Chapter 18—Sales Promotion and Personal Selling
TRUE/FALSE
1. Sales promotion offers an incentive to buy.
2. Marketers find it much easier to evaluate the effectiveness of advertising than the effectiveness of sales
promotions.
3. The objectives of a promotion depend on the general behavior of target consumers.
4. Loyalty marketing programs are targeted to people who consistently buy the least expensive brand.
5. Research shows that coupons tend to increae the amount of a product bought.
6. Manufacturers prefer coupons over rebates, because most customers who are eligible for rebates
actually collect them.
7. When cosmetics company Estée Lauder gives customers a bag of small-sized cosmetics with the
purchase of a full-priced item, this is an example of a premium offer.
8. Sweepstakes are promotions in which participants use some skill or ability to compete for prizes.
Winning a contest, on the other hand, depends on chance or luck.
9. Point-of-purchase promotions are seldom used as a sales promotion tool because most purchase
decisions are made before consumers ever enter a store.
10. Online sales promotions have so far proven ineffective in generating acceptable response rates.
11. A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous
shopping goods.
12. Hewlett-Packard offered $25 to individual Office Depot salespeople for each HP Laser Jet printer they
sold. The $25 is push money.
13. Trade shows are an excellent place to introduce new products to the marketplace.
14. Manufacturers use trade promotions because they generate excitement among consumers.
15. Personal selling becomes a more important promotional tool as product complexity and buyer risk
increase.
16. Dave is in charge of finding sponsors for the 2011 Riverbend Festival. He is meeting with marketing
representatives from Wrangler jeans and First Tennessee National Bank, attempting to convince them
to sponsor the event. Dave is engaged in personal selling.
17. With relationship selling, the objective is to build long-term branded relationships with customers, not
just to sell products.
18. Relationship selling is more typical with selling situations for consumer goods.
19. With relationship selling the salesperson would spend most of his or her contact time with the prospect
talking about the product because the salesperson does not want to waste the customer’s time.
20. The first step in the selling process is approaching the customer and probing needs.
21. In relationship selling, salespeople focus more time on generating leads than on qualifying leads.
22. Tara is a salesperson with several satisfied customers. She asks her customers to recommend her to
their business associates. Tara is using cold calling to generate leads.
23. To qualify a sales lead, a salesperson must identify the person in an organization who has the authority
to buy the product and must close the sale with that individual.
24. Before approaching the customer, a salesperson should learn as much as possible about the prospect’s
organization and its buyer.
25. If a potential customer has objections after the salesperson has made a presentation, that is an
indication that the salesperson has done a poor job.
26. Jayson typically negotiates the price with prospective customers because he knows price is the most
effective negotiating tool when closing a sale.
27. The final selling duty for most successful salespeople is closing the sale.
28. Meta Singh is expected to sell two surgical laser systems each month. This sales objective is an
example of a quota.
29. Compensation planning is one of the sales manager’s easiest jobs.
30. Typical performance measures for salespeople include sales volume, contribution to profit, calls per
order and sales or profits per call.
MULTIPLE CHOICE
1. _____ is marketing communication activities in which a short-term incentive is offered to induce the
purchase of a particular good or service.
a.
Publicity
b.
Sales promotion
c.
Promotion
d.
Advertising
e.
Motivation selling
2. Dell’s back–to–school program allows students who buy a new laptop computer for college to get a
free printer. The printer giveaway is a(n):
a.
push strategy
b.
advocacy advertising
c.
comparative advertising
d.
cause marketing
e.
sales promotion
3. Neutrogena offered customers who purchased $30 worth of facial moisturizers, facial cleaners, and
facial treatment products a $10 rebate by mail. This is an example of:
a.
motivational selling
b.
a trade promotion
c.
a push strategy
d.
personal selling
e.
a sales promotion
4. Sales promotion:
a.
is a publicity tool
b.
is only directed to the ultimate consumer market
c.
is more difficult to measure than advertising
d.
offers a short-term incentive to buy
e.
expenditures have been decreasing in recent years
5. What are the two types of sales promotion?
a.
Consumer and trade
b.
Informative and reminder
c.
Start-up and continual
d.
Adoptive and diffusive
e.
Personal and impersonal
6. _____ sales promotions are targeted toward the ultimate end-user market.
a.
Facilitating
b.
Intermediary
c.
Pull
d.
Consumer
e.
