Armstrong Mai12 Tif 12

Marketing: An Introduction, 12e (Armstrong/Kotler) Chapter 12 Engaging Consumers and Communicating Customer Value: Advertising and Public Relations 1) ________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A) Sales promotion B) Personal selling C) Advertising D) Public relations E) Direct marketing Answer: C Difficulty: Easy Chapter LO: 1 Course LO: Describe the decisions involved in developing effective promotion mix strategies 2) Remington Motors releases a new line of hybrid electric vehicles called Electra. The line promises superior mileage and excellent horsepower in an environmentally friendly automobile. Remington decides to use advertising as the promotional tool for the car's launch. Which of the following would qualify as an advertisement for Electra? A) a front-page notice of the release of Electra in all leading newspapers with the caption "Green Speed" B) a press conference to discuss the various safety issues, actual mileage, and environmental features of Electra C) the use of dedicated sales personnel in dealer showrooms to explain the qualities of Electra to potential customers D) the involvement of a celebrity at the launch of Electra to endorse the hybrid car E) a buyers-only lottery where Electra buyers have a chance of winning a prize Answer: A Difficulty: Moderate Chapter LO: 1 Course LO: Describe the decisions involved in developing effective promotion mix strategies AACSB: Analytic thinking 3) In a marketing communications mix, ________ refers to any short-term incentives to encourage the purchase of a product or service. A) advertising B) sales promotion C) personal selling D) crowdsourcing E) public relations Answer: B Difficulty: Easy Chapter LO: 1 Course LO: Describe the decisions involved in developing effective promotion mix strategies 1 Copyright © 2015 Pearson Education, Inc. 4) Mercury Electric, a leading manufacturer of kitchen appliances, releases a new line of blenders called SpinPro. To boost sales, Mercury Electric gives scratch-and-win coupons to all buyers and provides a three-day trip to Hawaii for the winner. Which element of the promotion mix has Mercury Electric used in this scenario? A) public relations B) crowdsourcing C) advertising D) sales promotion E) personal selling Answer: D Difficulty: Moderate Chapter LO: 1 Course LO: Describe the decisions involved in developing effective promotion mix strategies AACSB: Analytic thinking 5) In a promotion mix, ________ performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling unfavorable rumors and events. A) personal selling B) sales promotion C) direct marketing D) advertising E) public relations Answer: E Difficulty: Easy Chapter LO: 1 Course LO: Describe the decisions involved in developing effective promotion mix strategies 6) ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting certain safety standards in its waste disposal. ColaBlue remedies the problem by adding highergrade filters and purifiers. Which of the following actions by ColaBlue would constitute a publicrelations effort to address the effects of the lawsuit and the consequent damage to its brand image? A) having well-trained personnel at retail outlets to explain the different ranges of products the company provides B) tying up with local restaurants to promote exclusive sales of ColaBlue soft drinks C) lowering prices of ColaBlue's products in the short term D) holding a press conference to explain the remedial steps that ColaBlue has taken E) making new advertisements for ColaBlue products and sponsoring shows on television Answer: D Difficulty: Moderate Chapter LO: 1 Course LO: Describe the decisions involved in developing effective promotion mix strategies AACSB: Analytic thinking 2 Copyright © 2015 Pearson Education, Inc. Dazed sends text messages to customers. ________ occurs when a firm's sales force makes individual presentations to consumers for the purpose of promoting sales and building customer relationships. bands playing that week. Which of the following promotion mix tools does Dazed employ to reach target customers in this scenario? A) public relations B) personal selling C) direct marketing D) crowdcasting E) retailing Answer: C Difficulty: Moderate Chapter LO: 1 Course LO: Describe the decisions involved in developing effective promotion mix strategies AACSB: Analytic thinking 3 Copyright © 2015 Pearson Education. A) advertising B) public relations C) crowdsourcing D) merchandising E) personal selling Answer: E Difficulty: Easy Chapter LO: 1 Course LO: Describe the decisions involved in developing effective promotion mix strategies 8) Tilt Entertainment. has developed a new game called World Below. Tilt participates in the Gaming Entertainment Expo. . which is attended by both sellers and consumers. Tilt sends a team of representatives for game presentation and negotiation and a team of professional gamers to showcase World Below at the Expo.7) In a promotion mix. The company also sends a team to sell its other games to consumers at the Expo. Inc. telling them about happy hours. In order to get wider distribution. Which promotion mix tool has Tilt used in this scenario? A) crowdsourcing B) public relations C) advertising D) personal selling E) crowdcasting Answer: D Difficulty: Moderate Chapter LO: 1 Course LO: Describe the decisions involved in developing effective promotion mix strategies AACSB: Analytic thinking 9) Dazed is a bar which mostly plays trance music and has a dedicated day every week for local bands to perform. a gaming design firm. and other activities. To build strong customer relations. dedicated genre nights. B) Marketers go through more intermediaries to connect with consumers. Answer: E Difficulty: Moderate Chapter LO: 2 Course LO: Identify and discuss the factors influencing consumer buying behavior 12) Which of the following is an effect of the advancement of technology on marketing? A) Fragmented markets have assimilated into a few mass markets. E) Marketers tend to supply less information to consumers than in the past. Inc. . A) direct marketing B) advertising C) public relations D) predictive analytics E) indirect procurement Answer: A Difficulty: Easy Chapter LO: 1 Course LO: Describe the decisions involved in developing effective promotion mix strategies 11) Which of the following is true of consumers in the new marketing communications model? A) They are more reliant on traditional methods of marketing for product information. B) They are less informed than before about companies and product marketing techniques. E) They are better equipped to find product and brand information on their own. C) Consumers rely