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(ADMS 2200) Chapter 18 Sales Promotion And Personal Selling

Sandra Watson
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Chapter 18 Sales Promotion And Personal Selling Question Answers

1. What is the term for marketing communication activities in which a short-term incentive is offered to induce
the purchase of a particular good or service?
a. publicity
b. sales promotion
c. promotion
d. advertising

2. Which of the following best describes sales promotion?
a. It is a publicity tool.
b. It is directed only to the ultimate consumer market.
c. It is more difficult to measure than advertising.
d. It offers a short-term incentive to buy.

3. AFLAC Insurance Company has a duck in its ads that says the company’s name instead of “quack.” Since the
advertising campaign began, AFLAC has created a duck premium, developed a line of clothing with the
AFLAC duck, and used the AFLAC duck on its website. What has the AFLAC duck become a tool for?
a. push strategies
b. comparative advertising
c. cause marketing
d. sales promotions

4. What are the two types of sales promotion?
a. consumer and trade
b. informative and reminder
c. adoptive and diffusive
d. personal and impersonal

5. What is the usual goal of sales promotion (regardless of what form it takes)?
a. immediate purchase by consumers
b. return on investment
c. cost control
d. market share leadership

6. What are coupons, premiums, contests, free samples, and frequent buyer programs examples of?
a. personal selling
b. Publicity
c. Advertising
d. consumer sales promotion

7. Why have packaged-goods marketers such as Kellogg’s and Betty Crocker recently increased their use of
a. intense competition and the introduction of new products
b. the growth of frequency programs
c. POP activities
d. user incentives from retailers

8. HarperCollins and Sutter Home Winery formed a partnership to launch a promotion that features neck
hangers on 1 million bottles of wine, each of which offers $2 off a HarperCollins book. What is this neck
hanger an example of?
a. a premium
b. a trade discount
c. a purchase allowance
d. an in-store coupon

9. Papa John’s boosted its online pizza ordering service with a promotional tie-in with the release of King Kong
on DVD. Consumers who ordered the pizza (online, by phone, or in-store) received $3 off the purchase price of
the King Kong DVD. What is this an example of?
a. Premium
b. trade discount
c. Rebate
d. Coupon

10. What type of coupon has the highest redemption rate?
a. paper coupons
b. Internet coupons
c. flyer coupons
d. instant coupons on product packages

11. What is the term for a cash refund given to consumers for the purchase of a product during a specific time
a. a premium
b. a trade discount
c. a rebate
d. a functional allowance

12. Why do some marketers offer rebates instead of price reductions to induce short-term sales?
a. Rebates are especially good at enticing purchases, but most consumers never bother to redeem them.
b. A price reduction of this type would likely be an example of price discrimination.
c. Rebates have a much higher redemption rate than coupons.
d. Rebates result in brand-loyal consumers.

13. When Rick purchased a Xerox colour printer for his law office, he was able to mail in a proof-of-purchase
and his cash register receipt to receive a cheque from Xerox for $200. What did Rick receive?
a. a premium
b. a trade allowance
c. a purchase allowance
d. a rebate

14. When Jane Ming purchased a subscription to Canadian Living magazine, she received a free cookbook
entitled Christmas Cookies. What is the cookbook an example of?
a. a rebate
b. a premium
c. a trade sample
d. a loyalty incentive

15. When Darrell purchased a 2.2-kilogram bag of 9Lives cat food, he received a free can of the manufacturer’s
new gourmet cat food. What is the can of cat food an example of?
a. a product placement
b. a trade sample
c. a premium
d. a loyalty incentive

16. Consumers can send away for a foam version of the Gear Giggle glasses sold in stores with two proofs of
purchase of Minute Maid 10-pack juice boxes. What are the glasses an example of?
a. a loyalty incentive
b. a trade sample
c. a premium
d. a product placement

17. What are cobranded credit cards used in conjunction with?
a. self-perpetuating discounts
b. loyalty marketing programs
c. consumer discount programs
d. functional consumer discounts

18. What is one of the best methods for creating and rewarding brand loyalty among consumers who might
otherwise switch to competing brands?
a. a directed coupon mailing
b. a sweepstakes
c. a loyalty marketing program
d. a sampling program

19. What is the objective of a loyalty marketing program?
a. to encourage brand switching
b. to appeal to bargain hunters who consistently buy the lowest priced brand
c. to take away customers from the competition
d. to build long-term, mutually beneficial relationships between a company and its key customers

20. Whenever Hugo buys a soft drink at his nearby convenience store, he gets a stamp for the card that he
carries in his wallet. When he has eight stamps, he can exchange the card for a free drink. What is this an
example of?
a. a self-liquidating premium
b. a frequent buyer program
c. a loyalty incentive
d. an in-store rebate

