ARE 136 Ch. 15 Questions and Answers Complete

Sales promotion is the use of techniques that create a perception of greater brand value
among consumers, the trade, and business buyers, but the techniques can’t entail an
incentive.
a. True
b. False Ans- False
The complex and information-rich tools of IBP can help create brand loyalty and
competitive advantage.
a. True
b. False Ans- True
One advantage of sales promotions is that the results are simple to measure.
a. True
b. False Ans- True
Sales promotion can break through the media clutter.
a. True
b. False Ans- True
Historically, more money has been budgeted for sales promotion than for advertising.
a. True
b. False Ans- False
Sales promotion can attract attention and motivate trial purchase, but is not allowed for
introducing new brands to the public.
a. True
b. False Ans- False
Marketers must select only one sales promotion technique aimed at consumers, such
as coupons, price-off deals, premiums, contests and sweepstakes, samples and trial
offers, phone and gift cards, rebates, and frequency programs.
a. True
b. False Ans- False

Coupons are the oldest and most widely used form of sales promotion.
a. True
b. False Ans- True
A dentist offers a deal in which customers who have had two teeth whitening services
over the last year get the third one free. This is an example of a sampling program to
stimulate repeat purchases.
a. True
b. False Ans- False
One advantage of using sweepstakes and contests is that they can quickly and easily
communicate the brand message through the game.
a. True
b. False Ans- False
A manufacturer of dental care products sets up a new promotion by attaching one of its
toothbrushes to its boxes of toothpaste. This is an example of a mobile sampling
technique.
a. True
b. False Ans- False
Retailers often run trade promotions simultaneously along with consumer promotions.
a. True
b. False Ans- True
One objective for promotions in the trade channel is to increase store traffic, which
benefits both manufacturers and retailers.
a. True
b. False Ans- True
The fight for space on grocers’ shelves has become very competitive, so manufacturers
will do anything to get stores to stock their items—except paying a fee, which is illegal.
a. True
b. False Ans- False
A manufacturer helps a retailer by sharing the cost of local advertising. This allows the
manufacturer to have some control over the process, and the retailer to advertise for a
lower cost. They are taking part in a form of business-market sales promotion.
a. True
b. False Ans- False
It is estimated that almost one-fourth of corporate America gives rebates as a type of
business-market promotional technique.
a. True
b. False Ans- False
The advantage that sales promotions have over advertising is that they are measurable
and they can often motivate consumers to buy larger quantities or try new brands.
a. True
b. False Ans- True
Sales promotion is more oriented to techniques used to stimulate demand and attract
attention in the consumer market.
a. True
b. False Ans- True
A coupon entitles a buyer to a designated reduction in price for a product or service,
and is the oldest and most widely used form of sales promotion.
a. True
b. False Ans- True
One of the more noteworthy examples of promotions depicted in the book is by Axe;
Axe did one of the most unusual promotions by offering consumers a chance to go to
space.
a. True
b. False Ans- True
Objectives for consumer-market sales promotion include stimulating a trial purchase,
repeat purchases, larger purchases, or to introduce a new brand, service, or product.
a. True
b. False Ans- True
Sales promotions can be used to disrupt competitors’ marketing strategies.
a. True
b. False Ans- True
A price-off deal offers a consumer cents or even dollars off merchandise at the P-O-P
through specially market packages.

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