MKTG Exam 4

The Bentley Agency places $2,500 in radio spots and $17,500 in television spots for Darnell Insurance in June. For its efforts this month, the agency "traditionally" would receive ___________ in compensation

3,000

_________ provide businesses with copywriters, artists, production coordinators, media experts, researchers, and other highly skilled specialists.

Advertising agencies

Which of the following is the best example of a promotional objective of combating competitive promotional efforts?

After Ford promotes the towing capacity of its F-series trucks, DiamlerChrysler soon emphasizes the towing capacity of its Dodge trucks

According to the textbook, which one of the following statements is most accurate? A.) A small company always should always organize by products, and a large organization should organize by region. B.) There is no single approach to organizing a market unit that works well in all businesses. C.) Some organizations, by nature, have no specific internal structure.

B.) There is no single approach to organizing a market unit that works well in all businesses

Sometimes retailers are offered temporary price reductions for purchasing specified quantities of a product. These offers are used to provide an incentive to handle a new product, to achieve a temporary price reduction, or to stimulate the purchase of an item in large quantities. What is this sales promotion?

Buying allowance

Fraudulent usage, inability to attract potentially brand-loyal customers, and use by current customers but not new customers are believed to be disadvantages of which of the following?

Coupons

Advertising that encourages customers to send in reply cards for additional information aids salespeople in achieving which goal of personal selling?

Finding prospects

A firms promotional budget was extremely limited, for which of the following reasons would it be more likely to rely on personal selling as its main promotional tool?

It is easier to measure a salesperson's effects on sales than advertising's effects on sales

Jennifer Clarkson, a sales representative for a publisher of college textbooks, had the southern half of the state as a sales territory. Last year, the director of marketing for the publishing company told Jennifer's sales manager to increase her territory to the entire state. Now Jennifer's customers are less satisfied with the company. They are most likely to blame ___________ for their reduced level of customer satisfaction. a) the textbook authors b) the company's chief executive officer c) the marketing manager d) the sales manager e) Jennifer

Jennifer

Which is the best example of noise that originates with the receiver in the communication process?

Kevin simply tunes out pop-up ads on the internet so that they don't even enter his awareness

Channel capacity is determined by the a) most efficient component of the communication process. b) least efficient component of the communication process. c) source. d) receiver. e) meanings of the message.

Least efficient component of the communication process

Starbucks is presently involved in a process of assessing marketing opportunities and resources, determining marketing objectives, re-defining marketing strategies, and developing guidelines for implementation and control. Thus, Starbucks is involved in

Marketing planning

Which of the following is the most commonly used type of publicity-based public relations tool?

News release

Sony Corporation has a particular approach for determining its advertising appropriation. A problem with this technique, however, is that the people in the marketing department have difficulty estimating the level of effort needed to achieve certain goals. This problem is characteristics of the ________ approach

Objective-and-task

If you were a marketing manager, under which type of organizational structure would you most likely be working if your firm were a large business with centralized marketing operations?

Organization by function

What is the primary justification marketers use for conducting recognition and recall test?

People are more likely to buy a product they have seen advertised than one they have not seen advertised

During the introduction stage of the product life cycle, which type of promotion would a firm focus on? a) Reminder b) Competitive c) Comparative d) Pioneer e) Repetitive

Pioneer

To announce its development of a solid fuel titanium rocket for the U.S. missile defense system, Unijet management feels it needs to get wide media coverage. Under these circumstances, which of the following would be its best alternative? a) Captioned photograph b) Feature article c) Editorial letters d) Television advertisement e) Press conference

Press conference

If promotion does not do its job of stimulating demand, then the a) price of the promoted product is likely to increase. b) price of the promoted product will remain reasonably stable. c) price of the promoted product will decrease. d) cost of promotion will decline. e) cost will remain about the same.

Price of the promoted product is likely to increase

Which one of the following statements best describes total quality management?

The coordination of efforts directed at improving customer satisfaction, increase employee participation, forming and strengthening supplier partnership, and facilitating continuous quality improvements

When an organization uses an advertising agency, who usually develops the advertising campaign?

