MKTG CH 19

Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called
a) advertising.
b) sales promotion.
c) personal selling.
d) target marketing.
e) public relations.
c) personal selling.
A major disadvantage of personal selling is that it
a) is not remembered as well by consumers as advertising messages are.
b) cannot easily adjust the message to satisfy a customer’s information needs.
c) is very expensive per contact.
d) does not provide immediate feedback.
e) is not compatible with other promotional activities.
c) is very expensive per contact.
A sales career can offer all of the following except a
a) structured, inflexible workday.
b) high income.
c) great deal of freedom.
d) high level of training.
e) high level of job satisfaction.
a) structured, inflexible workday.
Personal selling goals include finding prospects, convincing prospects to buy, and
a) monitoring new products being developed.
b) being aware of competitors’ sales activities.
c) seeking one-sale customers.
d) avoiding repeat transactions.
e) keeping customers satisfied.
e) keeping customers satisfied.
The greatest amount of responsibility for providing customer satisfaction falls on the shoulders of
a) chief executive officers.
b) salespeople.
c) sales managers.
d) quality control experts.
e) marketing directors.
b) salespeople.
Jennifer Clarkson, a sales representative for a publisher of college textbooks, had the southern half of the state as a sales territory. Last year, the director of marketing for the publishing company told Jennifer’s sales manager to increase her territory to the entire state. Now Jennifer’s customers are less satisfied with the company. They are most likely to blame ___________ for their reduced level of customer satisfaction.
a) the textbook authors
b) the company’s chief executive officer
c) the marketing manager
d) the sales manager
e) Jennifer
e) Jennifer
Sayyid’s company has launched a new product line, and he is put in charge of sales. He decides his first step will be to find potential customers in the company’s sales records. Sayyid is
a) prospecting.
b) screening.
c) researching.
d) pre-approaching.
e) surveying.
a) prospecting.
The final stage of the selling process is
a) closing.
b) trial close.
c) presentation.
d) follow-up.
e) overcoming objections.
d) follow-up.
Developing a list of potential customers is called
a) preapproaching.
b) surveying.
c) scouting.
d) prospecting.
e) screening.
d) prospecting.
Scott Bartello, a salesperson for Xerox, develops a list of potential customers and evaluates them on the basis of their ability, willingness, and authority to purchase copy machines. This process is called
a) customer search.
b) preapproach.
c) approaching the customer.
d) audience selection.
e) prospecting.
e) prospecting.
Company sales records, commercial databases, newspaper announcements, telephone directories, and public records are all sources used for
a) surveying.
b) screening.
c) researching.
d) preapproaching.
e) prospecting.
e) prospecting.
Advertising that encourages customers to send in reply cards for additional information aids salespeople in achieving which goal of personal selling?
a) Convincing prospects to buy
b) Finding prospects
c) Keeping customers satisfied
d) Making the presentation
e) Following up the sale
b) Finding prospects
Carlos generally makes cold calls on businesses to look for new prospects. He has many satisfied customers, but like many salespeople, he does not frequently utilize one of the best ways to find new prospects, which is through
a) telephone directories.
b) customer referrals.
c) trade shows.
d) local restaurants.
e) other employees.
b) customer referrals.
After compiling a list of potential customers, a salesperson must
a) evaluate whether each prospect is able, willing, and authorized to buy the product.
b) determine whether or not each prospect is really in his target market.
c) find and analyze information about each prospect’s specific needs and current brand choices.
d) develop a presentation for each of the potential customers on his list.
e) contact each of the prospects to get an initial feel for how likely they are to purchase his products.
a) evaluate whether each prospect is able, willing, and authorized to buy the product.
Janetta Light tells her sales manager that she will be devoting more effort to ___________ in the coming weeks, as her list of potential customers has dwindled below the level of 30 firms recommended by the selling plan.
a) approaching customers
b) preapproaching
c) closing the sale
d) following up
e) prospecting
e) prospecting
Tim has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to
a) approach.
b) preapproach.
c) make the presentation.
d) prospect.
e) overcome objections.
b) preapproach.