less on marketer-supplied information than in the past. D) They are less powerful than before in affecting the way a company markets its products. C) They are more reliant on mass-media marketing methods for product information. ________ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. Answer: C Difficulty: Moderate Chapter LO: 2 Course LO: Discuss the fundamental concepts of marketing AACSB: Information technology 13) Which of the following is an example of narrowcasting using advertisements? A) running an ad for a new line of cars on cable TV B) showing ads for diapers to would-be mothers in hospitals C) handing out promotional leaflets for a new restaurant to passers-by D) showing video game ads at a college football game E) uploading movie ads on Web sites like YouTube Answer: B Difficulty: Difficult Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies AACSB: Analytic thinking 4 Copyright © 2015 Pearson Education.10) In a promotion mix. D) Marketers have increasingly moved toward mass-marketing techniques. E) Advertisers have replaced print catalogues with digital versions. Inc. D) Advertisers are using less targeted media to reach customers. Answer: A Difficulty: Moderate Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 16) Which of the following is true of advertising in the new marketing communications model? A) Advertisers are increasingly shifting toward digital media.14) Which technique is used by firms to deliver a unified and consistent image about their organizations and brands to consumers? A) logistics information management B) inventory control segmentation C) niche market penetration D) integrated marketing communications E) global marketing management Answer: D Difficulty: Easy Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 15) Which of the following is true of marketing strategies that are being developed in the new marketing communications model? A) They are more targeted. Answer: A Difficulty: Moderate Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 17) Which of the following is a function of an integrated marketing communications system? A) designing products using environmentally friendly techniques B) allowing suppliers or vendors to manage the inventory of products C) controlling production levels by feedback received from customers D) delivering a consistent message on the product to each brand contact E) sharing company forecasting details with shareholders Answer: D Difficulty: Moderate Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 5 Copyright © 2015 Pearson Education. C) They rely more on mass-media marketing techniques. C) Advertisers are finding traditional media less expensive. E) They include a greater number of print media ads. B) Advertisers are spending more on broadcast advertising. B) They target much larger customer segments. and engaging. social. D) They use very little alternative media. . Answer: B Difficulty: Moderate Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 20) Which of the following types of promotion tools requires the most interaction with a customer? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising Answer: B Difficulty: Easy Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 21) Which of the following promotion tools will most likely make a consumer feel the need to listen and immediately respond to a seller? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising Answer: B Difficulty: Easy Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 6 Copyright © 2015 Pearson Education. E) It is the most costly promotion tool for companies. B) It only provides one-way communication with customers.18) Which of the following promotion tools would best reach a geographically dispersed mass audience in a short period of time? A) direct mailing B) telephone marketing C) door-to-door selling D) television advertising E) printed-catalog marketing Answer: D Difficulty: Easy Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 19) Which of the following is a shortcoming of advertising? A) It does not allow dramatization of the brand or company. . D) It reaches targeted customers too slowly in most cases. Inc. C) It is too customized and only attracts small. niche markets. D) Advertising can trigger quick sales. E) It presents a firm's message as news rather than as a sales-directed communication. A) direct marketing B) public relations C) advertising D) personal selling E) sales promotion Answer: E Difficulty: Easy Chapter LO: 2 Course LO: Discuss the selection of appropriate sales promotion tools 24) Which of the following is most likely a difference between advertising and sales promotions? A) Advertising is a sales-directed form of communication. E) Advertising is not as effective in building long-term brand preferences as sales promotions are. while a sales promotion is an incentive to buy the product immediately. while sales promotions cannot. . C) It is the most expensive promotional tool for companies to utilize. Answer: C Difficulty: Moderate Chapter LO: 2 Course LO: Describe the steps of the personal selling process and discuss the process of managing a sales force 23) A company that offers an early bird discount to the first fifty purchasers of a new product is using the promotional tool of ________. C) Advertising can be used to dramatize product offers. while sales promotions are endorsed as company news. B) It allows firms to dramatize product offers through arts and visuals.22) Which of the following is true of personal selling? A) It is the most effective promotional tool for geographically dispersed buyers. Answer: B Difficulty: Moderate Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 7 Copyright © 2015 Pearson Education. D) It is an ineffective method for building long-term customer relationships. Inc. but sales promotion cannot be used for this purpose. B) Advertising is an invitation to buy the product. A) personal selling B) sales promotion C) public relations D) direct marketing E) advertising Answer: C Difficulty: Easy Chapter LO: 2 Course LO: Discuss the selection of effective public relations tools 26) Which of the following is true of public relations? A) It provides quick incentives to make product purchases. E) It is the most widely used promotional tool. Inc. C) It involves training a dedicated sales force to meet customers. .25) A company which uses a press release to explain the resignation of a former CEO is using ________ to maintain its brand image. D) It cannot be used to dramatize a product or company. Answer: B Difficulty: Moderate Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 27) Which of the following is an example