Exam 15: Sales Promotion Point-Of-Purchase Advertising and Support Media

Scenario 15-2 The Sounds Good recording company is getting ready to release the first compact disc from its newest band, Planet Moon.Sounds Good's last three releases have been dismal failures, and the struggling company needs a quick influx of cash.The owners decide to use sales promotions to move the Planet Moon disc through record stores and into customers' hands. -(Scenario 15-2) Sounds Good knows that the release cannot succeed without gaining distribution in large record store chains.However, many of these chains are refusing to carry the product, saying that shelf space is too precious to be used for an unknown band like Planet Moon.However, buyers for these chains say that they might be willing to carry the product if Sounds Good makes a direct cash payment to the chain.This is known in the trade channel as a:

Scenario 15-6 Ted's grocery store is extremely popular in a small neighborhood.Pretzels, a crisps company, has provided scratch cards inside each packet of crisps with the hope of a prize for the winner.Pretzels being a relatively new company had to pay Ted's grocery to sell its products.Quads, a blender manufacturer, has provided its customers with a chance to receive 10% of their money back by mailing them and filling in the required details.It also stated that employees who sell two blenders would receive a bonus.Quad had sent the owner of Ted's grocery an expensive hand crafted wooden sculptor. -(Scenario 15-6) Pretzels paid Ted's grocery a fee to sell its products.This is known as:

The combination of transit, aerial, and cinema advertising is known as media advertising.

Scenario 15-4 General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats.However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market.As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well.Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category.As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal. -(Scenario 15-4) General Mills allowes its retailers to deduct 2$ from every box of cereal in the shipment it receives. This is an example of a(n) .

Scenario 15-4 General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats.However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market.As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well.Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category.As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal. -(Scenario 15-4) General Mills inserts a sheet of coupons in the Sunday newspapers in major markets.This is a form of sales promotion.

Which of the following are the two broad categories of Point-of-Purchase materials?

The biggest difference between contests and sweepstakes is that:

Describe any five of the consumer-market sales promotion techniques.

Scenario 15-5 Starting in late 2010, shoppers at a number of Bloom supermarkets will be able to watch commercials on small notebook­sized monitors as they stroll through the aisles.The devices, or 3GTV's as creator Automated Media Services calls them, will advertise products nearby ranging from macaroni noodles to peanut butter.The mini- televisions are part of a pilot program in nine of the grocer's locations in Maryland and Virginia to test the effectiveness of commercials at the Point-Of-Purchase.Advertisers who are growing increasingly frustrated by TiVo and DirectTV's fast-forwarding capabilities, will be able to pitch consumers at what Automated believes is the most crucial point in the sale process.The new technology could help grocery stores such as Bloom save money on circulars, but the transition will likely not come without conflict.Before the first 3GTV was even activated, one coalition group argued that the system would undercut parental authority by causing children to lobby for the product being advertised. (Danielle Douglas, "Bloom to Try Out In­Store TV Advertising System." Washington Post, November 1, 2010.) -(Scenario 15­5) Advertisements on the 3GTV's will likely be rotating on a very frequent basis.In fact, no one ad will be shown for any longer than one or two months at a time.These ads are known as:

Which of the following sales promotion tactics runs a risk of eroding a brand image or value?

Which of the following is true of a self-liquidating premium?

The sales-promotion techniques used within the trade market are:

The marketers at Kraft are currently focusing on building brand loyalty and considering a number of consumer- market sales promotion techniques.Which of the following would work best at encouraging brand loyalty toward Kraft Macaroni and Cheese?

Scenario 15-5 Starting in late 2010, shoppers at a number of Bloom supermarkets will be able to watch commercials on small notebook­sized monitors as they stroll through the aisles.The devices, or 3GTV's as creator Automated Media Services calls them, will advertise products nearby ranging from macaroni noodles to peanut butter.The mini- televisions are part of a pilot program in nine of the grocer's locations in Maryland and Virginia to test the effectiveness of commercials at the Point-Of-Purchase.Advertisers who are growing increasingly frustrated by TiVo and DirectTV's fast-forwarding capabilities, will be able to pitch consumers at what Automated believes is the most crucial point in the sale process.The new technology could help grocery stores such as Bloom save money on circulars, but the transition will likely not come without conflict.Before the first 3GTV was even activated, one coalition group argued that the system would undercut parental authority by causing children to lobby for the product being advertised. (Danielle Douglas, "Bloom to Try Out In­Store TV Advertising System." Washington Post, November 1, 2010.) -(Scenario 15-5) Which of the following is one of the objectives of Point-of-Purchase advertising?

Billboards offer several strong advantages, but they are most effective as a promotional medium when they are in a location that:

Assume that you are the marketing director for a business of your choice-it can be a real business or an imaginary one -and you need to reach a local audience.You are asked to compare billboard advertising and transit advertising, including their advantages and disadvantages, and prepare a short report detailing these issues. Briefly outline the report you would write, paying particular attention to the best way to promote the brand, the type of product or service you are selling, the geographic area you are in, the demographics of the local population, etc.

An objective of consumer-market sales promotion is to:

One advantage of sales promotion is that it breaks through the media clutter.

The name support media denotes that they:

Billboards have evolved from outdoor signs and posters which represent one of the oldest forms of marketing dating back to the early promotional tools of the 1800s.