MKT FINAL ch 16

_____ is the process by which meanings are exchanged or shared through a common set of symbols.

Communication

YouTube is an example of a microblog.

False

Which of the following statements is true of the AIDA model?

It discusses how consumers respond to marketing messages

_____ consists of all marketing activities that stimulate consumer purchasing, such as coupons, contests, free samples, and trade shows.

Sales promotion

Which of the following statements is true of advertising?

The cost per contact in advertising is low.

Initially, social media tools were used primarily for self-expression.

true

Podcasting is a form of social media

true

Social media are promotion tools used to facilitate conversations and other interactions among people online.

true

Social media are used by marketers as a way to extend the benefits of their traditional media.

true

Social media have become a layer in promotional strategy.

true

Traditional methods of personal selling include a planned presentation to one or more prospective buyers for the purpose of making a sale.

true

__________is the process by which meanings are exchanged or shared through a common set of symbols.

Communication

Arise Food Corporation displays posters in supermarkets to promote its new range of pasta sauces. Which of the following stages of the communication process is the company engaged in during the course of promoting its products?

Encoding

Which of the following statements is true of the characteristics of the elements in a promotional mix?

Important promotional ingredients tend to receive the most funding.

Which of the following statements is true of a promotional mix?

In advertising, the sponsor or company is identified.

Cover Board Inc. is a company that designs and prints advertisements on coffee sleeves used on cups sold in coffee shops. To find clients to advertise on the coffee cup sleeves, the company sends a representative to other companies to explain them the benefits of advertising on these sleeves. In this case, which of the following promotional strategies is used by Cover Board Inc.?

Personal selling

_____ promotion is designed to stimulate a purchase or an action.

Persuasive

What are the two types of buying decisions? Which buying decision calls attention to a brand by the most effective promotion?

The promotional mix also depends on the type of buying decision—for example, a routine decision or a complex decision. For routine consumer decisions like buying toothpaste, the most effective promotion calls attention to the brand or reminds the consumer about the brand. Advertising, and especially sales promotion, are the most productive promotion tools to use for routine decisions.

When a product is in the growth stage of its product life cycle, it is necessary to ensure that:

advertising and public relations continue to remain important.

Treat Bytes Inc., a food product manufacturing company, introduces a new range of protein-rich snacks targeted at vegetarians. The products have very low levels of fat and cholesterol that make them a healthy source of protein for vegetarians. These products are unique, and people consider them to be of the highest quality. These unique features of the products present Treat Bytes Inc. with a _____.

competitive advantage

Treat Bytes Inc., a food product manufacturing company, introduces a new range of protein-rich snacks targeted at vegetarians. The products have very low levels of fat and cholesterol that make them a healthy source of protein for vegetarians. These products are unique, and people consider them to be of the highest quality. These unique features of the products present Treat Bytes Inc. with a__________.

competitive advantage

The fishing lures produced by Fun Lite Corporation are unique in that they are handcrafted. Advertising by the company emphasizes the point that how its lures, unlike others, are all handcrafted. This feature is the company's:

competitive advantage.

The AIDA concept:

does not explain how all promotions influence purchase decisions

A firm should choose all five promotional elements in its promotional mix and use them in equal degrees

false

. When Dernz Inc. introduced its ketchup globally, it first had to deal with the fact that ketchup is not a household staple outside the United States. The company had to show foreign users how ketchup can be used. In this case, Dernz had to rely primarily on__________advertising to reach out to consumers.

informative

A television channel promotes its new reality show through print and broadcast advertising as well as personal appearances by show participants in promotional events, Web sites, and merchandise signed by the participants. To make sure that all of the promotional messages are coordinated, the television channel should use the:

integrated marketing communications approach.

Two popular beverage manufacturing companies in different countries merge together to gain strategic advantages. The merger gives each brand access to a significantly larger market. To effectively reach both markets, the merged company needs to coordinate its promotional mix to produce a consistent, unified, and customer-focused message. In other words, the company needs to use:

integrated marketing communications.

ABC television network uses billboard, television, magazine, and newspaper advertising to inform viewers about new episodes of a popular television program. Therefore, ABC television network uses _____ communication to promote the television program.

mass

ABC television network uses billboard, television, magazine, and newspaper advertising to inform viewers about new episodes of a popular television program. Therefore, ABC television network uses__________communication to promote the television program.

mass

. A proper promotional mix is one that__________.

meets the needs of the target market

A proper promotional mix is one that _____.

meets the needs of the target market

The promotional mix elements that should be emphasized for products moving into the growth stage of the product life cycle are:

personal selling and persuasive advertising.

