Sales Promotion Management
Question Bank
Course Introduction
Sales Promotion Management focuses on the strategies, tools, and techniques used to stimulate immediate consumer purchasing and enhance brand interest through short-term incentives. This course covers the planning, execution, and evaluation of various sales promotion methods such as discounts, coupons, contests, sampling, and point-of-purchase displays. Students learn to integrate sales promotion activities within the broader context of marketing campaigns while considering ethical, legal, and budgetary constraints. Emphasis is placed on understanding consumer behavior, measuring promotional effectiveness, and aligning promotional efforts with organizational objectives to maximize both short-term sales and long-term brand equity.
Recommended Textbook
Advertising and Promotion An Integrated Marketing Communications
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Page 2
Chapter 1: An Introduction to Integrated Marketing Communications
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Q1) According to the American Marketing Association's definition of marketing, which of the following statements is true?
A)Most marketers are seeking a one-time exchange or transaction with their customers.
B)The focus of production-driven companies is on developing and sustaining relationships with their customers.
C)Successful companies recognize that creating and delivering value to their customers is extremely important.
D)Though marketing plays an important role in developing relationships with customers, it does not help in maintaining them.
E)By definition, a marketing transaction has to involve the exchange of money.
Answer: C
Q2) Which of the following is a similarity between publicity and advertising?
A)Both are non-paid forms of communication.
B)Both are run by an unidentified sponsor.
C)Both involve nonpersonal communication to a mass audience.
D)Both are not directly paid for by the company.
E)Both frequently provide an opportunity for immediate feedback.
Answer: C
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Chapter 2: The Role of IMC in the Marketing Process
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Q1) Treat Corp., a manufacturer of packaged soups, launched an ad campaign that provided quick and easy recipes using Treat's products on the back of the soup sachets. This is an example of positioning by:
A)product class.
B)product use.
C)price/quality.
D)competitor.
E)cultural symbol.
Answer: B
Q2) According to the market coverage alternatives, _____ involves ignoring segment differences and offering just one product or service for the entire market.
A)bait-and-Switch marketing
B)concentrated marketing
C)micro-marketing
D)neuromarketing
E)undifferentiated marketing
Answer: E
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Chapter 3: Organizing for Advertising and Promotion: The
Role of AD Agencies and Other Marketing Communication Organizations
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Q1) Which of the following statements is true about the role of top management in the advertising and promotion decision making process?
A)The top management's day-to-day responsibilities usually include decision making and operations of advertising and promotion.
B)The top management does not provide input in the advertising and promotion process.
C)The top management is usually interested in how the advertising program represents the organization.
D)The top management is only interested in the amount of money that must be allocated to advertising and promotion.
E)The top management is more interested in tactical planning rather than strategic planning.
Answer: C
Q2) The layout of a print ad is known as a storyboard.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Perspectives on Consumer Behavior
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Q1) _____ is a preference for a particular brand that results in its repeated purchase.
A)Brand extension
B)Brand stretching
C)Brand spin-off
D)Brand loyalty
E)Brand equity
Q2) Which of the following is an example of a psychosocial consequence?
A)The taste of a soft drink.
B)The feeling of prestige associated with wearing a luxury watch.
C)The acceleration of an automobile.
D)The processing speed of a computer.
E)The firmness of a mattress.
Q3) With respect to the various generational differences in shopping behaviors, which of the following is true of the Gen Z?
A)They tend to stay indoors more than other generations.
B)They have the highest annual spending of other groups.
C)They were born prior to 1946.
D)They are more likely to make impulse purchases.
E)They like to shop at smaller stores.
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Chapter 5: The Communication Process
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Q1) Which of the following is true of the way organizations send communication messages?
A)They communicate using press releases, websites, and package designs.
B)They are legally not allowed to use graphic systems and visual images.
C)They use promotions for B2B communications solely.
D)They typically use brand names to create recognition but not for communication.
E)They do not use logos as a means of communication.
