Exam 11: Sales Promotion and Point of Purchase

Scenario 11-6 Lightships are blimps designed to be used as marketing and observational tools. Like many blimps, they have state-of-the-art camera platforms that have provided aerial shots of such events as the U.S. Open tennis tournament, the grand opening of EuroDisney, and many NASCAR races. In addition, lightships also provide what is claimed to be a unique advertising opportunity. The hull of the blimps can be used to display a 32-color image. At night, the entire hull and banner area can be internally lit for extremely dramatic nighttime displays. Companies such as Kraft foods, Budweiser, Goodyear, Monster.com, McDonald's, and Reebok have used lightships as part of their advertising efforts. Marketers of the lightships say that lightships can be used as a support vehicle or as a primary advertising vehicle. There are currently sixteen lightships operating across three continents. (www.lightships.com/info.html) -(Scenario 11-6) The use of a lightship is expected to deliver better results than the use of other out-of-home media, such as billboards and transit advertisements, because

If a company's advertising campaign and a sales promotion have different purposes, the company would be wise to

Scenario 11-6 Lightships are blimps designed to be used as marketing and observational tools. Like many blimps, they have state-of-the-art camera platforms that have provided aerial shots of such events as the U.S. Open tennis tournament, the grand opening of EuroDisney, and many NASCAR races. In addition, lightships also provide what is claimed to be a unique advertising opportunity. The hull of the blimps can be used to display a 32-color image. At night, the entire hull and banner area can be internally lit for extremely dramatic nighttime displays. Companies such as Kraft foods, Budweiser, Goodyear, Monster.com, McDonald's, and Reebok have used lightships as part of their advertising efforts. Marketers of the lightships say that lightships can be used as a support vehicle or as a primary advertising vehicle. There are currently sixteen lightships operating across three continents. (www.lightships.com/info.html) -(Scenario 11-6) Most advertisers would consider lightships to be a support medium. This is because

Scenario 11-7 You are a media planner at a small advertising agency. Since it is Friday, you decide to take a long lunch, returning to your office around 2:30 PM. When you get back to your desk, there is a stack of messages waiting for you from account executives about pressing client issues. You must answer them all before you get to start your weekend. -(Scenario 11-7) One message says that a client needs to reach consumers with a message that speaks to the desire "eat right now." The client has fast-food restaurants along a major freeway. Of course, since it's Friday, the client has already gone home for the day, so you leave a voice mail for the client saying that you'll call Monday to discuss the use of

Which of the following is a strategic advantage for manufacturers of P-O-P advertising aimed at trade and business markets?

Support media are used to reinforce a message that is being delivered by some other advertising vehicle.

In recent years, sales promotion expenditures have grown at an annual rate of about 4 to 8 percent, compared to

Trial offers are similar to samples except that trial offers

Scenario 11-2 The White Noise recording company is getting ready to release the first compact disc from its newest band, Wet-Dog. Because White Noise's last three releases have been dismal failures, the company needs a quick influx of cash. The company has decided to use sales promotions to move the product through record stores and into customers' hands. -(Scenario 11-2) White Noise commissions the building of point-of-purchase displays for record stores. The displays hold 144 compact discs, with headphones for patrons to listen to selections off each disc. This is known as

A display rack that stocks product is placed above the cash register. The cashier can reach the product for the consumer. The front of an overhead merchandiser usually carries signage. This is called a dump bin.

Several factors have created a short-term orientation among marketing managers. Which of the following is a reason why this type of orientation exists in many organizations?

Support media are called support media because they

Which of the following is NOT typically a service that advertising agencies provide to clients?

Scenario 11-3 It's time to take your weekly trip to the grocery store. You bring a coupon good for 50¢ off a national brand of coffee. As you walk the aisles, a woman asks if you'd like to try a slice of pizza. After you taste it, she points out where the brand is kept in the freezer display. When you get to your favorite brand of toothpaste, you're delighted to find that a toothbrush, made by the people who make your toothpaste, is attached to the box for no extra charge. You turn the corner and run into a cardboard cutout of one of the stars from a leading medical drama on TV. This display has a medical kit full of a new brand of pain reliever built into it. Your last stop is the cereal aisle, and on the back of your favorite brand is a chance to buy a T-shirt with a picture of the cartoon spokes-animal for the cereal for only $7.95. -(Scenario 11-3) Of the sales promotions you encountered in the store, which one was directed at the trade channel?

Scenario 11-5 The local student chapter of the American Marketing Association (AMA) is preparing to begin a new student membership drive. Previously, these efforts have focused on merely making incoming students aware of the existence of the chapter and making announcements about upcoming events in classes. The student AMA officer team wants the chapter to double in size during the upcoming school year. While this seems like an overly ambitious objective, several of the officers are students in a marketing communications class that teaches sales promotion techniques. These students have argued at several recent meetings that the proper use of sales promotion can help the chapter to accomplish this goal. -(Scenario 11-5) The local Kinko's Copy Center has always supported student groups on campus. They have agreed to support the student AMA chapter by contributing money to the club that is used for advertising. Kinko's expects that when they give money for such advertising that the logo of both AMA and Kinko's appear in the ad. This is an example of ____.

One potential downside of promotions is that a short-term gain may actually be offset by a drop in future sales.

Scenario 11-1 When one runs a World Wide Web word search of the term sales promotion, the result is more than 700,000 matches. The list of links is as diverse as it is extensive. A click of a mouse button can bring you to the home page of a wide variety of full-service Sales Promotion Agencies providing strategic promotion planning and promotion development/implementation with emphasis on retail grocery products. -(Scenario 11-1) If a company creates a trade show booth, the company is employing ____ to sell its product.

Scenario 11-1 When one runs a World Wide Web word search of the term sales promotion, the result is more than 700,000 matches. The list of links is as diverse as it is extensive. A click of a mouse button can bring you to the home page of a wide variety of full-service Sales Promotion Agencies providing strategic promotion planning and promotion development/implementation with emphasis on retail grocery products. -(Scenario 11-1) Pegasus Sales Promotion claims that just about any business can benefit from a scratch card promotion. However, an astute marketer realizes that, as with many different kinds of sweepstakes,

Scenario 11-2 The White Noise recording company is getting ready to release the first compact disc from its newest band, Wet-Dog. Because White Noise's last three releases have been dismal failures, the company needs a quick influx of cash. The company has decided to use sales promotions to move the product through record stores and into customers' hands. -(Scenario 11-2) White Noise 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 on an unknown brand like Wet-Dog. However, buyers for these chains say that they might be willing to carry the product if White Noise makes a substantial direct cash payment to the chain. This payment is known in the trade channel as

Explain what is meant by the term push strategy. Describe four different techniques commonly used as part of a push strategy.