ch 16 mktg

61. Trade concentration refers to: (1 point) a. more products going through fewer retailers b. a type of promotion commonly used by service providers c. the ability to comparison shop within the same store d. a marketplace that supports multiple retailers of the same or similar products e. the consolidation of advertising rates for various trade magazines into one generic rate card

a. more products going through fewer retailers

27. _____ is the oldest marketing method, and it is growing incredibly fast today as a result of social and technological changes. (1 point) a. Direct marketing b. Relationship marketing c. Advertising d. Interactive marketing e. Direct selling

a. direct marketing

23. Which of the following statements about direct marketing is true? (1 point) a. Direct marketing is a measurable system of marketing. b. Direct marketing is static. c. Direct marketing is often called reminder advertising. d. Direct marketing does not typically produce feedback. e. All of the above statements about direct marketing are true

a. direct marketing is a measurable system of marketing

34. Which of the following statements describes a reason why an advertiser might decide against using direct marketing? (1 point) a. Direct marketing efforts provide its users with the prestigious affiliation offered by some media. b. Many customers like to be able to use more than their visual senses when they are buying. c. In the past, direct marketers were excessively relationship-oriented; and this gave direct marketers a bad reputation. d. Direct marketing suffers from lack of sufficient clutter. e. All of the above describe reasons why advertisers use direct marketing.

b. Many customers like to be able to use more than their visual senses when they are buying.

50. A marketer can reduce the cost of personal selling by: (1 point) a. eliminating the need for database management b. communicating relevant information about the company and its product before the sales call c. providing proof that what the salesperson says is true d. reminding the prospect to close the sale e. avoiding the use of trial closes that may delay the actual sale

b. communicating relevant information about the company and its product before the sales call

56. Barton Beers invited its retailers to celebrate "Fiestas Patrias," a traditional Mexican holiday that celebrates the country's independence from Spain. The marketing vice president for Barton announced that the company has developed posters, displays, and banners for retailers to use during the celebration period. The purpose of this _____ is to encourage Mexican customers to buy Barton beer. (1 point) a. viral marketing b. direct marketing activity c. sales promotion d. publicity e. advertorial

c. sales promotion

66. Automakers began rewarding dealers with financial incentives long before dealership customers started getting them, too. Recipients are employees of multi-franchise dealerships. Automakers offer these salespeople _____ to get them to pitch their brand of vehicles over a competitor's product sold at the same store. (1 point) a. direct promotions b. instant rebates c. spiffs d. supplementary promotions e. FSIs

c. spiffs

71. Research indicates that many people purchase a product because of an advertised rebate but never collect the rebate because of the inconvenience. This phenomenon is called: (1 point) a. spiffing b. trickling c. spillage d. dribbling e. a spill out

c. spillage

28. The growth of direct marketing has been fueled by: (1 point) a. the development of kiosks b. the increase in cultural diversity c. the expanding use of credit cards d. the aging of the baby boomer generation e. all of the above

c. the expanding use of credit cards

35. All direct marketers must make two basic strategy decisions. The first is the extent to which they will use direct sales. The second is: (1 point) a. when they will require the marketing to become interactive b. when they will need feedback c. the extent to which they will use direct-response advertising d. the extent to which they will rely on sales promotion e. when they will look to publicity to further their promotional effort

c. the extent to which they will use direct response advertising

63. A trade deal is a(n): (1 point) a. advertisement placed in trade journals read by marketing intermediaries b. reimbursement from a manufacturer to a retailer for advertising the manufacturer's products c. payment made by retailers to manufacturers for the privilege of stocking a particular product d. type of rebate that often accompanies pull strategies e. short-term discount on the cost of a product offered to members of the trade

e. short-term discount on the cost of a product offered to members of the trade

67. Which of the following is NOT an example of a consumer sales promotion? (1 point) a. spiffs b. coupons c. cents-off promotions d. refunds e. rebates

a. spiffs

65. In the Moosehead Cabin Fever Rescue Promotion, beer retailers were sent an inflatable bush plane with 30-inch wingspan that appeared to be dropping a parachute that holds a Moosehead 12-pack box . Moosehead probably had to pay a ______ to encourage retailers to use this rather large promotional material in their stores. (1 point) a. display allowance b. buyback allowance c. placement allowance d. trade fee e. inserting allowance