Trade
7. All of the following would be a target for a trade sales promotion offered by Rubbermaid, a
manufacturer of storage and organization products, EXCEPT:
a.
a retailer called The Container Store
b.
a kitchen department in a large discount store
c.
a wholesaler of plastic storage bins
d.
a Rubbermaid distributor
e.
a consumer who needs to organize her college dorm room
8. The most widely used promotional medium is:
a.
sampling
b.
direct mail
c.
in-store promotions
d.
rebates
e.
point-of-purchase promotions
9. The goal of sales promotion (regardless of what form it takes) is usually:
a.
immediate purchase
b.
return on investment
c.
cost control
d.
market share leadership
e.
economies of scale
10. Consumers who buy your product most or all of the time are called:
a.
loyal customers
b.
cherry pickers
c.
brand switchers
d.
regulars
e.
automatic customers
11. Martina buys cola every week at the grocery store, but she always buys whatever is on sale.
Coca-Cola, Pepsi, RC Cola—it doesn’t matter to her. She is happy with whatever costs the least.
Martina would be characterized as a:
a.
loyal customer
b.
competitor’s customer
c.
price buyer
d.
cherry picker
e.
freeloader
12. Which of the following sales promotion tools would be MOST appropriate for a competitor’s
customer?
a.
Sampling
b.
Rebates
c.
Loyalty marketing programs
d.
Bonus packs
e.
Coupons
13. Packaged-goods marketers such as Kellogg’s and Betty Crocker have increased their use of coupons
recently due to:
a.
intense competition and the introduction of new products
b.
the growth of frequency programs
c.
push money from retailers
d.
POP activities
e.
user incentives from retailers
14. Coupons, premiums, contests, free samples, and frequent buyer programs are examples of:
a.
personal selling
b.
trade sales promotion
c.
publicity
d.
advertising
e.
consumer sales promotion
15. All of the following are types of consumer sales promotions EXCEPT:
a.
coupons
b.
rebates
c.
premiums
d.
contests and sweepstakes
e.
push money
16. Groupon.com and Crowdsaver combine elements of sales promotions with:
a.
pull money
b.
rebates
c.
premiums
d.
social media
e.
push money
17. A certificate that entitles consumers to an immediate price reduction when they buy the product is
called a(n):
a.
coupon
b.
premium
c.
push money
d.
entitlement
e.
allowance
18. To overcome low redemption rates for coupons, marketers are doing all of the following EXCEPT:
a.
issuing fewer coupons and using more everyday low pricing
b.
shortening the time the coupon can be redeemed to create a feeling of urgency
c.
requiring multiple purchases to redeem the coupon
d.
distributing single all-purpose coupons that can be redeemed for several brands
e.
using instant coupons on product packages
19. Why are many marketers shortening the time in which a coupon can be redeemed?
a.
To track response rates
b.
To increase introductory sales
c.
To create a greater sense of urgency to redeem the coupon
d.
To respond to claims that coupons adversely affect consumer behavior
e.
To limit the use of on-pack coupons
20. Kaye noticed Bounce dryer sheets had a peel-off sticker worth $1.00 off that purchase. The peel-off
stickers are:
a.
premiums
b.
trade discounts
c.
purchase allowances
d.
in-store coupons
e.
functional allowances
21. A _____ is a cash refund given to consumers for the purchase of a product during a specific time
period.
a.
premium
b.
trade discount
c.
purchase allowance
d.
rebate
e.
functional allowance
22. When Rick purchased a Xerox color printer for his law office, he was able to mail in a
proof-of-purchase and his cash register receipt to receive a check from Xerox for $200. Rick received
a:
a.
premium
b.
trade allowance
c.
purchase allowance
d.
rebate
e.
functional discount
23. Why do some marketers offer rebates instead of price reductions to induce short-term sales?
a.
Rebates are especially good at enticing purchases, but most consumers never bother to
redeem them.
b.
A price reduction of this type would likely be an example of price discrimination.
c.
Rebates offer a more immediate reward than price reductions.
d.
Rebates have a much higher redemption rate than coupons.
e.
Rebates result in brand-loyal consumers.
24. A(n) _____ is an extra item offered to the consumer, usually in exchange for some proof that the
promoted product has been purchased.
a.
coupon
b.
trade sample
c.
supplement
d.
premium
e.
add-on
25. When Maya purchased a full-size bottle of Purell Hand Sanitizer, she received a free, purse-sized
bottle as well. The purse-sized bottle is an example of a:
a.
product placement
b.
trade sample
c.
contest
d.
premium
e.
loyalty incentive
26. New subscribers to Men’s Health magazine receive a free copy of Men’s Health Total Fitness Guide.
The Fitness Guide is an example of a(n):
a.
contest
b.
premium
c.
trade sample
d.
product placement
e.
loyalty incentive
27. Consumers who send in 10 UPC symbols as proof of purchase of Chips Ahoy! cookies will receive a
children’s classic DVD. The DVD is an example of a:
a.
loyalty incentive
b.
trade sample
c.
premium
d.
trade product
e.
product placement
28. Which type of consumer sales promotion rewards loyal consumers for making multiple purchases of a
particular good or service?
a.
