Marketing Exam 3 Chap 16

Vegetarians sometimes have trouble making sure they get enough protein in their diets. Protons are a new, poppable snack made with super-crunchy tofu. They are bite-sized nuggets that come in both sweet and savory flavors: Original Crunchy, Backyard Bar-B-Q, Tomato Herb Garden, Cinnamon Toast, and Lemon Meringue Pie. Protons' features, including that they are organic, vegan, and cholesterol free, give the new product its: a. differential parity b. synergistic goal c. competitive advantage d. comparative benefit e. tactical objective for implementing strategy

A competitive advantage is one or more unique aspects of an organization that cause target customers to patronize that brand rather than others.

For its new Jeep Compass, DaimlerChrysler launched a campaign targeting young, hip consumers. To reach its target, Jeep's advertising agency used music, talking bobbleheads, and other nontraditional marketing tactics to capture consumers' interest. The agency devised a host of bobblehead characters that represented the wide variety of potential Compass buyers. DaimlerChrysler was the _____ of the message in this communication process. a. sender b. decoder c. channeler d. receiver e. communicator

ANS: A The sender is the originator of the message in the communication process.

Encoding is the: a. creation of the original ideas and thoughts of a message b. conversion of the sender's ideas and thoughts into a message c. transmission of a message d. receipt and comprehension of a message e. deciphering and understanding of a message

ANS: B Encoding is the conversion of a sender's ideas and thoughts into a message, usually in the form of words or signs.

Bag Media is a British company that sells space on paper bags to advertisers who want to drive consumers to their Web sites. A Bag Media representative is making a presentation to several Internet entrepreneurs who are interested in getting traffic to their sites. The company rep is engaged in: a. telemarketing b. interpersonal communication c. publicity d. mass communication e. crowd selling

ANS: B Interpersonal communication is direct, face-to-face communication between two or more people.

USA cable television uses billboard, television, magazine, and newspaper advertising to inform television viewers about new episodes of Monk, a popular television series. USA uses _____ communication. a. referential b. mass c. factual d. interpersonal e. public

ANS: B Mass communication involves communicating a concept or message to large audiences.

To increase its revenues, US Airways has decided to sell space on air-sickness bags to sponsoring companies as a different medium for their promotional messages. The most effective promotional method for US Airways to use to find companies that would like to pay to have their promotional messages delivered to the 100 or so travelers on each of its flights would be: a. push advertising b. personal selling c. direct advertising d. sales promotions e. publicity

ANS: B Personal selling is a purchase situation involving a personal, paid-for communication between a buyer and a seller.

Every year, the Discovery Channel has what it calls Shark Week, a weeklong marathon of programs on sharks. In New York, Discovery Channel street teams disguised as Surfers, Bight University faculty, and Bight University "chewleaders" will attack city streets in July visiting morning television shows, landmarks, and high-traffic areas to promote the series. An article in the New York Times on Shark Week and the Discovery Channel's street teams would be an example of: a. a sales promotion b. publicity c. advertising d. implicit communications e. a personal sales presentations

ANS: B Publicity is public information about a company, product, or issue appearing in the mass media as a news item.

While talking to Mr. and Mrs. Knighton, the appliance salesperson described one of the refrigerators as "a real money saver" and "a true bargain," but he also kept looking down at his feet and shuffling around. His nonverbal cues: a. create subservient selling b. create differential disadvantages c. are part of how he communicated to the Knightons d. are a type of marketing mix feedback e. will not effect interpersonal communications

ANS: C Communication is the process by which we exchange or share meanings through a common set of symbols.

For its new Jeep Compass, DaimlerChrysler has launched a new campaign targeting young, hip consumers. To reach its target, DaimlerChrysler's advertising agency is using music, talking bobbleheads, and other nontraditional marketing tactics to capture consumers' interest. The agency has devised a host of bobblehead characters that represent the wide variety of potential Compass buyers. The ad agency is acting as the _____ of the message. a. decoder b. sender c. encoder d. receiver e. channeler

ANS: C Encoding is the conversion of the sender's ideas and thoughts into a message.

Java Jacket is a company that designs and prints ads on the paper jackets that go around hot coffee cups sold in coffee shops. To find clients to advertise on the coffee cup jackets, the company sent a representative to companies like Warner Brothers, eBay.com, and the Wall Street Journal to tell them how their ads on coffee cup jackets would give them inexpensive exposure to a large number of potential customers. Java Jacket's activities can best be described as: a. mass communication b. implicit communication c. personal selling d. public relations e. telemarketing

ANS: C Personal selling is the planned, face-to-face presentations in a conversation with one or more prospective purchasers for the purpose of making sales.

The Steel Recycling Institute is an industry association that promotes and sustains the recycling of all steel products. An article in BusinessWeek magazine about how the institute plans to stimulate consumer demand would be an example of: a. direct selling b. news marketing c. publicity d. event marketing e. direct marketing

ANS: C Publicity is public information in mass media about a company and its products.

The two major categories of communications are: a. verbal and nonverbal b. direct and indirect c. long term and short term d. mass and interpersonal e. informative and persuasive

ANS: D Communication can be divided into two major categories: interpersonal communication and mass communication.

