4.00 REVIEW QUESTIONS
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1. Which pricing strategy sets prices lower than those of the competition?
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A. Smoothing
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B. Stretching
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C. Penetration
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D. Skimming
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C.
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2. When prices go up or down, the change can affect how much of the sport/event product
customers purchase. This is a general of
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A. elasticity
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B. market segmentation.
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C. smoothing.
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D. "total cost."
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A.
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3. Why might a sport/event organization price entry fees for a marathon below the normal
rate?
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A. To establish their event as "luxury"
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B. To encourage maximum participation
•
C. To create profits
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D. To meet competitors prices
•
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B.
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4. Which of the following is a company-focused pricing objective for sport/event products:
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A. Offering the most discounts to customers
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B. Offering the lowest prices
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C. Enhancing image
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D. Achieving a price customers feel is "fair"
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C
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5. Which of the following is a tangible benefit of purchasing a surfboard:
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A. It is the most popular brand on the market.
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B. It gives you the opportunity to join a surfing club.
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C. It allows you to spend time with your friends at the beach.
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D. It has a wrist strap to keep it connected to you in the water.
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D.
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6. In sports and entertainment marketing, the concept of price includes not only the cost
of a ticket to an event but also the
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A. value of the overall experience.
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B. quality of the media advertising.
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C. elements of the marketing plan.
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D. location of the facility.
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A.
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7. The additional cost of paying for parking and buying refreshments and programs is part
of the overall ____________ of attending a concert.
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A. benefit
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B. price
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C. goal
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D. value
•
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B.
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8. Wintergreen Ski Area knows that the area will be most successful if it bases its pricing
structure on
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A. costs associated with renovations.
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B. what the market will bear.
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C. total cost of the experience.
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D. inelastic demand for skiing.
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B.
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9. Yield management is a way that sport/event marketers address product pricing issues
when they want to maximize revenue but have
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A. below-market stock value.
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B. unallocated resources.
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C. limited capacity.
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D. few distribution intermediaries
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C.
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10. Which of the following is not a reason that pricing is the most critical element of the
marketing mix: (4 points)
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a. It is the least visible element of the mix.
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b. It communicates even more than advertising.
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c. It can be changed instantly.
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d. It is a top concern of customers.
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a It is the least visible element of the mix. Pricing is the most critical element of the
marketing mix for marketers because it is the most visible element of the marketing mix
for customers. Price communicates to customers even more than advertising does. And
unlike advertising campaigns, which can take weeks or months to alter, price can be
changed instantly. To customers, price is always a top concern.
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11. A customer’s opinion of the value of a sport/event product is based on (4 points)
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a. advertising.
c. perceived benefits.
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b. education.
d. price.
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11. c Perceived benefits. A customer’s opinion of the value of a
sport/event product is based on perceived benefits.
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Value is subjective. The same product can have varying values to
different people. The reason that value is
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unique to each customer is that the benefits of purchasing the product
are based on that individual’s
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perception. Advertising, education, and price may contribute to a
customer’s perception of benefits, but none
•
is the basis for deciding value. (4 points)
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12. Which of the following is an intangible benefit of purchasing a sport watch: (4 points)
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a. It fits comfortably on your wrist.
c. It allows you to time your daily run.
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b. It’s your favorite color.
d. Your friends will be impressed by it.
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12. d Your friends will be impressed by it. Impressing friends is an
intangible benefit of purchasing the sport watch because it cannot be
measured by the five senses. One can look at the sport watch and see its color
and its capability to time a daily run. One can also wear the sport watch and
feel how comfortable it is. These are all tangible benefits of purchasing the
watch. (4 points)
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13. Which of the following is a tangible benefit of purchasing a surfboard: (4 points)
•
a. It has a wrist strap to keep it connected to you in the water.
•
b. It is the most popular brand on the market.
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c. It allows you to spend time with your friends at the beach.
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d. It gives you the opportunity to join a surfing club.
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13. a It has a wrist strap to keep it connected to you in the water. The
wrist strap is a tangible benefit of purchasing the surfboard because it can be
measured by the five senses. Owning a popular board, spending time with
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friends at the beach, and joining a surfing club are all intangible benefits
because they are measured by the way
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one feels. (4 points)
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14. Pricing sport/event products is unique because of the (4 points)
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a. wide variety of products.
c. intangible benefits.
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b. tangible benefits.
d. extremely high demand.
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14. d Extremely high demand. Pricing sport/event products is unique
because of the extremely high demand. The
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widespread popularity of sports (particularly professional sports) and
entertainment has created this high
•
demand for sport/event products. It has pushed ticket prices for sports and
events sky-high in recent years.
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Wide variety and tangible and intangible benefits are not unique to sport/event
pricing. They are elements that
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can be found in any type of pricing. (4 points)
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15. Pricing objectives are important because they determine (4 points)
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a. perceived benefits.
c. “total cost.”
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b. pricing strategies.
d. market demand.