21. The Pillsbury Bake-Off requires people to submit a recipe using Pillsbury baking products. Finalists are
brought to Pillsbury kitchens to bake their recipes so the winner of a cash prize can be chosen. What is this an
example of?
a. a contest
b. a sales promotion game
c. a sweepstakes
d. a push money deal

22. Seagram’s Coolers has asked bartenders to submit cocktail recipes to its website. From these entries, the
winning recipe will be selected. What is the term that best describes this?
a. contest
b. push money deal
c. sampling
d. sweepstakes

23. Under a partnership agreement between HarperCollins and Sutter Home Winery, consumers can visit the
Sutter Home website monthly to learn which book and which wine are being featured. Each visit to the website
qualifies the consumers for the opportunity to take their reading group for a weekend stay at the Sutter Home
Victorian Inn and free books from HarperCollins. Since there is no skill involved, how will this prize package
be awarded?
a. through a contest
b. through a sweepstakes
c. through a loyalty incentive plan
d. through a, event sponsorship

24. Which of the following statements best describes contests and sweepstakes?
a. Contests depend on luck, and participation is free.
b. Contests are generally effective tools for creating long-term relationships with customers.
c. Sweepstakes are promotions that require participants to exhibit some skill.
d. Sweepstakes usually draw about 10 times more participants than contests.

25. Montana’s Best is a new precooked meal-in-a-bag product made from bison meat. The company is having
difficulty gaining consumer acceptance of its bison products even though bison is high in protein and low in
cholesterol, fat, and calories. Those who have tried the meat have agreed that it is tender and as delicious as any
choice steak, and it is less expensive. Montana’s Best should focus on which of the following sales promotion
a. sponsorship
b. sampling
c. in-pack couponing
d. premiums

26. Rogers Cable mailed 15,000 small business owners in and around Toronto a CD called 100+ Essential Web
Sites for Small Business Owners that lists and links the top websites on improving retail sales. Rogers hopes that
recipients of the CD will view this as just one of many useful services Rogers can provide them. What is this
CD an example of?
a. a direct buyer program
b. a sampling
c. a pull product
d. a push product

27. Why did manufacturer of Claritin, a drug for allergy sufferers that was designed to not make them sleepy,
give physicians free samples of the drug?
a. Its formula is similar to other allergy relief medicines currently on the market.
b. Sampling is a way to get rid of excess products.
c. Sampling allows the consumer to try the product risk-free.
d. Trial-size containers are a form of advertising.

28. Which of the following are promotional exhibits targeted to consumers and set up at the retailer’s location to
build traffic, advertise the product, or induce impulse buying?
a. point-of-purchase displays
b. trade shows
c. direct demonstrations
d. freestanding kiosks

29. Which of the following is NOT an example of a point-of-purchase promotion?
a. television monitors at supermarket checkouts
b. shelf talkers
c. newspaper inserts
d. end-aisle and floor-stand displays

30. What is one of the major advantages to using point-of-purchase promotion?
a. its low costs
b. its ability to create long-term relationships with customers
c. the fact it has a captive audience
d. the low monetary requirements

31. Which of the following statements best describes online sales promotions?
a. Internet sales promotions are more effective and cost-efficient at generating responses than their
offline counterparts.
b. One of the few types of sales promotion that cannot be used online is sampling.
c. Online coupons have lower redemption rates than off-line coupons.
d. Loyalty marketing programs are ineffective when used at websites to encourage traffic.

32. What do point-of-purchase promotions work best for?
a. high-involvement products
b. complex products that require technical knowledge to operate
c. impulse buys
d. expensive products such as perfume and jewellery

33. Which of the following would NOT be a target for a trade sales promotion offered by Rubbermaid, a
manufacturer of storage and organization products?
a. a kitchen department in a large discount store
b. a wholesaler of plastic storage bins
c. a Rubbermaid distributor
d. a consumer who needs to organize her college dorm room

34. Which type of strategy do trade sales promotions support?
a. Push money
b. hierarchical
c. discontinuous innovation
d. pull

35. Which of the following is NOT an example of a trade sales promotion?
a. push money and training
b. premiums and coupons
c. free merchandise and store demonstrations
d. trade shows

36. What is the term for a price reduction offered by manufacturers to intermediaries such as wholesalers or
retailers, in exchange for performance of specified functions or purchasing during special periods?
a. a point-of-purchase discount
b. pull money
c. a quantity discount
d. a trade allowance

37. Schwinn Cycling and Fitness Inc. is offering a chain of sporting goods superstores a 20 percent discount on
all Schwinn bicycles if the stores will run their own special promotion on the new Schwinn Paramount Titanium
bikes. What is Schwinn offering?
a. a trade allowance
b. a life-cycle extension promotion
c. a P-O-P discount
d. a product development deal