a. display allowance

49. Personal selling is the most costly way to communicate with prospects because: (1 point) a. it is very labor intensive b. sales cannot occur without advertising c. it has an inflexible methodology d. sales quotas force the salesperson to use unethical means to close a sale e. it cannot be integrated easily into a company's marketing communications strategy

a. its a very labor intensive

26. Sierra South sells whitewater ratting and kayaking trips, and related merchandise. Sierra South uses the Internet as its _____ to connect its customers and prospects with the company--to provide them with information on upcoming trips, new gear, and sales. (1 point) a. linkage media b. interactive communication capability c. indirect-response advertising device d. interstitial e. feedback encoding device

a. linkage media

36. What are the two primary methods for implementing a direct-sales strategy? (1 point) a. person-to-person and group sales b. personal selling and telemarketing c. direct-response selling and telemarketing d. Internet and telemarketing e. order-taker and order-filler

a. person to person and group sales

68. Adrienne Faith & Co. offered retailers of spas a four-tiered acrylic shelf unit that holds 36 bottles (2.4 ounces each) of spa fragrance or spa crystals. The unit is to be placed on the counter, next to the cash register and would be an example of: (1 point) a. point-of-purchase material b. a push strategy c. a spiff d. collateral advertising material e. interactive advertising material

a. point of purchase material

72. If you buy a case of Friskies dry cat food, you can send the UPC with $2.00 and receive a metal comb specially designed for removing loose cat hair. The comb is an example of a(n): (1 point) a. premium b. contest c. trade deal d. FSI e. advertising specialty

a. premium

60. A _____ strategy is primarily designed to secure the cooperation of retailers. (1 point) a. push b. pull c. parallel d. cohort e. channel

a. push

62. A(n) _____ is paid by a manufacturer for the privilege of obtaining shelf or floor space for its new product. (1 point) a. slotting allowance b. avail c. forward buying allowance d. advertising allowance e. spiff

a. slotting allowance

46. Which of the following is an example of personal selling? (1 point) a. The paving contractor convinces the veterinarian to repave his parking lot. b. The retail clerk, a long-time friend of Evan's mother, convinces him to buy the diamond earrings for his mother's birthday gift. c. Jeffery buys car insurance from his neighbor, a Progressive insurance agent. d. Lyn buys 10 boxes of Girl Scout cookies every year from her next door neighbor's daughter. e. All of the above are examples of personal selling.

e. all of the above

51. What communications functions does personal selling perform in an integrated marketing communications (IMC) program? (1 point) a. gathering information b. providing information c. order fulfillment d. relationship building e. all of the above

e. all of the above

70. While shopping at the supermarket, Juana noticed a box of Tide detergent with a banner on the label indicating it was "$1 off the regular price." Obviously, the manufacturer of Tide is using a: (1 point) a. rebate offer b. spiff c. coupon d. trade promotion e. cents-off promotion

e. cents off promotion

64. The maker of Behr paints is offering supermarkets a one-month deal, which allows hardware and do-it-yourself stores to purchase its paints at 25 percent off the regular price. The paint manufacturer hopes supermarkets will pass along these savings to consumers in the form of "specials." Assume buyers for a small regional chain of hardware retailers have purchased enough Behr paint to last the chain for the next five months. This chain is engaging in: (1 point) a. a tying agreement b. forward buying c. diverting d. front loading e. backwards buying

b. forward buying

59. Rather than ultimately building a new power plant, which costs hundreds of millions of dollars, a TX-based energy company is offering customers a rebate of up to $15,000 to install home solar energy systems. This would be an example of a _____ strategy. (1 point) a. push b. pull c. parallel d. cohort e. channel

b. pull

22. Direct marketing is virtually synonymous with: (1 point) a. mass media advertising b. unsolicited advertising c. digital marketing d. database marketing e. interactive advertising

d. database marketing

74. The manufacturer of NIVEA skin care products conducted a _____ in which a winner was selected by a drawing. Each entrant had the same probability of winning a day of pampering at his or her local spa. (1 point) a. game b. contest c. sweepstakes d. lottery e. reward