Before contacting prospects, a salesperson for an industrial cleaning equipment company analyzes information about the prospects’ product needs, feelings about brands, and personal characteristics. This process is called
a) prospecting.
b) preapproach.
c) approaching the customer.
d) sales training.
e) sales planning.
b) preapproach.
A salesperson finds and analyzes information about each prospect’s specific product needs, current use of and feeling about brands, and personal characteristics during
a) prospecting.
b) the approach.
c) presentation preparation.
d) overcoming objections.
e) the preapproach.
e) the preapproach.
Garrett Almar tells a fellow buyer at Robins Wholesale Parts that the last salesperson who called on him before lunch was a real loser: “He has done a poor job of ___________. He didn’t even know what brands we carry or what types of retailers we service!”
a) prospecting
b) preapproach
c) follow-up
d) presenting
e) approach
b) preapproach
Rick has reviewed a prospect’s account and credit history, identified product needs, and gathered the appropriate literature. He feels he is ready for the ____ step of the personal selling process.
a) prospecting
b) presentation
c) approach
d) preapproach
e) closing
c) approach
The step of the personal selling process in which a salesperson contacts a potential customer is called
a) making the presentation.
b) cold calling.
c) the preapproach.
d) the approach.
e) prospecting.
d) the approach.
Creating a favorable impression and developing rapport with prospective customers is a critical part of the ______ step of personal selling.
a) following up
b) making the presentation
c) approach
d) prospecting
e) preapproach
c) approach
Stacey’s client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent. Stacey’s method of approach is known as
a) referral approach.
b) ambulance chasing.
c) door-to-door selling.
d) cold canvass.
e) repeat contact.
d) cold canvass.
The stage of the personal selling process in which the salesperson attempts to make a favorable impression, gather information about the customer’s needs and objectives, and build a rapport with the prospective customers is called
a) prospecting.
b) preapproach.
c) approach.
d) making the presentation.
e) overcoming objections.
d) making the presentation.
The salesperson must attract and hold the prospect’s attention, stimulate interest, and spark a desire for the product during the
a) prospecting.
b) preapproach.
c) follow up.
d) approach.
e) sales presentation.
e) sales presentation.
Sherry Sullivan, Kevin Miller’s sales manager, points out to him that his last shopper in the housewares department didn’t seem involved as he explained the new food processor to her. She suggests that he use a ___________ as part of his presentation next time.
a) video
b) referral
c) demonstration
d) trial close
e) qualification
c) demonstration
Which of the following is not true when making the sales presentation?
a) The salesperson should focus on anticipating questions and answering them before they’re asked.
b) The salesperson must spark interest in the product.
c) The salesperson should not only talk but also listen to the customer.
d) The salesperson should involve the customer by having him or her hold, touch, or use the product.
e) A salesperson should not sound like he or she is just reading a script (i.e., he or she should be flexible and respond to the customers’ comments).
a) The salesperson should focus on anticipating questions and answering them before they’re asked.
A salesperson will be better able to determine the prospect’s specific needs by
a) listening carefully to questions and comments and watching reactions during the sales presentation.
b) waiting until after the sale to see how the client is enjoying the use of the product.
c) doing extensive research before the approach and making the sales presentation without adjustment.
d) using trial closings throughout the sales presentation.
e) making a very thorough and detailed sales presentation about the products and services being offered.
a) listening carefully to questions and comments and watching reactions during the sales presentation.
Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. He explains that he never really figured out what the purchasing agent was looking for. Camilla, a sales trainer for another firm, hands Tony a book on
a) listening skills.
b) overcoming objections.
c) prospect evaluation.
d) product demonstrations.
e) closing.
a) listening skills.
While anticipating objections and countering them before they are asked is a good idea, one negative consequence of doing so is that the salesperson may
a) annoy the customer.
b) mention objections the customer had not thought of.
c) take too long in trying to sell the product, and the customer may stop listening.
d) not emphasize its features and benefits enough.
e) begin to lie about the product.
b) mention objections the customer had not thought of.