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15. b Pricing strategies. Pricing objectives are important because they
determine pricing strategies. When pricing
•
their products, sport/event marketers must keep in mind exactly what they are
trying to achieve. Before
•
determining price, they must ask themselves, “What result can the
organization expect to achieve because of
•
this price?” Pricing objectives may have an effect on perceived benefits, “total
cost,” and market demand, but
•
they are not a determining factor. (4 points)
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16. Which of the following is a company-focused pricing objective for sport/event
products: (4 points)
•
a. Achieving a price customers feel is “fair”
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b. Offering the lowest prices
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c. Offering the most discounts to customers
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d. Enhancing image
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16. d Enhancing image. Pricing products in a way that will enhance their
image is a company-focused pricing
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objective because it is concerned only with what the company is trying to
achieve for itself. Other company focused
•
pricing objectives include covering costs and creating profits. Achieving prices
that customers
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consider “fair” and offering the most discounts are customer-focused pricing
objectives. Offering the lowest
•
prices is a competition-focused pricing objective. (4 points)
•
17. Why might a sport/event organization price entry fees for a marathon below the
normal rate? (4 points)
•
a. To meet competitors’ prices
c. To encourage maximum participation
•
b. To establish their event as “luxury”
d. To create profits
•
17. c To encourage maximum participation. A sport/event organization
might price entry fees for a marathon below
•
the normal rate to encourage maximum participation in the race. Lower fees
would not meet competitors’
•
prices since the fees would be less expensive than for other marathons. Also,
lower fees would not establish the
•
event as “luxury” or create profits. Only higher fees would do
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18. Which member of the distribution channel has the biggest impact on the price of a
sport/event product? (4 points)
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a. Retailer c. Wholesaler
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b. Manufacturer d. Customer
•
.
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18. a Retailer. Retailers have the biggest impact on the final price of a sport/event
product because they control the
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final markup. All prices are set to cover costs for each member of the distribution channel,
including
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manufacturers and wholesalers, but retailers have a bigger impact since they have the
final say on price.
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Customers have an effect on pricing as well, but not as much as retailers do. (4 points )
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19. Which of the following is an effect of distribution on the price of a sport/event product:
(4 points)
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a. Prices are lower for convenience. c. Prices are higher in nontraditional channels.
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b. Prices are higher at retail stores. d. Prices are lower for better facilities
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19. b Prices are higher at retail stores. Prices are higher at retail stores because
retailers mark up prices before
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selling sport/event products to customers. Prices are lower in nontraditional channels of
distribution that skip
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retailers because customers do not have to pay the final retail markup. Prices are also
higher for convenience
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and for better facilities because customers value those benefits. (4 points)
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20. Rent, equipment, salaries, and maintenance are expenses known as __________
costs. (4 points)
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a. variable c. stable
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b. total d. fixed
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20. d Fixed. Expenses that stay the same no matter how much of a sport/event product is
being produced are called
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fixed costs. These costs include expenses such as rent, equipment, salaries, and
maintenance. Variable costs
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are expenses that change along with the amount of production. Total costs are the sum of
fixed and variable
•
costs. Stable costs accurately describes fixed costs, but it is not the correct term. (4
points)
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21. Materials, packaging, and advertising are expenses known as __________ costs. (4
points)
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a. variable
c. unstable
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b. total
d. fixed
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21. a Variable. Expenses that change along with the amount of production are called
variable costs. These costs
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include expenses such as materials, packaging, and advertising. Fixed costs are
expenses that stay the same
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no matter how much of a sport/event product is being produced. Total costs are the sum
of fixed and variable
•
costs. Unstable costs accurately describes variable costs, but it is not the correct term. (4
points)
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22. Customers are more likely to buy sport/event products at lower prices rather than
higher ones. This is a general rule of
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(4 points)
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a. market segmentation.
c. promotion.
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b. market demand.
d. competition.
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22. b Market demand. Market demand is the amount of a product that customers are
willing to purchase at a certain
•
price. As a general rule, customers are more likely to buy products at lower prices rather
than at higher ones.
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Market segmentation is the process of dividing the market into groups of people who
share common
•
characteristics. Promotion is a marketing function used to communicate information about
products. Competition
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is the rivalry between businesses to attract customer dollars. (4 points)
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23. When prices go up or down, the change can affect how much of the sport/event
product customers purchase. This is the general principle of (4 points)
•
a. market segmentation.
c. elasticity.
•
b. “total cost.”
d. smoothing.
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23. c Elasticity. Price elasticity is a measure of how sensitive customers are to changes
in price. It gauges the
•
relationship between market demand and price. Market segmentation is the process of
dividing the market into
•
groups of people who share common characteristics. “Total cost” is a concept that
customers’ perception of
•
overall value is linked to all the expenses involved in attending an event, including
expenses that are not under
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marketers’ control. Smoothing is the process of dividing a product into different segments
for customers.
•
(4 points)
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24. Ticket prices for the World Series increase dramatically, but all the games still sell out.