A(n) _____ is the combination of advertising, personal selling, sales promotion, social media, and public relations that are used to reach the target market and fulfill an organization's overall goals.

promotional mix

A(n)__________is the combination of advertising, personal selling, sales promotion, social media, and public relations that are used to reach the target market and fulfill an organization's overall goals.

promotional mix

In 2008, the NBC television network used marketing tools such as advertising, personal selling, public relations, and sales promotion to communicate with its target audience about its new reality show. The television network's _____ described its plan on how to use these tools most effectively.

promotional strategy

In 2008, the NBC television network used marketing tools such as advertising, personal selling, public relations, and sales promotion to communicate with its target audience about its new reality show. The television network's__________described its plan on how to use these tools most effectively.

promotional strategy

The National Pork Board of the United States wants to create more consumer demand for pork products. The board decides on how to use advertising, public relations, personal selling, sales promotion, and social media to create a coordinated plan that will become an integral part of the its marketing functions. Thus, the board is developing a _____.

promotional strategy

The National Pork Board of the United States wants to create more consumer demand for pork products. The board decides on how to use advertising, public relations, personal selling, sales promotion, and social media to create a coordinated plan that will become an integral part of the its marketing functions. Thus, the board is developing a__________.

promotional strategy

A beverage company plans to launch a new energy drink. It decides to partly sponsor a marathon in the city. It places billboards and posters describing the new drink throughout the marathon route. Company representatives distribute flyers to people arriving to watch the marathon. The company also issues press releases as part of the product launch. Therefore, the company is executing a:

public relations strategy

A manufacturer using the _____ promotional strategy focuses its promotional efforts on end consumers.

pull

Explain the different stages in a product's life cycle

A product's stage in its life cycle is a big factor in designing a promotional mix. During the introduction stage, the basic goal of promotion is to inform the target audience that the product is available. Initially, the emphasis is on the general product class—for example, smartphones. This emphasis gradually changes to gaining attention for a particular brand, such as Apple, Nokia, Samsung, Sony Ericsson, or Motorola. Typically, both extensive advertising and public relations inform the target audience of the product class or brand and heighten awareness levels. Sales promotion encourages early trial of the product, and personal selling gets retailers to carry the product.When the product reaches the growth stage of the life cycle, the promotion blend may shift. Often a change is necessary because different types of potential buyers are targeted. Although advertising and public relations continue to be major elements of the promotional mix, sales promotion can be reduced because consumers need fewer incentives to purchase. The promotional strategy is to emphasize the product's differential advantage over the competition. Persuasive promotion is used to build and maintain brand loyalty during the growth stage. By this stage, personal selling has usually succeeded in getting adequate distribution for the product.As the product reaches the maturity stage of its life cycle, competition becomes fiercer, and thus persuasive and reminder advertising are emphasized more strongly. Sales promotion comes back into focus as product sellers try to increase their market share.All promotion, especially advertising, is reduced as the product enters the decline stage. Nevertheless, personal selling and sales promotion efforts may be maintained, particularly at the retail level.

Explain how a target market is characterized.

A target market characterized by widely scattered potential customers, highly informed buyers, and brand-loyal repeat purchasers generally requires a promotional mix with more advertising and sales promotion and less personal selling. Sometimes, however, personal selling is required even when buyers are well informed and geographically dispersed. Although industrial installations may be sold to well-educated people with extensive work experience, salespeople must be present to explain the product and work out the details of the purchase agreement. Often firms sell goods and services in markets where potential customers are hard to locate. Print advertising can be used to find them. The reader is invited to go online, call, or mail in a reply card for more information. As the online queries, calls, or cards are received, salespeople are sent to visit the potential customers.

How do consumers make complex buying decisions? Which is the most effective technique in helping customers make complex decisions?

Consumers making complex buying decisions are more extensively involved. They rely on large amounts of information to help them reach a purchase decision. Personal selling is most effective in helping these consumers decide. For example, consumers thinking about buying a car typically research the car online using corporate and third-party Web sites. However, few people buy a car without visiting the dealership. They depend on a salesperson to provide the information they need to reach a decision. In addition to online resources, print advertising may also be used for high-involvement purchase decisions because it can often provide a large amount of information to the consumer.