of a combination of sales promotions and direct marketing? A) a company giving discounts on their product prices in order to gain a brand image B) a company releasing a nationwide television ad about every buyer having a chance to win a lottery prize C) a company holding a press conference to talk about their new product D) a company's sales representatives meeting customers directly to present customized offerings E) a company sending an e-mail to a customer about a discount on a product during a holiday season Answer: E Difficulty: Difficult Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies AACSB: Analytic thinking 8 Copyright © 2015 Pearson Education. B) It is not a sales-directed form of communication. A) push B) direct marketing C) vertical integration D) pull E) publish-subscribe Answer: D Difficulty: Easy Chapter LO: 2 Course LO: Explain the various product and branding decisions marketers make 9 Copyright © 2015 Pearson Education. Inc. . C) It is presented as company news rather than as a sales-directed communication. A) advertising B) public relations C) direct marketing D) retailing E) merchandising Answer: C Difficulty: Easy Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 30) Which of the following promotion mix approaches involves a producer promoting a product to different channel members who in turn promote the product to customers? A) direct marketing B) a push strategy C) the publish-subscribe method D) a pull strategy E) vertical integration Answer: B Difficulty: Easy Chapter LO: 2 Course LO: Explain the various product and branding decisions marketers make 31) A ________ strategy involves a company spending a lot of money on advertising and promotion to induce consumers into buying the product by creating a demand vacuum.28) Which of the following is true of direct marketing? A) Its marketing message is fixed and does not change according to the customer's requirements. E) It is an impersonal promotion tool that hinders two-way communication. Answer: B Difficulty: Moderate Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 29) A company that uses telephone marketing to sell its products to customers is most likely using the promotion tool of ________. D) It does not involve any interaction between the company and its customers. B) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships. Inc. The billboards advertise Pearl Sands as an ideal holiday spot. It attracts the maximum number of customers in the summer. A) Reminder B) Comparative C) Personal D) Informative E) Persuasive Answer: D Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 10 Copyright © 2015 Pearson Education. Pearl Sands sponsors shows on TV and puts up billboards in Willington and the surrounding towns. . whether for a weekend getaway in the summer heat or for a family vacation. In the spring.32) Pearl Sands is a resort in the town of Willington. A) push B) vertical integration C) pull D) publish-subscribe E) direct marketing Answer: C Difficulty: Moderate Chapter LO: 2 Course LO: Explain the various product and branding decisions marketers make AACSB: Analytic thinking 33) Which of the following is the first step in developing an advertising program? A) setting the advertising budget B) developing an advertising strategy C) developing a brand message D) setting advertising objectives E) evaluating advertising campaigns Answer: D Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 34) ________ advertising is used heavily when introducing a new product category. This is an example of a ________ strategy. a chocolate producer. A) reminder B) classified C) personal D) informative E) persuasive Answer: E Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 38) ________ advertising would most likely result in advertising wars between competitors. .35) The objective of ________ advertising is to build primary demand. is faced with a class action suit when customers find pieces of plastic in boxes of cocoa powder. Which kind of advertisement has Inglast most likely used? A) classified B) informative C) comparative D) personalized E) reminder Answer: B Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign AACSB: Analytic thinking 37) The primary objective of ________ advertising is to build selective demand. A) Reminder B) Comparative C) Personal D) Informative E) Classified Answer: B Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 11 Copyright © 2015 Pearson Education. Inc. A) reminder B) comparative C) personal D) informative E) persuasive Answer: D Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 36) Inglast. Inglast settles the case and then releases an advertising campaign to show the new and improved safety seals on all containers of cocoa powder. FindIt. wants to enter the commercial tracking device market with its latest product. A) Comparative B) Persuasive C) Personalized D) Reminder E) Classified Answer: D Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 40) Zephyr Inc.39) ________ advertising primarily maintains brand relationships and is important for mature products.. FindIt is very small and relatively cheap. Inc. Answer: B Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 12 Copyright © 2015 Pearson Education. C) Spending on advertising is based on a predetermined percentage of current or forecasted sales for the year. and capital outlays are deducted from total revenues. Which type of advertising would be best for FindIt? A) informative advertising B) reminder advertising C) classified advertising D) comparative advertising E) personalized advertising Answer: A Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign AACSB: Analytic thinking 41) Which statement is most likely true about the affordable method of setting an advertising budget? A) Spending on advertising is calculated based on the financial objectives a company wishes to accomplish. . B) Spending on advertising is calculated after operating expenses. D) Spending on advertising is calculated as a percentage of the unit sales price. but it can be used only within small areas as it has a low detection-range. an electronics manufacturer. E) Spending on advertising is based on a competitor's advertising outlays. Unlike other tracking devices. the most logical budget-setting method in advertising is the ________ method. A) adaptive-control B) objective-and-task C) competitive-parity D) affordable E) percentage-of-sales Answer: B Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 13 Copyright © 2015 Pearson Education. the budget is set based on ________. B) It always results in overspending on advertising. Answer: A Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 