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Chapter Sixteen Sales Promotion, Events, and Sponsorships Sales promotion can be defined as: a) b) c) d) When a salesperson calls on the customer directly to offer a discount When a marketer increases the value of its product by offering an extra incentive to purchase a brand When the sales of a product occurs only online When all advertising spending occurs on television Prentice Hall, © 2009 16-2 Sales promotion can be defined as: a) b) c) d) When a salesperson calls on the customer directly to offer a discount When a marketer increases the value of its product by offering an extra incentive to purchase a brand When the sales of a product occurs only online When all advertising spending occurs on television Prentice Hall, © 2009 16-3 Advertising differs from sales promotion in that: a) b) c) d) Advertising creates a brand image over time, sales promotion creates immediate action Advertising contributes greatly to short-term profitability while sales promotion contributes only moderately Advertising is designed to grow product sales while sales promotion relies on advertising Advertising relies on salespeople while sales promotion relies on the trade Prentice Hall, © 2009 16-4 Advertising differs from sales promotion in that: a) b) c) d) Advertising creates a brand image over time, sales promotion creates immediate action Advertising contributes greatly to short-term profitability while sales promotion contributes only moderately Advertising is designed to grow product sales while sales promotion relies on advertising Advertising relies on salespeople while sales promotion relies on the trade Prentice Hall, © 2009 16-5 Sales promotion is primarily designed to motivate people to act by building brand awareness. a) True b) False Prentice Hall, © 2009 16-6 Sales promotion is primarily designed to motivate people to act by building brand awareness. a) True b) False Prentice Hall, © 2009 16-7 Can sales promotion reduce the risk of trying a new product by adding value to it? a) Yes b) No Prentice Hall, © 2009 16-8 Can sales promotion reduce the risk of trying a new product by adding value to it? a) Yes b) No Prentice Hall, © 2009 16-9 Price deals are the type of consumer sales promotion that: a) b) c) d) Create excitement by promising something for nothing and offering impressive prizes Offer a temporary price reduction or sale price Represent tangible rewards for a particular act Allow the consumer to try the product or service Prentice Hall, © 2009 16-10 Price deals are the type of consumer sales promotion that: a) b) c) d) Create excitement by promising something for nothing and offering impressive prizes Offer a temporary price reduction or sale price Represent tangible rewards for a particular act Allow the consumer to try the product or service Prentice Hall, © 2009 16-11 Consumer promotions can be useful during all phases of a brand’s life. a) True b) False Prentice Hall, © 2009 16-12 Consumer promotions can be useful during all phases of a brand’s life. a) True b) False Prentice Hall, © 2009 16-13 If you were interested in creating a reminder for your brand, could consumer promotions be a wise choice? a) Yes b) No Prentice Hall, © 2009 16-14 If you were interested in creating a reminder for your brand, could consumer promotions be a wise choice? a) Yes b) No Prentice Hall, © 2009 16-15 Consumer promotions are different from trade promotions in that they: a) b) c) d) Claim the greatest percentage of the promotion budget Are directed at the intermediary buyer Are directed at the ultimate user of a good or service Offer less variety and flexibility Prentice Hall, © 2009 16-16 Consumer promotions are different from trade promotions in that they: a) b) c) d) Claim the greatest percentage of the promotion budget Are directed at the intermediary buyer Are directed at the ultimate user of a good or service Offer less variety and flexibility Prentice Hall, © 2009 16-17 Trade promotions for wholesalers and retailers are important in all of the following ways except: a) b) c) d) They provide trade information about the new product and its selling points They motivate retailers to provide shelf space for products and consumer promotions They stimulate Internet sales through the marketing channel They motivate resellers to engage in certain sales activities Prentice Hall, © 2009 16-18 Trade promotions for wholesalers and retailers are important in all of the following ways except: a) b) c) d) They provide trade information about the new product and its selling points They motivate retailers to provide shelf space for products and consumer promotions They stimulate Internet sales through the marketing channel They motivate resellers to engage in certain sales activities Prentice Hall, © 2009 16-19 Consumer sales promotions and trade promotions are the only two types of promotions one can use. a) True b) False Prentice Hall, © 2009 16-20 Consumer sales promotions and trade promotions are the only two types of promotions one can use. a) True b) False Prentice Hall, © 2009 16-21 If you wanted to detract attention from a major sponsor at an event, could ambush marketing be wise? a) Yes b) No Prentice Hall, © 2009 16-22 If you wanted to detract attention from a major sponsor at an event, could ambush marketing be wise? a) Yes b) No Prentice Hall, © 2009 16-23 How can advertisers best utilize the Internet for sales promotion programs? a) b) c) d) Sampling and sweepstakes Driving consumers to print media Price deals and coupons Both a and c Prentice Hall, © 2009 16-24 How can advertisers best utilize the Internet for sales promotion programs? a) b) c) d) Sampling and sweepstakes Driving consumers to print media Price deals and coupons Both a and c Prentice Hall, © 2009 16-25 It is possible that sales promotion can negate the efforts that advertisers expend in brand building. a) True b) False Prentice Hall, © 2009 16-26 It is possible that sales promotion can negate the efforts that advertisers expend in brand building. a) True b) False Prentice Hall, © 2009 16-27 Should advertising and promotion work separately, each with a separate plan? a) Yes b) No Prentice Hall, © 2009 16-28 Should advertising and promotion work separately, each with a separate plan? a) Yes b) No Prentice Hall, © 2009 16-29 Which of the following would not be effective as a tool to measure promotion effectiveness? a) b) c) d) Consumers calling the company Sending back a card Coupon redemption rates All of the above are effective tools Prentice Hall, © 2009 16-30 Which of the following would not be effective as a tool to measure promotion effectiveness? a) b) c) d) Consumers calling the company Sending back a card Coupon redemption rates All of the above are effective tools Prentice Hall, © 2009 16-31 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Prentice Hall, © 2009 16-32