The firm and the agency working jointly

Which of the following is not a reason why the proportion of promotional dollars spent on sales promotion has increased in recent years?

The greater emphasis on improving long-term performance has resulted in an increased use of sales promotion methods

Which of the following statements applies to media planning?

The message content affects the types of media used for an advertising campaign

Which of the following target market characteristics are most important to consider before determining the promotion mix ingredients?

The size, geographic distribution, and demographic characteristics

When Opryland Hotel wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the hotel, this is an example of

a marketing objective

A strategic window is

a temporary period of optimal fit between the key requirements of a market and the particular capabilities of a firm competing in the market

The marketing plan is

a written document detailing activities to be performed to implement and control marketing actions

What is the overall role of promotion?

a) To stimulate product demand

Before launching a new advertising campaign, marketers for Healthy Choice frozen dinners must be determine the selling points that they want to include in the advertisements. The identification and organization of these selling points is called the

advertising platform

In establishing sales promotion objectives, a marketer should always

align objectives with the organization's overall objectives

An advertising campaign is typically developed by an individual or a few persons within the firm, an advertising department within the organization, or

an advertising agency

The strategic planning process begins with

analysis of the marketing environment

Business decisions made in creating a market mix

are only as as good as the organization's understanding of the needs of the target

The effectiveness of an advertising campaign can be measured

before, during, and after the campaign through the use of pretests, inquiries, and posttests

Brands that are promoted through comparative advertising are most likely to be

brands that are attempting to compete with market leaders

A major benefit of using event sponsorship is that it

can provide large amounts of free media coverage

The director of marketing for 3M tapes tells the rest of the management team, "When it comes to our transparent packaging tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the packaging tape unit falls into which one of the following classifications?

cash cow

Claire Nevsky is in charge of advertising for her company and has produced a 30-second television spot to promote one of the company's new products. One of her assistants just out of college believes that the commercial has too much visual and audio information packed into such a small amount of time. The assistant is specifically concerned about limits in the receiver's a) noise. b) coding process. c) encoding. d) channel capacity. e) feedback.

channel capacity

Each communication channel has a limit on the volume of information it can handle effectively. This limit is called a) transmission load. b) feedback. c) encoding. d) noise. e) channel capacity.

channel capacity

A sharing of meaning defines

communication

The Barrister's Deli decides to run advertisements for its lunch specials on a local FM radio station. Marketing research later reveals that the restaurant's target market listens primarily to satellite radio stations. The promotion program suffered from an error in the selection of

communication channel

If Target were to base its advertising appropriation on the amount that Walmart spends, it would be using the ____ approach.

competition-matching

Coors advertises that its beer is the only one that is kept cold from the brewery to the store. This type of advertising is called a) pioneer. b) competitive. c) comparative. d) defensive. e) institutional.

competitive

Troy Products Company advertises a specific product heavily, and Carbone Products Company wants to offset the effects of that advertising. In this case, Carbone would most likely employ ___________ advertising. a) competitive b) pioneer c) institutional d) primary e) target

competitive

An advertising platform should consist of issues that are important to consumers. Selling features should be important to consumers and should be features that

competitive products lack

The difference between consumer sales promotion methods and trade sales promotion methods is

consumer sales promotions focus on getting consumers to buy their products Trade sales promotions focus on getting wholesalers and retailers to buy

An arrangement in which a manufacturer pays a certain amount of retailer's media costs for advertising that manufacturer's products is

cooperative advertising

Marketing managers can take each of the following corrective actions for reducing a discrepancy between established performance standards and actual performance EXCEPT A.) improving actual performance B.) reducing the performance standard C.) totally changing the performance standard D.) changing the marketing strategy E.) coordinating a new step in performance analysis

coordinating a new step in performance analysis

All of the following are key areas of sales force management except

coordinating sales promotion efforts

A tool that allows an advertiser to compare the costs of several media vehicles within a specific medium relative to the number of persons reached by each vehicle is called a

cost comparison indicator

One way for a company to measure the effectiveness of its publicity-based public relations efforts is to a) tabulate the equivalent in advertising dollars if the time and space were purchased. b) ask for return of reply cards. c) calculate market share increase. d) count the number of exposures in the media. e) conduct an environmental audit of media alternatives.