43) Which method of setting advertising budgets best helps management think about the relationship between promotion spending. selling price. C) It is especially ideal for long-range market planning. and profit per unit? A) adaptive-control method B) objective-and-task method C) competitive-parity method D) affordable method E) percentage-of-sales method Answer: E Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 44) In the competitive-parity method of setting an advertising budget. E) It is most often used by firms with large advertising budgets.42) Which statement is most likely true about the affordable method of setting an advertising budget? A) It typically overlooks how promotion affects sales. D) It leads to an overly fixed annual promotion budget. . Inc. A) a percentage of future sales B) the total revenues that a company makes C) the amount spent by similar companies in the same industry D) objectives set by the company and the cost required to accomplish them E) a percentage of current sales Answer: C Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 45) According to the text. a cell phone manufacturer. Inc. The conditions of the agreement state that the movie will feature Lazer Telecom phones onscreen.46) Which of the following best describes the term "Madison and Vine"? A) utilizing the slice of life style of advertising B) emphasizing reach over impact in advertising C) using social media for advertising a brand D) merging advertising with entertainment E) voicing social concerns through advertising Answer: D Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 47) The aim of ________ is to make ads so engaging or useful that people want to watch them. A) branded entertainment B) advertainment C) social advertising D) subliminal advertising E) infotainment advertising Answer: B Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 48) Which of the following is an example of branded entertainment? A) a company placing its product in a movie scene B) a company using a celebrity to endorse a product C) a company airing its advertisements in movie theaters D) a company using an acclaimed movie director to film an advertisement E) a company using a famous song in its advertisement Answer: A Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 49) Lazer Telecom. What kind of advertising technique has Lazer Telecom most likely adopted in this example? A) geofencing B) advertainment C) product placement D) vertical integration E) subliminal advertising Answer: C Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign AACSB: Analytic thinking 14 Copyright © 2015 Pearson Education. . has signed a contract with a production house to fund a new movie. which visibly re-energizes them and leads them to continue exercising. A) personality symbol B) slice of life C) mood or image D) testimonial evidence E) technical expertise Answer: B Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 51) Trainstar. and doing aerobics. working out in a gym. Inc. releases a new line of energy drinks called VitaZing. . Which advertising style is most likely used in the VitaZing ad? A) scientific evidence B) technical expertise C) personality symbol D) testimonial evidence E) lifestyle Answer: E Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign AACSB: Analytic thinking 52) Which of the following best describes the personality symbol style of advertising? A) using ordinary people to show how a product affects them in their daily lives B) using scientific evidence to support claims about a product in an advertisement C) using an animated character or mascot to represent a product in an advertisement D) using a technical expert to recommend a product in an advertisement E) using a celebrity to endorse a product in an advertisement Answer: C Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 15 Copyright © 2015 Pearson Education. a sportswear equipment manufacturer.50) The ________ style of advertising shows ordinary people clearly using a product in a normal setting. The actors then take a break to drink VitaZing. The television ad for the energy drink shows people jogging. Answer: C Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 55) Which of the following media is most suitable for advertising a product that needs to be demonstrated? A) television B) radio C) newspaper D) magazine E) billboard Answer: A Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 56) What is the primary disadvantage of outdoor advertising? A) It provides low flexibility. . A) scientific evidence B) testimonial evidence C) technical expertise D) mood or image E) fantasy Answer: B Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 54) Which of the following is a disadvantage of standardization of advertising messages? A) It gives rise to higher advertising costs. D) It provides little audience selectivity. E) It has high message competition. B) It permits low repeat exposure. Inc. D) It tends to suffer from poor coordination. C) It is less responsive to local market needs. Answer: D Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 16 Copyright © 2015 Pearson Education. C) It provides poor positional selectivity. B) It complicates the advertising process.53) An ad that shows real-life examples of people whose lives have changed due to a product is an example of the ________ style of advertising. E) It gives rise to inconsistent messages. C) The audience controls ad exposure. C) It involves low absolute costs. B) It supports a high degree of audience selectivity. B) It involves high costs. D) The interactive capabilities are low. B) Audience selectivity is low. Answer: B Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 60) Which of the following is an example of a firm utilizing public relations as a promotion tool? A) a firm using its personal sales force at an expo to sell its products B) a firm sending its catalog directly to customers through e-mail C) a firm informing customers of special discounts on its Web site D) a firm providing interesting information about a product to the news media E) a firm using a celebrity to endorse a product in a television commercial Answer: D Difficulty: Moderate Chapter LO: 4 Course LO: Discuss the selection of effective public relations tools AACSB: Analytic thinking 17 Copyright © 2015 Pearson Education. D) It contains low ad clutter. Inc. D) It has low credibility and image. and social media for advertising? A) The costs are high.57) What is the primary advantage of using television as an advertising medium? A) It involves a low cost per exposure. mobile. . C) It has low geographic selectivity. E) There is little scope for