During the personal selling process, a salesperson, if possible, should handle objections when
a) they arise.
b) the salesperson begins the trial close.
c) the sales presentation is approximately half completed.
d) when the customer appears to be unhappy or agitated.
e) when the salesperson begins the sales presentation.
a) they arise.
The _____ stage of the personal selling process is when the salesperson asks the prospect to buy the product.
a) proposal
b) closing
c) overcoming objections
d) approach
e) trial
b) closing
When a salesperson asks the customer to buy the product several times throughout the sales presentation in an effort to uncover hidden objections, it is called
a) order taking.
b) new-business selling.
c) trial closing.
d) order getting.
e) overcoming objections.
c) trial closing.
“Mrs. Brucker, you would agree that this is the most attractive car interior in this price range, wouldn’t you?” Cliff Davis, a salesperson at Midtown Ford, was using a(n) ___________ when he made this statement.
a) referral
b) objective
c) bandwagon approach
d) follow-up
e) trial close
e) trial close
During his presentation to Mrs. French about a high-end gourmet oven, Brian asks, “Would you prefer black or stainless steel?” This is an example of a
a) referral.
b) recommendation.
c) follow up.
d) trial close.
e) closing argument.
d) trial close.
A salesperson should try to close the sale
a) at the end of the sales presentation.
b) during the preapproach.
c) about halfway through the sales presentation.
d) after overcoming the biggest objection.
e) several times during the sales presentation.
e) several times during the sales presentation.
The purpose of the ___________ stage in personal selling is to determine customers’ problems and questions about using the product.
a) prospecting
b) approach
c) overcoming-objections
d) follow-up
e) closing
d) follow-up
Cheyenne calls to see if her customer’s new hardwood floors were installed correctly
a) during the follow-up step.
b) immediately after the closing.
c) near the end of the sales presentation.
d) the next time she makes a sales call to that customer.
e) after she receives cash payment from that customer.
a) during the follow-up step.
Creative selling, which requires that salespeople recognize a potential buyer’s needs and then provide the prospect with the necessary information, is performed by
a) order takers.
b) order getters.
c) missionary salespeople.
d) trade salespeople.
e) technical salespeople.
b) order getters.
Yolanda’s job is to find new customers for her company’s telecommunication services. She encourages existing customers to add more services and finds customers who are completely new to the company. Yolanda would best be classified as a(n)
a) order taker.
b) order generator.
c) missionary salesperson.
d) technical salesperson.
e) order getter.
e) order getter.
Order-getting activities are divided into two categories:
a) missionary sales and technical sales.
b) current-customer sales and new-business sales.
c) order takers and trade sales.
d) current sales and support sales.
e) inside order sales and field order sales.
b) current-customer sales and new-business sales.
A person who primarily seeks repeat sales is called a(n)
a) current customer order getter.
b) order recorder.
c) order taker.
d) follow-up salesperson.
e) missionary salesperson.
c) order taker.
The two groups of order takers in personal selling are
a) current customer salespeople and new-business salespeople.
b) missionary salespeople and trade salespeople.
c) inside order takers and field order takers.
d) trade salespeople and technical salespeople.
e) advisory order takers and support order takers.
c) inside order takers and field order takers.
Retail salespeople are classified as
a) order getters.
b) support personnel.
c) trade salespeople.
d) inside order takers.
e) field order takers.
d) inside order takers
Michelle works for a company that sells rotisseries for chicken and other foods. She answers phone calls from customers who see infomercials on TV and call to order the product. Michelle is considered a(n)
a) order getter.
b) inside order taker.
c) support person.
d) field order taker.
e) trade salesperson.
b) inside order taker.
A sales representative for Coca-Cola travels to various restaurants to determine how much syrup the customer needs for the coming period. This sales representative would be classified as a(n)
a) order getter.
b) inside order taker.
c) field order taker.
d) missionary salesperson.
e) trade salesperson.
c) field order taker.
Doug Browton travels around to various established customers to see what new office supplies they need. His customers have come to depend on him to check their supplies. Doug is a(n)
a) field order taker.
b) current customer order getter.
c) missionary salesperson.
d) inside order taker.
e) trade salesperson.
a) field order taker.