A frequent buyer program
b.
An 80/20 program
c.
A net worth program
d.
A premium program
e.
A continuity program
29. One of the best methods for creating and rewarding brand loyalty among consumers who might
otherwise switch to competing brands is a:
a.
directed coupon mailing
b.
sweepstakes
c.
loyalty marketing program
d.
trade sales promotions
e.
sampling program
30. Jack’s Pet Store offers customers who purchase pet food a “Baker’s Dozen” card. After customers
purchase 12 bags of pet food from Jack’s, they get the 13th bag free. The Baker’s Dozen card is an
example of a:
a.
directed coupon mailing
b.
sweepstakes
c.
loyalty marketing program
d.
trade sales promotion
e.
sampling program
31. Unlike other sales promotion activities, the objective of a loyalty marketing program is to:
a.
encourage brand switching
b.
appeal to bargain hunters who consistently buy the lowest priced brand
c.
take away customers from the competition
d.
build long-term, mutually beneficial relationships between a company and its key
customers
e.
modify customers’ attitudes toward a product
32. Co–branded credit cards are used in conjunction with:
a.
self-perpetuating premiums
b.
loyalty marketing programs
c.
trade consumer promotions
d.
consumer discount programs
e.
functional consumer discounts
33. By visiting the priceless.com site, MasterCard users can register for a chance to win an
all-expense-paid trip for two to New York to see two Broadway plays. This prize package will be
awarded through a(n) _____ since there is no skill involved.
a.
contest
b.
P-O-P promotion
c.
sweepstakes
d.
loyalty incentive plan
e.
event sponsorship
34. The Pillsbury Bake-Off requires people to submit a recipe using Pillsbury baking products. Finalists
are brought to Pillsbury kitchens to bake their recipes so the winner of a cash prize can be chosen. This
is an example of a:
a.
contest
b.
sales promotion game
c.
sweepstakes
d.
push money deal
e.
POP (participant of Pillsbury)
35. Seagram’s Coolers has asked bartenders in New York City to submit cocktail recipes to its Web site.
From these entries, the winning recipe will be selected. The winner of this _____ gets to take a friend
on a five-night trip to Tahiti.
a.
contest
b.
push money deal
c.
sampling
d.
relationship game
e.
sweepstakes
36. Which of the following statements about contests and sweepstakes is true?
a.
Contests depend on luck, and participation is free.
b.
Contests are generally effective tools for creating long-term relationships with customers.
c.
Sweepstakes are promotions that require participants to exhibit some skill.
d.
Sweepstakes usually draw about ten times more participants than contests.
e.
Contests and sweepstakes are not useful for creating interest and publicity.
37. Which sales promotion tool allows the consumer the opportunity to try a product or service for free?
a.
Coupon
b.
Rebate
c.
Sampling
d.
Sweepstake
e.
Allowance
38. Club Penguin is an online role-playing game for kids aged 6 to 14 operated by the Walt Disney
Company. Players pay a monthly fee to gain access to all of Club Penguin’s feature, although free
memberships with limited access to games is also available. Disney offers free membership to Club
Penguin in the hope that kids who like the game will ask their parents to pay for the full version.
Disney is using which sales promotion tool?
a.
Sponsorship
b.
Sampling
c.
Trade promotions
d.
In-pack couponing
e.
Premiums
39. The Men’s Health Center offers free blood pressure tests, cholesterol screening tests, and prostate
exams one day each year. These free health tests are an example of a:
a.
premium
b.
free sample
c.
service commission
d.
sponsorship
e.
point-of-purchase promotion
40. _____ are promotional exhibits set up at the retailer’s location to build traffic, advertise the product, or
induce impulse buying. They are targeted to consumers.
a.
Point-of-purchase displays
b.
Trade shows
c.
Indirect demonstrations
d.
Direct demonstrations
e.
Freestanding kiosks
41. All of the following are examples of point-of-purchase promotions EXCEPT:
a.
television monitors at supermarket checkouts
b.
shelf talkers
c.
newspaper inserts
d.
shelf extenders
e.
end-aisle and floor-stand displays
42. Point-of-purchase promotions work best for:
a.
high-involvement products
b.
purchases that require extensive decision making
c.
complex products that require technical knowledge to operate
d.
impulse buys
e.
expensive products like perfume and jewelry
43. One of the major advantages to using point-of-purchase promotion is:
a.
its low costs
b.
its ability to create long-term relationships with customers
c.
the fact it has a captive audience
d.
its ability to create long-term relationships with intermediaries
e.
the low monetary requirements
44. Which of the following statements about online sales promotions is true?
a.