38. Broyhill is offering the sales force at Meers Furniture Emporium a $50 reward for each Broyhill Pleasant
Isle Living Room Collection sold in the next 30 days. What type of trade sales promotion is the $50?
a. a trade allowance
b. push money
c. a selling deal
d. a direct commission

39. What is the term for money offered by a manufacturer to employees of channel intermediaries to encourage
them to sell the manufacturer’s product?
a. a trade allowance
b. push money
c. a selling deal
d. a premium payment

40. Maureen Kye is a sales associate at a store that sells new and used CDs and DVDs. Recently, she was given
a DVD containing scenes not in the theatre-released Disney’s Pirates of the Caribbean: Dead Man’s Chest to
encourage her to suggest that customers buy this movie. What is the CD an example of?
a. the use of a pull strategy
b. a trade sales promotion
c. a trade allowance
d. a free consumer sales promotion

41. Lopez is the largest Hispanic-owned meat processor in the United States. To assist retailers in marketing its
products, Lopez provides point-of-sale materials and offers special introductory discounts to retailers. What
does Lopez use?
a. functional marketing
b. relationship selling
c. consumer promotions
d. trade promotions

42. Which of the following describes the use of trade shows, conventions, and conferences to contact
a. costs much less per potential customer than personal sales calls
b. most effective for mature products
c. usually directed toward the consumer goods market
d. has a disadvantage in that it is usually impossible to display the product itself

43. You are responsible for sales promotion for Replenishmints, long-lasting breath mints for smokers. You
need to introduce the mints to supermarket managers and owners, attract and identify new store contacts, and
test market the response to Replenishmints. Which type of trade promotion would most likely help you reach
your objectives?
a. trade shows
b. trade allowances and direct incentives
c. push money
d. direct sampling and store demonstrations

44. Trade sales promotions are popular among manufacturers because they are effective at trade shows, but
which of the following can they NOT do at trade shows?
a. Introduce new products.
b. Create long-term relationships between manufacturers and customers.
c. Enhance the corporate image.
d. Test the market response to new products.

45. Which of the following involves direct communication between a sales representative and one or more
prospective buyers for the purpose of making a sale?
a. sales promotion
b. public relations
c. personal selling
d. direct marketing

46. After deciding to end its backing of Canada’s top tennis tournament, Molson has now agreed to sponsor the
Canadian Open Tennis Championships in a new five-year, $20 million rights fee and media deal. Which
promotional activity was most likely used in making this deal?
a. direct sales management
b. personal selling
c. public relations
d. sales promotion

47. Which of the following does NOT describe an advantage personal selling has over other forms of
a. Personal selling is less expensive on a per contact basis.
b. Personal selling is better for providing customers with detailed demonstrations of products.
c. It is easier to direct the marketing effort directly to qualified prospects with personal selling.
d. Personal selling costs can be controlled by adjusting the size of the sales force.

48. In which of the following cases is personal selling more important than advertising and sales promotion?
a. The products being sold are standardized.
b. There are many customers for the product being sold.
c. The product being sold has a low value.
d. The products being sold are technically complex.

49. For which of the following products would its producer be more likely to choose personal selling rather than
advertising or sales promotion to market it?
a. Rosebushes
b. washing machine/dryer combo
c. snack food
d. romance novel

50. As a manufacturer of ready-to-drink iced tea, Nestea sells a highly standardized product to consumers all
over North America. What would you expect Nestea to rely on to promote its product?
a. public relations
b. personal selling
c. advertising and sales promotion
d. publicity and direct marketing

51. Harland & Wolff in Belfast, North Ireland, makes oceangoing vessels. (It was the company that built the
Titanic.) Last year its primary customer was the US government. What would you expect Harland & Wolff to
rely on to promote its vessels?
a. advertising and sales promotion
b. sales promotion
c. personal selling
d. product innovations and direct marketing

52. When compared to other forms of promotion, personal selling is which of the following?
a. not as effective at satisfying customers
b. wastes more sales resources than any other promotion
c. a message customized to the immediate needs of the customers
d. best for selling simple, low-involvement products

53. Jefferson Smurfit Company is a multibillion-dollar supplier of packaging materials. One of its salespeople
rearranged production schedules at three different plants to satisfy an unexpected demand for boxes from
General Electric. The salesperson’s action is typical of the company’s sales philosophy. What does it
a. consultative promotion
b. relationship selling
c. adaptive selling
d. collaborative promotion

54. Which of the following is used because most businesses depend on repeat sales?
a. traditional personal selling
b. direct promotions
c. all trade promotions
d. relationship selling

55. Which of the following is a sales practice that involves building, maintaining, and enhancing interactions
with customers in order to develop long-term satisfaction through mutually beneficial partnerships?
a. networking
b. adaptive selling
c. stimulus-response selling
d. relationship selling

56. Which of the following best describes relationship selling?
a. It is also called adaptive selling.
b. It is more concerned with making a sale than with developing customer trust.
c. It is more typically used when selling low-involvement products in the consumer market.
d. It emphasizes a win-win outcome.

