Marketing CHAPTERS 13, 15, 16
In the era of digital cameras, Kodak uses targeted promotion to reach those customers who still desire its 35mm cameras and film. In which stage of the product life cycle is Kodak competing?
Decline
In which stage of the product life cycle does a firm eventually decrease the total amount spent on promotion?
Decline
Two reasons that producers who target business customers emphasize personal selling over other promotion methods =
Fewer customers; larger purchases
Customers who tend to avoid risk by accepting new ideas only after they have been recommended by early adopters are known as ______ .
the early majority
A firm should NOT apply the same promotion blend across all marketing situations to maintain consistency!
true
Choosing the right media and developing the communication message is often the responsibility of the _______ manager.
advertising
Jeffrey is the ______ manager for an automobile repair facility. Recently, he developed a popular commercial that is running on the local television channels.
advertising
Sometimes a company lowers the price of goods it sells to other businesses, which then use the savings to promote the company's products. These discounts are called ______ .
advertising allowances
FedEx markets its services in many countries across the globe. It discovered that customers in Italy trust celebrity endorsements more than customers in Finland. FedEx has come to realize that _______ .
advertising strategies should take cultural differences into account
Most firms spend less money on ______ than on _____ .
advertising; sales promotion
Carrie's Coffee Cafe has markets all over the world. The company should remember that basic strategy planning decisions for advertising and sales promotion ______ .
are the same all over the world
Promotion involves telling customers about the right product available at the right place and ______ .
at the right price
When a marketing manager pushes a product through a channel, he or she ______ .
attempts to sell an entire marketing mix to possible channel members
Nike purchases sponsored advertising links from Google so their message appears on the side of the first page of results when a customer uses the search term "running shoe." Nike is attempting to capture the customer's _____ .
attention
When a company uses a pulling policy to promote products, it refers to _______ .
customers requesting a product from intermediaries
The primary targets of a reminding objective are ______ .
customers who already have positive attitudes about the firm or its products
Communications intended to prompt immediate feedback from specific customers are part of a(n) ______ marketing approach.
direct
Jiffy Lube offers auto maintenance services, including everything from oil changes to preventive maintenance. To highlight its services, the company often mails discount coupons to customers. Jiffy Lube is using ______ marketing to generate business.
direct-response
Customers that are well respected by their peers and often influence the opinions of other consumers with their purchasing decisions are known as ______ .
early adopters
The source uses ______ when it determines what to say and translates that message into words and symbols.
encoding
Although a firm may engage in several different promotional activities at one time, it should strive to produce ______ marketing communications in order to maintain consistent messaging.
integrated
Communicating with large numbers of potential customers at the same time is known as _____ .
mass selling
The method by which a message is delivered is the ______ .
message channel
Well-designed advertising and sales promotion can efficiently....
motivate channel members, convince customers to purchase a product, and tell customers about a service
A distraction that reduces the effectiveness of the communication process is called ______ .
noise
Any disruption of the marketing communications process, also known as _____ , reduces the effectiveness of the message.
noise
A company's advertisements in the local newspaper include a coupon designed to encourage customers to try the company's new product. This is an example of advertising based on ______ .
objectives
The right promotion blend depends on what the firm wants to achieve; therefore, it is critical that promotion ______ be clearly defined.
objectives
Communication with non-customer groups, such as labor, public interest groups, stockholders, and the government, is known as _____.
public relations
An unpaid, non-personal presentation of ideas, goods, or services, is ______ .
publicity
Several competing firms in a market: marketers must build ______ demand (demand for a specific brand rather than a general product idea)
selective
Demand for a specific brand rather than general product idea:
selective demand.
One method for calculating the promotion budget is to allocate a percentage of past sales or expected future sales to promotion activities. This method is common among firms because of its _______ .
simplicity
Encoding is the process used by the ______ during communication.
source
Firms spend the least on which of the following promotion methods?
Advertising
_______ are price reductions to firms further along in the channel to encourage them to advertise or otherwise promote the firm's products locally.