Interpersonal communication is: a. nonpaid information such as publicity b. paid communication placed in personal media c. long-distance communication between a business and its target market d. direct face-to-face communication between two or more people e. noise-free communication

ANS: D Interpersonal communication is direct, face-to-face communication between two people.

The promotional mix consists of: a. advertising, publicity, direct marketing, and personal selling b. public relations, direct marketing, personal selling, and publicity c. product, promotion, price, and place d. advertising, personal selling, sales promotion, and public relations e. advertising, telemarketing, public relations, and sales promotions

ANS: D The promotional mix is the combination of promotional tools--including advertising, public relations, personal selling, and sales promotion--used to reach the target market and fulfill the organization's overall goals.

Public information about a company, good, or service appearing in the mass media as a news item is called: a. personal selling b. advertising c. mass communications d. publicity e. sales promotion

ANS: D This is the definition of publicity.

Publicity: a. will never damage a company because it performs the information task of promotion b. is free communication c. is not persuasive with customers d. has to be purchased from the mass media e. has many internal costs to the company associated with it

ANS: E A firm may have to hire a public relations firm to prepare new releases and persuade media personnel to print or broadcast the news. This can be expensive.

The maker of Frank's RedHot pepper sauce spend $25,000 to create an ad that was targeted to consumers in the southwestern U.S. market. Because it created the ad itself and did not use an ad agency, Frank's RedHot sauce engaged in: a. channeling b. creating noise c. receiving d. decoding e. encoding

ANS: E Encoding is the conversion of a sender's ideas and thoughts into a message, usually in the form of words or signs.

In 2006, Atlanta once again hosted the Peachtree Road Race, a running event that attracts many world-caliber racers. This year, race officials also sanctioned a race conducted in Iraq so that soldiers from Georgia would not have to miss the annual event. The winners of the Mideast race as well as scenes of the actual race were televised. In terms of a promotional mix, this Iraqi Peachtree Race was as example of: a. advertising and personal selling efforts b. strategic product promotions and resulting sales c. a target marketing strategy d. sales promotion efforts e. a public relations strategy and resulting publicity

ANS: E The public relations activities involved in the race in Iraq led to publicity in the form of news media reporting.

The manufacturer of Meridian yam products spent $25,000 to create an ad that ran in the Thanksgiving issue of a popular cooking magazine. Because it was the originator of the communication process, Meridian acted as a: a. channel b. noise filter c. receiver d. decoder e. sender

ANS: E The sender is the originator of the message in the communication process.

The four major promotional tools (advertising, personal selling, sales promotion, and public relations) are known collectively as the: a. communication model b. advertising campaign c. marketing mix d. publicity four e. promotional mix

ANS: E These promotional mix includes the four major promotional tools of advertising, personal selling, sales promotion, and public relations.

If Charles Schwab Mutual Funds Investment Broker were to study its promotional strategies by looking at sales trends and market research, it would be using direct feedback to evaluate its promotional strategies.

ANS: F Charles Schwab relies on indirect feedback. Direct feedback would imply immediate interaction.

Maddie's Beverage Company has recently introduced Wateroos, eight-ounce servings of water in juice-style containers with straws, to encourage children to drink more water. Since this product is in the introductory stage of the product life cycle and as yet has no direct competition, Maddie's promotional objective should be persuasion.

ANS: F Early in the life cycle, the primary focus of promotions should be to inform consumers of the product.

Publicity is free.

ANS: F Preparing news releases, staging special events, and persuading media to broadcast them cost money.

Benedick and Taapo are arguing about newspaper publicity. Benedick says favorable publicity is free--hence the phrase "free publicity." Taapo says that publicity is not free because costs were incurred in developing the public relations materials used by the newspapers. Benedick has a more accurate grasp of the definition of publicity.

ANS: F Publicity is not free. Preparing news releases, staging special events, and persuading media to broadcast them cost money.

Communication via telephone is not considered personal selling because it is not face-to-face.

ANS: F Telemarketing is a form of personal selling. It does allow for immediate interaction.

AIDA is an acronym for attention, interest, desire, and action.

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Advertising is any form of impersonal, one-way mass communication in which the sponsor or company is identified.

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Black & Mild FT are the only cigars on the market made with "a skillful blend of premium pipe tobaccos and a filter tip for extra smoothness." This feature creates a competitive advantage for the product.

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Even though a message is received, it will not necessarily be properly decoded; receivers interpret messages based on their own frames of reference.

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It's been a few years since odor-free paint hit the market, and a paint manufacturer estimates the paint to be in the growth stage of its product life cycle. With all the competition in the industry today, the manufacturer should use promotions that persuade buyers of odor-free paint to purchase its brand over all others.

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NutriFoods is concerned that its advertising messages are not getting through to the target market as intended. Its radio ads contain music that its target market does not like, and its spokesperson has a very nasal voice that sounds as though he has a perpetual cold. These are examples of noise in the communications process.

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Promotion is communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence their opinion or elicit a response.

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Sales promotion consists of all marketing activities that stimulate consumer buying and dealer effectiveness.

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The U.S. manager is working with some Indonesians who do not speak English. In attempting to exchange information, they are using symbols to assign meanings to the facts the manager hopes to convey. This is an example of communication.

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The promotional mix is the combination of promotional tools used to reach the target market and fulfill the organization's overall goals.

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