General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well. Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal. General Mills' salespeople handle and monitor a number of promotions for its cereals. Which of the
following involves Point-of-Purchase advertising?
a. A scratch-off card to win a mountain bike inserted in each box
b. A free granola bar attached to each cereal box
c. A small box of cereal delivered with the daily newspaper
d. A large display of cereal boxes at the end of the grocery aisle
Question 2Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. But over time, competition from Sam & Libby and Easy Spirit brands have been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds's advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, The new ads really go for the heart. Copy on the first ad included the mother saying, She was my first, I could never tell her how to dress, with the daughter saying, She made me feel pretty even when I had braces. The copy for this campaign features moms and daughters commenting on their close relationships, and Brandweek magazine said that the new Keds ads really go for the heart. This points to the campaign's focus on
a. identifying emotional benefits.
b. delivering its promise.
c. targeting nonusers.
d. using VALS data.
Question 3General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well. Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal. General Mills allowes its retailers to deduct 2 from every box of cereal in the shipment it receives.
This is an example of a(n) .
a. slotting fee
b. merchandise allowance
c. bill-back allowance
d. off-invoice allowance
Question 4Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. But over time, competition from Sam & Libby and Easy Spirit brands have been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds's advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, The new ads really go for the heart. Copy on the first ad included the mother saying, She was my first, I could never tell her how to dress, with the daughter saying, She made me feel pretty even when I had braces. Which of these segmentation techniques would provide the most insight for Keds's advertising agency in the creation of its advertisements?
a. Emergent
b. Lifestyle
c. Geographic
d. Usage pattern
Question 5General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well. Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal. On the back of its Cheerios boxes, General Mills has printed a form to fill out for a cookbook offer.
The booklet is available to consumers for a nominal charge of 3.00, plus a 1.00 shipping and handling charge. This is an example of a(n):
a. self-liquidating premium.
b. on-package sample.
c. advertising specialty.
d. slotting fee.
Question 6Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. But over time, competition from Sam & Libby and Easy Spirit brands have been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds's advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, The new ads really go for the heart. Copy on the first ad included the mother saying, She was my first, I could never tell her how to dress, with the daughter saying, She made me feel pretty even when I had braces. Instead of mothers and daughters, why didn't Keds define its target segment simply as women?
a. This concept already has a number of established companies targeting it.
b. This is not based on a realistic approach to segmentation.
c. This is based on demographic criteria for which media is difficult to define.
d. This is poorly defined and provides no clear orientation or identity.
Question 7General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well. Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal. The marketers at General Mills have learned that along with Kellogg's and Quaker Oats, they often target the same customers with their advertising. This problem of customers receiving too many messages from too many firms has been addressed with sales promotion tactics featured in advertising such as coupons included in
magazine ads, or rebate offers mentioned in TV commercials. This is an example of promotion.
a. short-term orientation
b. media clutter
c. elasticity of demand
d. power of retailers
Question 8Sunshine Meals Inc is a company that sells breakfast foods such as cereals, pancake mixes, etc. The company conducts a study to segment its consumers. It finds that segment A consists of a small group of individuals who purchase four boxes of the brand's cereal every week. The average user consumes one box every week. It targets segment A by providing them with samples of other Sunshine products with the purchase of one box. Segment B consists of a large number of college students and individuals who have recently begun living on their own, and require readymade mixes as their breakfast solution. It targets these consumers by providing more variety with pancakes and waffle mixes. Segment C consists of consumers who are not consistent buyers and targeting these consumers could prove a loss for the company. If Sunshine Meals Inc begins producing a range of sugar free marmalades to target a small segment of health conscious consumers who would be willing to pay a premium price for products appropriate for their diets, this would be an example of
a. niche marketing
b. geographic segmentation
c. point-of-entry marketing
d. geodemographic segmentation
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