57. Which of the following statements does NOT characterize the traditional personal selling approach?
a. Traditional selling focuses on closing sales.
b. Traditional selling uses short-term follow-ups that focus on product delivery.
c. Traditional personal selling is growing in popularity.
d. Traditional selling use to emphasize pricing and product features.

58. What sale approach is consultative selling most similar to?
a. “lone wolf”
b. self-service
c. transactional
d. long-term

59. What is the set of steps a salesperson goes through to sell a particular product?
a. the (P-O-S) cycle
b. the sales presentation
c. the sales process
d. the sales continuum

60. What do the seven steps of the selling process closely follow?
a. the AIDA concept
b. the hierarchy of needs
c. the traditional communications model
d. the JIT process

61. Kenneth Lincoln is an Account Director for No Crease, a company that offers laundry and ironing services
to hospitals and schools. Kenneth is recommending that his account team learn about the AIDA process. Why
would he encourage the use of AIDA?
a. It can help in the distribution process.
b. It can help in the networking process.
c. It can help in the selling process.
d. It can help in the cold calling process.

62. What process is used to identify those firms and people most likely to buy a company’s products?
a. prospecting
b. lead qualification
c. sales presentation
d. sales approach

63. Mallory, a junior salesperson for Kraft Foods, has been given a list of all grocery retailers in her region. She
has been instructed to call each number on the list and see if the respondent is interested in stocking several new
Kraft product lines. What is Mallory doing?
a. cold calling
b. networking
c. referring
d. quota setting

64. Prospecting is the identification of those firms and people most likely to buy the seller’s offerings. What is
another term for prospecting?
a. lead generation
b. lead qualification
c. customer mining
d. cold calling

65. Joe Hamas sells for Rush Beverages. He is trying to convince retailers to carry his company’s Ginseng Rush
XXX, a new all-natural beverage that delivers an energy punch without caffeine. When he gets retailers to agree
to stock his product, he asks them for the names of other retail operations that might be interested in carrying it.
What is he using to get his sales leads?
a. networking
b. cold calling
c. referrals
d. direct marketing

66. Which of the following is a process of finding out about potential clients from friends, business contacts,
coworkers, acquaintances, and fellow members in professional or civic organizations?
a. lead generation
b. Networking
c. lead intermediation
d. looking for the golden parachute

67. Which of the following is most likely to generate sales leads?
a. direct mail and telephone marketing programs
b. cold calling
c. reorders
d. networking

68. AutoFry is the leading manufacturer of ventless deep fryers for supermarket deli and food service
operations. It has developed a new high-capacity fryer. The company has decided to purchase a mailing list of
thousands of food service managers and to send out brochures with a detachable card that the managers can use
to request more information. What is AutoFry involved in?
a. lead generation
b. sales presentation
c. the close procedure
d. moving through the sales continuum

69. When Madison began selling all-natural cosmetics to consumers, she called friends, relatives, and fellow
members of her sorority to see if they were interested in updating their appearances by using her products or
eliminating chemicals from their beauty regimen. What is this technique for generating leads called?
a. cold calling
b. networking
c. qualifying
d. following up

70. What is the most basic criterion for determining whether someone is a prospect for a product?
a. degree of autonomy
b. ample resources
c. a need for reciprocity
d. a need that is not being satisfied

71. Kanudsky, the junior salesperson for NU-VU Food Services Systems, has been given a list of phone
numbers for all the food service managers in his city. Kanudsky has been instructed to call each number on the
list and see if the respondent is interested in buying a NU-VU pizza/bread baking system. What is Kanudsky
a. cold calling
b. networking
c. using cold referrals
d. lead qualifying

72. Which of the following is a form of lead generation in which the salesperson approaches potential buyers
without any prior knowledge of the prospects’ needs or financial status?
a. quota setting
b. networking
c. lead qualification
d. cold calling

73. Salespeople ensure that delivery schedules are met, that the good or service performs as promised, and that
buyers are trained in the use of the product. All of these functions are part of the final step in the selling process.
What is that step called?
a. closing
b. lead qualification
c. follow-up
d. the sales presentation