The price change had little to no impact on sales. This is an example of __________
demand. (4 points)
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a. elastic
c. smoothing
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b. unitary
d. inelastic
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24. d Inelastic. An inelastic demand means that price changes have little to no impact on
product sales. The demand
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for World Series tickets is inelastic because it doesn’t change according to price. An
elastic demand means that
•
small price changes have a big impact on product sales. A unitary demand means that
changes in price create
•
proportionate changes in product sales. Smoothing is the process of dividing a product
into different segments
•
for customers. (4 points)
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25. A hockey team raises prices for soft drinks at its arena by 25 cents per cup. They sell
half as many soft drinks as they did before the price change. The small price change had
a big impact on sales. This is an example of __________ demand.
•
(4 points)
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a. elastic
c. smoothing
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b. unitary
d. inelastic
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25. a Elastic. An elastic demand means that small price changes have a big impact on
product sales. The demand for
•
soft drinks at hockey games is elastic because when the prices rose slightly, sales
dropped sharply. An inelastic
•
demand means that price changes have little to no impact on product sales. A unitary
demand means that
•
changes in price create proportionate changes in product sales. Smoothing is the process
of dividing a product
•
into different segments for customers. (
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26. At the end of the season, a ski lodge drops the prices for ski rentals by a few dollars.
They see a slight increase in the
•
number of ski rentals during that time. The change in price created a proportionate
change in sales. This is an example
•
of __________ demand. (4 points)
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a. elastic
c. smoothing
•
b. unitary
d. inelastic
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27. b Unitary. A unitary demand means that changes in price create
proportionate changes in product sales. The
•
demand for ski rentals is unitary because when the prices dropped
slightly, rentals increased slightly. An
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elastic demand means that small price changes have a big impact on
product sales. An inelastic demand means
•
that price changes have little to no impact on product sales.
Smoothing is the process of dividing a product into
•
different segments for customers. (4 points)
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28. Technology affects sport/event product prices by (4 points)
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a. raising them.
c. both raising and lowering them.
•
b. lowering them.
d. making them unstable.
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28. c Both raising and lowering them. In some cases, technology raises the
price of a sport/event product because
•
the product is more technologically advanced than similar products. In other
cases, technology lowers the
•
price of a sport/event product by allowing customers to order it online and skip
members of the distribution
•
channel. Technology has an effect on prices but does not make them unstable.
(4 points)
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29. A sport/event company wants to promote bobble-head dolls to men in their
thirties who love basketball. This group
•
is known as a __________ segment. (4 points)
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a. customer
c. demand
•
b. distribution
d. market
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29. d Market. Groups of people who share common characteristics are known
as market segments. Men in their
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thirties who love basketball is a market segment defined by both demographic
and psychographic characteristics.
•
Customer segments, distribution segments, and demand segments may
describe market segments, but
•
they are not the correct terms. (4 points)
•
30. Which of the following is a demographic characteristic: (4 points)
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a. Ethnicity
c. Motives
•
b. Area of residence
d. Interests
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30. a Ethnicity. Ethnicity is a demographic characteristic. Demographics are
variables such as age, ethnicity,
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gender, religion, family size, education, income, or occupation. Area of
residence is a geographic characteristic.
•
Motives and interests are psychographic characteristics. (4 points)
•
31. Which of the following is a psychographic characteristic: (4 points)
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a. Occupation
•
b. Opinions
c. Age
d. Gender
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31. b Opinions. Customer opinions is a psychographic characteristic.
Psychographics are variables such as
•
customers’ needs, motives, lifestyle choices, perceptions, attitudes, opinions,
and interests. Occupation, age,
•
and gender are all demographic characteristics. (4 points)
•
32. Charging different prices to different people is not illegal if the product is a
(4 points)
•
a. sport/event product.
c. service.
•
b. sale item.
d. good.
•
32. c Service. Charging different prices to different people is not illegal if the
product is a service. For example, at
•
college football games, tickets are priced lower for students and faculty
members. Swimming lessons may be
•
less expensive for three-year-olds than for twelve-year-olds. However, this
pricing strategy is considered price
•
discrimination if used for pricing goods, including sport/event goods and sale
items. (4 points)
•
33. Which pricing strategy groups a sport/event product into different segments
for customers? (4 points)
•
a. Penetration
•
b. Skimming
c. Stretching
d. Smoothing
•
33. d Smoothing. Smoothing groups a sport/event product into different
segments for customers. Most sport/event
•
marketers can divide their products by either time or place. Time smoothing
usually involves determining
•
“prime times” and “nonprime times” for services. Place smoothing is the
process of dividing a sport/event
•
venue into “sections” and pricing them accordingly. Penetration pricing refers
to setting prices lower than
•
those of the competition. Price skimming refers to setting prices higher than
those of the competition.