personalization. Answer: A Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 58) Which of the following is a disadvantage of using online. E) It consists of low-quality reproduction. E) It permits prominent exposure. Answer: C Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 59) Which of the following is a disadvantage of using a magazine as an advertising medium? A) It has a poor pass-along readership. the producer promotes a product to channel members who in turn promote it to final consumers. Answer: FALSE Difficulty: Easy Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 67) In a push promotion strategy.S. Answer: TRUE Difficulty: Easy Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 65) Sales promotion is the best promotion tool to build personal and long-lasting relationships with customers. Answer: FALSE Difficulty: Easy Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 63) Integrated marketing communications involves carefully coordinating a company's many communications channels to deliver a clear. and compelling message about the organization and its products. Answer: FALSE Difficulty: Easy Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 66) Public relations is the form of product advertising that is most widely utilized by U. Inc.61) A firm that sends e-mail updates to customers about new products is engaging in personal selling. Answer: TRUE Difficulty: Easy Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 18 Copyright © 2015 Pearson Education. consistent. Answer: TRUE Difficulty: Easy Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 64) Advertising can reach masses of geographically dispersed buyers at a low cost per exposure. . firms. Answer: FALSE Difficulty: Moderate Chapter LO: 1 Course LO: Describe the decisions involved in developing effective promotion mix strategies 62) The new marketing communications model consists of promotional mixes that are designed to make traditional mass-media obsolete. 68) A consumer demanding a product after watching its ad on television has responded to pull advertising. Inc. Answer: FALSE Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 71) Comparative advertising is a type of persuasive advertising. Answer: TRUE Difficulty: Moderate Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 69) The push promotion strategy tends to be used by business-to-business marketers. Answer: TRUE Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 74) The principle behind the percentage-of-sales method of budget setting is viewing sales as the result of advertising. Answer: TRUE Difficulty: Moderate Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 70) An advertisement about a discount that can be availed if a product is ordered within 24 hours is an example of reminder advertising. Answer: TRUE Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 72) Reminder advertising is ideal for maintaining customer relationships with mature products. . Answer: FALSE Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 19 Copyright © 2015 Pearson Education. Answer: TRUE Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 73) The affordable method of setting an advertising budget depends on the total revenues of a company. frequency describes the qualitative value of message exposure through a given medium. the relevance of advertising content to an audience is less important than how many people the advertisement reaches. Answer: TRUE Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 79) In advertising media selection. as a medium of advertising.75) The competitive-parity method of setting promotion budgets prevents promotion wars between companies. Answer: FALSE Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 76) Product placement is a form of brand integration. Answer: TRUE Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 77) In the context of execution styles in advertising. Answer: FALSE Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 80) In any medium. Inc. . using an animated character that represents a product in an advertisement is an example of an endorsement. provide poor local market coverage. reach is a measure of the percentage of people in the target market who are exposed to an ad campaign during a given period of time. Answer: FALSE Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 20 Copyright © 2015 Pearson Education. Answer: FALSE Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 81) Newspapers. Answer: FALSE Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 78) In advertising. or services by an identified sponsor. Sales promotion: Short-term incentives to encourage the purchase or sale of a product or service. goods. and handling or heading off unfavorable rumors. a company pays for the space or time in the media. Personal selling: Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships. and social media marketing: Engaging in direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. Answer: TRUE Difficulty: Easy Chapter LO: 4 Course LO: Discuss the selection of effective public relations tools 84) Usually. Answer: The specific blend of promotion tools that a company uses to persuasively communicate customer value and build customer relationships is known as promotion mix. when using public relations. Answer: FALSE Difficulty: Easy Chapter LO: 4 Course LO: Discuss the selection of effective public relations tools 86) What is a promotion mix? Define the major tools used in a promotion mix. digital. stories. as an ad pattern. Public relations: Building good relations with the company's various publics by obtaining favorable publicity. Direct. A company's total promotion mix–also called its marketing communications mix–consists of the following promotion tools: Advertising: Any paid form of nonpersonal presentation and promotion of ideas. building up a good corporate image. Inc. Answer: FALSE Difficulty: Easy Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 83) Public relations can have a strong impact on public awareness at a much lower cost than advertising can. . means scheduling ads evenly over a given time period. Difficulty: Moderate Chapter LO: 1 Course LO: Describe the decisions involved in developing effective promotion mix strategies 21 Copyright © 2015 Pearson Education. Answer: FALSE Difficulty: Easy Chapter LO: 4 Course LO: Discuss the selection of effective public relations tools 85) Lobbying refers to a PR department maintaining relationships with shareholders and others in the financial community. and events.82) Pulsing. Rather than relying on marketer-supplied information. Mass-media costs are rising. their dominance is