b. contest

24. Sierra South sells whitewater ratting and kayaking trips, and related merchandise. The company uses a Web site to gather information from potential customers of its products. This information is entered into the company's database. Names and information in this database are used to determine who should receive a personalized sales e-mail from the company. Sierra South is using: (1 point) a. mail-order advertising b. database marketing c. direct selling d. direct-mail advertising e. interactive advertising

b. database marketing

37. _____ is face-to-face selling away from a fixed retail location. (1 point) a. Interactive commerce b. Direct selling c. Telemarketing d. Direct-response marketing e. Relationship marketing

b. direct selling

69. Which of the following trends has increased the importance of P-O-P materials? (1 point) a. online retailing b. self-service retailing c. interactive marketing d. relationship retailing e. customerization

b. self service retailing

41. When Leona got her most recent copy of the Mysteries by Mail catalog, she was pleased to find that the catalog contained a short story by her favorite author, Margaret Maron. The catalog promised that short stories would be a regular feature of the catalog, and Leona is looking forward to receiving her next one. Which of the following describes the most likely reason why the catalog plans to include short stories by popular authors? (1 point) a. to create a stronger need to respond to the catalog's product mix b. to help it stand out from the glut of catalogs c. to create a new, useful kind of clutter d. to increase the product life cycle e. to enhance its creation of a customer database

b. to help it stand out from the glut of catalogs

33. Which of the following statements about the importance of direct marketing to integrated marketing communications (IMC) is true? (1 point) a. People enjoy thinking of themselves as part of a giant database. b. Direct marketing's growth is closely related to the growth of mass-market audiences. c. By providing a tangible response, direct marketing offers accountability. d. Direct marketing's universality prohibits a direct marketing campaign from being kept secret from the competition. e. Direct marketing campaigns will not be successful if aimed at time-sensitive consumers.

c. By providing a tangible response, direct marketing offers accountability.

43. Which of the following is the best example of direct-response broadcast advertising? (1 point) a. a CD offering you a trial subscription to an online music review magazine b. a catalog featuring children's clothing c. a TV infomercial for exercise equipment d. a telemarketing call selling investment opportunities e. a commercial before a movie in a theater that asks you to shop at Friedman's Furniture Store

c. a tv infomercial for exercise equipment

30. _____ is the process of gathering, consolidating, updating, and enhancing the information about customers and prospects that resides in an organization's database. (1 point) a. Direct marketing implementation b. Data control c. Data management d. Interactive marketing e. Data query

c. data management

25. _____ advertising is always aimed at stimulating some action or response from its recipient. (1 point) a. Radio b. Viral c. Direct-response d. Broadband e. Narrowband

c. direct response

39. Advertising that asks the reader, viewer, or listener to provide feedback straight to the sender is called: (1 point) a. unduplicated marketing b. customized marketing c. direct-response advertising d. advocacy selling e. direct-sales advertising

c. direct response advertising

40. In 2005, the airwaves of KFI-AM were saturated with commercials that asked listeners to dial advertisers' toll-free numbers or visit their Web sites. The approach accounted for nearly half the advertising on KFI, and it's a big reason why the station has climbed nearly to the top of the Los Angeles market in revenues and to No. 4 nationwide. In this example, a broadcast medium is prospering from the use of: (1 point) a. unduplicated marketing b. customized marketing c. direct-response advertising d. advocacy selling e. direct-sales advertising

c. direct response advertising

54. To create effective sales promotions, a company should: (1 point) a. use non-specific objectives to give its marketing a desirable level of flexibility b. avoid any promotion pretesting because of its inherent costs c. make sure the sales promotion reinforces the brand's advertising message d. involve itself in either the trade or consumer promotions--but not both e. use complex, attention-getting copy so the consumer will understand the message

c. make sure the sales promotion reinforces the brand's advertising message

44. Which of the following is the best marketing communication tool for relationship building? (1 point) a. infomercials b. word-of-mouth c. personal selling d. direct-response marketing e. interactive broadcast advertising

c. personal selling

52. _____ is a direct inducement offering extra incentives anywhere along the marketing route to enhance the movement or accelerate the product's movement from producer to consumer. (1 point) a. Direct selling b. Direct marketing c. Sales promotion d. Public relations e. Direct-response advertising