Advertising allowances
Which of the following are examples of sales promotion activities aimed at final consumers or users?
Aisle displays, samples, coupons
One of the advertising objectives for Richter's Jewelry is to get customers to make a decision about a purchase. To achieve this goal, what type of advertising might work best in this step of the adoption process?
Direct action retail ads
Which of the following statements about promotion blends is correct?
Each market segment may require a unique promotion blend.
Which of the following are good examples of objectives that a marketing manager might set for advertising?
Emphasize that the product is more innovative than its rivals; promote the company website as a way for customers to learn more about the product; persuade potential customers to try a sample
What is the final element in the traditional communication process?
Feedback
Which of the following are possible ethical concerns related to promotion?
Honesty; fairness
adopter groups in order
Innovators → early adopters → early majority → late majority → laggards
Darin has clicked on the Outdoor Gear website. What should the marketing manager have already done to make sure the site works for Darin?
Keep Darin interested in Outdoor Gear's offerings; provide truly useful information
Which groups prefer the status quo to new ideas?
Laggards and non-adopters
In response to widespread competition, Coca-Cola increased its use of reminder-type advertising and implemented more frequent-buyer promotions toward its loyal customers. Based on this promotion blend, it would appear that Coca-Cola is operating in which stage of the product life cycle?
Maturity
In which stage of the product life cycle do personal selling and advertising of business products become more aggressive?
Maturity
What is the most common method used for budgeting promotion expenditures?
Percentage of sales method
Kendra is a sales representative for a pharmaceuticals company and meets with doctors and other medical personnel daily to share information about the products her company has available. This is an example of which type of promotion?
Personal selling
Which of the following are acceptable advertising objectives?
Persuade customers to take some specific action that could lead to a purchase; introduce new products to specific target markets; make more people aware of the product
When Orla Oil company was responsible for a major oil spill, it sent a representative to speak to the media to explain what had occurred and what the company was doing to clean up the spill. The representative also stressed that Orla Oil valued the environment and was truly sorry for what had occurred. What type of communication does this demonstrate?
Public relations
Two characteristics of pioneer advertising?
Tells people about a product that is in the process of being launched; helps convince people to embrace new products
What are typical characteristics of the late majority?
They are set in their ways; they are cautious about new ideas
Which of the following are typical characteristics of innovators?
They are willing to take risks; they are eager to try a new idea
What are typical characteristics of the early majority?
They have significant contact with mass media; they wait to consider a new idea
Which of the following are promotion jobs described by the AIDA model?
To arouse desire, to hold interest, to obtain action
Which of the following are signals that a person is ready to make a purchase that can be monitored and targeted by marketing managers?
Visiting the websites of various vendors who sell a specific product; reading articles online about a specific product; "liking" a local retailer of a specific product on Facebook
Promotion efforts need to _____ in order to accommodate various adopter groups.
change over time
The advertising manager asked his team if it was better to place their ad in local newspapers or national magazines. The manager is trying to determine the best message ______ .
channel
The ______ process describes attempts by a source to send a message to a receiver.
communication
When a source attempts to transmit a message to a receiver, it is participating in the ______ .
communication process
Many customers called to complain about the NewTrend shoes they had purchased because the bottom of the shoe split in half within days of wearing them. This customer communication is an example of ______ .
feedback
AIDA model:
get attention → hold interest → arouse desire → obtain action
Product advertising tries to sell ______
goods or services
Celebrity endorsements often draw ethics complaints _______ .
if consumers do not believe that the celebrity actually uses the product
When customers have the choice about whether to stay at a company's website or visit a competitor's site, they are considered ______ customers, and promotion efforts must address their needs at that moment.
inbound
Customers typically want to know something about a product before they consider purchasing it. A(n) ______ objective can show that the product meets consumer needs.
informing
Samsung placed an ad in Rolling Stone magazine announcing the Galaxy Tab, the world's thinnest tablet computer. The ad focused on the benefits that it offered based on common customer needs. Samsung is using a(n) ______ objective for its ad.