A missionary salesperson is usually employed by
a) a retailer.
b) a wholesaler.
c) either a retailer or a producer.
d) a manufacturer.
e) an independent intermediary.
d) a manufacturer.
Which of the following is least likely to be directly involved in actually making sales?
a) Order taker
b) Current-customer salesperson
c) Order getter
d) Field order taker
e) Support sales personnel
e) Support sales personnel
Assisting the producer’s customers in selling to those customers is the major purpose of which type of salesperson?
a) Trade salesperson
b) Technical salesperson
c) Missionary salesperson
d) Order getter
e) Order taker
c) Missionary salesperson
Jin Xiao, a trained engineer, is a salesperson for a chemical manufacturer. He provides current customers with advice about a product’s characteristics and applications. He is a(n)
a) missionary salesperson.
b) trade salesperson.
c) field order taker.
d) inside order taker.
e) technical salesperson.
a) missionary salesperson.
Daphne King of Cleborn Pharmaceuticals tells a sales management class at the state university that her job is to call on doctors and explain the benefits of new prescription drugs that her firm develops. Daphne would call herself a(n)
a) technical salesperson.
b) missionary salesperson.
c) order taker.
d) order getter.
e) trade salesperson.
b) missionary salesperson.
Maria Martinez works for a cosmetics manufacturer and is responsible for ensuring that retailers have adequate quantities of products when they need them. However, she is directing much of her effort toward helping the retailers promote the products. She would be characterized as belonging to which group of salespeople?
a) Trade salespeople
b) Field order takers
c) Advisory salespeople
d) Technical salespeople
e) Order getters
a) Trade salespeople
Jana works for Hormel Foods and she frequently sets up special displays and distributes samples of Hormel products to customers in supermarkets. Jana would best be classified as a(n)
a) trade salesperson.
b) technical salesperson.
c) inside order taker.
d) field order taker.
e) missionary salesperson.
a) trade salesperson.
The type of salesperson that usually requires training in physical science or engineering is the
a) trade salesperson.
b) missionary salesperson.
c) technical salesperson.
d) order taker.
e) order getter.
c) technical salesperson.
A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n)
a) trade salesperson.
b) inside order taker.
c) tech support worker.
d) missionary salesperson.
e) technical salesperson.
e) technical salesperson.
Ryan Amerson leads his company’s clients through the installation procedure of their new industrial equipment. He also helps answer their questions about product characteristics and system design both before and after their purchases. Ryan is a
a) trade salesperson.
b) missionary salesperson.
c) technical salesperson.
d) systems engineer.
e) field order taker.
c) technical salesperson.
In which of the following does the salesperson join with people from the firm’s financial, engineering, and other functional areas to engage in the personal selling process?
a) Trade selling
b) Missionary selling
c) Relationship selling
d) Team selling
e) Technical selling
d) Team selling
Which of the following is particularly appropriate for pricey high-tech business products, such as jet aircraft and medical equipment?
a) Team selling
b) Relationship selling
c) Trade selling
d) Technical selling
e) Missionary selling
a) Team selling
Which of the following involves building mutually beneficial long-term associations with a customer—usually a business customer—through regular communications over prolonged periods of time.
a) CRM selling
b) Missionary selling
c) Exclusive selling
d) Team selling
e) Relationship selling
e) Relationship selling
All of the following are key areas of sales force management except
a) compensating salespeople.
b) coordinating sales promotion efforts.
c) recruiting salespeople.
d) training sales personnel.
e) motivating sales personnel.
b) coordinating sales promotion efforts.
Sales objectives can do all of the following except
a) serve as a deterrent both to salespeople and their clients.
b) give the sales force direction and purpose.
c) serve as a standard for evaluating salesperson performance.
d) let the sales force know what is expected of them.
e) help to control the sales force.
a) serve as a deterrent both to salespeople and their clients.
Sales force objectives are generally established for
a) the organization as a whole only.
b) the total sales force and for each salesperson.
c) just each salesperson but not the whole sales force.
d) for each department or division of the company.
e) long-term but not short-term salespeople.
b) the total sales force and for each salesperson.