declining. magazines. they can use the Internet. and other traditional mass media still remain very important.) The new communications model is changing the face of today's marketing communications in several ways. Finally. ad clutter is increasing. As a result. The answer given below is indicative. As mass markets have fragmented. marketers are shifting ever-larger portions of their marketing budgets away from old media mainstays and moving them to digital and other new-age media. advertisers are now adding a broad selection of more-specialized and highly targeted media to reach smaller customer segments with morepersonalized. new media formats let marketers reach smaller groups of consumers in more interactive. interactive messages. consumers are changing. Difficulty: Difficult Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies AACSB: Information technology 22 Copyright © 2015 Pearson Education. marketers are shifting away from mass marketing. First.87) How has the new communications model changed the face of today's marketing communications? Answer: (Students' answers may vary. In this digital age. More and more. Inc. and other technologies to find information on their own. audiences are shrinking. marketing strategies are changing. Second. . In their place. they are developing focused marketing programs designed to build closer relationships with customers in more narrowly defined micromarkets. social media. Although network television. sweeping advances in digital technology are causing remarkable changes in the ways companies and customers communicate with each other. In the new marketing communications world. newspapers. rather than using old approaches that interrupt customers and force-feed them mass messages. and viewers are gaining control of message exposure through technologies such as video streaming or DVRs that let them skip disruptive television commercials. wireless consumers are better informed and more communications empowered. engaging ways. The company's goal should be to deliver a consistent and positive message to each contact. In the consumer's mind. What kind of promotional tool will best help Watson Insurance to sell its policies to its target customers? Answer: (Students' answers may vary. consistent. Integrated marketing communications calls for recognizing all touch points where the customer may encounter the company and its brands. Each brand contact will deliver a message–whether good. High levels of interaction with customers are needed so that the company can provide the best customized service possible. Personal selling also allows all kinds of customer relationships to spring up. Integrated marketing communications leads to a total marketing communications strategy aimed at building strong customer relationships by showing how the company and its products can help customers solve their problems. An effective salesperson keeps the customer's interests in mind to build a long-term relationship. An integrated marketing communications system helps to integrate its many communications channels to deliver a clear. Personal selling is the most effective tool at certain stages of the buying process. messages from different media and promotional approaches all become part of a single message about the company. the promotional tool of personal selling will best help Watson Insurance. brand positions. Conflicting messages from these different sources can result in confused company images. particularly in building up buyers' preferences. and actions.) Consumers today are bombarded by commercial messages from a broad range of sources. The answer given below is indicative. so each person can observe the other's needs and characteristics and make quick adjustments.) Since Watson Insurance requires high levels of interactions with its customers. The answer given below is indicative. convictions. or indifferent. Difficulty: Moderate Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies AACSB: Analytic thinking 89) Watson Insurance is an insurance company that provides coverage for personal property and bodily injury. But consumers don't distinguish between message sources the way marketers do. . It involves personal interaction between two or more people.88) Why do today's firms need integrated marketing communications systems? How do firms benefit from such systems? Answer: (Students' answers may vary. Difficulty: Difficult Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies AACSB: Application of knowledge 23 Copyright © 2015 Pearson Education. The company offers customized policy options for individual customers. Integrated marketing communications ties together all of the company's messages and images. ranging from matter-of-fact selling relationships to personal friendships. bad. and compelling message about the organization and its brands. and customer relationships. Inc. so as to customize its policies. The producer directs its marketing activities (primarily personal selling and trade promotion) toward channel members to induce them to carry the product and promote it to final consumers. discounts. If Kronos plans to release television advertisements about Hover. and other residential consumer products to final consumers.90) Explain the use of sales promotions as a promotion mix tool. John Deere's sales force works with Lowe's. and can be used to dramatize product offers and boost sagging sales. Answer: (Students' answers may vary. For example. "Buy our product. Using a pull strategy. In this case. who in turn push John Deere products to final consumers. They attract consumer attention. and direct and digital media) toward final consumers to induce them to buy the product. Difficulty: Difficult Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies AACSB: Analytic thinking 92) Kronos Inc. Where advertising says. and its advertisement should reflect that. For example.) Hover uses a new technology in its production. Introducing a new product and potentially creating a new market requires an advertising campaign that stresses on its uniqueness and usability. independent dealers. however. makes a car called Hover that runs on the force generated by super magnets. Instead. Difficulty: Moderate Chapter LO: 2 Course LO: Describe the decisions involved in developing effective promotion mix strategies 91) Contrast pull and push promotion mix strategies with suitable examples. The best advertising model to follow for Hover would be informative advertising. offer strong incentives to purchase. Informative advertising is used heavily when introducing a new product category. The answer given below is indicative. the producer directs