20. How did Procter & Gamble first introduce Bounty to Dutch consumers?
a.
It sent coupons to consumers through the mail.
b.
It used point-of-purchase displays in Albert Heijn stores.
c.
It sponsored a major Tulip show.
d.
All of the above are correct.
21. How did Coke promote Coke Light to consumers in the Netherlands?
a.
It used a free sample campaign.
b.
It promoted a sweepstakes contest.
c.
A cash prize was included inside select cans.
d.
It used a Star Wars product tie-in.
22. In which country are “buy one, get one free” offers illegal?
a.
France
c.
Belgium
b.
Germany
d.
Sweden
23. In which country is it illegal for retail sales to run beyond on month?
a.
France
c.
Belgium
b.
Germany
d.
Sweden
24. Which place requires sponsors to provide French translations and to pay a duty based on the total value
of the prize pool and to post a bond to run a promotion?
a.
France
c.
French Polynesia
b.
Quebec
d.
Guinea Bissau
25. Why must displays going to Eastern Europe be marked as not being for resale?
a.
Many of the countries in Eastern Europe have laws forbidding the resale of promotional
displays for profit.
b.
Retailers in this region tend to sell the display for profit instead of using it for its intended
purpose.
c.
Marking the display as not for resale helps the promoter avoid additional customs duties.
d.
Marking the display in this way helps to prevent piracy of the display.
26. Why has Nestlé been criticized for its infant formula promotion in Sub-Saharan Africa?
a.
It used women dressed as nurses to offer the samples to new mothers.
b.
Unsanitary conditions made use of the formula dangerous for infants.
c.
The high cost of the product was unjustifiable for the market.
d.
All of the above were criticisms of the promotion.
27. Research suggests that European and U.S. consumers make approximately ____ of their purchase
decisions at the point of purchase.
a.
15%
c.
35%
b.
25%
d.
50%
28. According to the text, as marketers consider the future of sales promotion, which form of sales
promotion “anticipates important growth?”
a.
Coupons
c.
Contests
b.
Free samples
d.
Point-of-purchase displays
29. For U.S. industrial firms, trade show and exhibitions account for ____ of the overall communication
budget.
a.
One-fifth
c.
One-third
b.
One-fourth
d.
Half
30. For European industrial firms, trade show and exhibitions account for ____ of the overall
communication budget
a.
One-fifth
c.
One-third
b.
One-fourth
d.
Half
31. Which of the following is an advantage of trade shows and exhibitions?
a.
They create pressure on prospective customers to purchase.
b.
They offer the potential for buyers and sellers a chance to meet face-to-face.
c.
They contain embedded messages for prospective clients.
d.
All of the above are advantages.
32. Which of the following is not an advantage of trade shows and exhibitions?
a.
They offer a neutral ground for buyers and sellers.
b.
They offer the potential for buyers and sellers a chance to meet face-to-face.
c.
They enable firms to get their message to a large number of people at one time.
d.
All of the above are advantages.
33. Which of the following is an example of a trade promotion tool?
a.
Free samples
b.
Point-of-purchase displays
c.
Exhibitions
d.
All of the above are trade promotion tools.
34. ____ are examples of trade promotion; they are usually held annually in formats in which companies
purchase exhibit space to display and demonstrate their offerings to the target market.
a.
Free samples
c.
Trade shows and exhibitions
b.
Point-of-purchase displays
d.
Sweepstakes
35. Trade shows and exhibitions
a.
Take place on the company premises.
b.
Have the highest reach of all types of promotion.
c.
Provide a neutral environment for doing business.
d.
All of the above are true regarding trade shows and exhibitions.
36. What is true about trade shows and exhibits?
a.
They are a proven promotional tool capable of having a positive direct impact on sales.
b.
Governments often share part of the cost of international trade shows.
c.
Although they are used for business-to-business promotions, they are not used for
consumer promotions.
d.