•
Stretching is not a pricing strategy. (4 points)
•
34. Which pricing strategy sets prices lower than those of the competition? (4
points)
•
a. Penetration
•
b. Skimming
c. Stretching
d. Smoothing
•
34. a Penetration. Penetration pricing refers to setting prices lower than those
of the competition. Sport/Event
•
marketers mainly use it to introduce a new product or to gain a greater share
of the market. Price skimming
•
refers to setting prices higher than those of the competition. Smoothing groups
a sport/event product into
•
different segments for customers. Stretching is not a pricing strategy. (4 points)
•
35. Which pricing strategy sets prices higher than those of the competition? (4
points)
•
a. Penetration
c. Stretching
•
b. Skimming
d. Smoothing
•
35. b Skimming. Price skimming refers to setting prices higher than those of
the competition. Sport/Event
•
marketers use it to keep competitors from entering the market or to promote a
prestigious image of their
•
product. Penetration pricing refers to setting prices lower than those of the
competition. Smoothing groups a
•
sport/event product into different segments for customers. Stretching is not a
pricing strategy. (4 points
4.08 REVIEW QUESTIONS
•
1. Conventional thinking, tried-and-true ways of doing things can be described as:
•
a. exciting.
•
b. ineffective.
•
c. “inside the box.”
•
d. “out of the box.”
•
1. c “Inside the box.” Conventional thinking, tried-and-true ways of doing things can be
described as
•
“inside the box.” Everything “inside the box” has been done before. Even though “insidethe-box”
•
methods may have proven to be effective in the past, they can get boring over time. “Out of-the-box”
•
thinking is creative, fresh ideas that haven’t been tried before. (4 points)
•
Objective B
•
2. Which of the following is an example of a sales promotion: (4 points)
•
a. A 50-percent-off coupon
•
b. A television commercial
•
c. A personalized sales presentation
•
d. A press release
•
2. a A 50-percent-off coupon. A 50-percent-off coupon is an example of a sales
promotion. Sales promotion is any promotional activity (other than advertising, personal
selling, and publicity) that stimulates customer purchases. Common forms of sales
promotion include coupons, rebates, contests, and product samples. A television
commercial is a form of advertising, not sales promotion. A personalized sales
presentation is a form of personal selling, not sales promotion. A press release is involved
in publicity, not sales promotion. (4 points)
•
3. Something that will fulfill a customer’s specific desire or need is a(n):
•
a. rebate.
•
b. “out-of-the-box” idea.
•
c. advertisement.
•
d. incentive.
•
3. d Incentive. Something that will fulfill a customer’s specific desire or need is an
incentive. A rebate is a return of part of the price a customer pays for a good or service,
so a rebate could be used as an incentive, but is only one of many things that could be
used. An “out-of-the-box” idea could fulfill a customer’s desire or need, but the idea
doesn’t necessarily have to be “out of the box.” An advertisement doesn’t fulfill a
customer’s specific desire or need. (4 points)
4. Sales promotion is a major part of sport/event marketing because (4 points)
a. there aren’t very many sport/event customers.
b. the industry is so highly competitive.
c. the most important task in sport/event marketing is ticket sales.
d. the industry can get very boring.
•
4. b The industry is so highly competitive. Sales promotion is a major part of
sport/event marketing because the industry is so highly competitive. Smart sport/event
marketers know that their potential customers have an endless list of possibilities for how
to spend their time and money. A good sales promotion can help customers decide to
spend that money with them rather than with the competition. There are many, many
potential customers out there for games and events, so lack of customers is not the
reason that sales promotion is so important in sport/event marketing. Ticket sales is not
necessarily the most important part of sport/event marketing. The sport/event field is a
very exciting one, not a boring one. (4 points)
•
5. Which of the following is not a benefit of “out-of-the-box” sales promotions: (4 points)
•
a. Your game/event stands out from the competition.
•
b. You will break all previous ticket sales records.
•
c. People get excited about attending your game/event.
•
d. Your game/event has positive publicity
5. b You will break all previous ticket sales records. Breaking all previous ticket
sales records is not
a benefit of “out-of-the-box” sales promotions because there is no guarantee that
those records
will be broken. “Out-of-the-box” sales promotions will make your game/event stand out
from the
competition, get people excited about attending your game/event, and create positive
publicity for
your game/event. (4 points)
•
6. What is the first thing you should understand when setting out to develop “out-of-thebox” sales promotion ideas for your game/event? (4 points)
•
a. There is no way to be prepared for inspiration.
•
b. You need a certain amount of education to do so.
•
c. You need a certain amount of experience to do so.
•
d. There is no particular source or technique.
•
6. d There is no particular source or technique. The first thing you should understand
when setting out to develop “out-of-the-box” sales promotion ideas for your game/event is
that there is no particular source or technique for doing so. After all, if there were a proven
method, you’d be back inside the box! Inspiration can strike anywhere, anytime, and there
are several ways that you can be prepared for inspiration. You do not need a certain
amount of education or experience to develop “out-of-the box” sales promotion ideas.
