The Sounds Good recording company is getting ready to release the first compact disc from its newest band, Planet Moon. Sounds Good's last three releases have been dismal failures, and the struggling company needs a quick influx of cash. The owners decide to use sales promotions to move the Planet Moon disc through record stores and into customers' hands. Sounds Good knows that the release cannot succeed without gaining distribution in large record store chains. However, many of these chains are refusing to carry the product, saying that shelf space is too precious to be used for an unknown band like Planet Moon. However, buyers for these chains say that they might be willing to carry the product if Sounds Good makes a direct cash payment to the chain. This is known in the trade channel as a:
a. cooperative advertising fee.
b. merchandise allowance.
c. slotting fee.
d. rebate.
Question 2Veda Inc, a manufacturer of cosmetics, offers two product lines, each catering to a distinct segment. Its most popular brand, Alo, targets women who want makeup that will last at least ten hours after application. With its brand Amo the company targets a niche market of women who are looking for makeup with anti-ageing properties. What type of segmentation is Veda Inc using?
a. Benefit segmentation
b. Heavy-user-focused segmentation
c. Lifestyle segmentation
d. Geographic segmentation
Question 3The Sounds Good recording company is getting ready to release the first compact disc from its newest band, Planet Moon. Sounds Good's last three releases have been dismal failures, and the struggling company needs a quick influx of cash. The owners decide to use sales promotions to move the Planet Moon disc through record stores and into customers' hands. Sounds Good has placed a small catalog inside each compact disc. The catalog features a variety of Planet Moon items that can be orderedthe band's music video as well as T-shirts, ball caps, and travel mugs. These items are considered self-liquidating premiums because the consumer:
a. does not receive the actual product sample but only the advertisement for free.
b. is unknowingly helping to liquidate unwanted product inventory.
c. has the chance to buy them only by purchasing the CD.
d. pays most of the cost for them.
Question 4A powerful value proposition in most situations today includes functional, emotional, and self-expressive benefits,
a. though only tangible product benefits are truly emphasized.
b. though no single ad can reflect all three aspects.
c. all of which must be included in a given advertising campaign.
d. though children are excluded because their decision making is controlled by parents.
Question 5One of the nation's most popular times for sales promotions was a great deal longer than usual in 2010 . Black Friday, which typically takes place the Friday following Thanksgiving, started in October for a number of retailers and was also scheduled to occur throughout the month of November. Sears and Walmart, who had been experiencing a continuous decline in sales recently, were the biggest names behind the move. Executives from a number of companies began to realize that consumers respond to the word sale, regardless of the time of year, so they decided to simply stretch the period of time in which their biggest sales ran. Companies designed new sale flyers and circulars, and began to promote the various sales on their websites. Other companies such as Target were also implementing a similar strategyby emphasizing savings earlier in the season and for a longer period of time, company executives hoped their brand would be the first, second, and last choice for consumers during the holiday season. During the holiday season, Snuggles, a winter clothing retail store, offers its employees 10 for every additional sweater that they sell. This is an example of:
a. a free premium.
b. a merchandise allowance.
c. push money.
d. a slotting fee.
Question 6A brand's is a statement of the functional, emotional, and/or self-expressive benefits delivered by the brand.
a. universal product code
b. memorandum of understanding
c. value proposition
d. warranty
Question 7One of the nation's most popular times for sales promotions was a great deal longer than usual in 2010 . Black Friday, which typically takes place the Friday following Thanksgiving, started in October for a number of retailers and was also scheduled to occur throughout the month of November. Sears and Walmart, who had been experiencing a continuous decline in sales recently, were the biggest names behind the move. Executives from a number of companies began to realize that consumers respond to the word sale, regardless of the time of year, so they decided to simply stretch the period of time in which their biggest sales ran. Companies designed new sale flyers and circulars, and began to promote the various sales on their websites. Other companies such as Target were also implementing a similar strategyby emphasizing savings earlier in the season and for a longer period of time, company executives hoped their brand would be the first, second, and last choice for consumers during the holiday season. Because companies realize consumers will be visiting stores more frequently during the holiday season, several toy manufacturers are paying direct cash to retailers in exchange for placing their brand in the most visible locations. These cash payments are known as .
a. rebates
b. push money
c. off-invoice allowances
d. slotting fees
Question 8Which of the following is true of segment selection?
a. The number of heavy users in a segment is usually very large.
b. It is enough to assess the size of a segment to select it as a company's target segment.
c. Growth potentials for all segments are generally very low.
d. Marketers are inclined to devote resources to segments projected for dramatic growth.
Question 9One of the nation's most popular times for sales promotions was a great deal longer than usual in 2010 . Black Friday, which typically takes place the Friday following Thanksgiving, started in October for a number of retailers and was also scheduled to occur throughout the month of November. Sears and Walmart, who had been experiencing a continuous decline in sales recently, were the biggest names behind the move. Executives from a number of companies began to realize that consumers respond to the word sale, regardless of the time of year, so they decided to simply stretch the period of time in which their biggest sales ran. Companies designed new sale flyers and circulars, and began to promote the various sales on their websites. Other companies such as Target were also implementing a similar strategyby emphasizing savings earlier in the season and for a longer period of time, company executives hoped their brand would be the first, second, and last choice for consumers during the holiday season. Implementing contests and sweepstakes can be a challenging task. One of the difficulties in implementing an effective sweepstakes is:
a. generating interest in the brand, not just in the sweepstakes.
b. choosing a winner in a manner which keeps everyone happy.
c. The entire implementation could falter and leave consumers disappointed.
d. notifying the winner when the sweepstakes is over.
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