Which of the following is the best example of a well-stated sales objective?
a) Companywide sales should increase by 25 percent.
b) Each salesperson should increase his or her client group by 10 percent.
c) Each salesperson should bring in $25,000 in new sales by November 15.
d) The sales force should increase the market share in all markets by December 1.
e) Each salesperson should increase the number of calls they make by 20 percent.
c) Each salesperson should bring in $25,000 in new sales by November 15.
Sales objectives for individual salespeople can be stated in several ways. Which of the following would least likely be used for stating an individual salesperson’s goal?
a) Dollar volume sales
b) Unit volume sales
c) Average order size
d) Ratio of profits relative to number of sales calls
e) Average number of calls per time period
d) Ratio of profits relative to number of sales calls
A company may determine how many sales calls per year it needs to serve customers effectively and divide that by the average number of sales calls made by one salesperson in order to
a) recruit appropriate salespeople.
b) set sales force calling objectives.
c) compensate salespeople fairly.
d) train its salespeople.
e) determine sales force size.
e) determine sales force size
When better market conditions prevail or when company growth occurs, a company may suffer if it
a) lowered its sales force objectives.
b) recruited additional salespeople.
c) decided to use a combination compensation plan.
d) provided additional training for its sales force.
e) cut back the size of its sales force.
e) cut back the size of its sales force.
Recruiting and selection of salespeople should include enough steps to yield the information needed to make accurate selection decisions. However, the stages of the process should be sequenced so that the more expensive steps are
a) near the beginning.
b) always completed before anything else.
c) near the end.
d) paid by the prospects rather than the company.
e) never reached.
c) near the end.
The best advice for recruiting and selecting salespeople for one’s organization would be
a) follow a clear set of generally accepted job characteristics when determining an applicant’s qualifications.
b) keep the expensive stages near the beginning of the recruiting process.
c) find out how long the applicant plans to stay with the company.
d) make recruitment a continuous activity aimed at seeking out the best applicants.
e) recruit primarily from educational institutions.
d) make recruitment a continuous activity aimed at seeking out the best applicants.
Which of the following best characterizes the function of recruiting and selecting a sales force?
a) It should be a continuous, systematic attempt to match applicants’ characteristics to the firm’s needs.
b) It is a process that should be set up that incorporates at least two steps: an interview and a written application.
c) Sources of applicants should be limited, since the recruitment process is expensive and more applicants mean greater expense.
d) After interviewing applicants, the manager should attempt to find a position that can be tailored to fit applicants’ qualifications.
e) It should not be made from personnel in other departments in the firm, as this would necessitate training two people rather than one.
a) It should be a continuous, systematic attempt to match applicants’ characteristics to the firm’s needs.
Zack Freedman is an experienced salesperson who has worked for the same company for 20 years. When he is informed that he must attend a training seminar the following Tuesday, he believes it will most likely be about
a) the company.
b) his customers’ companies.
c) basic selling methods.
d) new-product information.
e) prospecting.
d) new-product information.
Which of the sales force compensation methods is easy to administer, yields more predictable selling expenses, and provides sales managers with a large degree of control over salespeople?
a) Straight commission
b) Salary plus bonus
c) Salary and commission
d) Straight commission and combination
e) Straight salary
e) Straight salary
Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of nonselling tasks. What compensation method(s) would best fulfill his requirements?
a) Combination
b) Straight salary
c) Straight salary plus generous fringe benefits
d) Straight commission
e) Salary plus a bonus
d) Straight commission
Salespeople receive a set salary plus a commission based on sales with a
a) straight salary compensation plan.
b) combination compensation plan.
c) cafeteria plan.
d) straight commission compensation plan.
e) salary plus bonus program.
b) combination compensation plan.
Effective motivation of a sales force is best achieved through
a) annual retreats at resort locations open to families.
b) emphasizing sales force objectives and their connection to compensation.
c) an organized set of activities performed continuously.
d) motivation meetings when sales have declined.
e) daily pep talks before the sales force makes sales calls.
c) an organized set of activities performed continuously.