74. Which of the following involves determining which sales prospects have a recognized need, buying power,
and receptivity and accessibility?
a. prospect examination
b. customerization
c. lead reciprocity
d. lead qualification

75. What is determined about a prospect during lead qualification?
a. whether he or she has a recognized need, buying power, and receptivity and accessibility
b. whether he or she has any interest in a product
c. whether he or she has a real or imagined need for a product
d. whether he or she has the funds to pay

76. Which process describes the homework that must be done by a salesperson before he or she contacts a
a. pre-sales dialogue
b. preapproach
c. closing preamble
d. sale profiling procedure

77. Often the task of lead qualification is handled by a telemarketing group or a sales support person. This frees
the sales representative from this time-consuming task. What does the task involve?
a. preapproach
b. database mining
c. co-opting
d. networking

78. During the preapproach, what does the salesperson do?
a. ask for referrals
b. learn as much as possible about the prospect’s organization and its buyers
c. create point-of-purchase displays
d. handle pricing objections

79. What is the term for a determination of the customer’s specific needs and wants and the range of options the

customer has for satisfying them?
a. stimulus-response continuum
b. needs hierarchy
c. needs assessment
d. sales probability

80. Which of the following is a written document or professional presentation that outlines how a company’s
product will meet or exceed the client’s needs?
a. a customer profile
b. a needs assessment
c. a sales proposal
d. a forecast of needs

81. Which of the following best describes the sales proposal and the sales presentation?
a. They are the first step in the consultative selling process.
b. They are a relatively inexpensive step in the sales process.
c. They have to be face to face with the customer to be a success.
d. They follow the sales approach.

82. For a powerful sales presentation, what must salespeople do?
a. ask close-ended questions.
b. Incorporate visual elements that impart valuable information.
c. Avoid direct eye contact.
d. Use facial expressions and voice inflections.

83. What should the salesperson do first at the end of a sales presentation?
a. conduct an unplanned needs assessment
b. ask how the customer would like to proceed
c. ask for the sale
d. modify his or her sales proposal

84. Which of the following statements best describes the relative amount of time spent in the selling process by
different types of salespeople?
a. A consultative salesperson would spend a lot of time generating leads.
b. A traditional salesperson would spend a lot of time following up the sale.
c. A relationship salesperson would spend a lot of time qualifying leads.
d. A consultative salesperson would spend a lot of time closing the sale.

85. In traditional selling, what is more time spent on than in relationship selling?
a. qualifying leads
b. following up
c. handling objections
d. designing and proposing solutions

86. When a salesperson asks for the sale, he or she is doing which of the following?
a. closing the sale
b. creating empathy
c. reducing cognitive dissonance
d. qualifying the sale

87. Morris Hutch sells high-volume cooking systems to supermarket delis. He is in the process of selling one of
his machines as a replacement machine to a deli manager. Hutch has just asked him, “When would you like me
to schedule the delivery of your new machine?” In which stage of the selling process would such a question
most likely be asked?
a. closing the sale
b. follow-up
c. dealing with cognitive dissonance
d. qualifying the prospect

88. Tate sells coffee machines to offices. He is trying to conclude the sale of a large coffee machine at the
headquarters of a large management consulting company. He finally offers free delivery and eight coffee
grinders at half price if the consulting firm representative agrees to purchase eight systems from Tate—one for
each of its regional offices. What is Tate’s closing technique called?
a. a summary
b. a negotiation
c. an adaptation
d. a follow-up

89. Which of the following is the process during which both the salesperson and the prospect offer special
concessions in an attempt to arrive at a sales agreement?
a. conciliation
b. negotiation
c. compromise
d. concession

90. Which of the following statements best describes the impact of technology on personal selling?
a. Technology is freeing salespeople from tedious administrative tasks, such as placing routine orders,
shipping catalogues, and tracking orders.
b. Technology is a threat to job security for most salespeople.
c. Technology has made relationship selling obsolete.
d. The use of technology severely limits the time a salesperson has to spend with his or her customers.

Scenario 18-1
Digital Cookware has developed a new kind of skillet that should make cooking easier for many nonchefs. The
skillet has a display on its handle that beeps to alert the cook when the pan’s target temperature is reached. With
the aid of an accompanying cookbook, the skillet will take much of the guesswork out of cooking. Digital
Cookware is a small company, and it has invested considerable money in developing this new technology,
which it eventually hopes to use in an entire line of pots and pans. It has run some small ads for the new skillet
in cooking magazines and been featured on some morning talk shows. It needs a quick infusion of cash to
maintain its current operational level and to develop the rest of the cookware line. Digital Cookware is
considering some kind of sales promotion.
91. Refer to the scenario. The company’s first task is to define its exact sales promotion objective. If the goal of
the company is to persuade customers to buy its brand of skillet as opposed to one of the skillets made by its
competition, what should it do?
a. use on-pack coupons
b. use a cooking contest that has contestants enter recipes that use the new skillet
c. use price-off packages
d. use bonus packs

92. Refer to the scenario. Why might rebates be a really good sales promotion for Digital Cookware to use?
a. They are useful in building long-term relationships with customers.
b. They can create a great amount of publicity.
c. They are good at enticing purchases, but most rebates are not redeemed.
d. They can be piggybacked with similar products.

