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Exam 18: Sales Promotion Overview and the Role of Trade Promotion

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Question 41

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Bill-back allowances are for retailers who feature the manufacturer's brand in advertisements or for providing special displays.

A) True
B) False

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Question 42

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Retailers are usually contractually bound to pass along discounted prices to consumers.

A) True
B) False

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Question 43

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A pull strategy consists of advertising and promotion directed at consumers.

Which of the following is NOT a manufacturer's objective for using trade-oriented promotions?

Describe the fundamentals of a pay-for-performance program.Why could this program be better for the retail system than the traditional system of trade allowances?

The Lippincott Company,a manufacturer of canned vegetables,offers Southeastern grocery chains,including BuyRight,the supermarket chain with stores located throughout the United States,a special price reduction per case on a new line of salt-free vegetables.BuyRight purchases the salt-free vegetables in very large quantities from Lippincott and proceeds to ship half of the vegetables to some of its other stores in the West.What type of buying practice is BuyRight practicing?

Everyday low pricing (M)is a form of pricing whereby a manufacturer lowers the price at the end of every month.

Wholesalers and retailers pay greater carrying charges in holding inventories of large quantities of forward-bought items.

The balance of power began shifting from manufacturers to retailers when network television dipped in effectiveness as an advertising medium and,especially,with the _____.

Which of the following is a true statement?

Sales promotion can enable a manufacturer to obtain extra shelf space for a temporary period.

Sales promotion can provide consumers with a compelling,long-term reason to continue purchasing a brand.

Assume that Coppertone invests heavily in trade allowances to encourage retailers to stock and promote QT,its skincare product designed for a quick suntanned look without the dangers of sunbathing.What type of strategy is Coppertone using?

Aunt Marie's is a local restaurant.The owner advertises in the local newspaper to attract customers.This is an example of a _____ strategy.

The XYZ chain of grocery stores purchases enough products on one deal to carry them over until the manufacturer's next regularly scheduled deal.This practice is known as _____.

Which of the following is a factor accounting for the shift from consumer advertising to promotion?

A push strategy is when a manufacturer directs personal selling,trade advertising,and trade-oriented sales promotion to wholesalers,retailers and consumers.

Advertising spending as a percentage of total marketing communications expenditures has increased in recent years.

The practice of _____ occurs when a manufacturer restricts a deal to a limited geographical area.

Manufacturers estimate that retailers usually comply with trade allowance agreements and pass through to consumers most of the trade funds that they provide to retailers.