Q&A Hero

Q: A toy placed inside a box of cereal is an example of a(n): A) bonus pack. B) in-package premium. C) store premium. D) self-liquidating premium.

Q: A gift sent by mail to a customer, based on a proof-of-purchase receipt, is a(n) ________ premium. A) free-in-themail B) self-liquidating C) bounce-back D) instant redemption

Q: Some marketing experts believe that the overuse of coupons can damage a brand's image. Which of the following can actually enhance a brand's image? A) Contests and sweepstakes B) Bonus packs C) Sampling D) Premiums

Q: Prizes or gifts that consumers receive when purchasing products are called: A) add-ins. B) premiums. C) purchase incentives. D) giveaways.

Q: A coupon for $10.00 off on a package of baseballs placed on a baseball glove is a: A) response offer coupon. B) cross-ruffing coupon. C) premium. D) bonus offer.

Q: A coupon on a 2-liter bottle of Pepsi, offering $1.00 off on a bag of potato chips, is a ________ coupon. A) cross-ruffing B) scanner-delivered C) response-offer D) instant redemption

Q: Scanner-delivered coupons encourage: A) brand switching. B) repeat purchases. C) trial purchases. D) brand loyalty.

Q: When a cash register triggers a coupon for a product, it is called a ________ coupon. A) bounce-back B) scanner-delivered C) cross-ruffing D) response offer

Q: A $1.00 coupon placed inside a box of Quaker Oats is an example of a(n) ________ coupon. A) instant redemption B) bounce-back C) cross-ruffing D) response offer

Q: Bounce-back coupons are used to encourage: A) brand switching. B) repeat purchases. C) trial purchases. D) brand loyalty.

Q: A bounce-back coupon is: A) not immediately redeemable. B) not normally distributed by a manufacturer. C) a form of premium. D) used at the time the product is purchased.

Q: A package of Oreo cookies has a $1.00-off coupon attached to the package that can easily be removed. This is an example of a(n) ________ coupon. A) instant redemption B) bounce-back C) cross-ruffing D) response-offer

Q: A coupon placed on a package to be used during the purchase of that product is called a(n) ________ coupon. A) freestanding B) bounce-back C) instant redemption D) rebate

Q: Freestanding inserts are found primarily in: A) magazines. B) newspapers. C) shopping malls. D) catalogs.

Q: The primary vehicle for distributing print coupons is: A) magazines. B) newspapers. C) direct mail. D) freestanding inserts.

Q: What is the difference between consumer promotions and trade promotions?

Q: Manufacturers and other members of the marketing channel use trade promotions to help pull products through to retailers.

Q: When a manufacturer offers a special promotion on its products to other companies for their consumption and not for resale, it is a: A) consumer promotion. B) bonus program. C) trade promotion. D) brand awareness program.

Q: Retailers tend to stock brands with strong images even if the manufacturer offers fewer trade deals.

Q: If manufacturers try to quit or cut back on trade promotions, retailers often replace the manufacturer's brand with other brands or trim shelf space to allow more room for brands that are offering better deals.

Q: A major concern in using trade promotions is that merchandise will not move unless a trade promotion is offered. For example, in the grocery industry, the majority of manufacturers offer some type of trade promotion to get retailers to make purchases.

Q: Name and briefly describe the types of trade incentives that are offered.

Q: What are the disadvantages of trade allowances?

Q: What are the main types of trade allowances? Describe each one.

Q: Regional niche trade shows are losing customers to national and international trade shows.

Q: A trade show participant from another country is more likely to be ready to make a purchase than a domestic attendee.

Q: In the United States, few deals are finalized during trade shows. Instead, exhibitors collect business cards and follow up later after the show is over.

Q: From a manufacturer's perspective, a trade show allows sellers to compare merchandise and to make contacts with prospective channel members.

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

Q: From a manufacturer's perspective, co-op advertising is beneficial because the payments are almost always tied to sales.

Q: Co-op advertising programs allow retailers to use the manufacturer's dollars to expand advertising programs.

Q: In cooperative advertising programs, retailers accrue co-op advertising monies based on the size and number of ads.

Q: For retailers to receive co-op advertising dollars from a manufacturer, there cannot be a competing brand in the advertisement.

Q: A premium or bonus pack trade promotion offers retailers a reduced price if they purchase a greater volume of merchandise.

Q: Offering Coke on sale one week, Pepsi the next week, and 7UP the following week can be planned out using a calendar promotion program.

Q: A calendar promotion allows a manufacturer to set a schedule among competing brands of a product so that the manufacturer can feature one of the brands on sale almost all of the time.

Q: Cooperative merchandising agreements are popular with manufacturers because the retailer performs a marketing function in order to receive an allowance or incentive.

Q: A cooperative merchandising agreement is a formal agreement between the retailer and the manufacturer to undertake a two-way marketing effort.

Q: A trade incentive involves a retailer performing a function in order to receive an allowance.

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

Q: Rewards given as part of a consumer contest are also known as spiff money.

Q: Trade contests encourage sales by making rewards and prizes available to brokers, salespeople in retail stores, wholesalers, and agents.

Q: A diversion is a form of exit fee where funds are transferred from failing products to successful products.

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

Q: Diversion is purchasing extra inventory while it is on-deal so it can be sold later when it is off-deal.

Q: One of the disadvantages of trade allowances is that nearly half of the time retailers do not pass along the allowance to consumers.

Q: Only a small number of retailers charge slotting fees compared to the large percentage that use exit fees.

Q: Unsuccessful products that do not sell and are taken off the market may be charged exit fees.