93. Refer to the scenario. If Digital Cookware offered sales associates at a chain of cooking stores a bonus for
each digital skillet they sold, what would it be an example of?
a. push money
b. a trade allowance
c. pull money
d. a functional discount

94. Refer to the scenario. Which of the following trade sales promotions would NOT be appropriate for Digital
Cookware to use?
a. push money
b. event sponsorship
c. store demonstrations
d. trade shows

Scenario 18-2
The Entertainment Book is jammed with discounts on dining, travel, and entertainment provided by both local
and national businesses. It was created by Entertainment Publications over 30 years ago. People are so excited
about good, cheap fun that they’re willing to pay between $40 and $50 for the book. Consumers justify the cost
because total values offered in any Entertainment Book are worth hundreds of dollars. And as the books grow in
popularity, more marketers are requesting that a coupon for their businesses be featured in the book. Over 5
million copies of the book are sold each year, and sales are growing steadily. In all, more than 100,000
merchants, including 40,000 restaurants, are represented in the Entertainment Book, making it the largest
national discount dining program. Further, the Entertainment Book is sold through clubs, youth groups, and
schools. Entertainment Publications creates and distributes ads, posters, and other sales materials to all its sales
organizations. Entertainment Publications has teamed up with Esso to provide a premium item called the
MultiCard Savings Book. Esso distributes the book to all its MultiCard members. It contains local and national
advertisers that are of interest to Esso members. In a joint venture with American Airlines, Entertainment
Publications created a program called Advantage Dining, which was offered to the airline’s frequent flyer
customers as another way to earn miles.
95. Refer to the scenario. What is American Airlines’ distribution of the Entertainment Book an example of?
a. the Entertainment Book’s trade promotion
b. the Entertainment Book’s publicity
c. the Entertainment Book’s advertising
d. the Entertainment Book’s sales promotion

96. Refer to the scenario. What is the sales promotion objective of the Entertainment Book and the companies
that sponsor coupons in the book?
a. to generate immediate purchase by customers
b. to control costs
c. to control market share
d. to raise funds

97. Refer to the scenario. What did Esso use to enhance its relationships with its customers?

a. rebates
b. coupons
c. premiums
d. trade allowances

Scenario 18-3
Successful selling of complex products such as computer software requires excellent salespeople. Lack of
quality service in the marketplace led Alan Hall, head of a small computer networking company, to open
Technology Advancement Corporation in 1988. Today, Technology Advancement is a national field marketer
with several divisions. The bulk of its business involves training and educating salespeople on the features,
benefits, competitors, and market potential of Technology Advancement’s clients’ products. To date,
Technology Advancement has focused on computer software and hardware makers and has launched most of
the marquee names in the industry: Novell, Lotus Development, IBM, Microsoft, Apple Computer, HewlettPackard, Motorola, Intel, and Xerox, as well as smaller firms.
Here’s how the Technology Advancement client relationship works for training. A marketer hires the company
to promote its product or to launch a new product, and Technology Advancement assigns a team exclusively to
that client. The team gathers, usually at a ski resort, and the client comes in for the training. The training starts
with explaining how to use direct communication with a prospective purchaser and how it fits the company
strategy and differs from sales promotion. Latest developments in the selling process are explained with special
emphasis on networking, follow-up strategies, and post-purchase customer service. Many computer giants have
reported that this type of training program has significantly improved their business.
98. Refer to the scenario. Technology Advancement is providing training on which subject?
a. personal selling
b. trade promotion
c. advertising
d. public relations

99. Refer to the scenario. Which of the following statements does NOT describe an advantage personal selling
can provide the computer companies?
a. It can tailor the message to the customer’s needs.
b. It is good for explaining the merits of complex products.
c. It is inexpensive on a per contact basis.
d. It is effective in convincing a prospective client.

100. Refer to the scenario. Why is personal selling important in the computer industry?
a. Products are standardized.
b. The number of potential customers has increased.
c. The complexity of products has decreased.
d. The value of the products is high.