its marketing activities (primarily advertising and consumer promotion. The answer given below is indicative.) Marketers can choose from two basic promotion mix strategies: push promotion or pull promotion. . the objective is to build primary demand. Difficulty: Difficult Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign AACSB: Application of knowledge 24 Copyright © 2015 Pearson Education. Inc. aiming to reduce dependency on non-renewable fuels. If the pull strategy is effective. a car manufacturer. "Buy it now.. and often are not as effective as advertising or personal selling in building long-run brand preference and customer relationships. consumers will then demand the brand from retailers. Kronos is the first company to use super-magnet technology in automobile manufacturing. Answer: Sales promotion includes a wide assortment of tools–coupons. what kind of advertising objective should it pursue when introducing the new product into the market? Answer: (Students' answers may vary. and other channel members. Home Depot." sales promotion says." Sales promotion effects are often short lived. and others–all of which have many unique qualities. contests. A push strategy involves "pushing" the product through marketing channels to final consumers. a brand Web site. Sales promotions invite and reward quick response. its YouTube channel and Facebook page. Unilever promotes its Axe grooming products directly to its young male target market using TV and print ads. garden tractors. and other channels. premiums. John Deere does very little promoting of its lawn mowers. or entertaining. setting their promotion budget at a certain percentage of current or forecasted sales. and then devote some portion of the remaining funds to advertising.93) What methods of setting advertising budgets are directly based on company revenues? What are the disadvantages of such methods? Answer: One of the methods of setting advertising budgets based on company revenues is called the affordable method. It tends to place promotion last among spending priorities. the Internet. even in situations in which advertising is critical to the firm's success. more imaginative. reasoning that a company cannot spend more on advertising than it has. Inc. today's viewers have many more options. video downloads and streaming are exploding. thanks to the growth of DVR systems. triple the number reached only five years earlier. show how advancements in technology help consumers avoid advertisement cluttering. useful. It is simple to use and helps management think about the relationships between promotion spending. But today's digital wizardry has given consumers a rich new set of information and entertainment choices. At the same time. more entertaining. video streaming. Digital technology has also armed consumers with an arsenal of weapons for choosing what they watch or don't watch. . Just to gain and hold attention. What implications does this trend hold for advertisers? Answer: (Students' answers may vary. The team sets the promotion budget at the level they think the company can afford. television viewers were pretty much a captive audience for advertisers. Small businesses often use this method. Simply interrupting or disrupting consumers no longer works. Difficulty: Difficult Chapter LO: 3 Course LO: Identify and discuss the factors influencing consumer buying behavior AACSB: Analytic thinking 25 Copyright © 2015 Pearson Education. Increasingly. The answer given below is indicative. With the growth in cable and satellite TV. consumers are choosing not to watch ads. the percentage-of-sales method has little to justify it. deduct operating expenses and capital outlays. They start with total revenues. however. Other companies use the percentage-of-sales method. which makes long-range market planning difficult. Forty-six percent of American TV households now have DVRs. Despite these claimed advantages. Due to these developments. many consumers will simply skip by them. It wrongly views sales as the cause of promotion rather than as the result. advertisers can no longer force-feed the same old cookie-cutter message content to captive consumers through traditional media. selling price. and profit per unit. Unless ads provide information that is interesting. It is estimated that DVR owners view only about 44 percent of the commercials during DVR playback. This method of setting budgets completely ignores the effects of promotion on sales. It leads to an uncertain annual promotion budget. The percentage-of-sales method has advantages. letting viewers watch entertainment on their own time–with or without commercials.) Until recently. and more emotionally engaging. tablets. Or they budget a percentage of the unit sales price. Difficulty: Difficult Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign AACSB: Analytic thinking 94) With a suitable example. and smartphones. today's content must be better planned. the most meaningful and believable benefits may not be the best ones to feature. video games. a designer and seller of lifestyle products and inexpensive furniture.. The product could even be worked into the show's overall storyline. The decision coincides with Yuran's plan to release a new line of coffee tables that fold easily and do not take up much space. and even pop music. making it an integral part of that episode. Inc. It can even have product placement in movies. Yuran can achieve brand awareness by being part of the entertainment rather than interrupting it. First. for example. The creative concept will guide the choice of specific appeals to be used in an advertising campaign.95) Yuran Inc. Advertising appeals should have three characteristics. Second. What are the different ways in which Yuran can achieve brand integration? Answer: Yuran can achieve brand integration through product placement. Difficulty: Difficult Chapter LO: 3 Course LO: Explain the various product and branding decisions marketers make AACSB: Application of knowledge 96) What are the important factors that a marketer should be aware of when developing a creative concept for an advertisement? Answer: An advertiser must develop a compelling creative concept–or big idea–that will bring a message strategy to life in a distinctive and memorable way. comic books. . could be placed in sitcoms which generally have home settings. They should tell how the product is better than competing brands. Consumers must believe that the product or service will deliver the promised benefits. Product placement involves embedding brands as props within other programming like TV shows. appeals must be believable. The Yuran