count the number of exposures in the media

The most common sales force evaluation practices are for sales managers to compare a salesperson's performance with other salespeople operating under similar selling conditions, or to compare

current performance with past performance

When better market conditions prevail or when company growth occurs, a company may suffer if it a) lowered its sales force objectives. b) recruited additional salespeople. c) decided to use a combination compensation plan. d) provided additional training for its sales force. e) cut back the size of its sales force.

cut back the size of its sales force

Although Maybelline would like to use ______ as a consumer sales promotion method, this method has extremely high labor costs that are more affordable for higher-end make-up companies such as Clinique and Estée Lauder.

demonstrations

A competitive advantage exists when a

firm matches a core competency to opportunities it has discovered in the marketplace

In order for customers to receive greater customization and service, they must be willing to

give information about themselves and their tastes

According to the Boston Consulting Group, question marks are characterized as products

having a small share of a growing market and requiring large amounts of cash to build market share

To formulate a marketing strategy, one must

identify and analyze a target market and develop a marketing mix to satisfy individuals in that market.

A direct-response information form found in a magazine advertisement that allows customers to send for more information has a primary objective of

identifying prospects

The basic promotional objective underlying a magazine advertisement with a direct-response information form that requests the reader to complete and mail the form to receive additional information is to

identifying prospects

In recent years the proportion of promotional dollars spent on sales promotion has

increased relative to advertising

Promotion helps consumers because it a) costs billions of dollars each year, which stimulates the U.S. economy. b) always stresses wholesome values, which benefits society. c) persuades consumers to make the right choices. d) informs consumers and places them in a position to specify the products that they seek. e) tends to be informative and not persuasive.

informs consumers and places them in a position to specify the products that they seek

Measuring effectiveness during a campaign is usually accomplished by using

inquiries

First Union Bank airs a series of radio ads that claim, "We are the friendly bank." This campaign would best be described as __________ advertising. a) pioneer b) target c) product d) institutional e) comparative

institutional

Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. He explains that he never really figured out what the purchasing agent was looking for. Camilla, a sales trainer for another firm, hands Tony a book on a) listening skills. b) overcoming objections. c) prospect evaluation. d) product demonstrations. e) closing.

listening skills

If a marketer of a perfume ad develops a commercial involving a man being attracted to a woman who wears a particular perfume, it is attempting to influence one's need for a) love and affection. b) safety. c) self-esteem. d) self-actualization. e) respect from others.

love and affection

A marketer that wanted to include detailed information in advertisements would most likely use a) radio. b) television. c) outdoor displays. d) magazines. e) mass transit.

magazines

The best advice for recruiting and selecting salespeople for one's organization would be

make recruitment a continuous activity aimed at seeking out the best applicants

A group that has the willingness, ability, and authority to buy a product is a

market

The percentage of a market which actually buys a specific product from a specific company is referred to as that product's

market share

When encoding the message, the source should use signs that have

meanings that the target market will understand

After developing the budget for advertising GEO automobiles, marketing manager at General Motors then determined what proportion of that budget would be spent on magazine, television, and radio advertisements based on the cost effectiveness of each. This subsequent allocation of the budget is known as a ______ plan

media

Recognition and recall tests are posttest methods based on

memory

While anticipating objections and countering them before they are asked is a good idea, one negative consequence of doing so is that the salesperson may a) annoy the customer. b) mention objections the customer had not thought of. c) take too long in trying to sell the product, and the customer may stop listening. d) not emphasize its features and benefits enough. e) begin to lie about the product.

mention objections the customer had not thought of

As Oscar Meyer puts together its advertising campaign for the summer, it will need to keep in mind that its desire to use outdoor advertising will have strong effects on its selection of the advertising a) message. b) budget. c) platform. d) audience analysis. e) objectives.

