appeals.
e.
Basic information such as location of the channel member.
15. The most typical strategy used for promotional allowances is to offer channel members:
a.
A print ad allowance.
b.
A percentage of purchases on particular products.
c.
A credit.
d.
A discount on future purchases.
e.
An increased trade discount.
16. It is now easier for manufacturers to measure the effect of promotional allowances because of:
a.
Simpler programs and closer administration.
b.
More generous allowances.
c.
Outside consulting firms.
d.
Smartphones.
e.
New cash register technology.
17. ________ are payments made by manufacturers to encourage channel members to display and
stock new products.
a.
Selling aids
b.
Promotional fees
c.
Ad discounts
d.
Slotting allowances
e.
Marketing certificates
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18. Slotting fees are most commonly used in the ________ industry.
a.
pharmaceutical
b.
grocery
c.
automobile
d.
retail liquor
e.
bakery
19. Which of the following is a false statement about slotting fees?
a.
Retailers view slotting fees as compensation for risks in taking on new products.
b.
Manufacturers believe slotting fees give retailers more market power.
c.
Slotting fees can be used as a screening device for new products based on the fee
the manufacturer is willing to pay.
d.
Slotting fees may discriminate against large manufacturers who are willing and
able to pay high fees.
e.
The FTC and GAO are investigating to determine if slotting fees violate antitrust
laws.
20. It is expected that ________ may become the most dominant form of promotional allowance
demanded by large retailers.
a.
slotting fees
b.
cooperative advertising
c.
display ads
d.
promotional allowances
e.
in-store promotions
21. Which of the following is not an example of displays and/or selling aids?
a.
Point-of-purchase material
b.
Dealer identification signs
c.
Promotional kits
d.
Mailing pieces
e.
Billboards
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22. Which of the following is an accurate statement regarding displays and selling aids?
a.
Expenditures for this category of promotion are falling.
b.
National expenditures for displays and selling aids amount to about $10 million.
c.
Most retailers receive few displays and/or selling aids.
d.
Displays and selling aids are rarely effective.
e.
Often manufacturers have difficulty getting retailers to use displays and selling
aids.
23. Which of the following is not a feature of the Evergreen and Ivy display for candles?
a.
It can be used by any kind of retailer.
b.
It handles product that comes in one size.
c.
Empty slots that need restocking are easily seen.
d.
It takes up a minimum of floor space.
e.
It is interesting and attractive.
24. Which of the following is not an example of in-store promotion?
a.
Trunk shows
b.
Celebrity store appearances
c.
Food samplings
d.
Cooking demonstrations
e.
Cardboard cutouts
25. In using in-store promotions, the most critical factor for the channel manager to consider in
judging the probable effectiveness of the promotion is:
a.
The number of stores involved.
b.
The amount of salespeople time going into setting up the program.
c.
The direct cost of the promotion to the manufacturer.
d.
The benefits of the program as perceived by retailers.
e.
The number of inquiries received from ultimate consumers about the
manufacturer’s product.
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26. For samples to be an effective in-store promotion, it is suggested that:
a.
Retailers will have to provide advance notice to consumers.
b.
Because more people are shopping on the Internet, in store samples will become
passé, so manufacturers will have to mail samples to consumers.
c.
Channel managers and retailers will need to be more clever and develop situational
sampling.
d.
Samples should only be given at holiday or special event times.
e.
Tables be set up at the front of the stores.
27. From the standpoint of the manufacturer, using trade shows as a promotional strategy for
motivating channel members is beneficial for all the following reasons except:
a.
It is an effective way to gain government approval for new products.
b.
Trade shows provide opportunities to sell to new channel members.
c.
Trade shows make it possible to show new products.
d.
Trade shows offer chances to socialize with channel members.
e.
Trade shows make it possible for manufacturers to make a strong presence and
impact on channel members.
28. Many channel members feel that when it comes to contests and incentives:
a.
They are a one-sided deal in the retailers’ or manufacturer’s favor.
b.
They are a one-sided deal in the manufacturer’s favor.
c.
The cost to the channel member is of little concern.
d.
They are the most effective type of promotional support.
e.
They are the most simple to administer to everyone’s satisfaction.
29. The practice whereby intermediaries, under special promotional deals, buy more inventory
than they possibly could sell in a reasonable period of time is known as:
a.
Promo dealing.
b.
Inventory stocking.
c.
Trade loading.
d.
Blitz buying.
e.
Rebate raking.
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30. Forward buying causes:
a.
A slowdown in the distribution process.
b.
Brand loyalty erosion.
c.
Lower distribution costs.
d.
Greater efficiencies in the distribution process.
e.
Higher prices to consumers.
31. Training programs at the wholesale level should be aimed at improving all of the following
except:
a.
The channel members’ knowledge of the manufacturer’s products.
b.
The channel members’ selling techniques.
c.
The counseling of customers.
d.
The salesperson’s communication skills.
e.
Knowledge of tax implications for their respective companies.
32. Consultants such as SymphonyIRIGroup have made it feasible for manufacturers to:
a.
Measure the effects of promotional programs more accurately.
b.
Save a great deal of money.
c.
Precisely measure the effects of just advertising.
d.
Allocate funds to product development at the true optimum level.
e.
Predict consumer response rates to the promotions precisely.
33. Effective retail training programs should include all of the following except:
a.
How retail customers can promote products.
b.
Selling skills.
c.
Product knowledge.
d.
Stages of the selling process.
e.
Teaching how to “close” a sale.
34. Sales quotas for channel members:
a.
Should almost always be avoided.
b.
Are dependent for success upon the use of coercive power.
c.
Should be set in conjunction with the channel member.
d.
Should be reserved primarily for poorly performing channel members.
e.
Should be set after the firm’s annual objectives are determined.
Marketing Channels 8e
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35. Sales quotas are a way for the manufacturer to communicate:
a.
Satisfaction with the channel member’s past performance.
b.
Information regarding the channel member’s territory sales potential.
c.
The importance of the manufacturer’s product to the channel member.
d.
The importance of the firm’s sales goals.
e.
Goals and to motivate the salesperson.
36. Which of the following activities is not usually performed by missionary salespeople calling
on retailers?
a.
Calling on retailers to inform them of new products
b.
Helping to arrange window and in-store displays
c.
Conducting customer surveys
d.
Checking inventory levels
e.
Take orders for merchandise
37. Which of the following is not true about missionary selling in the industrial market?
a.
It is inexpensive.
b.
It can lead to conflict.
c.
Missionary salespeople may be viewed as bothersome by channel members.
d.
Missionary salespeople often provide technical assistance.
e.
Missionary salespeople can accompany distributors on sales calls.
38. Which of the following is not an advantage of using trade shows as a promotional strategy?
a.
Provides an opportunity to sell to existing and new channel members
b.
Provides an opportunity to show new products
c.
Provides an opportunity to show new promotional programs
d.
Can enhance the manufacturer’s reputation
e.
Provides an opportunity to advise and give technical assistance to channel
members
39. Trade shows, if conducted properly, provide the manufacturer with an opportunity to
strengthen its __________ power base.
a.
coercive
b.
reward
c.
referent
d.
legitimate
e.
expert