Q: Manufacturers consider slotting fees to be fair because the fee is paid upfront and encourages retailers to place the product on store shelves.

Q: Retailers believe charging slotting fees forces manufacturers to test products before launch to reduce the number of poor product introductions.

Q: One reason retailers use slotting fees is that retailers must spend money to add new products to their inventory.

Q: Slotting fees are funds charged by retailers to stock new products.

Q: The most controversial form of trade allowance is an off-invoice allowance.

Q: An off-invoice allowance is money paid to a retailer who is willing to bypass wholesalers.

Q: A trade incentive is a financial incentive given to channel members to motivate them to make a purchase.

Q: Consumer promotions are for end-users while trade promotions are for channel members.

Q: A trade promotion is a physical product sent as part of a promotional deal.

Q: Regional or specialty trade shows would be better than a large, national trade show for all of the following goals except: A) provide higher quality prospects. B) more quality one-on-one time with customers. C) enhance a firm's brand or corporate name. D) opportunities to bond with customers.

Q: Large national and international trade shows are being replaced by: A) internet advertising. B) niche and regional shows. C) promotional videos. D) corporate trade shows.

Q: Several differences exist when international companies attend trade shows. These differences include each of the following except international attendees: A) tend to be senior executives with authority to make purchases. B) want a follow-up after the trade show by a senior executive. C) spend more time at each exhibitor's booth. D) tend to make purchase decisions during the trade show.

Q: At a trade show, the most difficult buyer group for manufacturers to identify would be ________ because they do not want to be identified, yet are a very important group in terms of ability to make purchase decisions. A) solution seekers B) buying teams C) power buyers D) reinforcement seekers

Q: At a trade show, manufacturers should not pursue which type of buyer group because they are not interested in buying and would take up too much of the vendor's time? A) Solution seekers B) Buying teams C) Education seekers D) Reinforcement seekers

Q: In a trade show, a buyer who is trying to solve a specific problem with a product choice is a(n): A) information seeker. B) reinforcement seeker. C) solution seeker. D) education seeker.

Q: In a trade show, a buyer browsing and trying to learn about products from a series of competitors is a(n): A) education seeker. B) reinforcement seeker. C) solution seeker. D) power buyer.

Q: Co-op advertising programs often stipulate each of the following items except: A) monies are accrued for purchases over time. B) no competing products can be advertised. C) the manufacturer's product must be displayed prominently in the ad. D) retailers must pay the agency fees.

Q: The "Intel inside" tag line seen in advertisements by a retail computer store or by a computer manufacturer such as Dell is a form of: A) direct marketing. B) cooperative advertising. C) producer markup combined with retailer pass-alongs. D) manufacturer's prerogative.

Q: When a manufacturer offers to pay part of the cost of a retail advertising campaign, it is: A) incentive marketing. B) target market advertising. C) cooperative advertising. D) specialty advertising.

Q: Sony is promoting a special coupon and sale on its stereos. Retail stores that purchase at least 1,000 stereos during the next 30 days will receive an extra stereo, free, for each 50 they purchase over a 1,000 minimum. This is an example of a: A) CMA. B) calendar promotion. C) corporate sales program. D) premium or bonus pack.

Q: In terms of trade promotions, offering additional free merchandise for placing an order is: A) a slotting fee. B) a discount invoice. C) spiff money. D) a premium or bonus pack.

Q: A calendar promotion may result in a retailer using: A) forward buying. B) slotting fees. C) exit fees. D) cooperative advertisements.

Q: Which of these can be used by retailers to always have one brand on sale while others are off-deal? A) Forward buying B) Calendar promotions C) Corporate sales programs D) Trade allowances

Q: Promotional campaigns that a retailer plans for customers through manufacturer trade incentives are: A) slotting fee programs. B) merchandising management programs. C) spiff money allocations. D) calendar promotions.

Q: A retailer agrees to display a particular brand of shoes in the front of the store and on a special end-of-aisle display in exchange for a price discount by the manufacturer. This is an example of a: A) trade allowance. B) corporate sales program. C) cooperative merchandising agreement. D) vendor support program.

Q: A formal agreement between a retailer and a manufacturer to undertake a two-way marketing effort is: A) alliance of capital. B) cooperative merchandising agreement. C) venture agreement. D) sales promotion.

Q: The primary difference between trade incentives and trade allowances is that for the trade incentive: A) the retailer must perform some type of function in order to receive the trade incentive. B) the manufacturer must perform some type of function to encourage the retailer to accept the merchandise. C) the retailer receives a price break if they order a specific quantity. D) involves a price reduction being passed on to consumers by retailers.

Q: The primary disadvantage to a retailer in using diversion is: A) additional shipping costs. B) additional carrying costs. C) exit fees. D) slotting fees.

Q: In terms of trade allowances, extra shipping costs occur when a retailer engages in: A) slotting fees. B) exit fees. C) forward buying. D) diversion.

Q: When a retailer purchases a product on-deal in one location and ships it to another where it is off-deal, it is called: A) exit forwarding. B) diversion. C) a transaction alteration. D) forward buying.

Q: When provided with an offer of a 10 percent discount to purchase electronic calculators within the next 30 days, Target buys extra calculators to take advantage of the price discount. Target will offer the calculator to consumers at a discount during the special sale, but then have additional calculators to sell when the sale is over. This is an example of: A) an off-invoice allowance. B) slotting fee. C) forward buying. D) diversion.

Q: When a retailer stocks up on Maxwell House coffee while it is on-deal to sell the inventory later when they are off-deal, it is: A) a diversion. B) quantity-seeking. C) forward buying. D) a slotting fee.