Sales Promo Concepts Knowledge Check 3

A retailer will support a manufacturer's consumer promotion program if the program will increase traffic into the retail store, boost store sales, attract new customers, or increase the basket size of shoppers in the store.

• TRUE

• FALSE

Trade promotions are distinguished from other marketing and IMC tools since trade promotions:

• involve extensive advertising.

• are offered to consumers.

• are used to entice other members of the marketing channel to make purchases or stock an item.

• are limited to activities by manufacturers.

The primary role of a trade promotions program is to:

• build brand equity.

• encourage trial purchases.

• pull products through the channel.

• push products through the channel.

Rewards given as contest prizes to brokers, retail salespeople, retail stores, wholesalers, or agents is considered a:

• trade allowance.

• trade contest.

• cooperative merchandise agreement.

• drop-ship allowance.

Rewards given to channel members such as brokers, retail salespeople, and others as prizes for winning a contest are known as:

• slotting fees.

• volume incentives.

• spiff money.

• pay for play.

Retailers benefit from co-op advertising in each of the following ways except:

• they can expand their advertising program at a low cost.

• benefit from the image of promoting a national brand.

• attract new and additional customers to their store because of national brands.

• receive money in advance to cover the costs of advertising.

Manufacturers benefit from co-op advertising in each of the following ways except:

• gain additional advertising exposure at reduced costs.

• reimbursed by retailers for their share of the ad costs.

• co-op dollars are directly tied to retail sales.

• gain prominent exposure in an ad since no other competing brands can also be displayed.

Manufacturers should concentrate their efforts at trade shows on each of the following buyer groups except:

• solution seekers.

• buying teams.

• power buyers.

• education seekers.

Offering financial incentives to channel members in order to motivate them to make a purchase is a:

• trade allowance.

• trade incentive.

• trade contest.

• vendor support program.

Trade allowances include each of the following except:

• off-invoice allowance.

• exit fees.

• trade shows.

• slotting fees.