101. Refer to the scenario. When John Cason began selling IBM computers, he used what he had learned at the
training seminar and called friends, relatives, former business acquaintances, and former fraternity brothers to
see if they were looking for new computer systems. What is this lead generation technique known as?
a. cold calling
b. networking
c. qualifying
d. following up

102. Refer to the scenario. One of the key areas of training provided by Technology Advancement Corporation
involves postpurchase customer satisfaction surveys. What is this part of?
a. the sales presentation
b. following up
c. cold calling
d. a referral

103. A sales promotion campaign could include any (or all) of the four promotional elements of the promotional
a. True
b. False

104. “You have to be odd to be number one.”—Dr. Seuss
a. True
b. False

105. Sales promotions are primarily short-term incentives. Immediate purchase is usually the goal of sales
a. True
b. False

106. Coupon distribution by packaged-goods manufacturers has been increasing in recent years.
a. True
b. False

107. When Hasbro Games offers to pay a $2 refund to any customer who purchases a Connect Four, Trouble Operation, Battleship, Twister, or Guess Who? game, it is an example of a premium offer.
a. True
b. False

108. During the month of July 2006, any child who got a McDonald’s Happy Meal also received a toy inspired
by Disney’s Pirates of the Caribbean: Dead Man’s Chest. The toy is an example of a premium.
a. True
b. False

109. Contests generally draw more entries than sweepstakes do.
a. True
b. False

110. Point-of-purchase promotions are seldom used as a sales promotion tool because most purchase decisions
are made before consumers ever enter a store.
a. True
b. False

111. A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous
shopping goods.
a. True
b. False

112. Hewlett-Packard offered $25 to individual Office Depot salespeople for each HP Laser Jet printer they
sold. The $25 is push money.
a. True
b. False

113. Manufacturers use trade promotions because they help manufacturers gain new distributors, obtain
intermediary support for consumer promotions, and improve trade relations.
a. True
b. False

114. Trade shows are an excellent place to introduce new products to the marketplace.
a. True
b. False

115. Josh Moran is in charge of finding sponsors for the Reno Rodeo. He is currently talking to a marketing
representative from Wrangler jeans to try to convince Wrangler to sponsor the event. Moran is engaged in
personal selling.
a. True
b. False

116. Personal selling becomes a more important promotional tool as product complexity and buyer risk increase.
a. True
b. False

117. Relationship selling is typically used to sell industrial-type goods, such as oil drilling equipment.
a. True
b. False

118. In relationship selling, the salesperson would spend most of his or her contact time with the prospect
talking about the product because the salesperson does not want to waste the customer’s time.
a. True
b. False

119. In relationship selling, salespeople focus more time on generating leads than on qualifying leads.
a. True
b. False

120. Consultative selling is also called relationship selling.
a. True
b. False

121. Salesperson Tami Hravian’s products are liked by her clients. These clients give Hravian names of others
who may also like her products. Hravian is using cold calling to generate leads.
a. True
b. False

122. To qualify a sales lead, a salesperson must identify the person in an organization who has the authority to
buy the product and must close the sale with that individual.
a. True
b. False

123. Before approaching the customer, a salesperson should learn as much as possible about the prospect’s
organization and its buyers.
a. True
b. False

124. Salespeople should view objections as requests for information.
a. True
b. False

125. Serena typically negotiates the price with her prospective customers because she knows price is the most
effective negotiating tool when closing a sale.
a. True
b. False

126. The final selling duty for most successful salespeople is closing the sale.
a. True
b. False

127. Shopper marketing used to be referred to as point of-purchase (P-O-P) promotion.
a. True
b. False

128. Companies need to recognize the opportunities in Middle Eastern countries.
a. True
b. False

129. E-commerce has had a significant impact on today’s marketplace.
a. True
b. False

130. Experts agree that a relationship between a customer and the salesperson is no longer necessary.
a. True
b. False

131. What is sales promotion? What are the objectives of sales promotion?

132. Oakley Grove and Abraham Enterprises both market oranges and grapefruits. Oakley Grove has been in
business for almost 40 years, while Abraham Enterprises has been selling citrus fruit for only about 18 months.
Abraham Enterprises would like to take business away from Oakley Grove, and Oakley Grove wants to retain
all of its customers. Explain which sales promotions each should emphasize in its marketing mix.

133. Consumer sales promotion seeks to reach new users, keep current users, and entice users to stock up. It can
also be used to reinforce advertising for the good or service. Name and define four popular consumer sales
promotional tools.
oupons are certificates given to consumers entitling them to an immediate price reduction when
they purchase the item.
Premiums are items offered to the consumer, usually with proof of purchase required. The premium
should be related to the product in some way.
Loyalty marketing programs or frequent buyer programs reward loyal consumers for making
multiple purchases of a particular good or service.
Contests are promotions in which participants compete for prizes based on some skill or ability.
Sweepstakes allow anyone to participate and are characterized by chance drawings for prizes.
Sampling refers to free samples and trial sizes. Sampling allows consumers to try products with
minimal risk. Trial sizes reduce the risk of trying new products. They also eliminate the problem of
being stuck with a large quantity of a disliked product.

