Exam 12: Sales Promotions

The primary goals of contests and sweepstakes are to encourage customer traffic and boost brand switching behavior.

A bonus pack works best for current customers.

Retailers believe charging slotting fees forces manufacturers to eliminate poor product introductions, knowing that the majority of new products fail.

Premiums are prizes or gifts consumers receive when purchasing products.

Price-sensitive consumers regularly respond to consumer promotions, such as coupons, price-off deals, and premiums.

Scanner-delivered coupons encourage:

An overlay combines two or more consumer promotional activities into a single campaign.

Forward-buying is purchasing extra inventory while it is on-deal so it can be sold later when it is off-deal.

Brand-loyal consumers purchase only one particular brand and do not respond to consumer promotions unless it is for their particular brand.

Price-offs can encourage customers to switch brands in brand parity situations or when the consumer has a high level of brand loyalty to another brand.

A major disadvantage of sampling is the cost, both of producing the sample and for distributing the sample.

Adding an extra bar of soap to a three pack and offering it at a special price is a:

A small perfume sample placed in a magazine is a:

Spiff money refers to cash, not prizes, paid to consumers in sales contests.

From a manufacturer's perspective, a trade show offers the potential to meet customers and sell products.

In a trade show, a buyer who is trying to solve a specific problem with a product choice is a(n):

Diversion is purchasing extra inventory while it is on-deal and shipping it to other locations where it is off-deal.

In recent years, marketers have increased the use of which medium for distributing samples?

In almost all cases, for a retailer to receive co-op advertising dollars from a manufacturer, there cannot be a competing brand in the advertisement.

The consumer is typically required to make a purchase when entering a sweepstakes.