In designing sales territories, a sales manager considers several major factors. The territories must be constructed so that sales potential can be measured; the shape of the territories should facilitate salespeople’s activities to provide the best possible coverage of customers; and
a) territories should be designed to minimize selling costs.
b) all territories should be of similar size.
c) the territorial pattern should consist of concentric circles.
d) the density of potential customers should be minimized.
e) the distribution of customers should be relatively equal.
a) territories should be designed to minimize selling costs.
If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic size; this will cause the salespeople with larger territories to
a) develop larger income potentials.
b) have to work longer and harder to generate a certain sales volume.
c) work about the same amount, since potential is the same.
d) have much larger sales than those salespeople with smaller territories.
e) be limited to a smaller income potential.
b) have to work longer and harder to generate a certain sales volume.
Customer density and distribution are important factors in
a) prospecting.
b) motivating salespeople.
c) creating sales territories.
d) compensating salespeople.
e) establishing sales force objectives.
c) creating sales territories.
A primary goal of routing and scheduling decisions in personal selling is to
a) determine the sequence in which customers will be called on.
b) use existing transportation facilities.
c) minimize nonselling time.
d) determine duration of sales calls.
e) provide salespeople with an opportunity to plan their own routes and schedules.
c) minimize nonselling time.
___________ are designed to identify the customers called on and to present detailed information about interaction with those clients.
a) Invoices
b) Feedback notices
c) Work schedules
d) Call reports
e) Recall files
d) Call reports
The most common sales force evaluation practices are for sales managers to compare a salesperson’s performance with other salespeople operating under similar selling conditions, or to compare
a) the size of sales territories.
b) selling expenses by various members of the sales force.
c) the amount of new business generated.
d) current performance with past performance.
e) the ratio of costs to profits.
d) current performance with past performance.
Ray Singh is preparing to evaluate one of his sales representatives, Julie Hill. His evaluation of her performance for the prior year led to his conclusion that she lacked key product information. At their upcoming session, he will most likely do which of the following?
a) Decrease the size of her territory.
b) Increase her sales quotas.
c) Terminate her.
d) Recommend that she attend a training program.
e) Ignore this problem given that her sales results were good.
d) Recommend that she attend a training program.
Dorothy won a hot-air balloon ride and dinner for two for being the top revenue-producing mortgage loan officer at her company for the month of October. This contest exemplifies a company’s efforts at
a) motivating salespeople.
b) compensating salespeople.
c) providing training for the sales force.
d) managing sales territories.
e) selecting salespeople.
a) motivating salespeople.
In establishing sales promotion objectives, a marketer should always
a) concentrate on activities that will increase consumer demand.
b) focus on consumers.
c) focus on resellers.
d) be defensive in the methods used.
e) align objectives with the organization’s overall objectives.
e) align objectives with the organization’s overall objectives.
When deciding on sales promotion methods to employ, marketers take several factors into consideration. Which factor below is unlikely to affect decisions regarding sales promotion methods?
a) Type of package
b) Product characteristics
c) Target market characteristics
d) Types of resellers
e) Competitive forces in the environment
a) Type of package
In recent years the proportion of promotional dollars spent on sales promotion has
a) increased relative to advertising.
b) remained constant.
c) declined slightly, and the proportion spent on advertising has increased.
d) declined slightly, and the proportion spent on advertising has declined as well.
e) increased, and the proportion spent on advertising has risen as well.
a) increased relative to advertising.
Which of the following is not a reason why the proportion of promotional dollars spent on sales promotion has increased in recent years?
a) Retailers have become more powerful relative to manufacturers and are demanding more trade sales promotion efforts.
b) Because of an increased focus on value, consumers are more responsive to promotional offers.
c) The greater emphasis on improving long-term performance has resulted in an increased use of sales promotion methods.
d) Sales promotions aimed at convincing customers to change brands are more effective because of declines in brand loyalty in general.
e) All of these are reasons for the increasing proportion of promotional dollars being spent on sales promotion efforts.
c) The greater emphasis on improving long-term performance has resulted in an increased use of sales promotion methods.