•
7. Brian needs to generate some “out-of-the-box” sales promotion ideas for an upcoming
tennis tournament. He’s not sure how to start, but he does know that the tournament’s
marketers want to reach the 18-to-35-year-old crowd. How is Brian prepared for
inspiration? (4 points)
•
a. He knows his target market.
•
b. He knows his competition.
•
c. He’s putting a new twist on an old idea.
•
d. He’s brainstorming.
•
7. a He knows his target market. Brian is prepared for inspiration because he knows his
target market—18-to-35-year-olds. Keeping that target group in mind, Brian will be better
able to know which ideas will work and which won’t. Knowing your competition means
taking their ideas and improving on them. Putting a new twist on an old idea means
taking something that’s already been done and making it “out of the box.” Brainstorming is
a creative-thinking technique involving the identification of as many different ideas as
possible during a certain time frame. In this situation, Brian is not prepared for inspiration
by knowing his competition, putting a new twist on an old idea, or brainstorming.
•
(4 points)
•
8. Shannon needs to generate some “out-of-the-box” sales promotion ideas for the
concert tour she works on. She’s not sure how to start, but she knows that a competitor’s
concert tour had great success last year with ticket contests on local radio stations. How
is Shannon prepared for inspiration? (4 points)
•
a. She knows her target market.
•
b. She knows her competition.
•
c. She’s putting a new twist on an old idea.
•
d. She’s brainstorming.
•
8. b She knows her competition. Shannon is prepared for inspiration because she
knows her competition and what is working well for them. She might be able to take their
ideas “out-of-the-box” for her own team. Knowing your target market means
understanding what incentives will and will not work for them. Putting a new twist on an
old idea means taking something that’s already been done and making it “out of the box.”
Brainstorming is a creative-thinking technique involving the identification of as many
different ideas as possible during a certain time frame. In this situation, Shannon is not
prepared for inspiration by knowing her target market, putting a new twist on an old idea,
or brainstorming. (4 points)
•
9. Marcus needs to generate some “out-of-the-box” sales promotion ideas for the WNBA
team he works for. Last year, they placed coupons in the local paper, but Marcus is afraid
that promotion might be ineffective if they try it again. Instead, he’s thinking of creating a
“coupon scavenger hunt” that sends fans all over town searching for free and discounted
tickets. How was Marcus prepared for inspiration? (4 points)
•
a. He knows his target market.
•
b. He knows his competition.
•
c. He’s putting a new twist on an old idea.
•
d. He’s brainstorming
•
9. c He’s putting a new twist on an old idea. Marcus prepared for inspiration by putting
a new twist on an old idea. Coupons are popular, but a “coupon scavenger hunt” is “outof-the-box.” Knowing your target market means understanding what incentives will and
will not work for them. Knowing your competition means taking their ideas and improving
on them. Brainstorming is a creative-thinking technique involving the identification of as
many different ideas as possible during a certain time frame. In this situation, Marcus did
not prepare for inspiration by knowing his target market, knowing his competition, or
brainstorming. (4 points)
•
10. Chelsea needs to generate some “out-of-the-box” sales promotion ideas for a charity
walk/run event, but she’s stuck. So she gathers all her colleagues together for a 30minute meeting, and asks them to share as many ideas as they can during that time
frame. How is Chelsea prepared for inspiration?
•
a. She knows her target market.
•
b. She knows her competition.
•
c. She’s putting a new twist on an old idea.
•
d. She’s brainstorming
•
10. d She’s brainstorming. Chelsea is prepared for inspiration because she is
brainstorming, gathering her coworkers together to generate as many ideas as possible
during a certain timeframe. Knowing your target market means understanding what
incentives will and will not work for them. Knowing your competition means taking their
ideas and improving on them. Putting a new twist on an old idea means taking something
that’s already been done and making it “out of the box.” In this situation, Chelsea is not
prepared for inspiration by knowing her target market, knowing her competition, or putting
a new twist on an old idea. (4 points)
•
11. Josh works in marketing for a senior citizens’ golf league. He suggests an “out-of-thebox” sales promotion in which league participants receive discount coupons to the local
water park, but his boss doesn’t think that’s such a good idea. What question did Josh fail
to ask himself about his idea? (4 points)
•
a. What is the incentive I’m offering?
•
b. Is this sales promotion creative?
•
c. Does this sales promotion fit with the overall marketing plan?
•
d. Does this sales promotion reach my target audience?
•
11. d Does this sales promotion reach my target audience? Josh failed to ask himself,
“Does this sales promotion reach my target audience?” when he came up with his “out-ofthe-box” idea. He knows the incentive he wants to offer, but senior citizens would not
likely be attracted to coupons for a water park. In this situation, Josh did not need to ask
whether or not the sales promotion was creative or if it fit with the overall marketing plan.
(4 points)
•
12. The football team that Kandace works for is in desperate need of some positive
publicity. Kandace comes up with an “out-of-the-box” sales promotion idea that involves
offering discount tickets through local grocery stores. Her boss tells her that while the
promotion may work, it doesn’t generate the excitement they need for better public
relations. What question did Kandace fail to ask herself about her idea? (4 points)
•
a. What is the incentive I’m offering?