Point-of-purchase promotions are special displays set up at retail locations to build traffic, advertise
the product, or induce impulse buying.

Online sales promotions are a way to boost website traffic by giving away free services and/or
equipment. Also, these promotions include sites that distribute coupons online as a way to counter
the high cost and low redemption rate of coupons in print media. Some Internet sites are also using
loyalty programs: users are rewarded with points, which can be redeemed later. Sampling is also
possible at some websites.
134. You are the sales promotion manager for Vita-Balls, a new children’s vitamin that is designed to be chewed
like gum. Your company uses a pull strategy, and you are responsible for recommending sales promotion tools
to accomplish this strategy. Describe three specific sales promotion activities you would recommend for VitaBalls.
ecause Vita-Balls uses a pull strategy, consumer sales promotion tools should be used.
Coupons for discounts on Vita-Balls could be mailed directly to parents or could be placed in
parenting magazines.
Premiums could be offered to purchasers of Vita-Balls, with proof of purchase required. The
premium should be related to the product, such as books on common parenting problems, a
subscription to a nutrition magazine, or other children’s health care products.
Loyalty marketing programs or frequent buyer programs could also be offered such as offering one
free container of Vita-Balls after 12 are purchased.
Contests could be offered to parents. Entrants could write an essay about Vita-Balls or send in a
photograph of their child, with the winning picture appearing on the new package of Vita-Balls. A
sweepstakes could allow anyone to enter a random drawing for a free year’s supply of Vita-Balls.
Sampling would allow parents to try the product without risk. Free small sizes could be mailed to
Point-of-purchase promotions could be set up at drugstores or grocery stores to attract new customers
and encourage current customers to try Vita-Balls.
The manufacturer of Vita-Balls could set up a website where it provided online coupons for the
vitamin that could be redeemed at retail stores, as well as hints on how to get children to eat more
nutritiously. It could award points for visiting this site and have the points redeemable for Vita-Balls.
135. Business-to-business marketers use many of the same sales promotion tools used in consumer promotions.
There are several tools, however, that are unique to these marketers. Name and briefly describe five of these
unique sales promotion tools.

136. You are the sales promotion manager for the Pal-o-matic, an automated pallet dispenser used in grocery
warehouses. Your company uses a push strategy, and you are responsible for recommending sales promotion
tools to accomplish this strategy. Describe three specific sales promotion activities you would recommend for
the Pal-o-matic.
ecause the Pal-o-matic requires a push strategy, tools unique to trade sales promotion should be
Trade allowances could be offered to wholesalers in the form of price reductions or rebates. In
exchange, wholesalers would promise to purchase during the holiday season or perform warehousing
functions for the Pal-o-matic.
Push money could be offered as a bonus to the wholesaler’s sales force for pushing the Pal-o-matic
Training programs could be provided for the intermediary’s personnel. The sales force could be
trained in selling techniques and operation of the Pal-o-matic.
Free merchandise in the form of extra pallets may be offered in lieu of quantity discounts. Or one
free Pal-o-matic could be offered if the wholesaler pays for all further promotional expenditures.
Demonstrations could be performed at grocery warehouses to show how the Pal-o-matic works.
Business meetings, conventions, and trade shows are all ways to meet other vendors and potential
customers of the Pal-o-matic.
137. Personal selling offers several advantages over other forms of promotion. List four of these advantages.

138. Certain customer and product conditions indicate personal selling might work better than other forms of
promotion. List four of these conditions.

139. Compare and contrast relationship selling and traditional personal selling.

140. What are the seven steps in the personal selling process?

141. The first step in the personal selling process is sales lead generation. Define lead generation. Then explain
why referral is a superior method for generating leads.

142. Tony is a salesperson for Allied Pets, a company that sells veterinarian supplies. He has a prospect who is
showing interest in learning more about his company’s products, so now he must qualify this sales lead. What
will Tony do?

143. Hugh is a salesperson for Allied Pets, a company that sells veterinarian supplies. He is working on a needs
assessment for Athens Veterinary Clinic. What information will he need to find out about Athens?
consultative salesperson must know everything there is to know about
• the products that Allied Pets offers
• Athens as a customer and have an understanding of its specific needs
• the competition Athens faces
• the industry Athens operates in

144. Discuss personal selling in a global marketplace.

145. What is the impact that technology has on personal selling?


Chapter 18 Sales Promotion And Personal Selling (ADMS 2200)

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