What should one understand first when setting out to develop out of the box sales promotion ideas for ones game or event?

4.00 Review Questions

1. Which pricing strategy sets prices lower than those of the competition? A. Smoothing B. Stretching C. Penetration D. Skimming

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 A. elasticity B. market segmentation. C. smoothing. D. "total cost."

3. Why might a sport/event organization price entry fees for a marathon below the normal rate? A. To establish their event as "luxury" B. To encourage maximum participation C. To create profits D. To meet competitors prices

4. Which of the following is a company-focused pricing objective for sport/event products: A. Offering the most discounts to customers B. Offering the lowest prices C. Enhancing image D. Achieving a price customers feel is "fair"

5. Which of the following is a tangible benefit of purchasing a surfboard: A. It is the most popular brand on the market. B. It gives you the opportunity to join a surfing club. C. It allows you to spend time with your friends at the beach. D. It has a wrist strap to keep it connected to you in the water.

6. In sports and entertainment marketing, the concept of price includes not only the cost of a ticket to an event but also the A. value of the overall experience. B. quality of the media advertising. C. elements of the marketing plan. D. location of the facility.

7. The additional cost of paying for parking and buying refreshments and programs is part of the overall ____________ of attending a concert. A. benefit B. price C. goal D. value

8. Wintergreen Ski Area knows that the area will be most successful if it bases its pricing structure on A. costs associated with renovations. B. what the market will bear. C. total cost of the experience. D. inelastic demand for skiing.

9. Yield management is a way that sport/event marketers address product pricing issues when they want to maximize revenue but have A. below-market stock value. B. unallocated resources. C. limited capacity. D. few distribution intermediaries

10. Which of the following is not a reason that pricing is the most critical element of the marketing mix: (4 points) a. It is the least visible element of the mix. b. It communicates even more than advertising. c. It can be changed instantly. d. It is a top concern of customers.

a It is the least visible element of the mix 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.

11. A customer’s opinion of the value of a sport/event product is based on (4 points) a. advertising. c. perceived benefits. b. education. d. price.

11. c Perceived benefits. A customer’s opinion of the value of a sport/event product is based on perceived benefits. Value is subjective. The same product can have varying values to different people. The reason that value is unique to each customer is that the benefits of purchasing the product are based on that individual’s perception. Advertising, education, and price may contribute to a customer’s perception of benefits, but none is the basis for deciding value. (4 points)

12. Which of the following is an intangible benefit of purchasing a sport watch: (4 points) a. It fits comfortably on your wrist. c. It allows you to time your daily run. b. It’s your favorite color. d. Your friends will be impressed by it.

12. d Your friends will be impressed by it 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)

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. c. It allows you to spend time with your friends at the beach. d. It gives you the opportunity to join a surfing club.

13. a It has a wrist strap to keep it connected to you in the water 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 friends at the beach, and joining a surfing club are all intangible benefits because they are measured by the way one feels. (4 points)

14. Pricing sport/event products is unique because of the (4 points) a. wide variety of products. c. intangible benefits. b. tangible benefits. d. extremely high demand.

14. d Extremely high demand 14. d Extremely high demand. Pricing sport/event products is unique because of the extremely high demand. The 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. Wide variety and tangible and intangible benefits are not unique to sport/event pricing. They are elements that can be found in any type of pricing. (4 points)

15. Pricing objectives are important because they determine (4 points) a. perceived benefits. c. “total cost.” b. pricing strategies. d. market demand.

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)

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” b. Offering the lowest prices c. Offering the most discounts to customers d. Enhancing image

16. d Enhancing image. Pricing products in a way that will enhance their image is a company-focused pricing 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 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 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

18. Which member of the distribution channel has the biggest impact on the price of a sport/event product? (4 points) a. Retailer c. Wholesaler b. Manufacturer d. Customer .