All of the above are true.
37. Which industry is represented by the DRUPA annual trade exhibition?
a.
Publishing
c.
Graphic arts
b.
Medicine
d.
Fashion
COMPLETION
1. ____________________ is a communication about a company and/or the company’s products that the
company does not pay for.
2. _________________________ is defined as a concerted effort on the part of the company to generate
good will among publics that are essential to the company.
3. Public relations main purpose is to generate positive ____________________ about the company.
4. When new products are introduced in local markets, company representatives are likely to offer
_________________________ touting the advantages of the new product or service.
5. ____________________ advertising is used to promote the company behind the different brands.
6. The Phillip Morris ad that wished Chinese consumers a “happy new year from the Phillip Morris
companies” is an example of ____________________ advertising.
7. ____________________ advertising is used to enhance perceptions of a company in a given market.
8. When a tobacco company airs an advertisement that shows it donating millions of dollars each year to
support lower income neighborhoods, it is using ____________________ advertising.
9. ____________________ advertising is used by companies to stress a particular point of view.
10. In a recent advertisement, Benetton portrayed young people of all ages and races in colorful clothing to
sell its clothes and also to make a statement about cultural diversity. This is an example of
____________________ advertising.
11. Aside from advertising, personal selling, public relations, and publicity, all other sponsored
communications offered to the end consumer or to the trade that stimulate purchases or improve
relationships to middlemen and retailers in the short-term fall in the category of
_________________________.
12. Among examples of ____________________ sales promotion are point-of-purchase displays, free
samples to initiate product trail, sweepstakes and contests.
13. ____________________ campaigns are rarely attempted in sales promotion.
14. To a certain degree, adaptation to local markets is necessitated by ____________________
requirements.
15. ____________________ based on pure chance are deemed illegal in Holland.
16. _________________________ law requires rules for all promotions to be printed in both English and
Spanish, and both versions should be printed in general circulation newspaper at least once a week for
the duration of the campaign.
17. Often the companies themselves are responsible for creating a bad reputation for sales promotion.
Sales promotions aimed at ____________________ markets over time have been questionable.
18. ____________________ advertising cigarettes are often displayed in restaurants adjacent to
elementary schools.
19. ____________________ received negative publicity about its infant formula promotional campaign
that it sued in Sub-Saharan Africa.
20. For U.S. industrial firms _________________________ account for one-fifth of the overall
communication budget.
21. ___________________________ offer potential buyers and sellers a chance to meet face–to-face, as
they bring many decision makers to a single location for a limited time, enabling firms to get their
message to a large number of people at one time.
22. In a typical promotional environment, the seller must pitch the product to the buyer; for
__________________________ however, the visitors are the ones who approach the seller, searching
for new products and suppliers.
23. ______________________________ provide a neutral location for doing business and bring together
managers from different departments in buyers’ organizations, thus increasing the probability of
meeting every decision maker who will influence the buying decision.
24. ____________________ and ____________________ governments are often involved in ensuring
that national/local companies are represented at important fairs.
25. In the United States, the Department of ____________________ is actively involved in promoting
U.S. companies abroad using trade shows as venues.
26. The documenta, takes place every ____________________ years, and the Venice Biennale takes place
____________________; both exhibits show art works of contemporary artists.
27. _________________________ in Dusseldorf, Germany, specializes in international trade shows for
machinery, as well as for the medical, fashion, and services industries.
28. ______________________________ cuts across domains and is one of the most important venues for
exhibiting new ideas, technology, and art in an environment where numerous countries are
represented.
ESSAY
1. Explain the difference between corporate, image and advocacy advertising.
2. Discuss the advantages of trade shows as a sales promotion technique?
3. Provide three examples of how legal issues in sales promotion affect the standardization of a
promotional campaign.
4. Explain what went wrong with the Nestlé sales promotion of infant formula in Africa.
5. Discuss the future of sales promotion.