c. sales promotion

73. For which of the following products would sampling be LEAST suitable? (1 point) a. French's yellow mustard b. Pepperidge Farms chocolate layer cake c. Ragu pizza sauce d. Broilmaster premium gas grills e. Red Bull energy drink

d. Broilmaster premium gas grills

42. Which of the following is the best example of direct-response print advertising? (1 point) a. an advertorial b. a mailing from a travel agency that asks you to explain why your spouse deserves a dream vacation c. the opening Web page for ebates.com d. a magazine ad that asks you to call a toll-free number for more information e. an unsolicited e-mail that asks you to buy the services of a company that creates web pages

d. a magazine ad that asks you to call a toll-free number for more information

20. _____ is any direct to a consumer or business recipient that is designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for the purchase of a specific good or service. (1 point) a. Mass advertising b. Interactive marketing c. Sales promotion d. Direct marketing e. Personal selling

d. direct marketing

21. _____ is a measurable system of marketing that uses one of more advertising media to affect a measurable response and/or transaction at any location, with this activity stored in a database. (1 point) a. Mass advertising b. Direct selling c. Sales promotion d. Direct marketing e. Personal selling

d. direct marketing

31. A database enables marketers to make _____ to manipulate, analyze, and rank all the information to make better marketing decisions. (1 point) a. encoded inquiries b. decoded responses c. probing searches d .data queries d. feedback requests

d. feedback requests

47. What is the greatest strength of personal selling? (1 point) a. its low cost b. its historically positive reputation c. the fact that it is labor intensive d. its personal nature e. the immediacy of the sale

d. its personal nature

29. Rite Aid announced the launch of a _____ called Living More that provides benefits and savings to customers at least 60 years of age. Every time members use their card they are automatically entered into a quarterly sweepstakes plus getting a ten percent discount off all cash prescriptions as well as a ten percent discount off Rite Aid-brand products. (1 point) a. trade promotion b. direct sales promotion c. interactive program d. loyalty program e. push strategy

d. loyalty program

45. _____ is the interpersonal communications process by which a seller ascertains and then satisfies the needs of the buyer, to the mutual, long-term benefit of both parties. (1 point) a. Direct marketing b. Relationship marketing c. Transactional marketing d. Personal selling e. Viral marketing

d. personal selling

32. Direct marketing expert Bob Stone recommends using the RFM formula to identify a company's best customers. The letters "RFM" are an acronym for: (1 point) a. reposition, find, and monitor b. research, finance, and manipulate c. research, fund, and manage d. recency, frequency, and monetary e. reach, frequency, and marketability

d. recency, frequency, and monetary

53. Which of the following statements about sales promotion is true? (1 point) a. Sales promotion is a deceleration tool. b. Sales promotion normally involves an indirect inducement. c. Sales promotion is usually considered to be complementary. d. Sales promotion may be used anywhere along the marketing route. e. None of the above statements about sales promotion is true.

d. sales promotion may be used anywhere along the marketing route

55. While sales promotions play an important part in the marketing mix, they also: (1 point) a. typically stimulate repeat purchases b. are poor sources of primary research data c. are relatively inexpensive when compared to the CPM cost of media vehicles d. tend to draw the competition into a promotion war e. are ineffective if the advertiser sets its budget using the objective-and-task method

d. tend to draw the competition into a promotion war

57. A sales promotion aimed at members of the distribution channel is called a: (1 point) a. spiff b. diverting promotion c. promotional inducement d. trade promotion e. logistical activity

d. trade promotion

58. Barton Beers invited its retailers to celebrate "Fiestas Patrias," a traditional Mexican holiday that celebrates the country's independence from Spain. The marketing vice president for Barton announced that the company has developed posters, displays, and banners for retailers to use during the celebration period. Barton Beers is using a: (1 point) a. spiff b. diverting promotion c. promotional inducement d. trade promotion e. logistical activity

d. trade promotion

48. Personal selling does a better job of gaining distribution for _____ better than any other communication tool. (1 point) a. brand-oriented products b. intangible services c. generic products d. commodities e. new products

e. new products

38. _____ includes selling and prospecting by telephone, answering phone inquires, and providing sales-related services to callers. (1 point) a. Data mining b. Direct response marketing c. Direct response advertising d. Relationship marketing e. Telemarketing

e. telemarketing