Q2) Which of the following components of a communication process is heavily influenced by a receiver's field of experience?
A)Encoding
B)Decoding
C)Message
D)Channel
E)Noise
Q3) Male and older consumers tend to exert more influence on their target recipients than their female counterparts.
A)True
B)False
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Chapter 6: Source, Message, and Channel Factors
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Q1) Which of the following statements is true about the use of corporate leaders as advertising spokespersons?
A)Many companies believe the use of a company president or CEO is an ineffective way of expressing the company's commitment to quality and customer service.
B)Only Fortune 500 companies use corporate leaders as spokespersons.
C)If a firm's image is too closely tied to its leader, it will face problems if and when the leader leaves the company.
D)Corporate spokespersons are ineffective for consumer products.
E)Corporate spokespersons improve the message source image but have no effect on its trustworthiness.
Q2) _____ is defined as an affection for a source as a result of the source's physical appearance, behavior, or other physical characteristics.
A)Expertise
B)Power
C)Compliance
D)Familiarity
E)Likability
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Chapter 7: Establishing Objectives and Budgeting for the Promotional Program
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Q1) Which of the following strategy factors leads to a positive effect of advertising on sales?
A)Hidden product qualities
B)Elasticity in demand
C)Long channels of distribution
D)Emotional buying motives
E)Inelastic product demand
Q2) Which of the following is an advantage of the competitive parity method?
A)It makes use of the buildup approach to establishment of promotional budgets.
B)It leads to stability in the marketplace by minimizing marketing warfare.
C)It is based on the fact that advertising and promotions are designed to accomplish specific objectives by addressing certain problems and opportunities.
D)It gives due recognition to the contributions of creative executions and/or media allocations.
E)Under this method, the budget is driven by the objectives to be attained.
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Chapter 8: Creative Strategy: Planning and Development
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Q1) An ad for a medication that helps people undergoing chemotherapy feel more energetic shows a grandfather sorrowfully wishing he could participate in his grandson's birthday party. Subsequently, the scene switches to the birthday party and shows the grandfather feeling energetic and vibrant after taking the medication. This ad is an example of _____.
A)bait-and-switch advertising
B)a snob appeal
C)the inherent drama approach
D)the WOM approach
E)a buzz appeal
Q2) Who among the following popularized the idea of brand image in his book Confessions of an Advertising Man?
A)John O' Toole
B)Leo Burnett
C)Sigmund Freud
D)David Ogilvy
E)Rosser Reeves
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Chapter 9: Creative Strategy: Implementation and Evaluation
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Q1) In an ad for Pluto's superior sun protection moisturizer, a dermatologist's report states, "A year of incidental sun equals baking for a week at the beach!" This is an example of a(n) _____ style of execution.
A)dramatization
B)slice-of-life
C)technical evidence
D)testimonial
E)animation
Q2) The ultimate responsibility for determining whether an ad deceives or offends the target audience lies with the client.
A)True B)False
Q3) The main point of an ad with a product/service popularity appeal is the price gain a consumer can benefit from by using the brand.
A)True B)False
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Chapter 10: Media Planning and Strategy
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Q1) Which of the following is true of TCPM?
A)It calculates CPMs based on the target audience.
B)It calculates longevity of magazine circulations.
C)It calculates BDIs based on overall audience.
D)It calculates CPMs based on the overall audience.
E)It calculates the cost of using one unit of timE.Most media buyers rely on target CPM, or TCPM, which calculates CPMs based on the target audience, not the overall audience.
Q2) Flair, a women's magazine, features an ad for Elvira watches. Flair, being a specific carrier within a medium category is known as a:
A)conduit.
B)mobile channel.
C)distribution channel.
D)transit channel.
E)media vehiclE.The above scenario is an example of a media vehicle.A media vehicle is a specific carrier within a medium category.
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Chapter 11: Evaluation of Media: Television and Radio
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Q1) Radio has evolved into a primarily local advertising medium.
