Strategic Marketing Unit 6 Anticipation Guides

(T/F) A trade allowance is a price reduction offered by retailers to customers who are buying homogenous shopping goods.

False it is from manufacturers to intermediaries

(T/F) When a marketer sends a message to the target market, the marketer must first decode the symbols used.

False, decoding happens within the channel

(T/F) A sales promotion could include any (or all) of the four promotional elements of the promotional mix.

False, includes marketing communication activites

(T/F) The goal of advertising is to change people's values.

False, it can change attitudes but not values

(T/F) Communication via telephone is not considered personal selling because it is not face-to-face.

False, it includes over the phone

(T/F) Researchers are unanimously convinced of the effectiveness of banner advertising on Internet Web sites.

False, it is a hot debate

(T/F) Marketers find it much easier to evaluate the effectiveness of advertising than the effectiveness of sales promotion.

False, it is is easier because it is short term

(T/F) Advertising is any form of impersonal, one-way mass communication in which the sponsor is identified.

False, it is not one way

(T/F) Point-of-purchase promotions are seldom used as a sales promotion tool because most purchase decisions are made before customers ever enter a store.

False, most decisions are made in the store

(T/F) Josh Moran is in charge of finding sponsors for the 2007 Reno Rodeo. He is currently talking to marketing representatives from Wrangler jeans to try to convince Wrangler to sponsor the event. Moran is engaged in personal selling.

False, personal selling is with a potential customer not a sponsor

(T/F) When Hasbro Games offers to pay a $2 refund to any customer who purchases either a Connect Four, Trouble, Operation, Battleship, Twister, or Guess Who? game, it is an example of a premium offer.

False, premiums are an extra product

(T/F) Contests generally draw more entries than sweepstakes do.

False, sweepstakes draw ten times more entries

(T/F) Marketers typically use either a push or a pull strategy exclusively.

False, they use a mix

(T/F) An insurance company's advertisement poses the question, "Will your family survive if you die uninsured?" This is an example of health appeal.

False, this is a fear appeal

(T/F) Nature's Path makes EnviroKids brand organic cereals, rice bars, and cookies. It is determining whether to put its advertisements in newspapers or on television. Its primary concern is with how many people in its target marker will be exposed to its ads. In other words, the company is concerned about frequency.

False, this is reach

(T/F) A costume rental company only runs newspaper advertisements the week before holidays, such as Christmas and Halloween. This is an example of a flighted schedule.

False, this is seasonal

(T/F) A person buying a Valentine's Day gift for his significant other is more likely to go through all of the steps in the AIDA process than a person buying a gift certificate for her mail carrier.

True

(T/F) AIDA is an acronym for Attention-Interest-Desire-Action.

True

(T/F) All promotions are designed to either inform, persuade, or remind the target audience.

True

(T/F) Crisis management should begin before a crisis occurs.

True

(T/F) During the month of July 2006, any child who got a McDonald's Happy Meal also received a toy inspired by Disney's Pirates of the Caribbean: Dead Man's Chest. The toy is an example of a premium.

True

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

True

(T/F) Hewlett-Packard offered $25 to individual Office Depot salespeople for each HP Laser Jet printer they sold, The $25 is push money.

True

(T/F) Lobbying, product publicity, and crisis management are all functions of public relations tools.

True

(T/F) Manufacturers use trade promotions because they help manufacturers gain new distributors, obtain intermediary support for consumer promotions, and improve trade relations.

True

(T/F) Nature Valley uses popular magazines, radio, and cable television to promote its brand of trail mix. Nature Valley uses mass communication.

True

(T/F) One of the reasons for the growing popularity of interpreted marketing communications is the proliferation of thousands of new media choices.

True

(T/F) 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.

True

(T/F) Publicity is free.

True

(T/F) Sales promotion is a promotional tool generally used to stimulate consumer buying and dealer effectiveness.

True

(T/F) Sales promotions are primarily short-term incentives. Immediate purchase is usually the goal of sales promotion.

True

(T/F) Spending on advertising varies by industry.

True

(T/F) Testing the effectiveness of a media campaign can be done either before or after the campaign is run.

True

(T/F) The advantages of newspaper advertising are geographic flexibility and timeliness.

True

(T/F) The manufacturer of the George Forman grill has produced a 30-minute sales pitch in the form of a talk and demonstration show to be aired on local cable TV channels. This is an example of an infomercial.

True

(T/F) The media mix determines how much of the advertising budget will be spent on each advertising medium.

True

(T/F) The promotional mix is the combination of promotional tools used to reach the target market and fulfill the organization's overall goals.

True

(T/F) The sponsorship of a racing team in the Tour de France bicycle race is an example of a public relations activity.

True

(T/F) There are many snack foods for children, but only Nature's Path makes an organic snack designed for a child's palate. The product's unique selling proposition is that it is completely organic.

True

(T/F) Trade shows are an excellent place to introduce new products to the marketplace.

True