message

Danielle Robinson, account representative for EXpert Advertising, tells D'Orazio Tile Products that she is proposing to use 5 full-page, four-color ads in home-decorating magazines to achieve an increase in consumer and builder inquiries of 15 percent. This approach is an example of which of the following methods of determining advertising expenditure levels? a) Competitive parity b) Percent of sales c) Arbitrary d) Affordability e) Objective-and-task

objective-and-task

Marketers for a new energy drink brand decided they wanted the advertising to create awareness for the new flavor in 80 percent of the market within one month of introduction. The marketers then determined how much it would cost to reach this goal. This is an example of which one of the following approaches to determining advertising budgets?

objective-and-task

The owner of a professional baseball team asks the account representative of an advertising agency to develop an advertising campaign to bring more teenagers to the ballpark. At this point, the account representative logically begins to discuss establishing _________ for the campaign

objectives

When an organization attempts to control its marketing activities, it may find it difficult to

obtain the necessary information

Creative selling, which requires that salespeople recognize a potential buyer's needs and then provide the prospect with the necessary information, is performed by a) order takers. b) order getters. c) missionary salespeople. d) trade salespeople. e) technical salespeople.

order getters

Selective demand is demand for a

particular brand

The target audience for an advertising campaign is the

people toward whom the advertisements are directed

Colin McKinney, director of marketing for Greenwald Industrial Products, complains to his advertising director that the continuing slump in orders has apparently been perpetuated by the firm's failure to have the necessary advertising expenditures. Based on this information, Greenwald is most likely using the _____ approach to determine its advertising expenditures.

percent-of-sales

Before contacting prospects, a salesperson for an industrial cleaning equipment company analyzes information about the prospects' product needs, feelings about brands, and personal characteristics. This process is called a) prospecting. b) preapproach. c) approaching the customer. d) sales training. e) sales planning.

preapproach

Garrett Almar tells a fellow buyer at Robins Wholesale Parts that the last salesperson who called on him before lunch was a real loser: "He has done a poor job of ____. He didn't even know what brands we carry or what types of retailers we service!"

preapproach

A marketing plan

provides a framework for implementing and controlling marketing activities

Aaron Epstein tells his fellow retail salesperson at Zales Jewelers that during the second quarter he is going to sell all the Alance watches he can and use his extra earnings to go to Cancun. He exclaims, "Can you believe the __________ program they have on for this quarter?"

push money

Sales objectives for individual salespeople can be stated in several ways. Which of the following would least likely be used for stating an individual salesperson's goal? a) Dollar volume sales b) Unit volume sales c) Average order size d) Ratio of profits relative to number of sales calls e) Average number of calls per time period

ratio of profits relative to number of sales calls

Ray Singh is preparing to evaluate one of his sales representatives, Julie Hill. His evaluation of her performance for the prior year led to his conclusion that she lacked key product information. At their upcoming session, he will most likely do which of the following? a) Decrease the size of her territory. b) Increase her sales quotas. c) Terminate her. d) Recommend that she attend a training program. e) Ignore this problem given that her sales results were good.

recommend that she attend a training program

A spokesperson for Mott's apple juice encourages television audiences to use its juice in the winter by serving it hot with a cinnamon stick. In this instance, Mott's is using promotion to

reduce sales fluctuations

Marketers of highly seasonal products tend to have more irregular use of

sales promotion

Realizing that her firm's sales promotion budget was small and cut by 30 percent for the coming year, Stacey Baronas rule out ________ as playing a role in her sales promotion plan

samples

Sales objectives can do all of the following except a) serve as a deterrent both to salespeople and their clients. b) give the sales force direction and purpose. c) serve as a standard for evaluating salesperson performance. d) let the sales force know what is expected of them. e) help to control the sales force.

serve as a deterrent both to salespeople and their clients

When developing an advertising campaign, benchmarks need to be included in the

statement and advertising objectives

Harley-Davidson's Harley Owner's Group (HOG) helps to foster string relationships between riders and their motorcycles, giving it an _________ over other motorcycle manufacturers

sustainable competitive advantage

In designing sales territories, a sales manager considers several major factors. The territories must be constructed so that sales potential can be measured; the shape of the territories should facilitate salesperson's activities to provide the best possible coverage of consumers and

territories should be designed to minimize selling costs

The main problem with using the objective-and-task approach to setting an advertising budget is that

the marketer may experience difficulty when trying to estimate accurately the level of effort needed to achieve goals