A)True
B)False
Q2) The designated market area (DMA) of Manhattan has approximately 2 million television households. Audience research shows that 60 percent of these households had their sets turned on during a particular Saturday evening and 300,000 households were watching an baseball playoff game. The program rating for the playoff game in the Manhattan DMA is _____.
A)25
B)15
C)30
D)35
E)20
Q3) In network advertising, the advertiser has to deal with only one party or media representative to air a commercial nationwide.
A)True
B)False
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Chapter 12: Evaluation of Media: Magazines and Newspapers
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Q1) Which of the following is true of consumer magazines?
A)They are generally purchased for both entertainment value and information.
B)They are typically known as niche magazines.
C)They are primarily annual publications.
D)They are only sold through sole distribution.
E)They cannot be sold through circulation.
Q2) If a promoter of a boxing match wants to place an ad in the sports section of a newspaper, the promoter is likely to pay a(n) _____ rate.
A)flat
B)run of paper
C)preferred position
D)agate
E)SAU
Q3) Which of the following is a characteristic of magazine-based advertising?
A)Greater creative flexibility
B)Poor reproduction quality
C)Limited selectivity
D)Lower costs
E)Impermanence
Page 14
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Chapter 13: Support Media
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Q1) Which of the following statements about aerial advertising is true?
A)It is expensive in absolute terms.
B)It can be used to reach specific target markets.
C)It is seldom used by local advertisers.
D)It is illegal at sporting events.
E)It is generally used inside stores and small supermarkets.
Q2) Mobile billboard ads enjoy high levels of recall and readership, leading to increased sales.
A)True
B)False
Q3) Which of the following support media provides advertisers with wide coverage of local markets and high levels of frequency?
A)Outdoor advertising
B)Specialty advertising
C)Print media
D)In-store advertising
E)In-flight advertising
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Chapter 14: Direct Marketing
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Q1) Tyche Inc., an electronics manufacturer, wants to assess future revenues and profit streams from each of its customers. It is focusing on the satisfaction and retention of its more profitable customers instead of spending its marketing efforts on attracting uninterested customers. Tyche is using _____ as a measure of effectiveness.
A)Customer Profitability Estimation
B)consumer worth evaluation
C)Customer Lifetime Value
D)breakeven point
E)cost per order
Q2) Bianca receives an e-mail notifying her of the end-of-season sale at Hop & Shop, a popular retail chain. The e-mail also informs her that she is invited to enter into a sweepstakes contest. In this scenario, Hop & Shop is using a combination of:
A)publicity and public relations.
B)advertising and personal selling.
C)direct marketing with sales promotion.
D)support media and advertising.
E)direct marketing and personal selling.
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Chapter 15: The Internet: Digital and Social Media
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Q1) The goal of _____ is to be less intrusive while catching the attention of a reader who is likely to be interested in the content matter he or she is reading.
A)behavioral targeting
B)native advertising
C)ambient advertising
D)specialty advertising
E)buzz sponsorship
Q2) _____ is a specification that uses XML to organize and format Web-based content in a standard way.
A)Podcasting
B)Search engine optimization
C)Pop-up
D)Really Simple Syndication
E)Content aggregator
Q3) The Internet allows a user to both purchase and sell products through e-commerce.
A)True
B)False
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Chapter 16: Sales Promotion
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Q1) Which of the following elements of the integrated marketing communications program is designed to provide an extra incentive to consumers to purchase a brand?
A)Magazine advertising
B)Direct mail
C)Public relations
D)Publicity
E)Sales promotion
Q2) _____ involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial.
A)A rebate
B)A refund
C)Sampling
D)Couponing
E)A sweepstakes
Q3) The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon.
A)True
B)False
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Chapter 17: Public Relations, Publicity, and Corporate Advertising
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Q1) Major accomplishments, major breakthroughs, emergencies, or catastrophes typically warrant a(n) _____.
A)community involvement program
B)national press conference
C)exclusive interview
D)focus group survey
E)internal accounting process
Q2) Public relations is typically a short-term strategy, , while publicity is a concerted program extending over a period of time.