coffee table. Difficulty: Moderate Chapter LO: 3 Course LO: Describe the steps involved in developing an advertising campaign 26 Copyright © 2015 Pearson Education. has decided to engage in brand integration to advertise its products. Appeals should also be distinctive. either being used in a show. However. pointing out benefits that make the product more desirable or interesting to consumers. or being scripted into the show. they should be meaningful. advertising the Loneway line of guitars through online advertising is the cheaper. more audience selective. Inc. Hence. Difficulty: Difficult Chapter LO: 3 Course LO: Explain the various product and branding decisions marketers make AACSB: Application of knowledge 27 Copyright © 2015 Pearson Education. They are also highly interactive. they provide low audience selectivity. Marketing these guitars through mass-media outlets like television will not help the company reach its target customers efficiently. or Facebook. The ads can be uploaded on sites like YouTube. The costs of mass media are rising. the Loneway.) The Loneway guitars are specifically designed for folk music lovers. television advertising is highly cluttered and provides fleeting exposure to potential customers. which are very apt at reaching target customers and niche markets. which may have a higher ad purchase lead time. Frontloop Corporation manufactures guitars and other stringed instruments. Using the Internet also saves time as compared to television. The Loneway guitar ads could be placed at strategic Web sites that folk music enthusiasts frequently visit. and their audiences are reducing in number. especially when compared to television advertising. the digital media.97) John works as a junior marketing executive at Frontloop Corporation. In contrast. It designs a new guitar. are relatively inexpensive and highly customer selective. . What arguments can John use if he wants to convince Frontloop to adopt digital media instead of television advertising? Answer: (Students' answers may vary. customized for the folk music genre. The answer given below is indicative. On the other hand. It plans to attract both folk artists and folk music lovers with its advertising campaigns and decides to exclusively use mass-media marketing techniques to advertise the Loneway guitar. Though mass media have good coverage. and customer interactive outlet that the Frontloop Corporation can adopt. like the Internet. who form a niche market in music. Moreover. advertising media costs and availability differ vastly from country to country. Difficulty: Moderate Chapter LO: 4 Course LO: Discuss the selection of effective public relations tools 28 Copyright © 2015 Pearson Education. ads in specific locales employ local language and inspiring local imagery that make the theme relevant to the local markets in which they appear. specific advertising programs must usually be adapted to meet local cultures and customs. Investor relations: Maintaining relationships with shareholders and others in the financial community. Countries also differ in the extent to which they regulate advertising practices. Inc. Lobbying: Building and maintaining relationships with legislators and government officials to influence legislation and regulation. and a more consistent worldwide image." Counter this statement with reference to international advertising and provide an example. demographics. media characteristics. the nature of advertising claims. although Visa employs its "more people go with Visa" theme globally." They must develop global advertising strategies that make their worldwide efforts more efficient and consistent. Such restrictions often require advertisers to adapt their campaigns from country to country. Thus. It also has drawbacks–it ignores the fact that country markets differ greatly in their cultures. and other aspects of the advertising program.) Standardization produces many benefits–lower advertising costs. Difficulty: Difficult Chapter LO: 3 Course LO: Explain the various product and branding decisions marketers make AACSB: Diverse and multicultural work environments 99) What are the different functions of a public relations (PR) department? Answer: PR departments may perform any or all of the following functions: Press relations or press agency: Creating and placing newsworthy information in the news media to attract attention to a person. For example. and economic conditions. . Public affairs: Building and maintaining national or local community relationships. Many countries have extensive systems of laws restricting how much a company can spend on advertising. The answer given below is indicative. most international advertisers need to "think globally but act locally. or service. and regulations. the media used. Development: Working with donors or members of nonprofit organizations to gain financial or volunteer support. Product publicity: Publicizing specific products. Thus. although advertisers may develop global strategies to guide their overall advertising efforts. greater global advertising coordination.98) "Brand standardization has many benefits. product. Answer: (Students' answers may vary. Then they adapt their advertising programs to make them more responsive to consumer needs and expectations within local markets. and even nations. Hence. activities. public relations works hand in hand with advertising within an integrated marketing communications program to help build brands and customer relationships. Public relations is used to promote products. Inc. Public relations can have a strong impact on public awareness at a much lower cost than advertising can. Difficulty: Moderate Chapter LO: 4 Course LO: Discuss the selection of effective public relations tools AACSB: Analytic thinking 29 Copyright © 2015 Pearson Education. ideas. investors. organizations. Moreover. the media. it could be picked up by several different media and have the same effect as advertising that would cost millions of dollars. people. If the company develops an interesting story or event. places. .100) How does public relations help in creating an integrated marketing communications system? Answer: An integrated marketing communications system is required to deliver a consistent and positive message of a company's brand to its customers. public relations has the power to engage customers and make them a part of the brand story. Rather. a company does not pay for the space or time in the media. When using public relations. Companies use PR to build good relations with consumers. it pays for a staff to develop and circulate information and manage events. and their communities.