Which of the following is true of a target market characterized by widely scattered potential customers, highly informed buyers, and brand-loyal repeat purchasers?

It requires a promotional mix with more advertising and less personal selling.

Explain the differences between push and pull strategies with examples.

Manufacturers may use aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell their merchandise. This approach is known as a push strategy. The wholesaler, in turn, must often push the merchandise forward by persuading the retailer to handle the goods. The retailer then uses advertising, displays, and other forms of promotion to convince the consumer to buy the "pushed" products. Walmart uses aggressive discounts to push products out of its stores. The retailer drastically reduced prices to push fresh meat, produce, and other healthy options to consumers in low-income areas. The move proved a win-win strategy; fresh foods generated seventy percent of Walmart's sales growth in recent years, and since 2011, customers have saved more than $2.3 billion on fresh fruits and vegetables by shopping at Walmart. This concept also applies to services.At the other extreme is a pull strategy, which stimulates consumer demand to obtain product distribution. Rather than trying to sell to the wholesaler, the manufacturer using a pull strategy focuses its promotional efforts on end consumers or opinion leaders. Social media and content marketing are the most recent example of pull strategy. The idea is that social media content does not interrupt a consumer's experience with media. Instead, the content invites customers to experience it on social media or a Web site. Teva's Unfollow campaign is a good example of enticing consumers to the content.

__________promotion is designed to stimulate a purchase or an action

Persuasive

_____ refers to communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.

Promotion

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

Promotion

Which of the following is a difference between a push and a pull strategy?

Retailers are targeted in a push strategy, while opinion leaders are targeted in a pull strategy.

__________consists of all marketing activities that stimulate consumer purchasing, such as coupons, contests, free samples, and trade shows.

Sales promotion

Which of the following statements is true of sales promotions?

Sales promotions include experiential marketing whereby marketers create events that enable customers to connect with brands.

To increase its revenues, an airline company decides to sell space on airsickness bags to companies that would like to use this unique channel for their promotional messages. In terms of the promotional strategy, the airsickness bags are being used for:

advertising.

The advertisements for ground coffee sold by Khokho's Inc. state, "The highest quality coffee doesn't have to be expensive." This is an example of how a product communicates its _____.

competitive advantage

The advertisements for ground coffee sold by Khokho's Inc. state, "The highest quality coffee doesn't have to be expensive." This is an example of how a product communicates its__________.

competitive advantage

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

false

Personal selling, unlike other promotional mix elements, is independent of the Internet.

false

Promotional mixes do not vary from one product or industry to the next.

false

Social media are non-ubiquitous.

false

Social media prohibits consumers' interaction with other consumers.

false

Wild Plus, a television channel dedicated to wildlife, organizes promotional events in several shopping malls across the city to promote its new wildlife adventure series. Articles about the new program are also published in local newspapers. Therefore, Wild Plus is engaged in:

generating publicity.

When Dernz Inc. introduced its ketchup globally, it first had to deal with the fact that ketchup is not a household staple outside the United States. The company had to show foreign users how ketchup can be used. In this case, Dernz had to rely primarily on _____ advertising to reach out to consumers.

informative

A manufacturer using the__________promotional strategy focuses its promotional efforts on end consumers.

pull

An advertisement in a trade magazine targeted toward veterinarians urges them to prescribe the drug Hepato for cats and dogs with damaged livers. This advertisement was placed by the product's manufacturer. This advertisement is an example of how manufacturers use a(n) _____ strategy.

push

An advertisement in a trade magazine targeted toward veterinarians urges them to prescribe the drug Hepato for cats and dogs with damaged livers. This advertisement was placed by the product's manufacturer. This advertisement is an example of how manufacturers use a(n)__________strategy.

push

The use of aggressive personal selling and trade advertising by a manufacturer to convince a wholesaler or a retailer to carry and sell particular merchandise is known as a _____ strategy.

push

The use of aggressive personal selling and trade advertising by a manufacturer to convince a wholesaler or a retailer to carry and sell particular merchandise is known as a__________strategy.

push

Advent Automobiles Inc. launches a new sport utility vehicle. The company places advertisements in leading newspapers and social media sites to reach out to consumers. In the context of the communication process, Advent Automobiles Inc. is the _____.

sender

Advent Automobiles Inc. launches a new sport utility vehicle. The company places advertisements in leading newspapers and social media sites to reach out to consumers. In the context of the communication process, Advent Automobiles Inc. is the__________.

sender