A)True
B)False
Q3) Which of the following does Mark Weiner suggest for measuring the effectiveness of MPRs?
A)Quantitative assessment of consumers' attitudes toward a product
B)Number of personal interviews given by company representatives
C)Dollar value of community involvement
D)Number of press releases developed
E)Percentage of people who have encountered the press release
Q4) Ads themselves can be the focus of publicity.
Page 19
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Chapter 18: Measuring the Effectiveness of the Promotional Program
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Q1) Which of the following is a posttest method used for measuring advertising effectiveness?
A)Concept tests
B)Portfolio tests
C)Recall tests
D)Physiological measures
E)Readability tests
Q2) Which of the following sentences is true of readability tests?
A)The communications efficiency of a copy in a print ad can only be tested with reader interviews.
B)This method uses the Delphi group formula.
C)An advantage of the readability test is that the copies are not mechanical.
D)To be effective, readability tests should be used only in conjunction with other pretesting methods.
E)Readability tests are successful in consistently providing direct inputs from receivers.
Q3) One major disadvantage of field tests is the lack of realism.
A)True
B)False
Page 20
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Chapter 19: International Advertising and Promotion
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Q1) _____ is an example of a cultural factor that affects international marketing.
A)Nationalism
B)Occupation
C)Income level
D)Language
E)Employment rate
Q2) Cultural variables marketers must consider include language, customs, tastes, and:
A)governmental regulations.
B)laws.
C)gender.
D)age.
E)values.
Q3) International advertisers can best deal with problems arising from language diversity and differences in signs and symbols with the help of:
A)expat employees.
B)research manuals.
C)local expertise.
D)government authority.
E)language training.
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Chapter 20: Regulation of Advertising and Promotion
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Q1) Which of the following media has the most stringent review and approval process for advertising?
A)Community radio
B)Business magazines
C)Newspaper and trade publications
D)The Internet
E)The four major television networks
Q2) Commercial speech is most accurately defined as:
A)an encoding and decoding tool for commercial communications.
B)communication that promotes a commercial transaction.
C)a type of comparative advertising used in TV commercials.
D)an advertising component of broadcast media.
E)speech governed by the Fifth Amendment to the U.S.Constitution.
Q3) Policies and procedures for self-regulation of the advertising industry are established by the _____.
A)National Association of Broadcasters
B)Vision Council of America
C)National Advertising Review Council
D)Independent Business Alliance
E)Association of American Publishers
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Chapter 21: Evaluating the Social, Ethical, and Economic
Aspects of Advertising and Promotion
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Q1) There is a consensus among all groups that advertising:
A)does not create false needs in consumers.
B)attempts to discourage materialism in society.
C)has a more positive social influence than a negative one.
D)is an important social influence agent.
E)minimizes stereotypes about people and groups.
Q2) Research has shown that nonverbal behaviors involving _____ are associated more with boys than girls.
A)passivity and knowledge
B)dominance and control
C)aggression and lack of credibility
D)passivity and trustworthiness
E)aggression and lack of knowledge
Q3) According to research, which of the following products have the reputation of producing the most irritating commercials?
A)Soft drinks
B)Industrial machinery
C)Alcoholic beverages
D)Hemorrhoid treatments
E)Insurance services
23
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Chapter 22: Personal Selling Online
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Q1) Robert usually performs sales calls on time. A day before a preplanned sales call, he calls up the prospect and informs her that he will be late for the call. Here, Robert is displaying _____.
A)punctuality
B)presumptuousness
C)aggression
D)poor follow-through
E)undependability
Q2) Which of the following types of salespeople are most likely to operate in the problem-solver stage of personal-selling evolution?
A)Car insurance salespeople
B)Telemarketers for photo studio
C)Communication systems salespeople for a telephone company
D)Route salespeople
E)Office supplies sellers calling on small businesses
Q3) Personal selling is typically controlled by the advertising department.
A)True
B)False
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