Heinz uses various techniques such as coupons, free samples, and consumer contests to encourage consumers to try its products. All of these marketing activities are considered
a) trade sales promotion methods.
b) consumer incentives.
c) consumer sweepstakes.
d) buying allowances.
e) consumer sales promotion methods.
e) consumer sales promotion methods.
As Quaker Oats tries to decide how to introduce its new line of breakfast bars, it considers all the advantages and disadvantages of the various consumer sales promotion methods. After careful consideration, Quaker Oats decides to use _____, which are the most widely used form of consumer sales promotion.
a) free samples
b) rebates
c) point-of-purchase displays
d) coupons
e) cents-off offers
d) coupons
Fraudulent usage, inability to attract potentially brand-loyal customers, and use by current customers but not new customers are believed to be disadvantages of which of the following?
a) Sweepstakes
b) Money refunds
c) Frequent-user incentives
d) Coupons
e) Premiums
d) Coupons
As a promotional strategy, using coupons strives to achieve all of the following except
a) show how a product is used.
b) increase sales volume quickly.
c) introduce new package sizes.
d) prompt trial usage of a new product.
e) attract repeat users.
a) show how a product is used.
___________ are offers of cash to customers who purchase a specific product, and ___________ are offers of cash to customers who purchase a specific quantity of a specific product.
a) Rebates; reimbursements
b) Cents-off; refunds
c) Rebates; premiums
d) Buy-back allowances; money refunds
e) Rebates; money refunds
e) Rebates; money refunds
Which of the following is most likely to stimulate customer loyalty?
a) Coupons
b) Sweepstakes
c) Frequent-user incentives
d) Samples
e) Premiums
c) Frequent-user incentives
Jamba Juice offers its customers a stamp card that allows them to receive a free smoothie after they have filled an entire card. This is an example of a
a) free sample.
b) rebate.
c) frequent-user incentive.
d) premium.
e) consumer contest.
c) frequent-user incentive.
Signs, counter pieces, racks, and self-service cartons are all forms of
a) in-store attention grabbers.
b) demonstrations.
c) retail media.
d) premiums.
e) point-of-purchase displays.
e) point-of-purchase displays.
Although Maybelline would like to use ______ as a consumer sales promotion method, this method has extremely high labor costs that are more affordable for higher-end make-up companies such as Clinique and Estée Lauder.
a) frequent-user incentives
b) demonstrations
c) coupons
d) rebates
e) consumer contests
b) demonstrations
Realizing that her firm’s sales promotion budget was small and cut by 30 percent for the coming year, Stacey Baronas rules out ___________ as playing a role in her sales promotion plan.
a) samples
b) coupons
c) point-of-purchase materials
d) money refunds
e) premiums
a) samples
To increase sales of Chex cereals, Ralston Purina offered a free pound of bananas to customers who bought the large-size box. This form of sales promotion is called a
a) premium.
b) coupon.
c) cents-off offer.
d) free sample.
e) money refund.
a) premium.
___________ are items offered free or at minimal cost as a bonus for purchasing a product.
a) Rebates
b) Premiums
c) Samples
d) Merchandise allowances
e) Coupons
b) Premiums
At one time, Wheaties offered two free golf balls with the purchase of a twin pack of Wheaties cereal featuring Tiger Woods. This is an example of a
a) consumer prize.
b) rebate.
c) premium.
d) free sample.
e) free merchandise.
c) premium.
On a break between classes, Kelley Macon selects two magazines and mails the Publishers Clearing House entry form. She doubts that she will win $10 million, but she never passes up a chance to participate in a
a) premium.
b) consumer contest.
c) sampling.
d) sales contest.
e) sweepstakes.
e) sweepstakes.
The difference between consumer sales promotion methods and trade sales promotion methods is
a) with consumer sales promotion, marketers try to persuade retailers to carry their products.
b) with trade sales promotion, marketers focus on trading with consumers.
c) consumer and trade sales promotions aim at retailers, but only trade sales promotions aim at wholesalers.
d) consumer sales promotions focus on getting consumers to buy their products, whereas trade sales promotions focus on getting wholesalers and retailers to buy.
e) trade sales promotions attempt to persuade people to buy at particular stores, whereas consumer sales promotions focus on persuading people to buy particular products.
d) consumer sales promotions focus on getting consumers to buy their products, whereas trade sales promotions focus on getting wholesalers and retailers to buy.