Internet sales promotions are more effective and cost-efficient at generating responses than
their offline counterparts.
b.
One of the few types of sales promotion that cannot be used online is sampling.
c.
Online coupons have lower redemption rates than off-line coupons.
d.
Loyalty marketing programs are ineffective when used at Web sites to encourage traffic.
e.
There is no way for a marketer to build long-term, mutually beneficial relationships with
customers online.
45. Trade sales promotions support a _____ strategy.
a.
push
b.
hierarchical
c.
disintermediation
d.
discontinuous innovation
e.
pull
46. Lopez is the largest Hispanic-owned meat processor in the United States. To assist retailers in
marketing its products, Lopez provides point-of-sale materials and offers special introductory
discounts to retailers. Lopez uses:
a.
functional marketing
b.
relationship selling
c.
consumer promotions
d.
startup marketing
e.
trade promotions
47. _____ is a price reduction offered by manufacturers to intermediaries such as wholesalers or retailers,
in exchange for performance of specified functions or purchasing during special periods.
a.
A point-of-purchase discount
b.
Pull money
c.
A quantity discount
d.
A functional discount
e.
A trade allowance
48. General Mills is offering resellers a 10 percent discount on all cases of its granola bars purchased
during the month of June. General Mills is offering a:
a.
trade allowance
b.
life cycle extension promotion
c.
P-O-P discount
d.
push money deal
e.
product development deal
49. _____ is money offered to channel intermediaries to encourage them to sell the manufacturer’s
product.
a.
A trade allowance
b.
Push money
c.
A selling deal
d.
A premium payment
e.
A direct trade sales promotion
50. General Motors is offering the sales force at Kings Chevrolet a $100 reward for each Chevy Volt sold
in the next 30 days. What type of trade sales promotion is the $100?
a.
A trade allowance
b.
Push money
c.
A selling deal
d.
Premium payment
e.
A direct commission
51. Lancôme cosmetics has sent a representative to Macy’s to promote its beauty aids by performing
facials and makeovers for customers. What type of trade sales promotion is this?
a.
Rebate
b.
Frequent buyer program
c.
Store demonstration
d.
Trade allowance
e.
Training
52. All of the following are examples of trade sales promotions EXCEPT:
a.
push money
b.
store demonstrations
c.
premiums and coupons
d.
free merchandise
e.
trade shows
53. The use of trade shows:
a.
is not an important aspect of sales promotion
b.
can help companies identify new prospects
c.
does not help introduce new products
d.
does not enhance corporate morale
e.
is a disadvantage in that it is usually impossible to display the product itself
54. You are responsible for sales promotion for Replenishmints, long-lasting breath mints that contain a
blend of vitamins and other nutrients specifically formulated for smokers and for people exposed to
tobacco in their environment. You need to introduce the mints to supermarket managers and owners,
attract and identify new store contacts, and test market the response to Replenishmints. Which type of
trade promotion will help you reach your objectives in the most cost effective way?
a.
Trade shows
b.
Trade allowances and direct incentives
c.
Push money
d.
Contests and sweepstakes
e.
Direct sampling and store demonstrations
55. Trade sales promotions are popular among manufacturers because they can do all of the following at
trade shows EXCEPT:
a.
introduce new products
b.
create long-term relationships between manufacturers and customers
c.
enhance the corporate image
d.
test the market response to new products
e.
gather competitive information
56. _____ is direct communication between a sales representative and one or more prospective buyers for
the purpose of making a sale.
a.
Trade promotion
b.
Sales promotion
c.
Public relations
d.
Personal selling
e.
Direct marketing
57. All of the following statements describe an advantage of personal selling over other forms of
promotion EXCEPT:
a.
Personal selling is less expensive on a per contact basis.
b.
Personal selling is better for providing customers with detailed demonstrations of
products.
c.
It is easier to vary the message according to what the customer needs to know with
personal selling.
d.
It is easier to direct the marketing effort to directly to qualified prospects with personal
selling.
e.
Personal selling costs can be controlled by adjusting the size of the sales force.
58. Kinko’s has built a long-term business relationship with PeopleSoft in which PeopleSoft awards much
of its training and education materials printing to Kinko’s. Which promotional activity was most likely
used to make this $5 million deal?
a.
Direct sales management
b.
Personal selling
c.
Public relations