•
b. Is this sales promotion creative?
•
c. Does this sales promotion fit with the overall marketing plan?
•
d. Does this sales promotion reach my target audience?
•
12. c Does this sales promotion fit with the overall marketing plan? Kandace failed to
ask herself, “Does this sales promotion fit with the overall marketing plan?” when she
came up with her “out-of-the-box” idea. She knows the creative incentive she wants to
offer, and it may work just fine with her target market, but it just doesn’t create the kind of
excitement her team needs to create positive publicity. Therefore, her promotion does not
fit with the team’s overall marketing plan. (4 points)
•
13. When you ask, “What does this sales promotion offer to customers?” which step in the
process of generating “out-of-the-box” sales promotion ideas are you completing? (4
points)
•
a. Determine creativity.
•
b. Determine incentive.
•
c. Determine delivery.
•
d. Determine how to get the news out.
•
13. b Determine incentive. When you ask, “What does this sales promotion offer to
customers?” you are determining the incentive of your sales promotion. What does it
offer? A chance to save money? A free sample or gift? An opportunity to experience
something they can’t unless they attend your game or event? Your sales promotion must
satisfy a need or desire of your target customer. Determining creativity is not one of the
final three steps in the process of identifying “out-of-the-box” sales promotion ideas.
Determining delivery means deciding how to “package” the incentive. Determining how to
get the news out means deciding how you will let your customers know about the sales
promotion. When asking this question, you are not determining creativity, determining
delivery, or determining how to get the news out. (4 points)
•
)
•
14. When you ask, “How will my customers receive this sales promotion?” which step in
the process of generating “out-of-the-box” sales promotion ideas are you completing? (4
points)
•
a. Determine creativity.
•
b. Determine incentive.
•
c. Determine delivery.
•
d. Determine how to get the news out.
•
14. c Determine delivery. When you ask, “How will my customers receive this sales
promotion?” you are determining the delivery of your sales promotion. Will it be in the
form of a coupon? A contest? A special event? Your incentive is a present and the delivery
method is the way you decide to wrap it. Determining creativity is not one of the final
three steps in the process of identifying “out-of-the-box” sales promotion ideas.
Determining the incentive means deciding exactly what your sales promotion offers to
customers. Determining how to get the news out means deciding how you will let your
customers know about the sales promotion. When asking this question, you are not
determining creativity, determining the incentive, or determining how to get the news out.
(4 points
•
15. When you ask, “How will my customers know about this sales promotion?” which step
in the process of generating “out-of-the-box” sales promotion ideas are you completing?
(4 points)
•
a. Determine creativity.
•
b. Determine incentive.
•
c. Determine delivery.
•
d. Determine how to get the news out.
•
15. d Determine how to get the news out. When you ask, “How will my customers know
about this sales promotion?” you are determining how to get the news out. It can’t work
unless your potential customers know about it! Getting the word out might involve
something as big as a full-fledged advertising campaign, or it might be as simple as
printing a coupon to appear in the Sunday paper. Determining creativity is not one of the
final three steps in the process of identifying “out-of-the-box” sales promotion ideas.
Determining the incentive means deciding exactly what your sales promotion offers to
customers. Determining delivery means deciding how to “package” the incentive. When
asking this question, you are not determining creativity, determining the incentive, or
determining delivery. (4 points
•
16. Which of the following is a consideration when implementing a ticket sales campaign:
•
A. Name recognition
•
B. Seating arrangement
•
C. Immediate accessibility
•
D. Organized hospitality
•
C.
•
17. When you ask, "How will my customers receive this sales promotion?" which step in
the process of generating "out-of-the-box" sales promotion ideas are you completing?
•
A. Determine how to get the news out.
•
B. Determine creativity.
•
C. Determine incentive.
•
D. Determine delivery.
•
•
D.
•
18. When you ask, "What does this sales promotion offer to customers?" which step in
the process of generating "out-of-the-box" sales promotion ideas are you completing?
•
A. Determine how to get the news out.
•
B. Determine creativity.
•
C. Determine delivery.
•
D. Determine incentive.
•
•
D.
•
19. Brian needs to generate some "out-of-the-box" sales promotion ideas for an upcoming
tennis tournament. He's not sure how to start, but he does know that the tournament's
marketers want to reach the 18-to-35-year-old crowd. How is Brian prepared for
inspiration?
•
A. He knows his target market.
•
B. He knows his competition.
•
C. He's putting a new twist on an old idea.
•
D. He's brainstorming.
•
•
A.
•
20. What is the first thing you should understand when setting out to develop "out-of-thebox" sales promotion ideas for your game/event?
•
A. You need a certain amount of experience to do so.
•
B. There is no way to be prepared for inspiration.
•
C. You need a certain amount of education to do so.
•
D. There is no particular source or technique.
•
•
D.