informing
By making a decision to search for information in a specific message channel, the customer is ________ communication.
initiating
Gerald is a recent college graduate and is in the market for a new automobile. He searches the Internet for information and then visits different automobile dealerships to speak to the sales people and perform a test drive. By doing these things, Gerald is _______ the communication process.
initiating
The first group to adopt new ideas are called ______ .
innovators
Frito-Lay is promoting the SunChips brand as being environmentally friendly. This message is communicated in all of its print and television ads, point of purchase displays, and packaging. The company is using a(n) ________ strategy.
integrated marketing communications
When companies use _______ , they promote the product to their own salespeople or other employees who are in regular contact with customers.
internal marketing
Customers who avoid change and are very suspicious of new ideas are called ______ .
laggards
Mass selling is an ideal promotion strategy to save costs when the market is _____ .
large and scattered
Allison has reluctantly purchased a "smartphone." She finally decided after much pressure from her sorority sisters who told her to "catch up to the real world." When it comes to mobile phones, Allison is a member of the ______ group.
late majority
A significant difference between advertising and publicity is that publicity does not entail _______
paying media costs
Communication with wholesalers and retailers includes information about what promotion will be directed toward the final consumer, each channel member's part in marketing the product, and important financial details. This communication is generally handled through ______ .
personal selling
Direct spoken communication between sellers and potential customers is called ______ .
personal selling
Sales managers oversee _____.
personal selling
The most common promotion approach in business markets is _______ .
personal selling
Famous for his long and thick hair, NFL star Troy Polamalu has a contract with Procter & Gamble to endorse Head and Shoulders shampoo. Procter & Gamble has a(n) ______ objective when it uses Troy to demonstrate that Head and Shoulders shampoo is superior to competing products and thus should be purchased.
persuading
When several firms offer similar products, companies often develop a(n) _______ objective, which tries to convince customers to buy, and continue to buy, their products and not the competitor products.
persuading
Promotion for a really new product idea should seek to generate interest in the product idea rather than a specific brand, otherwise known as ______ .
primary demand
Demand for a broad product idea rather than a specific brand =
primary demand.
The act of communicating information about a product to potential buyers in an attempt to influence their attitudes and behaviors, otherwise known as ______ , is an important part of a firm's marketing mix.
promotion
The use of advertising and sales promotion by a company plays a central role in the _______ blend of the marketing mix because it helps the company reach many customers at the same time.
promotion
Attempting to sell the whole marketing mix to all possible channel members is known as _______ .
pushing
Jackson Air Conditioning & Heating sends out postcards to its previous customers every April alerting them to have their air conditioners checked before the summer months arrive. Jackson's direct mail campaign appears to be guided by a(n) _______ objective.
reminding
Three basic promotion objectives:
reminding, persuading, informing
Managing personal selling is the responsibility of the ______ .
sales manager
Any promotional activity outside of advertising, publicity, and personal selling that attracts potential customers is known as ______ .
sales promotion
Lindsey is responsible for planning the monthly coupon booklet for her company. The booklet is distributed to customers when they walk into a store so they can take advantage of cost savings as they shop. Lindsey is an example of a(n) _____ manager.
sales promotion
Direction of a company's sales promotion effort is the responsibility of the _____ .
sales promotion manager
Most of the important communication with wholesalers and retailers are handled by ______ .
salespeople
According to the Model of Customer-Initiated Interactive Communication, communication begins when a customer ______ .
searches for information
The model of customer-initiated interactive communication includes ______.
the receiver, the source message, a search, a message channel
Co. uses internal marketing to sell or promote products to ______ .
their salespeople
Angela is surfing the Internet reading articles about ladies' watches, "liking" different watchmakers on Facebook, and examining customer reviews about watch brands. These activities are useful to marketers because ______ .
they are a signal that Angela is ready to purchase a watch
Typical characteristics of early adopters:
they have fewer contacts outside their own community than innovators; they are opinion leaders; they have the greatest contact with salespeople of all adopter groups.