18. a Retailer. Retailers have the biggest impact on the final price of a sport/event product because they control the final markup. All prices are set to cover costs for each member of the distribution channel, including manufacturers and wholesalers, but retailers have a bigger impact since they have the final say on price. Customers have an effect on pricing as well, but not as much as retailers do. (4 points)

19. Which of the following is an effect of distribution on the price of a sport/event product: (4 points) a. Prices are lower for convenience. c. Prices are higher in nontraditional channels. b. Prices are higher at retail stores. d. Prices are lower for better facilities

19. b Prices are higher at retail stores 19. b Prices are higher at retail stores. Prices are higher at retail stores because retailers mark up prices before selling sport/event products to customers. Prices are lower in nontraditional channels of distribution that skip retailers because customers do not have to pay the final retail markup. Prices are also higher for convenience and for better facilities because customers value those benefits. (4 points)

20. Rent, equipment, salaries, and maintenance are expenses known as __________ costs. (4 points) a. variable c. stable b. total d. fixed

20. d Fixed. Expenses that stay the same no matter how much of a sport/event product is being produced are called fixed costs. These costs include expenses such as rent, equipment, salaries, and maintenance. Variable costs 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)

21. Materials, packaging, and advertising are expenses known as __________ costs. (4 points) a. variable c. unstable b. total d. fixed

21. a Variable. Expenses that change along with the amount of production are called variable costs. These costs include expenses such as materials, packaging, and advertising. Fixed costs are expenses that stay the same 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)

22. Customers are more likely to buy sport/event products at lower prices rather than higher ones. This is a general rule of (4 points) a. market segmentation. c. promotion. b. market demand. d. competition.

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. 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 is the rivalry between businesses to attract customer dollars. (4 points)

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.

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 marketers’ control. Smoothing is the process of dividing a product into different segments for customers. (4 points)

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) a. elastic c. smoothing b. unitary d. inelastic

24. d Inelastic. An inelastic demand means that price changes have little to no impact on product sales. The demand 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)

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) a. elastic c. smoothing b. unitary d. inelastic

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. (

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) a. elastic c. smoothing b. unitary d. inelastic

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 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)

28. Technology affects sport/event product prices by (4 points) a. raising them. c. both raising and lowering them. b. lowering them. d. making them unstable.

28. c Both raising and lowering them 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)

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) a. customer c. demand b. distribution d. market

29. d Market. Groups of people who share common characteristics are known as market segments. Men in their 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) a. Ethnicity c. Motives b. Area of residence d. Interests

30. a Ethnicity. Ethnicity is a demographic characteristic 30. a Ethnicity. Ethnicity is a demographic characteristic. Demographics are variables such as age, ethnicity, 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) a. Occupation c. Age b. Opinions d. Gender

31. b Opinions. Customer opinions is a psychographic characteristic 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 c. Stretching b. Skimming 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 c. Stretching b. Skimming 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 “inside- the-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 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) 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 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 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-the- box” 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 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 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 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 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 “out- of-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 30- minute 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 11. Josh works in marketing for a senior citizens’ golf league. He suggests an “out-of-the- box” 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 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-of- the-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 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 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 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 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

17. When you ask, "How will my customers receive this sales promotion 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.

18. When you ask, "What does this sales promotion offer to customers 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.

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.

20. What is the first thing you should understand when setting out to develop "out-of-the- box" 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.

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.

22. Which of the following is one of the main features of a sport product: A. Franchises B. Athletes C. Tickets D. Extensions

23. One of the features of sports events such as football games is that they are A. impulsive. B. consistent. C. unpredictable. D. tangible.

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.

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

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

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.

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

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

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

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

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.

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.

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

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

When writing news releases, businesses should avoid including their A. opinions. B. statistics C. goals. D. locations.

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

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

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.

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

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.

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

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.

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.

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

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

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

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

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 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 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

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

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.

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

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.

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.

In precall planning, the salesperson focuses on learning more about the A. business. B. territory. C. product. D. customer.

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.

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.

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

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.