•
21. Sales promotion is a major part of sport/event marketing because
•
A. the most important task in sport/event marketing is ticket sales.
•
B. there aren't very many sport/event customers.
•
C. the industry is so highly competitive.
•
D. the industry can get very boring.
•
•
C.
•
22. Which of the following is one of the main features of a sport product:
•
A. Franchises
•
B. Athletes
•
C. Tickets
•
D. Extensions
•
•
B.
•
23. One of the features of sports events such as football games is that they are
•
A. impulsive.
•
B. consistent.
•
C. unpredictable.
•
D. tangible.
•
C.
4.01-4.06, 4.09-4.10 QUESTIONS
•
To increase revenue, professional baseball and football teams often sell advertising that
appears
•
A. on national television.
•
B. in local magazines.
•
C. on the back of tickets.
•
D. in community newspapers.
•
•
C
•
Which of the following is an example of a business using a celebrity's appearance to
attract customers to an event:
•
A. An actor stars in the lead role of a film that is based on a best-selling novel.
•
B. A professional athlete announces her/his plans to retire within six months.
•
C. An athletic-shoe company distributes a press release about a new endorsement deal.
•
D. A rock star signs copies of his/her latest CD at a store's
•
•
D
•
What do businesses often include with a news release to attract an editor's attention:
•
A. Promotional souvenir
•
B. Captioned photograph
•
C. Reference list
•
D. Thank-you letter
•
•
B
•
One reason sport/event organizers often plan a day to give the media an opportunity to
visit the site in advance is to encourage the media to
•
A. set up broadcast equipment.
•
B. pick up their credentials.
•
C. publicize the preparations.
•
D. hold a press conference.
•
•
C
•
What do sport/event planners often develop to encourage television and newspaper
coverage?
•
A. Sales promotions
•
B. Local contests
•
C. Media guides
•
D. Creative themes
•
•
C
•
Why is it important for professional sport organization to develop relationships with the
media?
•
A. To maximize favorable news and event coverage
•
B. To reduce the need to obtain alternate sources of income
•
C. To obtain endorsement deals with professional athletes
•
D. To prevent the release of information to the public
•
•
A
•
Which of the following is an advantage to a sport organization that develops an interactive
relationship with the broadcast and print media:
•
A. Ensures confidential information exchanges
•
B. Decreases the need for a public-relations plan
•
C. Builds mutually favorable relationships
•
D. Reduces organizational crisis risks
•
•
C
•
Following a rash of newspaper criticism for being overpaid, a multimillion-dollar athlete
signed up to be a volunteer spokesperson for Special Olympics. What was the athlete
attempting to accomplish by promoting this move to the press?
•
A. Obtain a tax deduction
•
B. Attract a new sponsor
•
C. Gain more income
•
D. Overcome negative publicity
•
•
D
•
Sport/event organizations develop and generate newsletters to
•
A. communicate with the public
•
B. notify the media
•
C. obtain feedback from sponsors
•
D. prepare for problems.
•
•
A
•
To develop positive relationships with the media, an advertising agency's public-relations
director must be
•
A. impressionable and suspicious.
•
B. honest and professional.
•
C. organized and distant.
•
D. approachable and aggressive.
•
•
B
•
Developing positive relationships with people who work for local television stations and
newspaper publishers is a way for an advertising agency to generate _______ for its
clients.
•
A. new markets
•
B. cash
•
C. sales promotion
•
D. publicity
•
•
D
•
When sport/event marketers use ongoing, two-way communication to build trust and
goodwill with the media, they are creating a(n) ____________ relationship.
•
A. comprehensive
•
B. interactive
•
C. reactive
•
D. exclusive
•
•
B
•
When writing news releases, businesses should avoid including their
•
A. opinions.
•
B. statistics
•
C. goals.
•
D. locations.
•
•
A
•
Ms. Johnson did not proofread a news release before it was mailed to the media, and
several errors were found later. In order to minimize the damage that may result, Ms.
Johnson should
•
A. wait for the media to contact the business
•
B. say nothing, but proofread future releases
•
C. ask another employee to handle the problem
•
D. call the media to give the correct information
•
•
D
•
What information should a business obtain to get its news releases used?
•
A. Advertising rates
•
B. Publisher's name
•
C. Media deadlines
•
D. Network affiliation
•
•
C
•
What do businesses need to remember after they send a news release to the media?
•
A. The business should continuously are willing to publish all the news releases they
receive.
•
B. Most magazines and newspapers are willing to publish all the news releases they
receive.
•
C. Media outlets will only use press releases for businesses that purchase advertising.
•
D. The editor decides whether to publish or broadcast the release.
•
•
D
•
Which of the following do event organizers often include in an event to add interest and
excitement to the event:
•
A. Dress rehearsal
•
B. Long intermission
•
C. Celebrity appearance
•
D. Sponsor recognition
•
•
C
•
When a sport organization employee creates a promotional script for a sport announcer to
read during a pregame award ceremony, the employee should
•
A. include a joke in the introduction to capture the audience's attention.
•
B. number the copy pages in reverse chronological order.
•
C. make sure the final copy is single-spaced and the typeface is bold.
•
D. identify name pronunciations that might be difficult to read.
•
•
D
•
What do professional sport teams design for use during games that often become
promotional tools because fans take them home?
