SEM II Sec 3

Why is sport/event sponsorship one of the fastest growing promotional activities today?

• There is no risk involved with sport/event sponsorship.

• Fans are not willing to patronize a sponsoring company.

• People are receptive to companies that sponsor their teams/events.

• Many teams/events would not be able to survive without sponsorship.

Which of the following statements best defines the term promotional mix:

• The “magic formula” used in developing promotional plans

• The way in which businesses combine promotional methods

• The confusion of too many promotional techniques

• The rotation technique used for promoting employees

The JB Company is one of many corporations that sponsor the Z Racing race car team. Every Z Racing car is covered with dozens of its sponsors’ logos. As a result, the JB Company may likely experience

• brand recognition.

• media attention.

• sponsorship clutter.

• ambush marketing.

Cool Cola recently developed a new flavor of soda. The company has generated customer interest in the new product via television commercials and coupons. As a result, wholesalers and retailers are buying the new soda from Cool Cola to meet customer demand. This is an example of a(n) __________ promotional strategy.

• increasing

• decreasing

• push

• pull

The Sandlot Company promotes its products to intermediaries who then promote the products to customers. The Sandlot Company is using a(n) __________ promotional strategy.

• push

• pull

• increasing

• decreasing

Which of the following risks does the sponsor of a sports team face when the team develops a negative image:

• Ambush marketing

• Guilt by association

• Sponsorship clutter

• Sponsorship exploitation

If a tire company such as Goodyear Tires is the only tire sponsor of an automobile racing event, its sponsorship is considered

• exclusive.

• small.

• ambush marketing.

• private.

Why do companies prefer a formal, written contract when they agree to sponsor a sport or an event?

• An official contract is exclusive.

• An official contract creates brand recognition.

• An official contract is legally binding.

• An official contract eliminates competition.

When the promotional mix for a product is affected by the path the product takes from the producer to the ultimate consumer, the mix is being influenced by the product’s

• distribution channel.

• market.

• life cycle.

• consumers.

In which stage of a product’s life cycle would the least money be invested in product promotion?

• Growth

• Introduction

• Decline

• Maturity