Any marketing tactic used to stimulate wholesalers and retailers to carry a producer’s products and market those products more aggressively is a
a) trade sales promotion method.
b) point-of-purchase material.
c) consumer sales promotion method.
d) merchandise allowance.
e) dealer loader.
a) trade sales promotion method.
Which of the following is an example of a trade sales promotion method?
a) Frequent-user incentives
b) Point-of-purchase displays
c) Retailer coupons
d) Free merchandise
e) Money refunds
d) Free merchandise
A temporary price reduction to resellers for purchasing specified quantities of a product is
a) premium money.
b) a merchandise allowance.
c) a buying allowance.
d) a buy-back allowance.
e) a money refund.
c) a buying allowance.
Sometimes retailers are offered temporary price reductions for purchasing specified quantities of a product. These offers are used to provide an incentive to handle a new product, to achieve a temporary price reduction, or to stimulate the purchase of an item in large quantities. What is this sales promotion?
a) Push money
b) Buy-back allowance
c) Buying allowance
d) Cents-off offer
e) Money refund
c) Buying allowance
If Green Giant wants to provide its resellers with a secondary incentive to stimulate repurchases after an initial consumer coupon campaign for its latest product, it can offer resellers a sum of money for each unit purchased. This type of sales promotion is a
a) buying allowance.
b) count-and-recount allowance.
c) scan-back allowance.
d) buy-back allowance.
e) coupon follow-up campaign.
d) buy-back allowance.
When a manufacturer rewards retailers based on the number of pieces moved through their scanners, this sales promotion method is known as a
a) merchandise allowance.
b) count-and-recount allowance.
c) buy-back allowance.
d) scan-back allowance.
e) scan-count allowance.
d) scan-back allowance.
When Levi’s agrees to pay JC Penney’s money for providing television advertising and Sunday newspaper sales fliers emphasizing Levi’s jeans, Levi’s is offering
a) premium money.
b) cooperative advertising.
c) a dealer loader.
d) a buying allowance.
e) a merchandise allowance.
e) a merchandise allowance.
An arrangement in which a manufacturer pays a certain amount of a retailer’s media costs for advertising that manufacturer’s products is
a) a buy-back allowance.
b) a merchandise allowance.
c) premium money.
d) push money.
e) cooperative advertising.
e) cooperative advertising.
A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is available at Kmart and Wal-Mart. This form of sales promotion is called a(n)
a) cooperative advertising.
b) dealer listing.
c) push money.
d) dealer loader.
e) advertising allowance.
b) dealer listing.
A __________ is a gift to a retailer who purchases a specified quantity of merchandise.
a) dealer loader
b) premium
c) dealer listing
d) merchandise allowance
e) count and recount
a) dealer loader
A dealer loader is
a) additional compensation to salespeople from the manufacturer to promote a line of goods.
b) an agreement in which a producer offers free merchandise to a retailer.
c) an advertisement that promotes a product and identifies retailers who sell the product.
d) a gift to a retailer who purchases a specified quantity of merchandise.
e) a temporary price reduction to resellers for purchasing a certain quantity of merchandise.
d) a gift to a retailer who purchases a specified quantity of merchandise.
Aaron Epstein tells his fellow retail salesperson at Zales Jewelers that during the second quarter he is going to sell all the Alance watches he can and use his extra earnings to go to Cancun. He exclaims, “Can you believe the __________ program they have on for this quarter?”
a) buying allowance
b) merchandise allowance
c) push money
d) dealer loader
e) sweepstakes
c) push money
While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales promotion is that
a) they are often too complicated.
b) they are not taken seriously by the employees.
c) people often discontinue their positive behavior after the contest is over.
d) many point-of-purchase display materials are needed to implement a contest.
e) people often feel they are not being recognized enough.
c) people often discontinue their positive behavior after the contest is over.