•
A. Posters
•
B. Tickets
•
C. Programs
•
D. Samples
•
•
C
•
The purpose of designing an event program that contains space for advertisements is to
•
A. promote the team.
•
B. get more people to buy the program.
•
C. generate more revenue
•
D. pay less money for program printing costs.
•
•
C
•
When attending a sporting event, most fans expect that the facility will provide them with
a(n)
•
A. learning situation.
•
B. winning experience.
•
C. safety environment.
•
D. ordinary performance.
•
•
C
•
A stadium designed with more female rest rooms than male rest rooms is responding to
which of the following customer expectations.
•
A. Adequate facilities
•
B. Aesthetics
•
C. Dedication usage
•
D. Sense of safety
•
•
A
•
Which of the following factors is most likely to cause people to not want to return to the
annual fireworks show that attracts hundreds of thousands of people to the downtown
area:
•
A. public transportation
•
B. nearby accommodations
•
C. Traffic
•
D. Parking fees
•
•
C
•
What is the advantage to a business of placing signage on the outfield stadium wall
during a televised professional baseball game?
•
A. Ensures higher sales
•
B. Lowers promotional expenses
•
C. Provides free publicity
•
D. Increases brand awareness
•
•
D
•
A soft-drink manufacturer is a sponsor for a professional baseball team. Which of the
following signage placement options would provide the most exposure to the
manufacturer's products:
•
A. Rear entrance of stadium
•
B. Interior wall of the outfield
•
C. Next to concession stands
•
D. Backside of the scoreboard
•
•
B
•
To obtain the most exposure during a sporting event, the best logo placement opportunity
for businesses is on
•
A. race cars.
•
B. golf balls.
•
C. swimsuits.
•
D. footwear.
•
•
A
•
A stadium deciding to place messages and team logos on electronic boards is an example
of selecting
•
A. event signage.
•
B. media usage.
•
C. sponsorships.
•
D. network support.
•
•
A
•
A sports marketer has developed a sales packet that contains a team brochure, schedule,
and a season ticket application. Why should all of the materials have the same basic
appearance?
•
A. To customize the materials to specific groups
•
B. To motivate the recipients to open the sales packet
•
C. To indicate that the materials are all from one organization
•
D. To provide information that is relevant to the upcoming season
•
•
C
•
Which of the following selling options is one that sport/event marketers are most likely to
use to reach individual season ticket holders:
•
A. Personal selling
•
B. Product demonstration
•
C. Direct mail
•
D. Distribution outlets
•
•
C
•
When customizing a presentation, the salesperson determines a prospect's needs by
developing a
•
A. business proposition.
•
B. professional outline.
•
C. sales quota.
•
D. customer profile.
•
•
D
•
When preparing for a sales presentation, a salesperson decides to greet a prospective
customer by asking if she would like to save money on office supplies. This is often
called the _______________ approach.
•
A. customer-benefit
•
B. meet-and-greet
•
C. introductory
•
D. question-and-answer
•
•
A
•
When writing a script for a sales presentation, a salesperson should use language that is
•
A. complex, intricate, and intense.
•
B. conceptual, intellectual, and difficult.
•
C. positive, precise, and pertinent.
•
D. childish, humorous, and spontaneous.
•
•
C
•
When planning for a presentation, salespeople should develop scripts to
•
A. impress upper management.
•
B. hand out to audience members.
•
C. jog their memory during a presentation.
•
D. read verbatim so they don't miss main points.
•
•
C
•
In precall planning, the salesperson focuses on learning more about the
•
A. business.
•
B. territory.
•
C. product.
•
D. customer.
•
•
D
•
A lottery system is an equitable way of selling tickets to school alumni when the demand
for college football tickets
•
A. fluctuates every season.
•
B. is lower than originally anticipated.
•
C. remains consistent over time.
•
D. is higher than the available supply.
•
•
D
•
One reason it is important for professional sport/event organizations to develop advance
ticket sales plans is because the generated revenue helps organizations to
•
A. increase general admission ticket sales.
•
B. decrease operational costs.
•
C. cover pre-event expenses.
•
D. reduce the risk of ticket scalping activities.
•
•
C
•
What is a benefit of establishing good relationships with sport/event customers and fans?
•
A. Long-term loyalty
•
B. Flexible marketing
•
C. High-level pricing
•
D. Consistent quality
•
•
A
•
To develop long-term relationships with fans, professional sport teams should
•
A. have inflexible ticket sales policies.
•
B. build emotional connections with them.
•
C. increase licensing fees to ensure profitability.
•
D. redesign branding elements.
•
•
B